National Park Service awards $400K for generator maintenance in U.S. Virgin Islands

Contract Overview

Contract Amount: $40,000 ($40.0K)

Contractor: MLC Holdings LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-12

End Date: 2026-06-30

Contract Duration: 656 days

Daily Burn Rate: $61/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICE, REPAIR SERVICES ON GENERATORS AND AUTOMATIC TRANSFER SWITCHES (ATS) WITHIN VIRGIN ISLANDS NATIONAL PARK

Place of Performance

Location: ST JOHN, SAINT JOHN County, VIRGIN ISLANDS OF THE U.S., 00830

Plain-Language Summary

Department of the Interior obligated $40,000 to MLC HOLDINGS LLC for work described as: SERVICE, REPAIR SERVICES ON GENERATORS AND AUTOMATIC TRANSFER SWITCHES (ATS) WITHIN VIRGIN ISLANDS NATIONAL PARK Key points: 1. Contract focuses on essential infrastructure maintenance for a critical national park. 2. Competition dynamics appear favorable given the contract was competed under SAP. 3. Risk indicators are low due to the nature of the service and fixed-price contract. 4. Performance context involves ensuring operational continuity of park facilities. 5. Sector positioning is within essential services for government operations.

Value Assessment

Rating: good

The contract value of $400,000 for generator and ATS repair services over approximately two years appears reasonable for the geographic location and scope. Benchmarking against similar contracts for remote or island-based maintenance services would provide further context, but the fixed-price nature suggests a degree of cost control. The number of bids (3) indicates some level of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised and open to a broad range of potential offerors. With three bids received, there was a degree of competition, suggesting that multiple companies were aware of and interested in the opportunity. This level of competition, while not extensive, is generally sufficient to promote price discovery and encourage competitive pricing for services of this magnitude.

Taxpayer Impact: The use of SAP and the receipt of multiple bids suggest that taxpayer funds were likely used efficiently, as competition helps drive down costs compared to a sole-source award.

Public Impact

Benefits park visitors and staff by ensuring reliable power for facilities. Services delivered include maintenance and repair of generators and automatic transfer switches. Geographic impact is concentrated within the U.S. Virgin Islands National Park. Workforce implications may involve local or regional technicians for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if maintenance is not performed to standard.
Logistical challenges for parts and personnel in the U.S. Virgin Islands.
Dependence on a single contractor for critical power infrastructure.

Positive Signals

Fixed-price contract structure limits cost overruns.
Competition, even under SAP, provides some assurance of fair pricing.
Essential service contract ensures operational continuity for the park.

Sector Analysis

This contract falls within the industrial machinery repair and maintenance sector, specifically for critical power generation and distribution equipment. The market for such services, particularly in remote or island locations like the U.S. Virgin Islands, can be specialized. The contract value is relatively small, typical for maintenance services at a single park location, rather than large-scale infrastructure projects.

Small Business Impact

The contract was competed under SAP, which often includes provisions to encourage small business participation. However, without specific details on whether this was a small business set-aside or if small businesses were among the bidders, its direct impact on the small business ecosystem is unclear. Subcontracting opportunities may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight is likely managed by the National Park Service contracting officers and program managers responsible for the Virgin Islands National Park. As a purchase order, it falls under standard procurement regulations. Transparency is generally maintained through federal procurement databases, though specific performance monitoring details are not provided.

Related Government Programs

National Park Service Operations and Maintenance
Federal Infrastructure Maintenance Contracts
Emergency Power Systems Maintenance

Risk Flags

Potential for service disruption due to contractor performance issues.
Logistical challenges inherent in remote island locations.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $40,000 to MLC HOLDINGS LLC. SERVICE, REPAIR SERVICES ON GENERATORS AND AUTOMATIC TRANSFER SWITCHES (ATS) WITHIN VIRGIN ISLANDS NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is MLC HOLDINGS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $40,000.

What is the period of performance?

Start: 2024-09-12. End: 2026-06-30.

What is the track record of MLC Holdings LLC in performing similar generator and ATS maintenance services for federal agencies?

Assessing the track record of MLC Holdings LLC requires a review of their past performance on federal contracts, particularly those involving generator and automatic transfer switch (ATS) maintenance. Information on contract performance ratings, any past disputes or terminations, and the types of agencies they have served would be crucial. A search of the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would likely reveal relevant past performance data. Without this specific data, it's difficult to definitively assess their reliability and expertise for this critical infrastructure support role within the National Park Service.

How does the awarded price compare to industry benchmarks for generator and ATS maintenance in island environments?

Benchmarking the $400,000 award against industry standards for generator and ATS maintenance in island environments is challenging without specific cost data or detailed service level agreements. Island locations often incur higher logistical costs for parts, specialized labor, and travel, which can inflate service prices compared to mainland contracts. The number of bids (3) suggests some competitive pressure, but the true value-for-money depends on the scope of work, frequency of service, response times required, and the specific types and ages of the equipment being maintained. A detailed cost-per-hour or cost-per-service comparison would be needed for a robust benchmark.

What are the potential risks associated with relying on a single contractor for critical power infrastructure maintenance in a remote location?

Relying on a single contractor, even one selected through competition, for critical power infrastructure in a remote location like the U.S. Virgin Islands presents several risks. These include potential service disruptions if the contractor experiences financial difficulties, labor shortages, or fails to meet performance standards. Emergency response times could be impacted if the contractor is overextended or unable to deploy resources quickly. Furthermore, the government may have less leverage in negotiating future contract terms or addressing issues if alternative contractors are scarce or unfamiliar with the specific park equipment. Robust oversight and contingency planning are essential to mitigate these risks.

What is the historical spending pattern for generator and ATS maintenance at the Virgin Islands National Park?

To understand the historical spending patterns for generator and ATS maintenance at the Virgin Islands National Park, one would need to analyze procurement data over several previous fiscal years. This analysis should identify all contracts awarded for similar services, their values, durations, and the contractors involved. Comparing the current $400,000 award against this historical data would reveal whether spending has increased, decreased, or remained consistent. It would also highlight any trends in contractor selection and the frequency of contract awards for this specific type of maintenance, providing context for the current procurement's value and necessity.

How does the duration of this contract (656 days) align with typical maintenance cycles for essential park equipment?

The contract duration of 656 days, approximately 22 months, appears reasonable for a firm-fixed-price contract covering routine and potentially some corrective maintenance for generators and automatic transfer switches. This timeframe allows for multiple scheduled maintenance cycles (e.g., quarterly or semi-annual checks) and provides a buffer for unexpected repairs over a significant period. Typical maintenance cycles for such equipment often involve regular inspections and servicing, making a duration of around two years a common approach to ensure consistent upkeep without requiring frequent re-competition, while still allowing for reassessment of needs and market conditions.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140P5424Q0039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8220 SUBBASE # 86, ST THOMAS, VI, 00802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,000

Exercised Options: $40,000

Current Obligation: $40,000

Actual Outlays: $18,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline