DoD's $54.7M power line contract awarded to Helix Electric, Inc. for Guam infrastructure

Contract Overview

Contract Amount: $54,725,641 ($54.7M)

Contractor: Helix Electric, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-23

End Date: 2010-11-26

Contract Duration: 886 days

Daily Burn Rate: $61.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASIS FOR CLIN 0001

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $54.7 million to HELIX ELECTRIC, INC. for work described as: BASIS FOR CLIN 0001 Key points: 1. Contract value appears reasonable given the scope of infrastructure work in a remote location. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 886 days indicates a significant, long-term project. 4. Awarded to a single contractor, highlighting the need for specialized capabilities. 5. The project is situated in Guam, a strategic location with unique logistical considerations. 6. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of approximately $54.7 million for power and communication line construction in Guam is substantial. Benchmarking against similar large-scale infrastructure projects in remote or overseas locations is challenging due to unique logistical costs and security requirements. However, the fixed-price nature of the contract suggests an effort to establish a clear cost ceiling. The award to Helix Electric, Inc. indicates they were deemed the best value provider through a competitive process.

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,' which implies that while initial solicitations may have had limitations, the final award was based on a broad competitive process. The presence of 6 bidders (indicated by 'no': 6) suggests a healthy level of competition for this significant infrastructure project. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured that the government secured services from a qualified contractor at a reasonable cost.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed in Guam, who will receive improved and reliable power and communication infrastructure. The services delivered include the construction of power and communication lines, crucial for operational readiness and quality of life. The geographic impact is localized to Guam, enhancing its military infrastructure capabilities. The project likely involved a significant local workforce, including skilled tradespeople and support staff, contributing to the Guam economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Logistical challenges in a remote island location could impact project timelines and costs.
Dependence on a single contractor for a critical infrastructure project carries inherent risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a thorough vetting of potential contractors.
Awarded to a contractor with experience in relevant construction types (implied by PSC).
Project duration allows for thorough execution and quality control.

Sector Analysis

This contract falls within the Construction and Engineering Services sector, specifically focusing on power and communication infrastructure. The market for such specialized construction, particularly in strategic locations like Guam, is often dominated by a few large, experienced firms capable of handling complex, large-scale projects. Benchmarking against similar projects is difficult due to the unique geographical and logistical factors associated with island construction and military installations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information on subcontracting plans. Given the scale and specialized nature of power and communication line construction, it is possible that the prime contractor may engage subcontractors, potentially including small businesses, for specific tasks. However, without further data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, but oversight would still focus on performance, schedule adherence, and quality control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Infrastructure Projects
Military Base Construction
Power Grid Modernization
Communication Network Infrastructure
Guam Military Buildup Projects

Risk Flags

Logistical complexity in remote location
Potential for unforeseen site conditions
Dependence on single prime contractor
Schedule adherence risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to HELIX ELECTRIC, INC.. BASIS FOR CLIN 0001

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 $54.7 million.

What is the period of performance?

Start: 2008-06-23. End: 2010-11-26.

What is Helix Electric, Inc.'s track record with similar large-scale infrastructure projects for the Department of Defense?

Helix Electric, Inc. has a history of performing large-scale electrical construction projects, including work for government entities. While specific details on their track record with the DoD for power and communication line construction in overseas locations like Guam are not fully detailed in this data snippet, their selection suggests they met the qualifications for this significant contract. Further investigation into their past performance reports, contract history with similar agencies, and any past performance issues would provide a more comprehensive understanding of their capabilities and reliability for this specific project.

How does the awarded amount of $54.7 million compare to similar power and communication line construction projects in remote or island locations?

Direct comparisons for projects of this nature in remote island locations like Guam are inherently difficult due to unique logistical costs, material transport challenges, specialized labor requirements, and potentially higher overhead associated with operating in such environments. The $54.7 million figure for 886 days of work (approximately 2.4 years) suggests a significant investment. While specific benchmark data is not provided, the 'full and open competition' with 6 bidders implies that the price was considered competitive within the market for such specialized, geographically constrained infrastructure development. The fixed-price nature also suggests a defined scope and cost expectation.

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

Key risks include logistical challenges inherent in construction on Guam, potential for unforeseen subsurface conditions impacting the power and communication lines, and the possibility of schedule delays due to weather or material availability. Mitigation strategies likely involve detailed site surveys, robust project management by Helix Electric, Inc., contingency planning within the contract, and close oversight by the Department of the Navy. The firm fixed-price contract also incentivizes the contractor to manage costs and risks effectively to maintain profitability.

What is the expected impact of this contract on the local economy and workforce in Guam?

This contract is expected to have a positive impact on the local economy in Guam by creating jobs for skilled laborers, electricians, engineers, and support personnel. The demand for local materials and services, where feasible, will also contribute to economic activity. Furthermore, the improved power and communication infrastructure will enhance the operational capabilities and quality of life for military personnel and their families stationed on the island, indirectly supporting the long-term strategic presence of the DoD in the region.

What historical spending patterns exist for power and communication line construction by the Department of Defense in the Pacific region?

Historical spending patterns for power and communication line construction by the DoD in the Pacific region, particularly in areas like Guam, have generally been substantial due to the strategic importance and ongoing modernization efforts of military installations. This includes significant investments in upgrading aging infrastructure, expanding capabilities, and ensuring resilient utility systems. Contracts in this region often reflect the higher costs associated with logistics, specialized labor, and the unique environmental conditions. Analyzing past contract awards for similar projects in Guam and other Pacific territories would reveal trends in contract values, durations, and the types of contractors frequently engaged.

How does the 'Full and Open Competition After Exclusion of Sources' clause affect the bidding process and final price?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while there might have been an initial phase where certain sources were excluded (perhaps due to specific pre-qualification requirements or previous contract issues), the final award was made after a broad solicitation to all responsible prospective contractors. This approach aims to maximize competition while ensuring that only qualified bidders participate. The presence of 6 bidders suggests that this method successfully attracted a sufficient number of capable firms, which typically leads to more competitive pricing and better value for the government compared to sole-source or limited competition scenarios.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274207R1322

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8260 CAMINO SANTA FE STE A, SAN DIEGO, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,725,641

Exercised Options: $54,725,641

Current Obligation: $54,725,641

Contract Characteristics

Cost or Pricing Data: NO

Timeline