Coast Guard awards $2M contract for oil spill response services in California

Contract Overview

Contract Amount: $20,000 ($20.0K)

Contractor: Power Engineering Construction Company

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-08

End Date: 2026-06-07

Contract Duration: 60 days

Daily Burn Rate: $333/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPA26016 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20,000 to POWER ENGINEERING CONSTRUCTION COMPANY for work described as: UCGPA26016 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC. Key points: 1. Contract awarded to Power Engineering Construction Company for emergency response. 2. Focus on mitigating harmful effects of oil spills and hazardous chemical incidents. 3. Service area covers California, indicating a regional focus for response. 4. Contract duration is 60 days, suggesting a need for rapid deployment. 5. Awarded as a delivery order, implying it's part of a larger framework or existing need. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The contract value of $2 million for a 60-day period for oil spill and hazardous chemical incident response appears to be within a reasonable range for emergency services. However, without specific details on the scope of work, personnel, equipment, and materials required, a precise value-for-money assessment is difficult. The Time and Materials pricing structure introduces inherent risk for cost overruns if not closely managed. Benchmarking against similar rapid-response contracts for environmental remediation would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for a sole-source award is not provided in the data, but it typically implies that only one contractor is capable of meeting the government's needs, often due to specialized expertise, urgency, or lack of available alternatives. The absence of competition means the government did not benefit from a range of proposals and potentially lower pricing that could arise from a competitive bidding process.

Taxpayer Impact: A sole-source award means taxpayers may not have received the most competitive pricing. Without competition, there is less pressure on the contractor to offer the lowest possible cost for the services rendered.

Public Impact

The primary beneficiaries are the residents and environment of California, protected from the immediate impacts of oil spills and hazardous chemical incidents. Services delivered include labor, materials, and equipment to mitigate environmental damage. The geographic impact is focused on California, specifically where incidents occur. The contract supports a specialized workforce capable of rapid emergency response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potentially inflated costs.
Time and Materials contract type can lead to unpredictable expenditures.
Limited contract duration may not cover all long-term remediation needs.
No information provided on contractor's past performance or specific capabilities for this type of incident.

Positive Signals

Contract addresses critical public safety and environmental protection needs.
Awarded to a company with a stated capability in power engineering and construction.
Focus on rapid response is crucial for mitigating damage from spills.

Sector Analysis

The oil spill and hazardous chemical incident response sector is a critical component of environmental protection and emergency management services. This contract falls under remediation services, a niche within the broader environmental services industry. The market size for such specialized emergency response can fluctuate based on environmental events but requires highly trained personnel and specialized equipment. Comparable spending benchmarks are difficult to establish without knowing the specific scale and nature of potential incidents, but government contracts in this area often involve significant costs due to the urgency and specialized nature of the work.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Power Engineering Construction Company, is not specified as a small business. Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures would include performance monitoring, adherence to contract terms, and proper invoicing. Transparency is limited due to the sole-source nature and lack of public detail on the justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Emergency Response Contracts
Hazardous Materials Management
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

Sole-source award without clear justification.
Time and Materials contract type poses cost control risks.
Limited information on contractor's specific qualifications for emergency response.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20,000 to POWER ENGINEERING CONSTRUCTION COMPANY. UCGPA26016 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Who is the contractor on this award?

The obligated recipient is POWER ENGINEERING CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $20,000.

What is the period of performance?

Start: 2026-04-08. End: 2026-06-07.

What is the specific expertise of Power Engineering Construction Company in oil spill and hazardous chemical incident response?

The provided data does not detail the specific expertise of Power Engineering Construction Company in oil spill and hazardous chemical incident response. While the company name suggests capabilities in power engineering and construction, these fields do not inherently equate to specialized environmental remediation or emergency spill response. Further investigation into the contractor's past performance, certifications, and relevant project history would be necessary to ascertain their qualifications for this critical function. Without this information, it is difficult to assess the suitability of the awardee for the stated purpose of mitigating harmful effects of environmental incidents.

How does the $2 million contract value compare to similar emergency response contracts for oil spills in California?

Benchmarking this $2 million contract against similar emergency response contracts for oil spills in California is challenging without more specific details on the scope of services, duration, and the scale of potential incidents. Emergency response contracts can vary significantly in cost depending on the severity of the spill, the type of hazardous material, the geographic area affected, and the required response time. A 60-day contract for immediate mitigation could range widely. To provide a meaningful comparison, one would need to analyze contracts for similar-sized incidents or response frameworks within the region, considering factors like personnel hours, equipment mobilization, and material costs. The Time and Materials nature of this award also complicates direct cost comparisons.

What are the potential risks associated with a Time and Materials contract for emergency response services?

Time and Materials (T&M) contracts, like the one awarded to Power Engineering Construction Company, carry inherent risks for the government, primarily concerning cost control. In a T&M arrangement, the government pays the contractor for the actual cost of labor (at specified hourly rates) and materials used, plus a fee or profit. This structure can lead to cost overruns if the scope of work expands unexpectedly, if labor hours are not efficiently utilized, or if material costs escalate. For emergency response, where the duration and extent of the incident can be unpredictable, T&M contracts require robust oversight and diligent monitoring by the contracting officer to ensure that costs remain reasonable and that the contractor is performing efficiently. Without strict controls, the total cost can exceed initial estimates significantly.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which typically signifies a sole-source award. However, the specific justification for this sole-source determination is not included. Common reasons for sole-source awards include: urgency of the requirement where only one source can reasonably meet the need; unique capabilities or specialized expertise possessed by only one contractor; or situations where competition is deemed not feasible or not in the government's best interest. For an emergency response contract, urgency might be a factor, or perhaps the U.S. Coast Guard has pre-existing agreements or specific qualifications they require that only Power Engineering Construction Company meets. A formal justification document should exist within the agency's procurement records.

What are the historical spending patterns for oil spill and hazardous chemical response by the U.S. Coast Guard in California?

The provided data does not include historical spending patterns for oil spill and hazardous chemical response by the U.S. Coast Guard in California. To analyze historical spending, one would need access to procurement databases or agency reports that track contracts awarded for these services over previous fiscal years. Such an analysis would reveal the frequency of such awards, the typical contract values, the duration of response efforts, and potentially the contractors most frequently engaged. Understanding these patterns is crucial for budgeting, identifying potential cost trends, and assessing whether the current $2 million award for a 60-day period aligns with historical norms or represents a significant deviation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1501 VIKING ST STE 200, ALAMEDA, CA, 94501

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

Financial Breakdown

Contract Ceiling: $20,000

Exercised Options: $20,000

Current Obligation: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GALAM0001

IDV Type: BOA

Timeline