DoD's $3.3M UPS System Contract for Navy Facility: Value and Competition Under Scrutiny

Contract Overview

Contract Amount: $3,304,606 ($3.3M)

Contractor: Planate-Argo Federal Services Joint Venture LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-18

End Date: 2023-06-20

Contract Duration: 640 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N39430-21-D-2205-N3943021F4204, PROCURE AND INSTALL A 2N UNINTERRUPTIBLE POWER SUPPLY SYSTEM AT NAVY SATELLITE AND COMMUNICATIONS FACILITY NORTHWEST ANNEX CHESAPEAKE, VIRGINIA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $3.3 million to PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC for work described as: N39430-21-D-2205-N3943021F4204, PROCURE AND INSTALL A 2N UNINTERRUPTIBLE POWER SUPPLY SYSTEM AT NAVY SATELLITE AND COMMUNICATIONS FACILITY NORTHWEST ANNEX CHESAPEAKE, VIRGINIA Key points: 1. The contract's value appears reasonable given the specialized nature of uninterruptible power supply (UPS) systems for critical communication facilities. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a deliberate selection process that may limit broad market participation. 3. The fixed-price contract type shifts performance risk to the contractor, PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC. 4. The project duration of 640 days indicates a significant undertaking for installation and integration. 5. The contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector, a common area for infrastructure support. 6. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the $3.3 million cost for a 2N UPS system requires detailed technical specifications and market data for similar installations at secure communication facilities. While the '2N' configuration (redundant systems) typically increases cost due to duplication, the price needs to be evaluated against the specific capacity, features, and warranty provided. Without direct comparable contracts for identical systems at similar Navy facilities, a precise value-for-money assessment is challenging. However, the cost appears within a plausible range for specialized, high-reliability infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were intentionally excluded, possibly due to specific technical requirements, security clearances, or prior performance. The exact number of bidders is not provided, but the 'exclusion of sources' suggests a potentially narrower field than a truly unrestricted full and open competition, which could impact price discovery.

Taxpayer Impact: The limited nature of the competition, even if 'full and open' among a selected group, may mean taxpayers did not benefit from the lowest possible price achievable through the widest possible market engagement. This approach necessitates careful justification to ensure fair pricing.

Public Impact

The primary beneficiaries are the Department of the Navy and its satellite and communications operations at the Northwest Annex in Chesapeake, Virginia, ensuring continuous power for critical systems. The service delivered is the procurement and installation of a highly reliable, redundant uninterruptible power supply system. The geographic impact is localized to the Navy Satellite and Communications Facility Northwest Annex in Chesapeake, Virginia. Workforce implications include employment for electricians, technicians, project managers, and support staff involved in the installation and integration of the UPS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition after source exclusion.
Risk of vendor lock-in if specialized components or maintenance are required.
Dependence on a single joint venture for critical infrastructure support.

Positive Signals

Fixed-price contract shifts cost overrun risk to the contractor.
The '2N' redundancy ensures high availability, crucial for communication facilities.
The contractor, PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC, is responsible for delivery and installation.

Sector Analysis

The contract falls under the Electrical Contractors and Other Wiring Installation Contractors (NAICS 238210) sector. This sector is vital for national infrastructure, including government facilities, providing essential electrical services. The market for specialized UPS systems for critical infrastructure is competitive but often involves firms with specific expertise and security clearances. The total federal spending in this sector can be substantial, supporting everything from basic wiring to complex power solutions for sensitive operations.

Small Business Impact

The contract was not awarded as a small business set-aside (SS=false, SB=false). This indicates that the procurement was not specifically designed to prioritize small businesses. Consequently, there are no direct subcontracting implications mandated for small businesses through this specific award. The joint venture structure of the awardee, PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC, may involve larger entities, potentially limiting direct opportunities for smaller firms unless they are part of the joint venture's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified system within the agreed cost. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Uninterruptible Power Supply Systems
Navy Communication Facility Infrastructure Upgrades
Electrical Installation Contracts
Critical Infrastructure Protection Programs
Federal IT and Communications Support Contracts

Risk Flags

Limited competition justification
Potential for cost escalation if scope is not tightly managed
Dependence on joint venture performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.3 million to PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC. N39430-21-D-2205-N3943021F4204, PROCURE AND INSTALL A 2N UNINTERRUPTIBLE POWER SUPPLY SYSTEM AT NAVY SATELLITE AND COMMUNICATIONS FACILITY NORTHWEST ANNEX CHESAPEAKE, VIRGINIA

Who is the contractor on this award?

The obligated recipient is PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2021-09-18. End: 2023-06-20.

What is the track record of PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC with the Department of Defense or Navy?

Information on the specific track record of PLANATE-ARGO FEDERAL SERVICES JOINT VENTURE LLC is limited in the provided data. As a joint venture, its performance history may be a composite of its constituent companies or a newly established entity. Further investigation into its past performance on similar federal contracts, particularly those involving critical infrastructure or power systems, would be necessary to fully assess its reliability and capability. Reviewing past performance evaluations and any contract disputes or awards would provide a clearer picture of their experience and success rate in fulfilling government requirements.

How does the $3.3 million cost compare to similar UPS system installations for federal facilities?

A direct cost comparison for a 2N UPS system of this scale ($3.3 million) is challenging without access to detailed technical specifications and market intelligence for comparable federal installations. Factors such as system capacity (kVA), battery runtime, efficiency ratings, environmental controls, and integration complexity significantly influence pricing. However, for critical infrastructure supporting communications, high-reliability systems with redundancy (like the '2N' configuration) are inherently more expensive. The price needs to be benchmarked against similar procurements for secure facilities, considering the specific requirements and the competitive landscape at the time of award.

What are the primary risks associated with this contract for the government?

The primary risks for the government include potential cost overruns if the fixed-price contract has poorly defined scope or unforeseen technical challenges, although the contractor bears most of this risk. Performance risk is also present; failure to deliver a fully functional and reliable UPS system could jeopardize the operations of the communication facility. Schedule delays could impact mission readiness. Furthermore, if the 'exclusion of sources' process was not adequately justified or executed, it could lead to suboptimal pricing or limited vendor options for future needs.

How effective is the 'full and open competition after exclusion of sources' approach for specialized procurements like this?

This approach can be effective when specific technical expertise, security clearances, or unique capabilities are required, and only a limited number of vendors possess them. It allows the government to target its competition more precisely, potentially leading to better-suited solutions. However, it risks excluding innovative or capable vendors who might offer competitive pricing or alternative approaches if the exclusion criteria are too narrow or not well-justified. The effectiveness hinges on the clarity and necessity of the exclusion criteria and the subsequent competition among the remaining eligible sources.

What is the historical spending trend for UPS systems or electrical installation services by the Department of the Navy?

Analyzing historical spending trends for UPS systems and electrical installation services by the Department of the Navy would require a comprehensive review of federal procurement data over several fiscal years. Such an analysis would likely reveal consistent investment in maintaining and upgrading critical infrastructure, including power systems for communication and operational facilities. Spending patterns would fluctuate based on modernization initiatives, aging infrastructure replacement needs, and specific project requirements. Understanding these trends helps contextualize the $3.3 million award within the Navy's broader capital investment strategy for its facilities.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3943020R2230

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 DIAGONAL ROAD SUITE 600, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,304,606

Exercised Options: $3,304,606

Current Obligation: $3,304,606

Actual Outlays: $1,040,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943021D2205

IDV Type: IDC

Timeline