GSA Awards $8.3M Contract for Switchgear Replacement, Lacking Competition

Contract Overview

Contract Amount: $8,297,178 ($8.3M)

Contractor: Puyenpa Construction, LLC

Awarding Agency: General Services Administration

Start Date: 2023-09-28

End Date: 2026-07-07

Contract Duration: 1,013 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS IS A NEW PROJECT THAT CONSISTS OF THE REMOVAL OF EXISTING BUILDING 62 SWITCHGEAR 62A AND 62B WITH INSTALLATION OF A NEW REPLACEMENT SWITCHGEARS AND THE INSTALLATION OF ATSS FOR PREVENTIVE MAINTENANCE.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $8.3 million to PUYENPA CONSTRUCTION, LLC for work described as: THIS IS A NEW PROJECT THAT CONSISTS OF THE REMOVAL OF EXISTING BUILDING 62 SWITCHGEAR 62A AND 62B WITH INSTALLATION OF A NEW REPLACEMENT SWITCHGEARS AND THE INSTALLATION OF ATSS FOR PREVENTIVE MAINTENANCE. Key points: 1. Significant investment in critical infrastructure replacement. 2. Sole-source award raises concerns about price discovery and value. 3. Project duration extends over two years, impacting operational continuity. 4. Construction sector focus with potential for broader infrastructure needs.

Value Assessment

Rating: questionable

The contract value of $8.3 million for switchgear replacement appears high given the lack of competition. Without competitive bidding, it's difficult to ascertain if this price represents fair market value compared to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP and is a sole-source award. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition for this substantial contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Ensures continued operation of essential building functions by replacing aging equipment. Potential for service disruptions during the multi-year installation and maintenance period. Investment in facility modernization contributes to long-term operational reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value without competitive benchmark
Long project duration

Positive Signals

Addresses critical infrastructure need
Includes preventive maintenance

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this area is often driven by infrastructure upgrades and maintenance needs, with costs varying based on project scope and location.

Small Business Impact

The contract was awarded to PUYENPA CONSTRUCTION, LLC, which is not identified as a small business. There is no indication that small businesses were solicited or subcontracted for this project.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight will be crucial to ensure the project stays on schedule and within budget, especially given the sole-source nature.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Sole-source award limits competition and price scrutiny.
Contract value is substantial without a clear competitive benchmark.
Long project duration increases risk of delays and cost overruns.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8.3 million to PUYENPA CONSTRUCTION, LLC. THIS IS A NEW PROJECT THAT CONSISTS OF THE REMOVAL OF EXISTING BUILDING 62 SWITCHGEAR 62A AND 62B WITH INSTALLATION OF A NEW REPLACEMENT SWITCHGEARS AND THE INSTALLATION OF ATSS FOR PREVENTIVE MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is PUYENPA CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-07-07.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves specific circumstances, such as a unique capability of the contractor or an urgent need. Without further details on the justification, it is difficult to assess the price reasonableness. A thorough review of the procurement file and any supporting documentation for the sole-source determination is necessary to understand the price discovery process.

What are the specific risks associated with the long project duration and the potential for delays in switchgear replacement?

The 1013-day duration presents risks of project delays due to unforeseen site conditions, supply chain issues, or contractor performance. Delays could impact building operations, necessitate temporary solutions, and potentially increase overall project costs. Mitigation strategies and clear performance metrics are essential to manage these risks effectively.

How will the effectiveness of the new switchgear and ATSS installation be measured to ensure long-term reliability and prevent future failures?

Effectiveness will be measured through rigorous testing and commissioning of the new switchgear and ATSS post-installation. Performance metrics should include operational uptime, response times, and successful integration with existing systems. Ongoing preventive maintenance, as included in the contract, will be critical for long-term reliability and should be tracked against established benchmarks.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47PM1123R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Puyenpa Services, LLC

Address: 511 DUCKWATER FALLS RD, DUCKWATER, NV, 89314

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,297,178

Exercised Options: $8,297,178

Current Obligation: $8,297,178

Actual Outlays: $6,680,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline