DOJ's $512M Hurricane Generator Contract Awarded to Engineering Services Int'l for Puerto Rico Prison

Contract Overview

Contract Amount: $5,120,571 ($5.1M)

Contractor: Engineering Services Int'l, LLC

Awarding Agency: Department of Justice

Start Date: 2021-04-30

End Date: 2026-06-30

Contract Duration: 1,887 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE GENERATOR HURRICANE AT MDC GUAYNABO (PROJECT 3D3X).

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00907

Plain-Language Summary

Department of Justice obligated $5.1 million to ENGINEERING SERVICES INT'L, LLC for work described as: REPLACE GENERATOR HURRICANE AT MDC GUAYNABO (PROJECT 3D3X). Key points: 1. Contract awarded for critical infrastructure resilience in Puerto Rico. 2. Competition method indicates a potentially competitive bidding process. 3. Risk of cost overruns or performance issues exists, common in large infrastructure projects. 4. Spending falls within the Electrical Contractors and Other Wiring Installation Contractors sector.

Value Assessment

Rating: good

The contract value of $512,057,100 is substantial, reflecting the scale of the project. Benchmarking against similar large-scale generator installations for critical facilities is necessary for a precise assessment, but the firm fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting an initial broad solicitation followed by specific source exclusions. This method can lead to competitive pricing if the exclusion criteria were narrowly defined and justified.

Taxpayer Impact: The firm fixed-price contract aims to provide cost certainty for taxpayers, though the overall value indicates a significant investment in infrastructure.

Public Impact

Ensures reliable power for a federal correctional facility in Puerto Rico, crucial for operations and inmate safety. Supports infrastructure resilience against natural disasters like hurricanes. The project's success impacts the operational continuity of the Bureau of Prisons in the region. Potential for job creation and economic activity in Puerto Rico through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a large infrastructure project.
Dependency on a single contractor for critical power generation.
Geographic challenges in Puerto Rico could impact logistics and execution.

Positive Signals

Firm fixed-price contract helps control costs.
Awarded after full and open competition, suggesting a competitive process.
Addresses a critical need for power reliability.

Sector Analysis

This contract falls under the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). Spending in this sector is often driven by infrastructure upgrades, new construction, and maintenance of critical facilities, with significant government investment.

Small Business Impact

The data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses are being engaged for portions of this large contract.

Oversight & Accountability

The Bureau of Prisons, under the Department of Justice, is responsible for overseeing this contract. Standard oversight mechanisms for large federal contracts, including performance monitoring and payment reviews, should be in place.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Large contract value increases risk of cost overruns.
Project duration extends over multiple fiscal years, increasing exposure to changing requirements or budget constraints.
Geographic location in Puerto Rico may present logistical and environmental challenges.
Reliance on a single definitive contract for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.1 million to ENGINEERING SERVICES INT'L, LLC. REPLACE GENERATOR HURRICANE AT MDC GUAYNABO (PROJECT 3D3X).

Who is the contractor on this award?

The obligated recipient is ENGINEERING SERVICES INT'L, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2021-04-30. End: 2026-06-30.

What is the specific justification for excluding other sources after the initial full and open competition?

The justification for excluding other sources after initial full and open competition is critical for understanding the true level of competition. If the exclusions were based on highly specific technical requirements or unique capabilities, it might limit competitive pricing. Conversely, if the exclusions were arbitrary, it could indicate a less competitive outcome and potentially higher costs for taxpayers.

How will the performance of Engineering Services Int'l, LLC be monitored to ensure timely and quality completion of the generator project?

Performance monitoring will likely involve regular site inspections, progress reports from the contractor, and milestone reviews by the contracting officer's representative (COR). Key performance indicators (KPIs) related to schedule adherence, quality of materials and installation, and safety compliance will be tracked. Any deviations from the plan will trigger corrective action discussions and potential penalties outlined in the contract.

What are the contingency plans if the primary contractor faces significant delays or performance issues?

Contingency plans typically involve contract clauses allowing for termination for default, with potential liability for the contractor. The government could then seek to complete the work through another contractor, potentially at a higher cost. Alternatively, contract modifications might be used to address minor issues, or a cure notice could be issued to allow the contractor to rectify problems before more severe actions are taken.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 15B30621B00000001

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 644 AVE FERNANDEZ JUNCOS STE 404, SAN JUAN, PR, 00907

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,120,571

Exercised Options: $5,120,571

Current Obligation: $5,120,571

Actual Outlays: $46,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline