State Department awards $76.6M contract for generator maintenance, highlighting long-term operational needs

Contract Overview

Contract Amount: $76,590 ($76.6K)

Contractor: Empresas Matco

Awarding Agency: Department of State

Start Date: 2025-03-27

End Date: 2027-04-05

Contract Duration: 739 days

Daily Burn Rate: $104/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: HMO-BME NCC GENERATOR MAINTENANCE SERVICE CONTRACT 2025-2030

Plain-Language Summary

Department of State obligated $76,589.92 to EMPRESAS MATCO for work described as: HMO-BME NCC GENERATOR MAINTENANCE SERVICE CONTRACT 2025-2030 Key points: 1. The contract value suggests a significant investment in maintaining critical infrastructure. 2. The firm-fixed-price structure aims to control costs over the contract duration. 3. A single award indicates a focused approach to service delivery. 4. The duration of the contract (over two years) points to a need for sustained operational support. 5. The North American Industry Classification System (NAICS) code 221112 points to the electric power generation sector.

Value Assessment

Rating: good

The contract value of approximately $76.6 million over roughly two years represents a substantial commitment to generator maintenance. Benchmarking this against similar long-term service contracts for critical infrastructure would provide a clearer picture of value for money. The firm-fixed-price (FFP) type suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if managed effectively. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a reasonably competitive environment for this type of specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, driving down prices and improving the quality of services through market forces.

Public Impact

The primary beneficiaries are the Department of State facilities requiring reliable power generation. The contract ensures the continued operation and maintenance of essential power generation equipment. Geographic impact is likely concentrated around State Department installations where these generators are located. The contract supports specialized technical roles in generator maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance requirements are not clearly defined.
Risk of contractor performance issues impacting critical power supply.
Dependency on a single contractor for essential maintenance services.

Positive Signals

Firm-fixed-price contract helps control costs.
Full and open competition suggests a competitive market for these services.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the broader energy sector, specifically focusing on the maintenance of fossil fuel electric power generation equipment. The market for specialized industrial maintenance services is often characterized by a mix of large industrial service providers and smaller, niche firms. The Department of State's spending in this area is critical for ensuring operational continuity at its facilities, especially in potentially remote or challenging environments. Comparable spending benchmarks would typically be found within other government agencies or large industrial organizations with similar power generation needs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on large-scale service providers. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would be indirect, primarily through potential opportunities if larger contractors engage them for specialized tasks, though this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures are inherent in the firm-fixed-price structure, where the contractor is responsible for delivering services within the agreed price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. The Inspector General's office for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State Facilities Management
Critical Infrastructure Maintenance
Federal Energy Management Program
Government Generator Services

Risk Flags

Long-term contract dependency
Potential for performance issues impacting critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $76,589.92 to EMPRESAS MATCO. HMO-BME NCC GENERATOR MAINTENANCE SERVICE CONTRACT 2025-2030

Who is the contractor on this award?

The obligated recipient is EMPRESAS MATCO.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $76,589.92.

What is the period of performance?

Start: 2025-03-27. End: 2027-04-05.

What is the historical spending pattern for generator maintenance services by the Department of State?

Analyzing historical spending for generator maintenance by the Department of State is crucial for understanding trends and justifying current contract values. Without access to specific historical data for this contract or similar services, it's difficult to provide precise figures. However, federal agencies typically maintain generator systems across numerous domestic and overseas facilities. Spending in this area can fluctuate based on the age of equipment, maintenance schedules, and the number of facilities requiring such services. A review of past solicitations and awards for generator maintenance, potentially using contract databases, would reveal if this $76.6 million award represents an increase, decrease, or consistent level of investment compared to previous periods. Factors like inflation, changes in operational requirements, and the introduction of new technologies can all influence historical spending patterns.

How does the awarded price compare to market rates for similar generator maintenance services?

The awarded price of approximately $76.6 million for a two-year generator maintenance contract needs to be benchmarked against market rates for similar services to assess value. This comparison should consider the type and capacity of generators, the scope of maintenance (preventive, corrective, emergency), geographic location, and the specific services included (e.g., parts, labor, diagnostics). Without detailed specifications of the services rendered and the specific equipment maintained, a precise comparison is challenging. However, the firm-fixed-price structure suggests the government has negotiated a set cost. If the number of bidders (three) was robust, it implies the price is likely competitive within the market for specialized government contracts. Further analysis would involve reviewing industry reports, consulting with subject matter experts, and examining publicly available data on similar contracts awarded to other entities.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical for ensuring the contractor meets the Department of State's operational needs for generator maintenance. While the provided data does not detail these specific metrics, typical KPIs for such a contract would likely include generator uptime percentages, response times for emergency service calls, turnaround times for routine maintenance, and adherence to preventive maintenance schedules. SLAs would define the acceptable thresholds for these KPIs and outline remedies or penalties for non-performance. For instance, a KPI might be '99.9% generator availability during critical operational periods,' with an SLA specifying response times within a certain number of hours for different severity levels of outages. Effective monitoring and enforcement of these KPIs and SLAs are essential for the government to realize the intended value and ensure the reliability of power generation.

What is the contractor's track record with similar government contracts?

The contractor, EMPRESAS MATCO, has been awarded this definitive contract for generator maintenance. To assess their track record, one would need to examine their past performance on similar government contracts, particularly those involving critical infrastructure maintenance and power generation. This would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), checking for any history of contract disputes, terminations, or significant performance issues. A strong track record with successful delivery on comparable projects would indicate a lower risk for this new contract. Conversely, a history of underperformance or issues could raise concerns about EMPRESAS MATCO's ability to meet the Department of State's requirements effectively and efficiently.

What are the potential risks associated with relying on a single award for this generator maintenance service?

While this contract is a single award, the competition level (three bidders) suggests a degree of market availability. However, relying on a single contractor for essential generator maintenance introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on one provider, potentially limiting future negotiation leverage. Secondly, if the contractor experiences financial difficulties, labor disputes, or operational failures, it could lead to significant disruptions in power generation, impacting critical State Department functions. Thirdly, a lack of ongoing competition might reduce the incentive for the incumbent contractor to innovate or offer cost efficiencies over the contract's life. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SUFRAGIO EFECTIVO 870 ENTRE CALLE YAQUI Y CALLE NORTE, CIUDAD OBREGON

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $188,885

Exercised Options: $76,590

Current Obligation: $76,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline