DHS Awards $9.5M for CONUS Generator Maintenance, FEMA Contract with Genstrong LLC
Contract Overview
Contract Amount: $9,524,902 ($9.5M)
Contractor: Genstrong LLC
Awarding Agency: Department of Homeland Security
Start Date: 2022-09-30
End Date: 2026-06-29
Contract Duration: 1,368 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONUS GENERATOR MAINTENANCE SERVICES
Place of Performance
Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28409
Plain-Language Summary
Department of Homeland Security obligated $9.5 million to GENSTRONG LLC for work described as: CONUS GENERATOR MAINTENANCE SERVICES Key points: 1. Contract value of $9.5M for generator maintenance services. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of potential price inflation due to limited competition. 4. Sector is Commercial and Industrial Machinery Repair and Maintenance.
Value Assessment
Rating: fair
The contract value of $9.5M for generator maintenance appears reasonable given the duration and scope. Benchmarking against similar large-scale maintenance contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited number of bidders were considered. This could impact price discovery and potentially lead to higher costs compared to broader full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential generator maintenance. The limited competition raises concerns about whether the most cost-effective solution was secured.
Public Impact
Ensures operational readiness of critical infrastructure by maintaining generators. Supports FEMA's disaster response capabilities. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- Limited competition may lead to higher prices.
- Contract duration is long (nearly 4 years).
Positive Signals
- Essential service for critical infrastructure.
- Contract awarded to a single entity.
Sector Analysis
This contract falls within the Commercial and Industrial Machinery Repair and Maintenance sector. Spending in this sector can vary significantly based on the type and criticality of the equipment being serviced.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract type is 'DEFINITIVE CONTRACT', which allows for flexibility. Oversight will be crucial to ensure performance and cost control throughout the contract's duration, especially given the limited competition.
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 result in higher costs.
- Long contract duration increases exposure to market fluctuations.
- Lack of small business prime awardee.
- Potential for performance issues over extended period.
Tags
commercial-and-industrial-machinery-and-, department-of-homeland-security, nc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.5 million to GENSTRONG LLC. CONUS GENERATOR MAINTENANCE SERVICES
Who is the contractor on this award?
The obligated recipient is GENSTRONG 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 $9.5 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-06-29.
What is the justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' method, and how does it impact overall cost-effectiveness?
The justification for excluding sources typically relates to specific technical requirements, proprietary knowledge, or unique capabilities that only a limited number of vendors possess. While this can ensure specialized expertise, it often reduces competitive pressure, potentially leading to higher prices than a truly open competition. A thorough review of the exclusion justification is necessary to confirm its validity and assess the trade-off between specialized service and cost.
What are the key performance indicators (KPIs) for this generator maintenance contract, and how will performance be measured to ensure value for taxpayer money?
Key performance indicators for generator maintenance contracts typically include response time to service calls, equipment uptime percentage, preventative maintenance completion rates, and adherence to safety protocols. The contract should clearly define these KPIs and the associated remedies or incentives for meeting or failing to meet them. Regular performance reviews by the agency will be essential to ensure the contractor is delivering on its obligations and providing good value.
Given the nearly four-year duration, what provisions are in place to manage potential price increases or changes in market conditions for parts and labor?
Long-term contracts often include clauses for price adjustments based on economic price adjustments (EPAs) or specific material cost indices. It's crucial to examine the contract for such clauses and understand the methodology for calculating any price changes. Without adequate controls, market volatility could significantly increase the total cost to taxpayers over the contract's life. The agency should have a mechanism to review and approve any proposed price escalations.
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: 70FB7022R00000008
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6115 MYRTLE GROVE ROAD, WILMINGTON, NC, 28409
Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,793,969
Exercised Options: $9,524,902
Current Obligation: $9,524,902
Actual Outlays: $5,285,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-30
Current End Date: 2026-06-29
Potential End Date: 2027-06-29 00:00:00
Last Modified: 2026-01-23
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