Navy Awards $7.67M Electrical Upgrade Contract to Souza Construction Amidst Full and Open Competition

Contract Overview

Contract Amount: $7,669,562 ($7.7M)

Contractor: Souza Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-09

End Date: 2026-05-22

Contract Duration: 1,170 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NBVC PM3015 - ELECTRICAL DISTRIBUTION REPAIR AND UPGRADES -

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to SOUZA CONSTRUCTION, INC. for work described as: NBVC PM3015 - ELECTRICAL DISTRIBUTION REPAIR AND UPGRADES - Key points: 1. Contract value of $7.67 million for essential electrical infrastructure repair and upgrades. 2. Awarded via full and open competition after exclusion of sources, indicating a competitive process. 3. Potential risks include project delays or cost overruns given the multi-year duration. 4. The sector is construction, specifically power and communication line infrastructure.

Value Assessment

Rating: good

The contract value of $7.67 million appears reasonable for a multi-year infrastructure project of this nature. Benchmarking against similar electrical distribution repair and upgrade contracts would provide a more definitive assessment.

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.' This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The competitive bidding process aims to secure a fair price for taxpayers, though the exclusion of sources warrants scrutiny to ensure optimal value.

Public Impact

Ensures operational readiness and safety of naval facilities through critical infrastructure upgrades. Supports local economy through construction jobs and related services in California. Addresses aging electrical infrastructure, mitigating potential service disruptions and safety hazards.

Waste & Efficiency Indicators

Waste Risk Score: 65 / 10

Warning Flags

Potential for cost escalation due to material price fluctuations.
Risk of schedule delays impacting facility readiness.
Limited visibility into the 'exclusion of sources' rationale.

Positive Signals

Awarded through a competitive process, likely securing a reasonable price.
Addresses critical infrastructure needs for the Department of the Navy.
Long-term contract duration allows for phased upgrades and minimizes disruption.

Sector Analysis

This contract falls within the construction sector, specifically focusing on power and communication line infrastructure. Spending benchmarks for similar federal projects indicate that values can range significantly based on scope and location, but this award appears within a typical range for substantial upgrades.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the project scope necessitated larger contractors.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract's duration and value suggest regular reporting and milestone reviews would be in place to ensure accountability and adherence to specifications.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to market fluctuations.
Risk of schedule delays impacting operational readiness.
Limited transparency regarding source exclusion in competition.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to SOUZA CONSTRUCTION, INC.. NBVC PM3015 - ELECTRICAL DISTRIBUTION REPAIR AND UPGRADES -

Who is the contractor on this award?

The obligated recipient is SOUZA CONSTRUCTION, 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 $7.7 million.

What is the period of performance?

Start: 2023-03-09. End: 2026-05-22.

What was the rationale behind excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion limit the potential for cost savings?

The rationale for excluding specific sources typically involves factors like past performance, technical capabilities, or specific security requirements. Without further details on the exclusion criteria, it's difficult to definitively assess the impact on cost savings. However, limiting the pool of potential bidders can sometimes reduce competitive pressure, potentially leading to higher prices than if all qualified sources were included.

What are the primary risks associated with the multi-year duration of this electrical distribution repair and upgrade contract, and how are they being mitigated?

The primary risks associated with a multi-year contract include potential cost escalation due to inflation or material price volatility, and schedule slippage due to unforeseen site conditions or contractor performance issues. Mitigation strategies likely involve fixed-price elements, clear performance metrics, liquidated damages clauses for delays, and regular progress reviews by the contracting officer.

How effectively does this contract address the long-term needs for electrical infrastructure resilience and modernization within the Department of the Navy?

This contract directly addresses the need for electrical infrastructure resilience and modernization by focusing on repair and upgrades. The multi-year duration suggests a commitment to a comprehensive solution rather than piecemeal fixes. Its effectiveness will ultimately depend on the quality of the work performed, the integration of modern technologies, and the extent to which it future-proofs the facilities against evolving energy demands and security threats.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247317R4620

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 586 S FARMERSVILLE BLVD, FARMERSVILLE, CA, 93223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,669,562

Exercised Options: $7,669,562

Current Obligation: $7,669,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247319D2429

IDV Type: IDC

Timeline