Navy's $31.4M Solar Project on Diego Garcia Awarded to Black Construction/Mace JV Under Full and Open Competition

Contract Overview

Contract Amount: $31,373,574 ($31.4M)

Contractor: Black Construction/Mace International Joint Venture

Awarding Agency: Department of Defense

Start Date: 2019-05-07

End Date: 2021-07-10

Contract Duration: 795 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FY 15 P-101&FY17 P-102 ECIP PROJECTS, SOLAR PHOTOVOLTAIC ARRAY, U.S. NAVY SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES (B.I.O.T.)

Plain-Language Summary

Department of Defense obligated $31.4 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE for work described as: IGF::OT::IGF FY 15 P-101&FY17 P-102 ECIP PROJECTS, SOLAR PHOTOVOLTAIC ARRAY, U.S. NAVY SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES (B.I.O.T.) Key points: 1. The project aims to install a solar photovoltaic array, enhancing energy resilience for the U.S. Navy. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract value is $31.4 million, with a duration of 795 days. 4. The project falls under power and communication line construction, a critical infrastructure component.

Value Assessment

Rating: fair

The contract value of $31.4 million for a solar photovoltaic array and related construction appears within a reasonable range for a project of this scale and complexity, especially considering the remote location. Benchmarking against similar large-scale solar installations for government facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive environment that can drive down costs.

Public Impact

Enhances energy independence and sustainability for a key U.S. Navy facility in a strategic location. Supports critical infrastructure by providing a renewable energy source, potentially reducing reliance on traditional power grids. The project's success could serve as a model for future renewable energy deployments at other overseas bases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential logistical challenges and cost overruns due to the remote island location of Diego Garcia.
Ensuring long-term performance and maintenance of the solar array in a harsh maritime environment.
Dependency on a single contractor for a significant infrastructure project.

Positive Signals

Investment in renewable energy aligns with sustainability goals.
Full and open competition suggests a robust procurement process.
Project supports a vital U.S. Navy operational facility.

Sector Analysis

This project falls within the construction sector, specifically related to power infrastructure. Spending on renewable energy projects for military installations is increasing as the Department of Defense prioritizes energy resilience and sustainability. Benchmarks for similar large-scale solar installations vary widely based on location, technology, and scope.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). The prime contractor is a joint venture, which may involve small business participation indirectly, but no direct award to small businesses is evident from this record.

Oversight & Accountability

The contract was awarded via definitive contract, suggesting a well-defined scope. Oversight would typically involve the Department of the Navy ensuring adherence to contract terms, timelines, and quality standards, particularly given the project's remote location.

Related Government Programs

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

Risk Flags

Logistical complexity of overseas project execution.
Potential for environmental factors impacting system performance.
Contract duration is substantial, requiring sustained oversight.
Lack of direct small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE. IGF::OT::IGF FY 15 P-101&FY17 P-102 ECIP PROJECTS, SOLAR PHOTOVOLTAIC ARRAY, U.S. NAVY SUPPORT FACILITY, DIEGO GARCIA, BRITISH INDIAN OCEAN TERRITORIES (B.I.O.T.)

Who is the contractor on this award?

The obligated recipient is BLACK CONSTRUCTION/MACE INTERNATIONAL JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2019-05-07. End: 2021-07-10.

What is the projected return on investment for this solar photovoltaic array, considering the initial cost and anticipated energy savings over its lifespan?

The projected return on investment (ROI) for this $31.4 million solar project is not explicitly detailed in the provided data. A comprehensive ROI analysis would require detailed projections of energy generated, cost savings from reduced reliance on traditional power sources, and maintenance expenses over the system's operational life. Factors like solar irradiance at Diego Garcia and the lifespan of the photovoltaic technology are crucial inputs for such an assessment.

What are the specific risks associated with constructing and maintaining a solar array in the remote and potentially harsh environment of Diego Garcia?

Risks include significant logistical challenges in transporting materials and personnel to the remote island, potential for damage from tropical weather conditions (e.g., high winds, salt spray), and difficulties in accessing specialized maintenance or repair services. Ensuring the durability and long-term performance of the solar panels and associated infrastructure in this environment requires careful planning and robust construction standards.

How effectively does this solar project contribute to the U.S. Navy's overall energy resilience and sustainability goals for its overseas installations?

This project significantly contributes to the Navy's energy resilience by diversifying the power supply at a critical support facility. By incorporating a renewable energy source, it also advances sustainability objectives, reducing the carbon footprint. The success and operational efficiency of this array will be key indicators of its effectiveness in meeting broader strategic energy goals for similar installations.

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: N6274218R1317

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HARMON INDUSTRIAL PARK, HARMON, GU, 96913

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,373,574

Exercised Options: $31,373,574

Current Obligation: $31,373,574

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline