DHS Awards $9.9M Generator Maintenance Contract to Megawattage LLC for OCONUS Operations
Contract Overview
Contract Amount: $9,928,296 ($9.9M)
Contractor: Megawattage LLC
Awarding Agency: Department of Homeland Security
Start Date: 2022-06-30
End Date: 2026-06-29
Contract Duration: 1,460 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OCONUS GENERATOR MAINTENANCE SERVICES
Place of Performance
Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33312
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $9.9 million to MEGAWATTAGE LLC for work described as: OCONUS GENERATOR MAINTENANCE SERVICES Key points: 1. Contract value of $9.9M for generator maintenance services. 2. Megawattage LLC is the sole awardee. 3. Potential risk associated with OCONUS operations and specialized equipment. 4. Spending falls within the Commercial and Industrial Machinery Repair and Maintenance sector.
Value Assessment
Rating: fair
The contract value of $9.9M for a 4-year period appears reasonable for specialized OCONUS generator maintenance. Benchmarking against similar contracts is difficult without more specific details on service scope and location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential generator maintenance in OCONUS locations, supporting critical operations. The limited competition raises questions about optimal cost efficiency.
Public Impact
Ensures operational readiness of critical infrastructure in overseas locations. Supports Department of Homeland Security (FEMA) missions. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 68 / 10
Warning Flags
- Limited competition may inflate costs.
- Oversight of OCONUS operations can be challenging.
- Reliance on a single vendor for critical maintenance.
Positive Signals
- Supports essential government functions.
- Contract duration provides stability.
- Fixed-price contract provides cost certainty.
Sector Analysis
This contract falls under the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this sector is crucial for maintaining government assets, particularly in remote or overseas locations where specialized services are required.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight of OCONUS contracts requires robust mechanisms to ensure performance, prevent fraud, and manage costs effectively. The limited competition aspect warrants closer scrutiny of vendor performance and pricing.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Oversight challenges in OCONUS environments.
- Potential for vendor lock-in due to specialized services.
- Lack of small business participation.
Tags
commercial-and-industrial-machinery-and-, department-of-homeland-security, fl, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.9 million to MEGAWATTAGE LLC. OCONUS GENERATOR MAINTENANCE SERVICES
Who is the contractor on this award?
The obligated recipient is MEGAWATTAGE LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2022-06-30. End: 2026-06-29.
What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and how were these justified?
The justification for excluding sources typically involves demonstrating that only a limited number of responsible sources possess the necessary technical capabilities, specialized knowledge, or unique qualifications to perform the required services. This could be due to the specific nature of the OCONUS generator equipment, the remote location, or unique security requirements. A thorough review of the justification documentation is needed to assess the validity of these exclusions and their impact on competition.
How does the pricing structure of this firm-fixed-price contract compare to industry benchmarks for similar OCONUS generator maintenance services, considering the limited competition?
Assessing the pricing requires detailed comparison with industry benchmarks for similar OCONUS generator maintenance. Factors like equipment type, maintenance scope, labor rates in the specific OCONUS region, travel, and logistical costs are critical. Given the limited competition, there's a heightened need to ensure the fixed price is not inflated and reflects fair market value, potentially through independent cost analysis or comparison with historical data for similar services.
What performance metrics and oversight mechanisms are in place to ensure the effectiveness and efficiency of Megawattage LLC's generator maintenance services in OCONUS locations?
Effective oversight for OCONUS contracts typically involves detailed performance work statements (PWS), key performance indicators (KPIs), regular progress reports, site visits (if feasible), and a dedicated contract officer representative (COR). Specific metrics should track equipment uptime, response times for maintenance requests, quality of repairs, and adherence to safety protocols. Robust oversight is crucial to mitigate risks associated with distance and ensure taxpayer value.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70FB7022R0000009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1318 W SCHOOL ST, CHICAGO, IL, 60657
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,396,665
Exercised Options: $9,928,296
Current Obligation: $9,928,296
Actual Outlays: $5,324,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-30
Current End Date: 2026-06-29
Potential End Date: 2027-06-29 00:00:00
Last Modified: 2026-02-09
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