DOE Awards $2.67M for Laminated Wood Utility Poles to Laminated Wood Systems Inc
Contract Overview
Contract Amount: $26,740 ($26.7K)
Contractor: Laminated Wood Systems Inc
Awarding Agency: Department of Energy
Start Date: 2026-04-06
End Date: 2026-07-31
Contract Duration: 116 days
Daily Burn Rate: $231/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LAMINATED WOOD UTILITY POLES AND POLE HARDWARE IN ACCORDANCE WITH REQUIREMENTS AND SPECIFICATIONS ATTACHED
Place of Performance
Location: ELVERTA, SACRAMENTO County, CALIFORNIA, 95626
Plain-Language Summary
Department of Energy obligated $26,740 to LAMINATED WOOD SYSTEMS INC for work described as: LAMINATED WOOD UTILITY POLES AND POLE HARDWARE IN ACCORDANCE WITH REQUIREMENTS AND SPECIFICATIONS ATTACHED Key points: 1. The Department of Energy is procuring essential utility poles, a critical component for infrastructure maintenance and upgrades. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The sole awardee, Laminated Wood Systems Inc., is a specialized manufacturer in this niche market. 4. The contract duration is relatively short, spanning approximately 4 months, indicating a specific project or immediate need.
Value Assessment
Rating: fair
The award amount of $2.67M for utility poles and hardware appears within a reasonable range for specialized wood products. However, without specific details on quantity, length, and hardware included, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes or proposals. While this method can be efficient for smaller purchases, it may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for a moderate value, potentially balancing speed with cost-effectiveness for taxpayers.
Public Impact
Ensures continued operation and maintenance of energy infrastructure by providing necessary utility poles. Supports a specialized manufacturing sector within the engineered wood products industry. The procurement contributes to the Department of Energy's mission to ensure reliable energy delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may not guarantee the best price.
- Reliance on a single supplier for a critical component.
- Short contract duration could lead to rushed production or delivery issues.
Positive Signals
- Procurement addresses a clear need for infrastructure components.
- Award to a specialized manufacturer indicates focus on quality.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The procurement falls within the Engineered Wood Member Manufacturing sector, specifically for utility poles. Spending in this area is driven by infrastructure maintenance, upgrades, and new construction projects by utility providers and government agencies.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific procurement, either as the prime contractor or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is a Purchase Order awarded by the Department of Energy, indicating standard procurement processes were followed. Oversight would focus on delivery, quality, and adherence to specifications.
Related Government Programs
- Engineered Wood Member Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition
- Potential for price escalation
- Supply chain dependency
- Lack of detailed cost breakdown
Tags
engineered-wood-member-manufacturing, department-of-energy, ca, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26,740 to LAMINATED WOOD SYSTEMS INC. LAMINATED WOOD UTILITY POLES AND POLE HARDWARE IN ACCORDANCE WITH REQUIREMENTS AND SPECIFICATIONS ATTACHED
Who is the contractor on this award?
The obligated recipient is LAMINATED WOOD SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $26,740.
What is the period of performance?
Start: 2026-04-06. End: 2026-07-31.
What is the estimated per-unit cost of the laminated wood utility poles, and how does it compare to industry benchmarks?
The provided data does not include the quantity or specific dimensions of the poles, making a per-unit cost calculation impossible. To assess value, a comparison with industry benchmarks for similar laminated wood utility poles, considering factors like length, diameter, and wood treatment, would be necessary. Without this, the value proposition remains unclear.
What are the risks associated with relying on a single supplier for laminated wood utility poles, especially given the limited competition?
Relying on a single supplier, Laminated Wood Systems Inc., under limited competition (SAP) presents risks of price escalation in future procurements, potential supply chain disruptions if the sole supplier faces issues, and a lack of incentive for the supplier to innovate or improve efficiency. This could lead to higher long-term costs for taxpayers.
How effectively does this procurement support the Department of Energy's long-term infrastructure resilience and modernization goals?
This procurement directly supports infrastructure maintenance by supplying essential utility poles. However, its effectiveness in achieving long-term resilience and modernization goals depends on the specific specifications of the poles, their expected lifespan, and how they integrate into broader grid modernization strategies. The short duration suggests a tactical need rather than a strategic, long-term investment.
Industry Classification
NAICS: Manufacturing › Veneer, Plywood, and Engineered Wood Product Manufacturing › Engineered Wood Member Manufacturing
Product/Service Code: LUMBER, MILLWORK, PLYWOOD, VENEER
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 89503326QWA000371
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1327 285TH, SEWARD, NE, 68434
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,740
Exercised Options: $26,740
Current Obligation: $26,740
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-06
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-04-06
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