DoD's $12.6M Power Line Construction Contract Awarded to GLS-Cambridge JV Under Full and Open Competition

Contract Overview

Contract Amount: $12,657,391 ($12.7M)

Contractor: Gls-Cambridge JV

Awarding Agency: Department of Defense

Start Date: 2008-09-01

End Date: 2016-09-30

Contract Duration: 2,951 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE IN PERIOD

Place of Performance

Location: SALINAS, SALINAS County, PUERTO RICO, 00751

Plain-Language Summary

Department of Defense obligated $12.7 million to GLS-CAMBRIDGE JV for work described as: PHASE IN PERIOD Key points: 1. The contract value is $12.6 million over an 8-year period. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The sector is Construction, specifically power and communication line infrastructure.

Value Assessment

Rating: good

The contract value of $12.6 million over 8 years for power and communication line construction appears reasonable given the scope. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was initiated but specific sources were excluded. This method aims for best value while potentially limiting the pool of bidders.

Taxpayer Impact: The use of full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.

Public Impact

Ensures critical power and communication infrastructure is maintained and upgraded. Supports military operations by providing reliable utility services. Creates jobs in the construction sector within Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen site conditions arise.
  • Limited competition after exclusion of sources might impact ultimate price discovery.
  • Long contract duration increases exposure to market fluctuations.

Positive Signals

  • Firm Fixed Price contract shifts risk to the contractor.
  • Full and open competition generally promotes competitive pricing.
  • Award to a joint venture may indicate specialized capabilities.

Sector Analysis

This contract falls within the construction sector, specifically focusing on utility infrastructure. Spending in this area is crucial for maintaining operational readiness and supporting base facilities. Benchmarks for similar projects vary widely based on location and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard DoD oversight mechanisms would apply, including contract performance monitoring and financial audits.

Related Government Programs

  • Power and Communication Line and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost overruns due to unforeseen site conditions.
  • Limited competition after source exclusion.
  • Long contract duration (8 years) increases exposure to economic and material price volatility.
  • Contract performance risk associated with joint venture capabilities.

Tags

power-and-communication-line-and-related, department-of-defense, pr, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to GLS-CAMBRIDGE JV. PHASE IN PERIOD

Who is the contractor on this award?

The obligated recipient is GLS-CAMBRIDGE JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2008-09-01. End: 2016-09-30.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' award?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security requirements are necessary and only a limited number of contractors can meet them. This ensures the selected contractor possesses the unique qualifications for the project, though it warrants scrutiny to confirm the exclusion was justified and not unduly restrictive.

How does the firm fixed price structure mitigate risks for the government in this long-term construction project?

A Firm Fixed Price (FFP) contract shifts the primary risk of cost overruns to the contractor. This means the government pays a set price regardless of the contractor's actual costs. For a long-term project like this, FFP provides budget certainty for the government, but it requires careful initial pricing and contractor performance monitoring to ensure value.

What is the expected impact of this construction project on the power and communication infrastructure in Puerto Rico?

This contract is expected to significantly upgrade or maintain the power and communication lines and related structures for the Department of Defense in Puerto Rico. This ensures reliable utility services essential for military operations and potentially enhances the resilience of local infrastructure against environmental factors or aging systems.

Industry Classification

NAICS: ConstructionUtility System ConstructionPower and Communication Line and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489008R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44 CANAL CENTER PLZ STE 320, ALEXANDRIA, VA, 22314

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,657,391

Exercised Options: $12,657,391

Current Obligation: $12,657,391

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline

Start Date: 2008-09-01

Current End Date: 2016-09-30

Potential End Date: 2016-09-30 00:00:00

Last Modified: 2017-06-14

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