Navy's $28.5M Drydock Electrical Upgrade Contract Awarded to Helix Electric Faces Scrutiny
Contract Overview
Contract Amount: $28,533,914 ($28.5M)
Contractor: Helix Electric, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-11-27
End Date: 2016-08-30
Contract Duration: 1,007 days
Daily Burn Rate: $28.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF P998 DRYDOCK 8 ELECTRICAL DISTRIBUTION UPGRADE, NNSY
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to HELIX ELECTRIC, INC. for work described as: IGF::OT::IGF P998 DRYDOCK 8 ELECTRICAL DISTRIBUTION UPGRADE, NNSY Key points: 1. The contract value of $28.5 million for a drydock electrical upgrade is significant for this type of infrastructure project. 2. Helix Electric, Inc. secured the award under full and open competition, indicating a competitive bidding process. 3. Potential risks include project delays and cost overruns, common in complex construction and upgrade projects. 4. The sector is primarily construction and infrastructure, with a focus on specialized electrical systems for naval facilities.
Value Assessment
Rating: fair
The contract's final value of $28.5 million appears to be within a reasonable range for a large-scale electrical distribution upgrade in a naval drydock. Benchmarking against similar specialized maritime construction projects would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing, though the final negotiated price is key.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the final cost and project success will determine the ultimate taxpayer impact.
Public Impact
Naval operations at NNSY could be impacted during the upgrade period, potentially affecting ship maintenance schedules. The successful completion of this project is crucial for modernizing critical naval infrastructure. Taxpayers are funding a significant investment in upgrading essential military facility components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays
- Risk of cost overruns
- Complexity of specialized electrical systems
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type can limit cost escalation
Sector Analysis
This project falls within the construction and infrastructure sector, specifically focusing on specialized electrical systems for naval facilities. Spending benchmarks for similar large-scale industrial upgrades can vary widely based on scope and location.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting were explicitly mentioned for this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including potential reviews by the Inspector General.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of initial cost estimate data
- No explicit mention of small business participation
- Potential for scope creep in complex infrastructure projects
- Need for detailed performance and modification history
Tags
power-and-communication-line-and-related, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to HELIX ELECTRIC, INC.. IGF::OT::IGF P998 DRYDOCK 8 ELECTRICAL DISTRIBUTION UPGRADE, NNSY
Who is the contractor on this award?
The obligated recipient is HELIX ELECTRIC, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.5 million.
What is the period of performance?
Start: 2013-11-27. End: 2016-08-30.
What was the initial estimated cost versus the final awarded cost, and what factors contributed to any difference?
The provided data does not include the initial estimated cost, only the awarded amount of $28.5 million. Analyzing the difference between estimates and the final award price would reveal potential issues in the initial planning or bidding process. Factors could include unforeseen site conditions, changes in material costs, or competitive dynamics influencing the final negotiated price.
Were there any performance issues or contract modifications that led to cost or schedule changes during the contract period?
The data indicates the contract duration was 1007 days, spanning from November 2013 to August 2016. Without access to contract modification logs or performance reports, it's impossible to determine if there were issues. Such modifications or performance problems could significantly impact the final cost and timeline, affecting overall value.
How does the final cost per unit of electrical capacity or upgrade compare to industry benchmarks for similar naval facilities?
Benchmarking the cost per unit of electrical capacity or upgrade is challenging without specific technical details of the system's capacity and the exact scope of work. However, the total contract value of $28.5 million suggests a substantial investment. A detailed cost-benefit analysis comparing this expenditure against the expected operational improvements and lifespan extension would be necessary.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008513R7701
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6795 FLANDERS DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,718,914
Exercised Options: $28,533,914
Current Obligation: $28,533,914
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-11-27
Current End Date: 2016-08-30
Potential End Date: 2016-08-30 00:00:00
Last Modified: 2016-09-29
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