DoD Awards $17.5M Generator Capacity Contract to MODERN INTERNATIONAL INC for Guam Facility
Contract Overview
Contract Amount: $17,502,527 ($17.5M)
Contractor: Modern International Inc
Awarding Agency: Department of Defense
Start Date: 2023-04-26
End Date: 2025-04-15
Contract Duration: 720 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WON 1702007 PROVIDE ADDITIONAL CAPACITY FOR BLDG 309 GENERATOR
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $17.5 million to MODERN INTERNATIONAL INC for work described as: WON 1702007 PROVIDE ADDITIONAL CAPACITY FOR BLDG 309 GENERATOR Key points: 1. Contract awarded for essential generator capacity upgrade. 2. MODERN INTERNATIONAL INC secures the contract. 3. Department of the Navy is the contracting agency. 4. Project located in Guam, potentially impacting local infrastructure. 5. Full and open competition after exclusion of sources used.
Value Assessment
Rating: fair
The contract value of $17.5M for generator capacity appears significant. Benchmarking against similar generator installation or capacity expansion projects is needed to assess value.
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,' indicating a competitive process but with specific source exclusions. This method can impact price discovery if the exclusions were too broad.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure upgrades, ensuring operational continuity for a DoD facility.
Public Impact
Ensures reliable power for Building 309, crucial for DoD operations. Supports infrastructure resilience in Guam. Potential for job creation related to construction and generator services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition needs justification.
- Potential for cost overruns if unforeseen site conditions arise.
- Dependency on a single contractor for critical infrastructure.
Positive Signals
- Addresses a clear need for increased power capacity.
- Utilizes a competitive bidding process.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for maintaining government facilities. Spending benchmarks for generator upgrades vary widely based on capacity and complexity.
Small Business Impact
The contract was awarded to MODERN INTERNATIONAL INC, a company identified with 'GU' (Guam) as its state. Further analysis is needed to determine if this is a small business and if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The use of a Delivery Order under a larger contract framework suggests existing oversight mechanisms. However, the specific details of the 'exclusion of sources' warrant further scrutiny to ensure fairness and prevent potential collusion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential lack of true full and open competition due to source exclusions.
- Limited visibility into long-term operational and maintenance costs.
- Geographic concentration in Guam may present logistical challenges.
- Dependency on a single contractor for a critical utility.
Tags
commercial-and-institutional-building-co, department-of-defense, gu, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to MODERN INTERNATIONAL INC. WON 1702007 PROVIDE ADDITIONAL CAPACITY FOR BLDG 309 GENERATOR
Who is the contractor on this award?
The obligated recipient is MODERN INTERNATIONAL 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 $17.5 million.
What is the period of performance?
Start: 2023-04-26. End: 2025-04-15.
What was the justification for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion limit competitive pricing?
The justification for excluding sources is critical. If the exclusions were based on specific technical requirements or past performance, it might be valid. However, if arbitrary, it could stifle competition and lead to higher prices. A thorough review of the solicitation documents and award justification is necessary to understand the rationale and its impact on the final price.
What are the long-term maintenance costs associated with the new generator capacity, and how do they compare to the initial installation cost?
Understanding the total lifecycle cost is essential. While the initial $17.5M covers installation, ongoing maintenance, fuel, and potential repairs represent significant long-term expenses. Benchmarking these projected operational costs against industry standards and similar installations will reveal the true value and potential future financial burden on the government.
How does this generator capacity upgrade contribute to the overall energy resilience and operational effectiveness of the DoD facility in Guam?
This upgrade directly addresses the need for 'additional capacity,' implying current systems are insufficient or outdated. Enhanced generator capacity is crucial for maintaining uninterrupted operations during power outages, ensuring mission readiness, and supporting critical functions. Its effectiveness is measured by its ability to meet peak demand and provide reliable backup power.
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: N4019220R2700
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 452 ROUTE 10, BARRIGADA, GU, 96913
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,502,527
Exercised Options: $17,502,527
Current Obligation: $17,502,527
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4019222D2706
IDV Type: IDC
Timeline
Start Date: 2023-04-26
Current End Date: 2025-04-15
Potential End Date: 2025-04-15 00:00:00
Last Modified: 2025-09-08
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