DOE awards $64.6K for switchboards, highlighting potential for improved value through competition
Contract Overview
Contract Amount: $64,555 ($64.6K)
Contractor: Servitech, Inc.
Awarding Agency: Department of Energy
Start Date: 2025-08-20
End Date: 2026-02-05
Contract Duration: 169 days
Daily Burn Rate: $382/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HOYT CONTROL SWITCHBOARD
Place of Performance
Location: WIGGINS, ADAMS County, COLORADO, 80654
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $64,555.24 to SERVITECH, INC. for work described as: HOYT CONTROL SWITCHBOARD Key points: 1. Contract awarded for essential switchgear apparatus, supporting critical infrastructure. 2. Limited competition raises questions about optimal price discovery and taxpayer value. 3. Contract duration of 169 days suggests a focused, short-term requirement. 4. The award is a delivery order, indicating it's part of a larger contract vehicle. 5. Geographic location in Colorado may influence local economic impact. 6. Firm Fixed Price contract type provides cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $64.6K is relatively small, making direct comparison to larger contracts difficult. As a sole-source award under SAP (Simplified Acquisition Procedures), it's challenging to benchmark pricing against competitive market rates. The firm fixed-price structure offers cost predictability, but the lack of competition means the government may not have secured the lowest possible price. Further analysis would require understanding the specific technical requirements and the availability of alternative suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source action under Simplified Acquisition Procedures (SAP). This means that competition was not actively sought from multiple bidders. While SAP allows for streamlined procurement of smaller value items, sole-source awards inherently limit the pool of potential suppliers and can reduce the pressure to offer the most competitive pricing. The absence of a competitive bidding process means that price discovery is less robust.
Taxpayer Impact: Sole-source awards, especially under SAP, can sometimes result in higher prices for taxpayers compared to fully competed contracts. Without multiple bids, there is less incentive for the contractor to offer their best price, potentially leading to less efficient use of federal funds.
Public Impact
The Department of Energy benefits from the acquisition of necessary switchgear and switchboard apparatus. This contract supports the operational needs of the DOE, likely related to electrical infrastructure. The services are being delivered within Colorado, potentially impacting the local economy and workforce. The specific end-users or programs benefiting from these switchboards are not detailed in the award data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing for taxpayers.
- Sole-source award limits transparency in price determination.
- Potential for higher costs due to absence of market pressure.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Award supports critical infrastructure needs of the Department of Energy.
- Simplified Acquisition Procedures can expedite delivery of needed goods.
Sector Analysis
The contract falls within the Switchgear and Switchboard Apparatus Manufacturing industry (NAICS 335313). This sector is crucial for electrical power distribution and management. The market size for such components is substantial, driven by infrastructure upgrades, new construction, and maintenance across various sectors, including government facilities. While this specific award is small, it represents a component of broader federal spending on electrical equipment, which can be benchmarked against industry standards for similar apparatus.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award under SAP, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement. The impact on the small business ecosystem is therefore minimal for this specific award, as it did not leverage small business contracting vehicles.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and procurement regulations. As a delivery order under a larger contract vehicle, oversight may also be tied to the parent contract's terms. Transparency is limited due to the sole-source nature and SAP award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Procurement
- Electrical Equipment Manufacturing
- Infrastructure Support Contracts
- Simplified Acquisition Procedures Awards
Risk Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of competitive bidding.
- Transparency concerns regarding the justification for sole-source procurement.
Tags
department-of-energy, switchgear, switchboard-apparatus, sole-source, simplified-acquisition-procedures, firm-fixed-price, delivery-order, colorado, manufacturing, electrical-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $64,555.24 to SERVITECH, INC.. HOYT CONTROL SWITCHBOARD
Who is the contractor on this award?
The obligated recipient is SERVITECH, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $64,555.24.
What is the period of performance?
Start: 2025-08-20. End: 2026-02-05.
What is the typical price range for a HOYT CONTROL SWITCHBOARD from Servitech, Inc. when procured competitively?
Determining the typical competitive price range for a 'HOYT CONTROL SWITCHBOARD' from Servitech, Inc. is challenging without more specific product details and access to historical competitive bid data. As this award was sole-source under Simplified Acquisition Procedures (SAP), it bypasses the usual competitive bidding process that would establish a market-driven price. Generally, sole-source awards under SAP may not reflect the best possible value compared to a fully competed contract. To establish a benchmark, one would need to identify comparable switchboards (specifications, capacity, features) and research pricing from multiple manufacturers and suppliers who have recently won similar contracts through competitive means. Industry pricing guides or market research reports for electrical switchgear could also provide a general range, but specific model pricing often requires direct quotes or analysis of past competitive solicitations.
How does the firm fixed price (FFP) structure impact the value for money in this sole-source award?
The Firm Fixed Price (FFP) structure in this sole-source award provides cost certainty for the Department of Energy, meaning the price is fixed regardless of the contractor's actual costs. This protects the government from cost overruns. However, in a sole-source context, FFP can limit value for money because the contractor has less incentive to reduce costs if they know they are the only option. Without competition, the initial price offered might be higher than it would be in a competitive scenario where contractors must bid aggressively to win the contract. Therefore, while FFP offers budget predictability, the overall value for money is constrained by the lack of competitive pressure to achieve the lowest possible price.
What are the potential risks associated with awarding a sole-source contract under Simplified Acquisition Procedures (SAP)?
Awarding a sole-source contract under Simplified Acquisition Procedures (SAP) carries several potential risks. Primarily, it risks paying a higher price than necessary due to the absence of competitive bidding, which is the main mechanism for ensuring best value. There's also a risk of reduced innovation or quality if the contractor faces no pressure from competitors. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other potential suppliers who were not given a chance to bid. While SAP is designed for efficiency in acquiring goods and services below certain thresholds, using it for sole-source awards requires strong justification to ensure taxpayer funds are used responsibly and that the government is not foregoing better options.
What is the significance of this contract being a 'Delivery Order' (aw: DELIVERY ORDER)?
The designation 'DELIVERY ORDER' indicates that this contract is not a standalone, new procurement but rather an order placed against an existing contract vehicle, such as a Basic Ordering Agreement (BOA), Indefinite Delivery/Indefinite Quantity (IDIQ) contract, or a blanket purchase agreement. This implies that the terms, conditions, and potentially the pricing structure were established previously when the parent contract was awarded. Delivery orders are common for recurring needs or when specific quantities are not known upfront. The significance here is that the competition and price analysis likely occurred at the parent contract level. However, if this specific delivery order was also sole-sourced under SAP, it suggests that even within the existing contract framework, competition for this particular order was not pursued.
How does the contract duration (dur: 169 days) relate to the nature of the goods being procured?
A contract duration of 169 days (approximately 5.5 months) for switchgear and switchboard apparatus suggests a relatively short-term requirement. This timeframe is consistent with the procurement of specific components needed for a defined project phase, immediate repair, or a limited upgrade rather than a long-term supply agreement or a large-scale infrastructure build-out. The duration aligns with the nature of delivery orders, which often fulfill immediate or near-term needs. It also fits within the scope of Simplified Acquisition Procedures, which are typically used for procurements with shorter performance periods and lower dollar values, reinforcing the idea that this was for a specific, time-bound requirement.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Switchgear and Switchboard Apparatus Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13892 E SMITH DR, AURORA, CO, 80011
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $64,555
Exercised Options: $64,555
Current Obligation: $64,555
Actual Outlays: $64,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89503025DWA000026
IDV Type: IDC
Timeline
Start Date: 2025-08-20
Current End Date: 2026-02-05
Potential End Date: 2026-02-05 00:00:00
Last Modified: 2026-04-08
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