DoD awards $12.5M for feeder cable replacement, highlighting construction needs in remote locations

Contract Overview

Contract Amount: $12,520,665 ($12.5M)

Contractor: ECC Diego Garcia LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-12

End Date: 2028-08-14

Contract Duration: 1,067 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE F1SA AND F2S FEEDER CABLES, F-200065, WON#1649785

Plain-Language Summary

Department of Defense obligated $12.5 million to ECC DIEGO GARCIA LLC for work described as: REPLACE F1SA AND F2S FEEDER CABLES, F-200065, WON#1649785 Key points: 1. Contract value appears reasonable given the specialized nature of work and remote location. 2. Full and open competition suggests a healthy market for this type of construction service. 3. Potential risks include logistical challenges and material availability for the remote site. 4. Contract duration aligns with the scope of infrastructure replacement. 5. This contract falls within the broader category of facilities maintenance and construction. 6. The award to ECC Diego Garcia LLC indicates a focus on specialized construction capabilities.

Value Assessment

Rating: good

The contract value of $12.5 million for replacing feeder cables is within a reasonable range for specialized construction services. Benchmarking against similar projects for infrastructure upgrades in remote or overseas locations would provide further context. The firm-fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be a positive indicator of value if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is expected to drive favorable pricing and ensure that the government receives the best value. The presence of multiple qualified bidders suggests a robust market for these specialized construction services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The primary beneficiaries are the Department of Defense and personnel stationed at Diego Garcia, who will receive improved and reliable electrical infrastructure. The service delivered is the replacement of critical feeder cables, essential for the operational continuity of the facility. The geographic impact is specific to Diego Garcia, a remote U.S. naval support facility in the Indian Ocean. Workforce implications may include the deployment of skilled construction labor to the remote location, potentially sourced both locally and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Logistical challenges associated with delivering materials and personnel to a remote island location.
Potential for unforeseen site conditions requiring additional work or materials.
Dependence on a single contractor for a critical infrastructure component.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Clear contract duration and defined scope of work.

Sector Analysis

This contract falls within the construction sector, specifically focusing on electrical infrastructure upgrades. The market for specialized construction services in remote overseas locations is often limited, making competitive bidding crucial. Comparable spending benchmarks would typically involve projects of similar scale and complexity for facility maintenance and upgrades in government-operated overseas installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, ECC Diego Garcia LLC, will manage the project, and their subcontracting decisions will be based on their own operational needs and procurement policies.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services by a deadline. Transparency is facilitated through contract award databases, though detailed project execution oversight is internal to the agency.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Overseas Construction Projects
Department of Defense Infrastructure Modernization
Electrical Systems Maintenance and Repair

Risk Flags

Logistical complexity of remote location
Potential for unforeseen site conditions
Dependency on specialized construction services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to ECC DIEGO GARCIA LLC. REPLACE F1SA AND F2S FEEDER CABLES, F-200065, WON#1649785

Who is the contractor on this award?

The obligated recipient is ECC DIEGO GARCIA 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 $12.5 million.

What is the period of performance?

Start: 2025-09-12. End: 2028-08-14.

What is the track record of ECC Diego Garcia LLC in performing similar overseas construction projects for the Department of Defense?

ECC Diego Garcia LLC has a history of performing various construction and engineering services, often in challenging or remote locations. While specific details on past feeder cable replacement projects for the DoD are not provided in this data snippet, their presence as a contractor for Diego Garcia suggests experience with the unique logistical and operational requirements of such sites. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would be necessary for a comprehensive assessment of their track record. This would involve reviewing contract databases for awards, modifications, and any associated performance metrics or disputes.

How does the awarded price of $12.5 million compare to similar feeder cable replacement projects in remote locations?

Benchmarking the $12.5 million award requires comparing it to projects with similar scope, scale, and geographic challenges. Projects involving electrical infrastructure upgrades in remote overseas bases are inherently more expensive due to logistical complexities, specialized labor requirements, and potentially higher material costs. Without specific data on comparable projects, it's difficult to definitively assess value. However, the fact that the contract was awarded under full and open competition suggests that the price was deemed competitive among the bidders. Further analysis would involve identifying similar contracts awarded by the DoD or other agencies for work in comparable environments.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include logistical challenges in delivering materials and personnel to Diego Garcia, potential for unforeseen site conditions during excavation or installation, and ensuring the long-term reliability of the new feeder cables. Mitigation strategies are likely embedded within the contract's firm-fixed-price structure, which places the onus on ECC Diego Garcia LLC to manage cost overruns and unforeseen issues. The contract duration of approximately three years allows for phased implementation and testing. Additionally, the requirement for full and open competition suggests that multiple bidders assessed these risks and proposed solutions, with the chosen contractor demonstrating the most viable approach.

What is the expected impact of this contract on the operational readiness and infrastructure of Diego Garcia?

The replacement of feeder cables is critical for ensuring the reliable power supply to essential systems and facilities at Diego Garcia. Aging or failing electrical infrastructure can lead to power outages, disrupting operations, compromising sensitive equipment, and impacting the quality of life for personnel. By upgrading these critical components, this contract is expected to significantly enhance the operational readiness and infrastructure resilience of the base. This will support the continuity of mission-critical functions and reduce the likelihood of disruptions caused by electrical failures, thereby improving overall base functionality and security.

What is the historical spending trend for similar construction and infrastructure projects at Diego Garcia or comparable overseas bases?

Historical spending on construction and infrastructure projects at Diego Garcia and similar overseas bases tends to be significant due to the high cost of operating in remote locations. These costs are driven by factors such as transportation, specialized labor, unique environmental challenges, and the need for robust, long-lasting infrastructure. Analyzing past spending patterns for projects like facility upgrades, utility maintenance, and construction at comparable DoD installations would reveal a trend of substantial investment. This specific contract for feeder cable replacement, valued at $12.5 million over approximately three years, aligns with the typical scale of such essential infrastructure investments required to maintain and modernize critical overseas facilities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY STE 203, BURLINGAME, CA, 94010

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,520,665

Exercised Options: $12,520,665

Current Obligation: $12,520,665

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008421D0080

IDV Type: IDC

Timeline