Navy awards $18.6M contract for power upgrades at Rota, Spain, to COBRA INSTALACIONES Y SERVICIOS, S.A.U

Contract Overview

Contract Amount: $18,586,435 ($18.6M)

Contractor: Cobra Instalaciones Y Servicios, S.A.U.

Awarding Agency: Department of Defense

Start Date: 2015-11-20

End Date: 2023-04-10

Contract Duration: 2,698 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-712 SHIP BERTHING POWER UPGRADE, ROTA SPAIN

Plain-Language Summary

Department of Defense obligated $18.6 million to COBRA INSTALACIONES Y SERVICIOS, S.A.U. for work described as: IGF::OT::IGF P-712 SHIP BERTHING POWER UPGRADE, ROTA SPAIN Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The definitive contract type indicates a clear scope of work and pricing structure. 3. A duration of 2698 days (over 7 years) suggests a long-term need for infrastructure maintenance and upgrades. 4. The contract value of $18.6 million is spread over a significant period, implying moderate annual investment. 5. The specific NAICS code (237130) points to a specialized construction sector focused on power infrastructure. 6. The absence of small business set-aside flags indicates the primary awardee is likely not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The $18.6 million over nearly 7.5 years averages to approximately $2.5 million annually. This figure needs to be assessed against the scale and complexity of power infrastructure upgrades in a naval base setting. Without detailed cost elements or comparisons to similar international naval base projects, it's difficult to definitively assess value for money. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for this specialized construction service. A competitive bidding process is generally expected to drive down prices and ensure that the government receives fair market value for the services rendered. The number of bidders provides some assurance that the selection was based on merit and competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential infrastructure upgrades, reducing the likelihood of overpayment.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and operations at Naval Station Rota, Spain, through improved and reliable power infrastructure. The contract delivers essential construction services for power and communication line infrastructure upgrades. The geographic impact is localized to Naval Station Rota, Spain, a critical U.S. naval forward operating base. The contract supports the construction workforce, likely employing skilled laborers and tradespeople for the duration of the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to potential cost escalation if not managed tightly, despite fixed-price nature.
International location may introduce logistical complexities and potential for unforeseen costs.
Dependence on a single contractor for an extended period could limit flexibility in adopting new technologies or approaches.

Positive Signals

Awarded via full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
The contract addresses critical infrastructure needs for a key naval installation.

Sector Analysis

This contract falls within the construction sector, specifically focusing on power and communication line construction (NAICS 237130). This sub-sector involves the building and maintenance of electrical power lines, communication lines, and related structures. The market for such services, especially for large government installations like naval bases, requires specialized expertise and adherence to stringent security and operational standards. The global market for electrical infrastructure construction is substantial, driven by both new development and the need to upgrade aging systems.

Small Business Impact

The contract details indicate that this was not set aside for small businesses, and the awardee, COBRA INSTALACIONES Y SERVICIOS, S.A.U., is likely a larger entity given the contract value and scope. There is no explicit mention of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific prime contract award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting and program management offices. As a definitive contract, it implies a defined scope and payment schedule, subject to regular review. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the Naval Inspector General being the relevant authority.

Related Government Programs

Naval Base Infrastructure Projects
Military Construction Contracts
International Defense Contracts
Power Grid Modernization
Communication Infrastructure Development

Risk Flags

Long contract duration
International location
Potential for unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to COBRA INSTALACIONES Y SERVICIOS, S.A.U.. IGF::OT::IGF P-712 SHIP BERTHING POWER UPGRADE, ROTA SPAIN

Who is the contractor on this award?

The obligated recipient is COBRA INSTALACIONES Y SERVICIOS, S.A.U..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2015-11-20. End: 2023-04-10.

What is the track record of COBRA INSTALACIONES Y SERVICIOS, S.A.U. with the Department of Defense?

Information regarding COBRA INSTALACIONES Y SERVICIOS, S.A.U.'s specific track record with the Department of Defense (DoD) is not detailed in the provided data snippet. However, the award of an $18.6 million definitive contract suggests a level of capability and experience deemed sufficient by the Navy for this project. To fully assess their track record, one would need to examine past performance reviews, previous contract awards, and any history of disputes or issues with the DoD or other federal agencies. A deeper dive into contract databases and performance assessment reports would be necessary for a comprehensive understanding of their history with the government.

How does the $18.6 million contract value compare to similar power upgrade projects at international naval bases?

Direct comparison of the $18.6 million contract value for power upgrades at Naval Station Rota, Spain, to similar projects at other international naval bases is difficult without specific project details and cost data from those comparable contracts. Factors such as the scope of work (e.g., capacity upgrades, grid modernization, specific facility connections), local labor costs, material costs, and regulatory environments can significantly influence project pricing. However, considering the contract spans nearly 7.5 years, the average annual expenditure is approximately $2.5 million. This figure needs to be contextualized against the size and operational requirements of Rota, which is a major U.S. naval facility. Without more granular data on comparable projects, it's challenging to definitively benchmark this value.

What are the primary risks associated with a long-term (2698-day) construction contract like this?

The primary risks associated with a long-term construction contract, such as this 2698-day (over 7 years) definitive contract, include potential cost escalation despite the firm fixed-price structure, especially if unforeseen site conditions or material price volatility occur. There's also a risk of scope creep if project requirements evolve significantly over the contract's lifespan. Technological obsolescence is another concern; infrastructure installed early in the contract might be outdated by its completion. Furthermore, contractor performance degradation over an extended period, potential labor disputes, or changes in the geopolitical environment affecting the overseas location (Rota, Spain) could pose risks. Effective project management, contingency planning, and robust oversight are crucial to mitigate these long-term risks.

What is the expected program effectiveness or outcome of these power upgrades?

The expected program effectiveness of these power upgrades is to ensure a reliable, stable, and potentially higher-capacity electrical power supply to Naval Station Rota, Spain. This directly supports the operational readiness and mission capabilities of the base, which is a critical hub for U.S. naval operations in the region. Improved power infrastructure can reduce the risk of outages, enhance the performance of sensitive electronic equipment, and potentially accommodate future increases in power demand from new systems or expanded operations. Ultimately, the effectiveness will be measured by the sustained reliability and performance of the upgraded power systems throughout their service life.

How does this contract fit into the broader historical spending patterns for naval infrastructure at Rota?

Analyzing this $18.6 million contract within the broader historical spending patterns for naval infrastructure at Rota requires access to historical contract data for the base. This specific contract, awarded in late 2015 and ending in 2023, represents a significant investment in power and communication infrastructure over a prolonged period. It suggests a strategic focus on modernizing or maintaining critical utilities at this key overseas installation. Without comparative data on previous infrastructure projects (e.g., barracks, port facilities, other utility upgrades) at Rota, it's difficult to determine if this represents a typical investment level, an increase, or a decrease in spending for infrastructure modernization. Understanding the base's master plan and previous capital improvement budgets would provide further context.

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: N6247015R5013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE CARDENAL MARCELO SPINOLA 10, MADRID

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,586,435

Exercised Options: $18,586,435

Current Obligation: $18,586,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline