FAA Awards $24.2M Contract for Automated 69KV Ring Bus Substation Replacement in New Jersey

Contract Overview

Contract Amount: $24,218,000 ($24.2M)

Contractor: Scalfo Electric Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-09-22

End Date: 2028-10-18

Contract Duration: 1,122 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE OBJECTIVE OF THIS EFFORT IS TO REPLACE THE EXISTING MAIN SUBSTATION WITH A 69KV RING BUS FEATURING AUTOMATED SWITCHING OPERATIONS. THE NEW RING BUS WILL BE CAPABLE OF FAULT DETECTION AND AUTOMATED SELF-RESTORATION. THE PROJECT WILL BE INTEGRATED

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $24.2 million to SCALFO ELECTRIC INC. for work described as: THE OBJECTIVE OF THIS EFFORT IS TO REPLACE THE EXISTING MAIN SUBSTATION WITH A 69KV RING BUS FEATURING AUTOMATED SWITCHING OPERATIONS. THE NEW RING BUS WILL BE CAPABLE OF FAULT DETECTION AND AUTOMATED SELF-RESTORATION. THE PROJECT WILL BE INTEGRATED Key points: 1. The contract aims to modernize critical power infrastructure with advanced fault detection and self-restoration capabilities. 2. Scalfo Electric Inc. secured the award, indicating potential specialization or competitive bidding success. 3. The project faces risks associated with complex electrical system integration and potential construction delays. 4. Spending falls within the Power and Communication Line Construction sector, requiring specialized expertise.

Value Assessment

Rating: good

The contract value of $24.2 million for a 69KV ring bus substation replacement appears reasonable given the complexity and scope. Benchmarking against similar large-scale electrical infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where initial sources were identified and then competed. This method can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, which should improve reliability and potentially reduce long-term maintenance costs.

Public Impact

Enhanced power reliability for aviation operations at the New Jersey facility. Modernized electrical infrastructure with advanced automated switching and self-restoration features. Potential for improved safety and reduced downtime due to fault detection. Investment in critical infrastructure supporting national transportation networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted final price.
Integration complexity of automated systems.
Potential for construction delays impacting operational readiness.

Positive Signals

Modernization of critical infrastructure.
Inclusion of advanced self-restoration technology.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the Power and Communication Line and Related Structures Construction sector. Spending in this area is driven by infrastructure modernization needs, grid resilience, and the integration of new technologies, often involving significant capital investment.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as Scalfo Electric Inc. is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Federal Aviation Administration is responsible for overseeing this project. Oversight will be crucial to ensure the successful integration of the automated systems, adherence to safety standards, and timely completion within budget.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition may have resulted in a higher price.
Complexity of integrating advanced automated systems.
Potential for construction delays impacting the 2028 completion date.
Reliance on a single prime contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.2 million to SCALFO ELECTRIC INC.. THE OBJECTIVE OF THIS EFFORT IS TO REPLACE THE EXISTING MAIN SUBSTATION WITH A 69KV RING BUS FEATURING AUTOMATED SWITCHING OPERATIONS. THE NEW RING BUS WILL BE CAPABLE OF FAULT DETECTION AND AUTOMATED SELF-RESTORATION. THE PROJECT WILL BE INTEGRATED

Who is the contractor on this award?

The obligated recipient is SCALFO ELECTRIC INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2025-09-22. End: 2028-10-18.

What is the expected lifespan of the new 69KV ring bus substation, and how does this compare to the previous infrastructure?

The expected lifespan of the new 69KV ring bus substation is anticipated to be significantly longer than the existing infrastructure, likely 30-50 years, due to modern design standards and materials. This upgrade aims to provide a more robust and reliable power source for an extended period, reducing the frequency of major overhauls or replacements compared to older systems.

What are the specific risks associated with integrating automated switching and self-restoration features into the FAA's existing power grid?

Integrating automated switching and self-restoration features carries risks such as potential software glitches, cybersecurity vulnerabilities, and compatibility issues with legacy systems. Ensuring seamless communication between automated components and human oversight is critical. Failures in these automated systems could lead to unintended power disruptions or safety hazards if not rigorously tested and maintained.

How will the effectiveness of the automated switching and self-restoration capabilities be measured post-implementation?

Effectiveness will be measured through key performance indicators (KPIs) such as reduced outage duration, faster fault isolation times, and the number of successful automated self-restoration events. Performance data logged by the system will be analyzed to quantify improvements in grid reliability and operational efficiency. Regular system diagnostics and simulated fault testing will also validate the automated functions.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 692M15-25-R-00013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3539 N MILL RD, VINELAND, NJ, 08360

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,218,000

Exercised Options: $24,218,000

Current Obligation: $24,218,000

Actual Outlays: $3,632,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline