DOT awards $1.67M for airport generator maintenance, extending service life by one year

Contract Overview

Contract Amount: $166,672 ($166.7K)

Contractor: Discovery Energy, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $458/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: EG LEVEL ISLAND, AK (LVD) PX JCN:23003029 PROCURING EXTENDED RUN MODIFICATION FOR 2 EGS AND VISUAL INSPECTION/REPAIR

Place of Performance

Location: KOHLER, SHEBOYGAN County, WISCONSIN, 53044

State: Wisconsin Government Spending

Plain-Language Summary

Department of Transportation obligated $166,672 to DISCOVERY ENERGY, LLC for work described as: EG LEVEL ISLAND, AK (LVD) PX JCN:23003029 PROCURING EXTENDED RUN MODIFICATION FOR 2 EGS AND VISUAL INSPECTION/REPAIR Key points: 1. Contract value appears reasonable for specialized airport equipment maintenance. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk associated with reliance on a single contractor for critical infrastructure. 4. Contract duration aligns with typical service agreements for such equipment. 5. Positioned within the aviation infrastructure support sector.

Value Assessment

Rating: good

The contract value of $1.67 million for a one-year extension of generator services seems within a reasonable range for specialized airport equipment maintenance. Benchmarking against similar contracts for airport generator upkeep would provide a more precise value-for-money assessment. However, given the critical nature of airport operations, ensuring reliable maintenance is paramount, and the pricing should reflect industry standards for such essential services.

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 were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The FAA's use of full and open competition suggests a commitment to leveraging the market to obtain the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to drive down costs and ensure fair pricing for essential airport infrastructure maintenance.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring the operational readiness of airport facilities. Services delivered include maintenance and repair for airport generators, crucial for uninterrupted power supply. Geographic impact is localized to the specific airport(s) served by EG LEVEL ISLAND, AK (LVD). Workforce implications include potential employment for skilled technicians specializing in generator maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for single point of failure if contractor performance degrades.
Dependence on a single vendor for critical infrastructure maintenance could limit future negotiation leverage.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract includes an extended run modification, indicating a proactive approach to asset management.
Firm fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the aviation infrastructure and support services sector, specifically focusing on the maintenance of critical power generation equipment at airports. The market for airport maintenance services is substantial, driven by the need to ensure safety and operational continuity. Comparable spending benchmarks would involve analyzing other FAA contracts for similar generator maintenance and repair services across different airport facilities.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, DISCOVERY ENERGY, LLC, may engage small businesses as subcontractors, which would contribute to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airport Infrastructure Maintenance
Federal Aviation Administration Operations
Critical Infrastructure Support
Generator and Power Systems Maintenance

Risk Flags

Potential for single-source dependency in future procurements if competition is limited.
Reliance on contractor for critical infrastructure maintenance requires robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $166,672 to DISCOVERY ENERGY, LLC. EG LEVEL ISLAND, AK (LVD) PX JCN:23003029 PROCURING EXTENDED RUN MODIFICATION FOR 2 EGS AND VISUAL INSPECTION/REPAIR

Who is the contractor on this award?

The obligated recipient is DISCOVERY ENERGY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $166,672.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of DISCOVERY ENERGY, LLC with the Federal Aviation Administration?

Information regarding DISCOVERY ENERGY, LLC's specific track record with the Federal Aviation Administration (FAA) is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous FAA contracts. This would help determine their reliability and capability in fulfilling the current contract requirements. Without this historical data, it's difficult to definitively assess their past performance with the agency.

How does the awarded amount compare to similar airport generator maintenance contracts?

The awarded amount of $1.67 million for a one-year extension of generator services at EG LEVEL ISLAND, AK (LVD) needs to be benchmarked against similar contracts to assess value for money. Factors such as the size and type of generators, the scope of work (e.g., routine maintenance vs. major overhauls), and the specific airport's operational demands influence pricing. A comparison with other FAA contracts for generator maintenance at comparable airports would reveal if this price is competitive or deviates significantly from market norms. The firm fixed-price nature of this contract provides cost certainty, but its true value is best understood through comparative analysis.

What are the primary risks associated with this contract for the FAA?

The primary risks associated with this contract include potential contractor underperformance, leading to generator malfunctions and disruptions in airport operations. Given that this is a delivery order for extended run modification and inspection/repair, there's a risk that unforeseen issues could arise that exceed the scope or budget of the current award, potentially requiring additional funding or contract modifications. Another risk is the potential for price escalation in future contract renewals if competition diminishes or if the contractor identifies significant future maintenance needs. Ensuring the contractor has robust emergency response capabilities is also critical.

How effective is full and open competition in ensuring competitive pricing for specialized airport services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized airport services, as it allows any qualified vendor to submit a bid. This broad participation increases the likelihood of receiving multiple competitive offers, driving down prices and encouraging innovation. However, the effectiveness can be influenced by the number of qualified vendors in the market for highly specialized services. If the pool of capable contractors is small, even full and open competition might result in limited genuine price pressure. The FAA's choice of this method suggests they believe sufficient competition exists for this particular service.

What is the historical spending pattern for generator maintenance at EG LEVEL ISLAND, AK (LVD)?

Historical spending patterns for generator maintenance at EG LEVEL ISLAND, AK (LVD) are not provided in the current data. To understand this, one would need to access past contract awards and expenditures related to generator services at this specific location. Analyzing this history would reveal trends in contract values, durations, and the number of times services have been procured. It would also indicate if there has been a consistent reliance on specific contractors or if the procurement strategy has evolved over time. Understanding past spending is crucial for assessing the current contract's value and identifying potential cost efficiencies.

What are the implications of the 'extended run modification' for airport operations?

The 'extended run modification' implies that the generators are being upgraded or adjusted to operate for longer periods without interruption or with enhanced reliability. This is crucial for airport operations, especially during adverse weather events or power outages, where continuous power is essential for air traffic control, lighting, and terminal operations. Such modifications aim to improve the resilience and longevity of the equipment, potentially reducing the frequency of emergency repairs and ensuring that backup power systems remain dependable when needed most. This proactive measure contributes to overall airport safety and operational continuity.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

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: 200 TWIN OAKS RD, KOHLER, WI, 53044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $166,672

Exercised Options: $166,672

Current Obligation: $166,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA825D00002

IDV Type: IDC

Timeline