State Department contract for generator maintenance at U.S. Embassy in Asuncion awarded to S.A.C.I. H. Petersen for $72,575

Contract Overview

Contract Amount: $72,575 ($72.6K)

Contractor: S.a.c.i. H. Petersen

Awarding Agency: Department of State

Start Date: 2023-03-20

End Date: 2023-03-31

Contract Duration: 11 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: S.A.C.I. H. PETERSEN - FAC - 7901 - XJZMSRVC -PREVENTIVE MAINTENANCE SERVICES FOR THE AMERICAN EMBASSY AT ASUNCION GENERATORS CONTRACT PERIOD: APRIL 2023 TO MARCH 2024.

Plain-Language Summary

Department of State obligated $72,575 to S.A.C.I. H. PETERSEN for work described as: S.A.C.I. H. PETERSEN - FAC - 7901 - XJZMSRVC -PREVENTIVE MAINTENANCE SERVICES FOR THE AMERICAN EMBASSY AT ASUNCION GENERATORS CONTRACT PERIOD: APRIL 2023 TO MARCH 2024. Key points: 1. Contract value appears reasonable for specialized preventive maintenance services over an 11-month period. 2. The award was not competed, raising questions about potential price discovery and value for taxpayer funds. 3. Limited competition increases the risk of overpayment or suboptimal service quality. 4. The contract duration is relatively short, suggesting a need for ongoing evaluation of services. 5. This contract falls within the broader category of facilities maintenance and electrical services for government installations. 6. The firm fixed-price structure provides cost certainty for the government, but may limit flexibility if unforeseen issues arise.

Value Assessment

Rating: fair

The contract value of $72,575 for 11 months of preventive maintenance for embassy generators seems within a reasonable range for specialized services. However, without specific details on the scope of work, number of generators, and required service levels, a precise benchmark is difficult. Comparing it to similar contracts for embassy maintenance or generator services globally would provide better context. The lack of competition makes it harder to assess if the price represents the best value achievable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or urgent needs. The lack of competition means there was no opportunity for multiple companies to bid, which could lead to higher prices than if a competitive process had been employed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the lowest possible price, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The primary beneficiary is the U.S. Department of State, ensuring the operational readiness of critical infrastructure at the American Embassy in Asuncion. Services delivered include preventive maintenance for generators, crucial for maintaining power supply and essential functions. The geographic impact is localized to the American Embassy in Asuncion, Paraguay. Workforce implications are likely minimal, involving a small team of specialized technicians from the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency in pricing and service selection.
Potential for vendor lock-in if this becomes a recurring arrangement without re-competition.

Positive Signals

Firm fixed-price contract provides budget certainty.
Focus on preventive maintenance can reduce costly emergency repairs.
Contract awarded to a specific entity, potentially indicating specialized expertise.

Sector Analysis

This contract falls under the facilities support services sector, specifically focusing on electrical infrastructure maintenance. The market for such services is diverse, ranging from large facility management companies to specialized electrical contractors. Government contracts for embassy maintenance are critical for ensuring the security and operational continuity of diplomatic missions abroad. Benchmarking would involve comparing costs for similar maintenance contracts at other U.S. embassies or similar international facilities.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to S.A.C.I. H. PETERSEN. There is no information provided regarding subcontracting plans or the impact on the small business ecosystem. Further investigation would be needed to determine if any small businesses were involved as subcontractors or if this contract could have been structured to include small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and facility managers at the Asuncion Embassy. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Facilities Maintenance Contracts
Embassy Operations Support
Generator Maintenance Services
Electrical Infrastructure Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency on specific service details and performance metrics.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $72,575 to S.A.C.I. H. PETERSEN. S.A.C.I. H. PETERSEN - FAC - 7901 - XJZMSRVC -PREVENTIVE MAINTENANCE SERVICES FOR THE AMERICAN EMBASSY AT ASUNCION GENERATORS CONTRACT PERIOD: APRIL 2023 TO MARCH 2024.

Who is the contractor on this award?

The obligated recipient is S.A.C.I. H. PETERSEN.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $72,575.

What is the period of performance?

Start: 2023-03-20. End: 2023-03-31.

What is the specific scope of work included in the preventive maintenance services for the generators?

The provided data does not detail the specific scope of work for the preventive maintenance services. Typically, such services would include routine inspections, cleaning, lubrication, testing of components (e.g., batteries, fuel systems, cooling systems), minor repairs, and performance checks to ensure the generators are in optimal working condition. The exact tasks, frequency of service, and performance metrics would be outlined in the contract's Statement of Work (SOW). Without the SOW, it's difficult to fully assess the value and appropriateness of the $72,575 award.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source justification. Common reasons for sole-source awards include the unique capability of a single contractor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previous sole-source award where switching contractors would be impractical or excessively costly. For embassy operations, specific security requirements or existing infrastructure integration might necessitate a particular vendor. A formal justification document should exist within the Department of State detailing the rationale for not competing this requirement.

How does the contract value of $72,575 compare to similar generator maintenance contracts for U.S. embassies?

Direct comparison of the $72,575 contract value is challenging without more specific data points. Factors influencing cost include the number and size of generators, the criticality of the facility, the geographic location (which affects labor and logistics costs), and the specific service level agreement. Generally, preventive maintenance for critical infrastructure like embassy generators is a significant investment. However, the lack of competition makes it difficult to ascertain if this price represents a competitive market rate or if it is potentially higher due to the sole-source award.

What is the track record of S.A.C.I. H. PETERSEN with the Department of State or other federal agencies?

The provided data identifies S.A.C.I. H. PETERSEN as the contractor. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would reveal past contract awards, performance history, and any reported issues or accolades. Without access to this broader contract history, it's impossible to evaluate the contractor's reliability, past performance quality, and experience with similar government contracts, particularly those involving sensitive diplomatic facilities.

What are the potential risks associated with a sole-source award for essential embassy services?

Sole-source awards carry inherent risks, primarily related to cost and performance. Without competitive pressure, the awarded contractor may not be incentivized to offer the lowest possible price, potentially leading to overspending of taxpayer funds. Furthermore, the government has fewer options if the contractor fails to meet performance expectations, as re-competing or switching vendors can be a lengthy and complex process, especially for critical services. This can also limit innovation and the introduction of new technologies or more efficient service methods.

What is the duration of the contract and what does it imply for future needs?

The contract period is from April 2023 to March 2024, totaling 11 months. This relatively short duration suggests that the Department of State may be evaluating the contractor's performance or the scope of services required. It also implies that a decision regarding future, potentially longer-term or re-competed, contracts for these services will need to be made. The short term could also indicate a need for flexibility or an interim solution before a more comprehensive procurement strategy is implemented.

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 BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RUTA III GRAL. ELIZARDO AQUINO, LIMPIO

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $72,575

Exercised Options: $72,575

Current Obligation: $72,575

Actual Outlays: $6,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline