State Dept Awards $8.6M for Worldwide Embassy Medium Voltage Maintenance to OEG Inc
Contract Overview
Contract Amount: $8,616,912 ($8.6M)
Contractor: OEG Inc
Awarding Agency: Department of State
Start Date: 2018-09-23
End Date: 2027-12-31
Contract Duration: 3,386 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MEDIUM VOLTAGE MAINTENANCE AND REPAIRS AT VARIOUS WORLDWIDE EMBASSY LOCATIONS.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97214
State: Oregon Government Spending
Plain-Language Summary
Department of State obligated $8.6 million to OEG INC for work described as: MEDIUM VOLTAGE MAINTENANCE AND REPAIRS AT VARIOUS WORLDWIDE EMBASSY LOCATIONS. Key points: 1. Contract awarded to OEG Inc. for essential infrastructure maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans nearly a decade, indicating long-term service needs. 4. Focus on electrical contractors highlights a specialized service requirement.
Value Assessment
Rating: good
The contract value of $8.6 million over approximately 9.5 years suggests a reasonable annual spend for specialized, worldwide maintenance. Benchmarking against similar global infrastructure maintenance contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under an existing award mechanism implies a structured procurement process.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for critical embassy infrastructure.
Public Impact
Ensures operational continuity and safety at U.S. embassies globally. Supports critical electrical infrastructure in potentially high-risk environments. Provides essential maintenance services that prevent costly failures and disruptions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Long-term contract ensures consistent service.
- Essential infrastructure maintenance.
Sector Analysis
This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector, focusing on specialized maintenance for medium voltage systems. Spending in this sector is crucial for maintaining reliable power infrastructure for government facilities worldwide.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as OEG Inc. is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. The long duration suggests a need for robust oversight to ensure performance and cost control throughout the contract period.
Related Government Programs
- Electrical Contractors and Other Wiring Installation Contractors
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration may lead to price escalation if not managed.
- Geographic dispersion adds logistical complexity and potential cost overruns.
- Reliance on a single contractor for critical infrastructure requires strong oversight.
Tags
electrical-contractors-and-other-wiring-, department-of-state, or, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $8.6 million to OEG INC. MEDIUM VOLTAGE MAINTENANCE AND REPAIRS AT VARIOUS WORLDWIDE EMBASSY LOCATIONS.
Who is the contractor on this award?
The obligated recipient is OEG INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2018-09-23. End: 2027-12-31.
What is the estimated annual cost for this medium voltage maintenance contract, and how does it compare to industry benchmarks for similar global facilities?
The total contract value is $8.6 million over approximately 3386 days (about 9.27 years), equating to an average annual spend of roughly $927,000. This figure needs to be benchmarked against similar contracts for maintaining critical electrical infrastructure in diverse international locations to assess its value for money.
What specific risks are associated with maintaining medium voltage systems at various worldwide embassy locations, and how are these risks mitigated by the contract terms?
Risks include geopolitical instability, varying local regulations, harsh environmental conditions, and the critical nature of embassy operations. Mitigation likely involves OEG Inc.'s specialized expertise, adherence to strict security protocols, and potentially contingency planning within the contract for unforeseen events or emergencies.
How does the firm-fixed-price contract type contribute to cost certainty and contractor performance for this long-term, geographically dispersed maintenance requirement?
A firm-fixed-price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This incentivizes the contractor to manage costs efficiently and perform diligently to maintain profitability, which is beneficial for a long-term, specialized service like this.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1709 SE 3RD AVE, PORTLAND, OR, 97214
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,544,809
Exercised Options: $9,544,809
Current Obligation: $8,616,912
Actual Outlays: $1,110,251
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM18D0070
IDV Type: IDC
Timeline
Start Date: 2018-09-23
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-04-07
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