DoD's $17.1M Generator Replacement Contract Awarded to Signature Renovations LLC

Contract Overview

Contract Amount: $17,122,376 ($17.1M)

Contractor: Signature Renovations LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-08-21

Contract Duration: 1,057 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD CONSTRUCTION FOR SITE R GENERATOR REPLACEMENT

Place of Performance

Location: FAIRFIELD, ADAMS County, PENNSYLVANIA, 17320

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to SIGNATURE RENOVATIONS LLC for work described as: DESIGN-BUILD CONSTRUCTION FOR SITE R GENERATOR REPLACEMENT Key points: 1. Contract focuses on essential infrastructure upgrades for site R generator replacement. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1057 days indicates a significant, long-term project. 4. Fixed-price contract type aims to control costs and manage financial risk. 5. Prime contractor is Signature Renovations LLC, with 5 bids received. 6. The project is located in Pennsylvania, impacting local construction workforce.

Value Assessment

Rating: fair

The contract value of $17.1 million for a generator replacement project appears within a reasonable range for large-scale commercial and institutional building construction. However, without specific details on the scope of work, the generator's capacity, and the complexity of the site, a precise value-for-money assessment is challenging. Benchmarking against similar Department of Defense infrastructure projects of comparable scale and technical requirements would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which is a less common method than standard full and open competition. This suggests that while multiple bids were solicited, there might have been specific criteria or justifications for excluding certain potential bidders. Receiving 5 bids indicates a degree of competition, but the 'exclusion of sources' aspect warrants further investigation to understand its impact on the final price and the range of available solutions.

Taxpayer Impact: While 5 bids suggest some level of competition, the exclusion of sources could potentially limit the most competitive offers from reaching the government, possibly impacting the final price taxpayers pay.

Public Impact

The primary beneficiaries are the Department of Defense personnel and operations at the specific site requiring reliable power. The contract delivers critical infrastructure upgrades through the replacement of an existing generator. The geographic impact is localized to the facility in Pennsylvania where the work will be performed. The project will likely involve a skilled construction workforce, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises questions about the breadth of competition and potential cost implications.
Lack of detailed scope of work makes it difficult to fully assess the value for money.
The long project duration could introduce risks related to material cost fluctuations or unforeseen site conditions.

Positive Signals

The use of a firm-fixed-price contract type helps to establish cost certainty for the government.
Awarding to a contractor with experience in commercial and institutional building construction is a positive signal.
The receipt of multiple bids (5) indicates interest and a degree of market engagement for this type of work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the U.S. economy. Federal spending in this sector often supports infrastructure maintenance, upgrades, and new construction for government facilities. Comparable spending benchmarks would involve analyzing other large-scale construction projects for federal agencies, particularly those involving critical infrastructure like power generation systems.

Small Business Impact

The contract data indicates that small business participation (sb) is marked as false, and it is not a small business set-aside (ss). This suggests that the prime contract was not specifically targeted towards small businesses. There is no information provided on subcontracting plans, so the extent to which small businesses will be involved in fulfilling parts of this contract remains unclear. Further investigation into subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense's relevant contracting and facilities management offices. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Federal Infrastructure Projects
Generator and Power Systems Procurement
Commercial Building Construction Contracts

Risk Flags

Competition Method Concerns
Limited Scope Detail
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to SIGNATURE RENOVATIONS LLC. DESIGN-BUILD CONSTRUCTION FOR SITE R GENERATOR REPLACEMENT

Who is the contractor on this award?

The obligated recipient is SIGNATURE RENOVATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-08-21.

What is the specific nature of the 'site R generator replacement' and the technical specifications involved?

The provided data indicates 'DESIGN-BUILD CONSTRUCTION FOR SITE R GENERATOR REPLACEMENT' as the contract's purpose. However, specific technical details such as the generator's power output (kVA), fuel type, redundancy requirements, integration with existing electrical systems, and environmental controls are not detailed in the summary data. A design-build approach suggests the contractor is responsible for both the design and construction phases. Understanding these technical specifications is crucial for assessing the complexity, risk, and ultimately, the value of the contract. Without this information, it's difficult to compare it accurately to other generator replacement projects.

How does the $17.1 million cost compare to similar generator replacement projects within the DoD or other federal agencies?

Benchmarking the $17.1 million cost requires comparing it to similar projects based on generator capacity (kVA), type (e.g., diesel, natural gas), installation complexity, site preparation needs, and any associated infrastructure work (e.g., fuel tanks, switchgear). For instance, a 1MW diesel generator replacement in a temperate climate might cost significantly less than a 5MW system requiring extensive seismic retrofitting in a high-risk zone. Without these comparable project details, the $17.1 million figure is difficult to contextualize. Analysis of historical DoD contracts for generator replacements of similar scale and complexity would be necessary to determine if this award represents good value for money.

What are the specific risks associated with a design-build generator replacement project of this magnitude and duration?

Risks in a design-build generator replacement project of this scale ($17.1M, ~3 years) include potential design flaws leading to performance issues or cost overruns, unforeseen site conditions (e.g., soil stability, underground utilities) impacting construction schedules and budgets, supply chain disruptions for critical components (generators, switchgear), labor shortages or disputes, and integration challenges with existing facility power systems. The firm-fixed-price nature shifts some cost risk to the contractor, but scope creep or extensive change orders could still escalate costs. Performance risks involve ensuring the new generator meets or exceeds reliability and capacity requirements under various load conditions and potential failure scenarios.

What is the track record of Signature Renovations LLC in executing large-scale federal construction and infrastructure projects?

Assessing Signature Renovations LLC's track record requires examining their past performance on federal contracts, particularly those involving similar scope (design-build, generator replacement, commercial/institutional construction) and value ($17.1M). Key factors include their history of on-time and within-budget project completion, quality of work, safety record, and any past performance issues or disputes. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. A strong history suggests a lower risk profile for this project, while a history of challenges might indicate potential concerns regarding execution capability or reliability.

How did the 'exclusion of sources' clause impact the competitive landscape and potentially the final price?

The 'full and open competition after exclusion of sources' clause implies that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded based on specific criteria outlined in the solicitation (e.g., pre-qualification requirements, specific technical capabilities, past performance thresholds). This exclusion narrows the competitive pool. If the excluded sources represented significant competition, their absence could lead to less aggressive pricing. Conversely, if the exclusions were justified to ensure only highly qualified bidders participated, it might lead to a more technically sound, albeit potentially more expensive, outcome. Understanding the rationale and the identity of the excluded parties is key to assessing the impact on price discovery and taxpayer value.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003421R0003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1779 OLIVE ST, CAPITOL HEIGHTS, MD, 20743

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, 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: $17,122,376

Exercised Options: $17,122,376

Current Obligation: $17,122,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003421D0025

IDV Type: IDC

Timeline