VA awards $19.5M for advanced electrical metering, Schneider Electric wins competitive delivery order

Contract Overview

Contract Amount: $19,537,227 ($19.5M)

Contractor: Schneider Electric USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-09-28

End Date: 2013-06-01

Contract Duration: 1,342 days

Daily Burn Rate: $14.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADVANCED ELECTRICAL METERING PROJECT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.5 million to SCHNEIDER ELECTRIC USA, INC. for work described as: ADVANCED ELECTRICAL METERING PROJECT Key points: 1. Contract awarded via competitive delivery order, indicating multiple bids were considered. 2. The contract value of $19.5M falls within a moderate spending range for similar projects. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Project duration of approximately 3.5 years allows for phased implementation and testing. 5. The award to a single contractor, Schneider Electric, warrants a review of market concentration. 6. Focus on switchgear and switchboard apparatus aligns with critical infrastructure needs.

Value Assessment

Rating: good

The contract value of $19.5M for advanced electrical metering appears reasonable when benchmarked against similar infrastructure upgrade projects within the federal government. The firm fixed-price structure provides cost certainty. While specific per-unit cost data is not available, the overall award suggests a competitive procurement process that likely yielded fair market pricing for the scope of work. The duration of the contract also allows for a structured rollout and integration of the new metering systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that the Department of Veterans Affairs sought proposals from multiple sources. The presence of two bids suggests a degree of competition, though a higher number of bidders would typically lead to more robust price discovery and potentially lower costs. The competitive nature of the award is a positive sign for value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price reductions and encouraging contractors to offer their best value propositions.

Public Impact

Benefits the Department of Veterans Affairs by modernizing critical electrical infrastructure. Services delivered include the implementation of advanced electrical metering systems. Geographic impact is centered in the District of Columbia. Workforce implications may include the need for specialized technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) may indicate potential barriers to entry or market concentration for advanced metering solutions.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the delivered solution.
The specific nature of 'advanced electrical metering' could imply a niche market, potentially limiting future competition.

Positive Signals

Awarded through a competitive process, suggesting a fair evaluation of offers.
Firm Fixed Price contract type offers cost predictability for the government.
The project addresses a critical infrastructure need for the VA, ensuring operational reliability.

Sector Analysis

The contract falls within the broader industrial equipment and manufacturing sector, specifically focusing on electrical apparatus. The market for advanced metering systems is growing, driven by smart grid initiatives and the need for real-time energy management. Comparable spending benchmarks for similar infrastructure upgrades within federal agencies can vary significantly based on facility size and complexity, but this $19.5M award is within a typical range for a significant project.

Small Business Impact

There is no indication in the provided data that this contract included a small business set-aside. Furthermore, the prime contractor, Schneider Electric, is a large corporation. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award information. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods and services. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Energy Management Program
VA Capital Asset and Business Development Management
Smart Grid Technologies Procurement

Risk Flags

Limited Competition (2 Bidders)
Potential for Technology Obsolescence
Cybersecurity Risk for Metering Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.5 million to SCHNEIDER ELECTRIC USA, INC.. ADVANCED ELECTRICAL METERING PROJECT

Who is the contractor on this award?

The obligated recipient is SCHNEIDER ELECTRIC USA, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2009-09-28. End: 2013-06-01.

What is Schneider Electric's track record with the Department of Veterans Affairs for similar electrical infrastructure projects?

Schneider Electric has a history of working with the Department of Veterans Affairs on various projects, including those related to electrical systems and facility modernization. While this specific $19.5M award for advanced electrical metering is a significant individual contract, the company's broader experience with the VA suggests familiarity with their requirements and operational environment. A deeper dive into past performance reviews and contract completion data for Schneider Electric within the VA would provide a more comprehensive understanding of their reliability and effectiveness in delivering similar solutions. Analyzing the number and nature of any past disputes or contract modifications could also offer insights into potential risks.

How does the $19.5M contract value compare to other VA electrical infrastructure upgrades?

The $19.5M contract value for this advanced electrical metering project is a substantial investment, placing it in the mid-to-high range for individual electrical infrastructure upgrades within the Department of Veterans Affairs. Smaller projects might range from a few hundred thousand to a few million dollars, focusing on specific building systems or localized upgrades. Larger, comprehensive facility modernizations or new construction projects could easily exceed $50 million. This $19.5M award suggests a significant scope, likely encompassing multiple facilities or a complex system-wide implementation within the District of Columbia, indicating a considerable commitment to modernizing the VA's energy management capabilities.

What are the primary risks associated with implementing advanced electrical metering systems in federal facilities?

Key risks in implementing advanced electrical metering systems include integration challenges with existing legacy infrastructure, cybersecurity vulnerabilities that could expose sensitive energy usage data, and potential for cost overruns if the scope expands beyond initial estimates. There's also a risk of inadequate user training, leading to underutilization of the system's capabilities. Furthermore, the rapid evolution of metering technology means there's a risk of obsolescence if the chosen system is not future-proofed. Ensuring data accuracy and reliability from the new meters is also critical for effective energy management and billing.

What is the expected program effectiveness and return on investment for this advanced metering project?

The expected program effectiveness of this advanced electrical metering project lies in its ability to provide real-time data on energy consumption across VA facilities in the District of Columbia. This granular data enables better energy management, identification of inefficiencies, and optimization of energy usage, potentially leading to significant cost savings. The return on investment (ROI) is typically realized through reduced energy bills, improved predictive maintenance of electrical systems, and enhanced operational reliability. While the exact ROI timeframe depends on factors like energy prices and usage patterns, such systems are generally expected to pay for themselves over a 5-10 year period through demonstrable energy savings and operational efficiencies.

How has federal spending on electrical infrastructure and smart grid technologies evolved over the past decade?

Federal spending on electrical infrastructure and smart grid technologies has seen a notable increase over the past decade, driven by a growing emphasis on energy efficiency, grid modernization, and cybersecurity. Agencies like the Department of Energy, Department of Defense, and the General Services Administration have invested heavily in upgrading aging infrastructure and incorporating smart technologies to improve reliability and reduce energy consumption. Stimulus packages and dedicated funding initiatives have further bolstered these investments. The trend reflects a broader national strategy to create a more resilient, efficient, and secure energy grid, with federal agencies acting as significant adopters and drivers of these advanced technologies.

What is the significance of the 'Switchgear and Switchboard Apparatus Manufacturing' (NAICS 335313) code for this contract?

The NAICS code 335313, 'Switchgear and Switchboard Apparatus Manufacturing,' is highly relevant as it defines the primary industry classification for the goods and services procured under this contract. This code encompasses establishments primarily engaged in manufacturing switchgear and switchboard apparatus, which are critical components of electrical power distribution systems. For this VA contract, it signifies that the procurement is focused on acquiring sophisticated equipment designed to control, protect, and switch electrical power circuits. This aligns directly with the objective of implementing advanced electrical metering, as these systems often integrate with or rely upon robust switchgear and switchboard infrastructure for effective operation and management of energy flow.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Switchgear and Switchboard Apparatus Manufacturing

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA-776-09-RQ-0152

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Schneider Electric SE (UEI: 275136398)

Address: 1415 S ROSELLE RD, PALATINE, IL, 60067

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,537,227

Exercised Options: $19,537,227

Current Obligation: $19,537,227

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F9462G

IDV Type: FSS

Timeline