DOJ's $11.4M emergency switch gear repair contract awarded to Power Systems Testing Co

Contract Overview

Contract Amount: $11,405 ($11.4K)

Contractor: Power Systems Testing CO

Awarding Agency: Department of Justice

Start Date: 2026-04-02

End Date: 2026-06-13

Contract Duration: 72 days

Daily Burn Rate: $158/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 26Z6AR2 EMERGENCY SWITCH GEAR REPAIRS

Place of Performance

Location: MENDOTA, FRESNO County, CALIFORNIA, 93640

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $11,405.2 to POWER SYSTEMS TESTING CO for work described as: 26Z6AR2 EMERGENCY SWITCH GEAR REPAIRS Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 3. A short performance period of 72 days indicates a time-sensitive need for the repairs. 4. The award was made to a single bidder, raising questions about the extent of competition. 5. The contractor, Power Systems Testing Co., is relatively new to federal contracting based on available data. 6. The contract falls under the 'Electrical Contractors and Other Wiring Installation Contractors' NAICS code.

Value Assessment

Rating: questionable

Benchmarking the value of this $11.4 million contract is challenging without more detailed cost breakdowns or comparable emergency repair contracts. The award was made under SAP, which typically involves less stringent price competition than larger contract vehicles. Given the emergency nature and the single bidder, it's difficult to definitively assess if the pricing represents optimal value for the government. Further analysis would require understanding the specific scope of work and the market rates for such specialized emergency repairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition than full and open procedures. While the data indicates it was 'competed,' the fact that only one bid was received suggests limited market engagement or a potentially narrow scope that attracted only one qualified respondent. The specific competition method within SAP (e.g., RFQ to multiple vendors, or a more limited outreach) is not detailed, making a precise assessment of competition dynamics difficult.

Taxpayer Impact: A single bidder in a competed procurement can lead to higher prices for taxpayers as the government may not benefit from the full spectrum of market competition and innovation. This could result in a less favorable price than if multiple vendors had submitted proposals.

Public Impact

The primary beneficiaries are the Federal Prison System facilities in California requiring emergency switch gear repairs. The services delivered are critical electrical infrastructure maintenance, ensuring operational continuity. The geographic impact is localized to the specific Bureau of Prisons facility or facilities in California where the repairs are conducted. Workforce implications include the employment of skilled electricians and technicians by Power Systems Testing Co. for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of innovative solutions.
The emergency nature of the contract may have constrained the government's ability to conduct thorough due diligence on pricing.
Short performance period could indicate rushed work or potential for unforeseen issues impacting quality.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Awarding to a specialized contractor ensures necessary technical expertise for critical infrastructure.
The contract addresses an immediate operational need, preventing potential disruptions.

Sector Analysis

The electrical contractors and wiring installation sector is vital for maintaining critical infrastructure across all government agencies. This contract falls within the broader construction and maintenance services market. Federal spending in this area often involves both routine maintenance and emergency repairs, with emergency services typically commanding higher prices due to urgency and limited contractor availability. The $11.4 million value places this contract in the mid-range for specialized repair services, but its emergency nature and short duration are key differentiating factors.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the value and specialized nature of emergency switch gear repairs, it's possible that larger, specialized firms are more likely to bid. Further investigation into the contractor's size and any subcontracting requirements would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and facilities management divisions. The contract's short duration and specific repair nature suggest direct oversight of work completion and quality. Transparency is limited by the SAP procurement method, but contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Maintenance Contracts
Emergency Repair Services
Electrical Infrastructure Upgrades
Department of Justice Facilities Management

Risk Flags

Limited Competition
Potential for Overpricing
Contractor Performance Risk
Emergency Procurement Urgency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11,405.2 to POWER SYSTEMS TESTING CO. 26Z6AR2 EMERGENCY SWITCH GEAR REPAIRS

Who is the contractor on this award?

The obligated recipient is POWER SYSTEMS TESTING CO.

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 $11,405.2.

What is the period of performance?

Start: 2026-04-02. End: 2026-06-13.

What is the track record of Power Systems Testing Co. with federal contracts?

Based on the provided data, Power Systems Testing Co. appears to be a relatively new entrant into federal contracting. The award details suggest this may be one of their initial significant federal awards, particularly under the Department of Justice. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the full extent of their federal contract history, including past performance, any prior awards, and their performance ratings on those contracts. Understanding their experience with similar emergency repair services and their financial stability would be crucial for assessing future performance risk.

How does the $11.4 million value compare to similar emergency switch gear repair contracts?

Direct comparison of the $11.4 million value is difficult without knowing the exact scope of work and the specific type of switch gear involved. Emergency repairs are inherently more expensive than planned maintenance due to urgency, potential overtime labor, and the need for immediate mobilization. Contracts for emergency services can vary widely based on the criticality of the equipment, the size and complexity of the facility, and the geographic location. However, for a 72-day duration, $11.4 million suggests a significant scope or a very high-cost emergency situation requiring specialized, rapid response.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include limited competition, as it was awarded to a single bidder under SAP. This raises concerns about whether the government received the best possible price and if the contractor faced sufficient pressure to offer optimal value. Another risk is the contractor's potentially limited track record in federal contracting, which could imply a higher risk of performance issues, delays, or cost overruns, despite the FFP structure. The emergency nature itself presents a risk, as it may have necessitated a rushed procurement process, potentially overlooking critical due diligence aspects.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for emergency repairs?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for the government because it places the responsibility for cost overruns on the contractor. This provides budget certainty. For emergency repairs, FFP can be beneficial by locking in a price upfront, preventing costs from escalating due to unforeseen complications during the urgent repair process. However, if the initial scope is poorly defined or underestimated, the contractor might face losses, or conversely, if the price is set too high due to the emergency context and limited competition, the government might overpay. The effectiveness hinges on accurate initial scope definition and realistic pricing.

What is the historical spending pattern for emergency switch gear repairs by the Bureau of Prisons?

Analyzing historical spending patterns for emergency switch gear repairs by the Bureau of Prisons would require access to detailed federal procurement data over several fiscal years. This would involve querying databases for contracts with similar keywords (e.g., 'emergency repair,' 'switch gear,' 'electrical maintenance') awarded to the Bureau of Prisons or its facilities. Such an analysis could reveal trends in contract values, average durations, common contractors, and the frequency of emergency procurements. This context would help determine if the $11.4 million award is an outlier or consistent with past spending for similar urgent needs.

What are the implications of awarding under Simplified Acquisition Procedures (SAP) for this contract?

Awarding under Simplified Acquisition Procedures (SAP) means the contract falls below the threshold for full and open competition ($250,000 for most agencies, though higher for certain construction/architectural services). SAP allows for more streamlined and faster procurement processes, which is often suitable for urgent needs like emergency repairs. However, it typically involves less formal competition, potentially limiting the number of bidders and the rigor of price analysis. For a $11.4 million contract, using SAP suggests the agency deemed it appropriate for expedited handling, but it also means taxpayers may not have benefited from the broadest possible competition or the most detailed price scrutiny typically applied to larger contracts.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6736 PRESTON AVE STE E, LIVERMORE, CA, 94551

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

Financial Breakdown

Contract Ceiling: $11,405

Exercised Options: $11,405

Current Obligation: $11,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline