Department of Energy awards $36.7M transformer contract to WESTEX GROUP, INC. under competitive bidding
Contract Overview
Contract Amount: $36,715 ($36.7K)
Contractor: Westex Group, Inc
Awarding Agency: Department of Energy
Start Date: 2025-03-04
End Date: 2026-06-01
Contract Duration: 454 days
Daily Burn Rate: $81/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CURRENT TRANSFORMER
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $36,715 to WESTEX GROUP, INC for work described as: CURRENT TRANSFORMER Key points: 1. Value for money appears reasonable given the firm fixed price contract type and competitive award. 2. Competition dynamics indicate a healthy bidding process with 9 offers received. 3. Risk indicators are low due to the firm fixed price structure and established contractor. 4. Performance context is set by a 454-day duration for delivery of specialized transformers. 5. Sector positioning is within the power distribution and specialty transformer manufacturing industry.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a commitment to cost control. While specific pricing benchmarks are not provided, the receipt of 9 offers indicates a competitive environment that likely drove a fair market price. The award to WESTEX GROUP, INC. for power, distribution, and specialty transformers aligns with industry needs. Further analysis would require benchmarking against similar transformer procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The fact that 9 offers were received suggests robust interest and a competitive marketplace for these specialized transformers. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: A competitive bidding process with multiple offers helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The Department of Energy benefits from the acquisition of essential power distribution and specialty transformers. This contract supports the reliable operation and maintenance of energy infrastructure. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment opportunities at WESTEX GROUP, INC. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Ensuring adherence to strict quality and performance specifications for specialized transformers.
Positive Signals
- Firm fixed price contract mitigates cost overrun risks.
- Competitive award process suggests a fair market price was achieved.
- Contractor's location in Maryland may facilitate logistical efficiency for certain DOE facilities.
Sector Analysis
The power, distribution, and specialty transformer manufacturing sector is critical for the nation's electrical grid and energy infrastructure. This contract falls within the industrial manufacturing segment, specifically supporting the energy sector's needs for reliable power equipment. Comparable spending in this sector can vary widely based on infrastructure upgrades and national energy initiatives.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if WESTEX GROUP, INC. chooses to engage small businesses in its supply chain. Without specific subcontracting plans, the direct impact on small businesses is currently unknown.
Oversight & Accountability
Oversight for this purchase order will likely be managed by the contracting officer and relevant program managers within the Department of Energy. Transparency is facilitated by the public nature of contract awards. Accountability measures are inherent in the firm fixed price contract terms, requiring delivery of specified goods. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Energy - Energy Infrastructure Procurement
- Power Grid Modernization Programs
- Specialty Electrical Equipment Manufacturing
- Federal Supply Schedule (if applicable)
- Defense Logistics Agency - Electrical Equipment
Risk Flags
- Potential for supply chain vulnerabilities
- Quality assurance for specialized components
- Timeliness of delivery against schedule
Tags
energy, department-of-energy, transformers, power-distribution, specialty-manufacturing, firm-fixed-price, purchase-order, competed-under-sap, maryland, medium-value, industrial-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $36,715 to WESTEX GROUP, INC. CURRENT TRANSFORMER
Who is the contractor on this award?
The obligated recipient is WESTEX GROUP, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $36,715.
What is the period of performance?
Start: 2025-03-04. End: 2026-06-01.
What is the track record of WESTEX GROUP, INC. in fulfilling government contracts, particularly for transformers?
Information regarding WESTEX GROUP, INC.'s specific track record with government contracts, especially for transformers, 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 similar procurements. The current award suggests they met the criteria for this specific solicitation. Further due diligence would involve searching federal procurement databases for their performance history and client feedback.
How does the awarded price compare to market rates for similar specialty transformers?
The provided data does not include specific pricing details or market benchmarks for comparable specialty transformers. To assess value for money, one would need to compare the per-unit cost or total contract value against industry pricing databases, historical government procurements of similar items, or quotes from other manufacturers. The competitive nature of the award (9 offers) suggests the price is likely within a reasonable market range, but a definitive comparison requires external market data.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential delays in manufacturing or delivery, quality control issues with specialized transformers, and the contractor's financial stability. Mitigation strategies are primarily embedded in the contract terms: the firm fixed price structure caps cost risks for the government, and the specified delivery schedule (454 days) sets clear performance expectations. The competitive award process also implies the contractor was vetted for capability. Further mitigation might involve performance bonds or liquidated damages clauses, which are not specified here.
How effective is the Department of Energy's procurement process for specialized electrical equipment like transformers?
The effectiveness of the DOE's procurement process for this contract can be inferred from the competitive award under SAP, resulting in 9 offers. This indicates a process that successfully attracted multiple bidders, suggesting it is accessible and potentially efficient for procurements of this size. The firm fixed price award also points towards a process that prioritizes cost certainty. However, a full assessment of effectiveness would require analyzing cycle times, protest rates, and long-term performance of awarded items.
What are the historical spending patterns for power, distribution, and specialty transformers by the Department of Energy?
Historical spending patterns for this category by the Department of Energy are not provided in the current data. To analyze this, one would need to examine past contract awards for similar goods and services over several fiscal years. This would reveal trends in spending volume, average contract values, primary awardees, and the prevalence of different contract types (e.g., competitive vs. sole-source). Such analysis could highlight fluctuations in demand or shifts in procurement strategies.
What is the strategic importance of this transformer procurement to the Department of Energy's mission?
This procurement is strategically important as transformers are fundamental components of the electrical grid and energy infrastructure. Reliable power distribution and specialty transformers are essential for maintaining energy security, supporting renewable energy integration, and ensuring the operational integrity of DOE facilities and research initiatives. The acquisition directly supports the DOE's mission to ensure America's security and prosperity by addressing energy needs and advancing scientific discovery.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Power, Distribution, and Specialty Transformer Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 89503225QWA000651
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 20 COURTHOUSE SQ STE 220, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,715
Exercised Options: $36,715
Current Obligation: $36,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-03-04
Current End Date: 2026-06-01
Potential End Date: 2026-06-01 00:00:00
Last Modified: 2026-04-10
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