DOJ awards $3.1M FFP construction contract for switchgear replacement at Takota Flats

Contract Overview

Contract Amount: $3,141,375 ($3.1M)

Contractor: Takota Flats-Seg JV LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-27

End Date: 2026-06-01

Contract Duration: 612 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIRM-FIXED PRICE (FFP) CONSTRUCTION FOR SWITCHGEAR REPLACEMENT AT JEH

Place of Performance

Location: ROUND HILL, LOUDOUN County, VIRGINIA, 20141

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $3.1 million to TAKOTA FLATS-SEG JV LLC for work described as: FIRM-FIXED PRICE (FFP) CONSTRUCTION FOR SWITCHGEAR REPLACEMENT AT JEH Key points: 1. Contract awarded to a joint venture, potentially indicating specialized capabilities. 2. The firm-fixed-price structure shifts risk to the contractor, aligning incentives for completion. 3. A single award suggests limited competition, which could impact pricing and innovation. 4. The contract duration of 612 days allows for substantial project execution. 5. The project's focus on critical infrastructure (switchgear replacement) highlights its importance to facility operations.

Value Assessment

Rating: fair

The contract value of $3.14 million for switchgear replacement appears within a reasonable range for a project of this nature, though specific benchmarks are unavailable without more detailed scope information. As a firm-fixed-price contract, the pricing is set upfront, with the contractor bearing the risk of cost overruns. Benchmarking against similar federal projects for electrical infrastructure upgrades would provide a clearer picture of value for money, but the absence of competition makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source contract. This indicates that the agency identified a specific contractor deemed necessary for the work, potentially due to unique qualifications, existing infrastructure knowledge, or other specific circumstances. The lack of competition means that the government did not solicit bids from multiple vendors, which can limit price discovery and potentially lead to higher costs than if a competitive process had been employed.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost savings typically achieved through competitive bidding processes. Without multiple offers, the potential for negotiation and securing the lowest possible price is diminished.

Public Impact

The Federal Bureau of Investigation (FBI) will benefit from upgraded electrical infrastructure at the Takota Flats facility. The contract will ensure the reliable operation of critical systems by replacing aging switchgear. The project's geographic impact is localized to the Takota Flats facility in Virginia. The contract is expected to create or sustain jobs within the electrical contracting and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about whether the best possible price was secured for taxpayers.
Sole-source awards can sometimes indicate a lack of market research or planning by the agency.
The contractor's track record on similar sole-source projects would be a key area for scrutiny.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
The award to a joint venture (TAKOTA FLATS-SEG JV LLC) may suggest a capacity to handle complex projects.
The project addresses essential infrastructure needs, ensuring operational continuity for the FBI.

Sector Analysis

This contract falls within the construction and electrical contracting sector, specifically focusing on industrial electrical systems. The North American Industry Classification System (NAICS) code 238210, Electrical Contractors and Other Wiring Installation Contractors, is relevant here. The market for such services is driven by the need for facility maintenance, upgrades, and new construction across government and private sectors. Federal spending in this area is often substantial, particularly for agencies with significant real estate holdings like the Department of Justice.

Small Business Impact

The contract was awarded to TAKOTA FLATS-SEG JV LLC, a joint venture. It is noted that the contract was not set aside for small businesses (ss: false) and did not involve small business subcontracting (sb: false). This suggests that the primary awardee is likely a larger entity or a joint venture composed of larger entities, and there may be limited direct opportunities for small businesses through this specific contract, either as prime contractors or as mandated subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Justice, specifically the Federal Bureau of Investigation, through their contracting and program management offices. Given the firm-fixed-price nature, performance monitoring will focus on schedule adherence and quality of work. Transparency may be limited due to the sole-source award, but contract details and performance reports should be accessible through federal procurement databases. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

FBI Facility Modernization Projects
Department of Justice Infrastructure Upgrades
Federal Electrical Systems Maintenance
Government Building Electrical Retrofits

Risk Flags

Sole-source award may limit price competition.
Contractor's performance history on similar sole-source projects requires verification.
Scope definition clarity is crucial for FFP contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.1 million to TAKOTA FLATS-SEG JV LLC. FIRM-FIXED PRICE (FFP) CONSTRUCTION FOR SWITCHGEAR REPLACEMENT AT JEH

Who is the contractor on this award?

The obligated recipient is TAKOTA FLATS-SEG JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-06-01.

What is the specific scope of work for the switchgear replacement at Takota Flats?

The provided data indicates 'FIRM-FIXED PRICE (FFP) CONSTRUCTION FOR SWITCHGEAR REPLACEMENT AT JEH' at Takota Flats. While the exact components and extent of the replacement are not detailed, switchgear typically includes circuit breakers, switches, fuses, and associated control equipment for electrical distribution systems. This project likely involves the removal of old equipment and the installation of new, modern switchgear to ensure the reliable and safe distribution of electricity within the facility. The firm-fixed-price nature suggests a defined scope agreed upon at the time of award, with the contractor responsible for delivering the specified outcome within the agreed budget.

What is the track record of TAKOTA FLATS-SEG JV LLC on similar federal contracts?

Information regarding the specific track record of TAKOTA FLATS-SEG JV LLC on similar federal contracts is not provided in the data. As this is a joint venture, its performance history may be a composite of its member companies or a newly established entity. For a comprehensive assessment, a review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for the joint venture itself, and potentially its principal members, would be necessary. This would help ascertain their experience with firm-fixed-price construction, electrical infrastructure projects, and adherence to schedule and budget on government contracts.

How does the contract value compare to industry benchmarks for similar electrical infrastructure projects?

Directly comparing the $3.14 million contract value to industry benchmarks for switchgear replacement is challenging without a detailed scope of work and specific project requirements. Factors such as the size of the facility, the voltage levels involved, the complexity of the existing electrical system, and the specific type of switchgear being installed significantly influence costs. However, for a federal facility of substantial size, this value appears to be within a plausible range. The lack of competition makes it difficult to assess if this represents optimal value for money compared to what might have been achieved in a competitive bidding environment.

What are the potential risks associated with a sole-source award for this type of project?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Other risks include limited innovation, as the contractor may have less incentive to propose novel or more efficient methods. Furthermore, sole-source awards can sometimes indicate a lack of thorough market research or strategic planning by the agency, potentially leading to suboptimal contractor selection or contract terms. Ensuring the selected contractor possesses the necessary expertise and capacity is crucial to mitigate performance risks.

What is the historical spending pattern for electrical contractors and wiring installation at the Department of Justice?

Historical spending patterns for electrical contractors and wiring installation at the Department of Justice (DOJ) would require analysis of federal procurement data over several fiscal years. The NAICS code 238210 provides a category for such services. Agencies like the DOJ, with extensive facilities nationwide, typically allocate significant funds to maintaining and upgrading their electrical infrastructure. Spending can fluctuate based on major renovation projects, new construction initiatives, and the aging of existing systems. A detailed review would likely show consistent, albeit variable, spending in this category to ensure operational reliability and safety across its various components, including the FBI.

What are the implications of the firm-fixed-price contract type for project performance and cost control?

A firm-fixed-price (FFP) contract type means the contractor agrees to a total price for a well-defined scope of work. This shifts the primary cost risk to the contractor, as they are obligated to complete the project for the agreed-upon price, regardless of their actual costs. For the government, this provides cost certainty and predictability. It incentivizes the contractor to manage their costs efficiently and adhere to the schedule to maximize profit. However, if the scope of work is not clearly defined or if unforeseen issues arise that require changes, contract modifications can become complex and potentially costly. For this switchgear replacement project, the FFP structure is beneficial for budget control, assuming the scope is accurately captured.

Industry Classification

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

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15F06724R0000260

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 35734 PARKLAWN CT, ROUND HILL, VA, 20141

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,141,375

Exercised Options: $3,141,375

Current Obligation: $3,141,375

Actual Outlays: $1,619,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline