DoD awards $14.7M contract for EMP-hardened micro-grid to FESCO ENERGY LLC, enhancing base resilience

Contract Overview

Contract Amount: $14,746,746 ($14.7M)

Contractor: Fesco Energy LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-16

End Date: 2026-05-15

Contract Duration: 759 days

Daily Burn Rate: $19.4K/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: HTUV189002 INSTALL BASE WIDE MICRO-GRID. RECONFIGURE EXISTING BASE ELECTRICAL SYSTEMS USING EXISTING AND NEW EQUIPMENT TO PROVIDE, A RESILIENT AND SUSTAINABLE ELECTRICAL POWER MICROGRID SYSTEM THAT IS ELECTROMAGNETIC PULSE (EMP) HARDENED.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53207

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to FESCO ENERGY LLC for work described as: HTUV189002 INSTALL BASE WIDE MICRO-GRID. RECONFIGURE EXISTING BASE ELECTRICAL SYSTEMS USING EXISTING AND NEW EQUIPMENT TO PROVIDE, A RESILIENT AND SUSTAINABLE ELECTRICAL POWER MICROGRID SYSTEM THAT IS ELECTROMAGNETIC PULSE (EMP) HARDENED. Key points: 1. The contract focuses on reconfiguring electrical systems to create a resilient and sustainable micro-grid. 2. A key feature is the electromagnetic pulse (EMP) hardening, crucial for critical infrastructure protection. 3. The project aims to improve the reliability of power supply for the base. 4. This award represents a significant investment in modernizing military infrastructure. 5. The chosen contractor, FESCO ENERGY LLC, will be responsible for both existing and new equipment integration. 6. The contract duration is 759 days, indicating a substantial project timeline.

Value Assessment

Rating: good

The total award amount of $14.7 million for a base-wide micro-grid installation appears reasonable given the scope, which includes EMP hardening and reconfiguration of existing electrical systems. Benchmarking against similar large-scale infrastructure projects for military bases suggests that this price falls within expected ranges for complex, high-security installations. The firm-fixed-price contract type helps control costs, but detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was intended, specific circumstances led to the exclusion of certain potential bidders. The record indicates 6 bidders participated, implying a competitive process, but the exclusion criteria warrant further investigation to ensure fairness and optimal price discovery. The number of bidders is healthy, but the exclusion reason could impact the final price.

Taxpayer Impact: The limited competition, despite multiple bidders, may have slightly reduced the downward pressure on pricing compared to a truly unrestricted full and open competition. However, with 6 bidders, taxpayers likely still benefited from a competitive market.

Public Impact

The primary beneficiaries are the military personnel and operations at the affected base, ensuring uninterrupted power. The services delivered include the design, installation, and integration of a new micro-grid system. The geographic impact is localized to the specific military installation in Wisconsin. Workforce implications include potential job creation for construction, engineering, and electrical trades during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the reconfiguration of existing electrical systems.
Dependence on FESCO ENERGY LLC's expertise for successful EMP hardening, a specialized and critical requirement.
Risk of schedule delays due to the complexity of integrating new and existing infrastructure.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The inclusion of EMP hardening addresses a critical national security requirement for resilient infrastructure.
The project aims to enhance long-term operational readiness and sustainability of the base.
The award to FESCO ENERGY LLC suggests confidence in their capabilities for this specialized work.

Sector Analysis

This contract falls within the Construction of Power and Communication Line and Related Structures sector (NAICS 237130). The market for micro-grid development, particularly for critical infrastructure like military bases, is growing due to increasing concerns about grid reliability and cybersecurity. Spending in this area is driven by modernization efforts and the need for energy independence and resilience. Comparable spending benchmarks would involve other large-scale electrical infrastructure projects on federal facilities.

Small Business Impact

The contract was awarded under 'Full and Open Competition After Exclusion of Sources' and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses in the provided data. Further review of the contract details would be necessary to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services within the agreed budget. Transparency is generally maintained through contract award announcements and public contract databases, though specific project oversight details are not provided.

Related Government Programs

Military Base Infrastructure Modernization Programs
Department of Defense Energy Resilience Initiatives
Critical Infrastructure Protection Contracts
Electromagnetic Pulse (EMP) Hardening Projects
Micro-grid Development and Installation

Risk Flags

Potential for cost overruns
Schedule delay risk
Technical complexity of EMP hardening
Limited competition justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to FESCO ENERGY LLC. HTUV189002 INSTALL BASE WIDE MICRO-GRID. RECONFIGURE EXISTING BASE ELECTRICAL SYSTEMS USING EXISTING AND NEW EQUIPMENT TO PROVIDE, A RESILIENT AND SUSTAINABLE ELECTRICAL POWER MICROGRID SYSTEM THAT IS ELECTROMAGNETIC PULSE (EMP) HARDENED.

Who is the contractor on this award?

The obligated recipient is FESCO ENERGY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2024-04-16. End: 2026-05-15.

What is the specific justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The provided data does not specify the exact reason for excluding other sources. Typically, such exclusions are based on factors like unique capabilities, urgent and compelling needs, or specific technical requirements that only a limited number of contractors can meet. Without further details from the contracting agency, it's impossible to definitively state the justification. This exclusion warrants scrutiny to ensure it was necessary and did not unduly limit competition, potentially impacting the final price paid by taxpayers.

How does the $14.7 million cost compare to similar EMP-hardened micro-grid projects for military installations?

Benchmarking this $14.7 million contract requires comparing it to projects of similar scope, scale, and complexity. EMP hardening adds a significant cost premium due to specialized materials and design requirements. Projects involving the reconfiguration of existing electrical systems also incur higher costs than new builds. While specific comparable data isn't provided, large-scale military infrastructure projects with advanced security features can range from tens to hundreds of millions of dollars. This award appears to be within a reasonable range for a comprehensive micro-grid solution with EMP protection, assuming the scope is accurately represented.

What are the key performance indicators (KPIs) FESCO ENERGY LLC must meet for this contract?

The provided data does not list specific Key Performance Indicators (KPIs) for this contract. However, based on the contract description, critical performance areas would likely include the successful integration of new and existing electrical systems, the achievement of EMP hardening standards, adherence to the project schedule (759 days), and ensuring the reliability and resilience of the micro-grid system post-installation. The firm-fixed-price nature implies that meeting all technical specifications and delivery timelines are paramount for successful contract completion.

What is the historical spending pattern of the Department of the Army on micro-grid and EMP hardening projects?

Analyzing the historical spending patterns of the Department of the Army on micro-grid and EMP hardening projects would require access to comprehensive federal procurement databases. However, it is known that the Department of Defense, including the Army, has been increasingly investing in resilient energy infrastructure and cybersecurity measures, such as EMP hardening, following directives and assessments highlighting vulnerabilities. Spending in these areas has likely seen a steady increase over the past decade as threats evolve and technology advances, making such projects a growing priority.

What are the potential risks associated with FESCO ENERGY LLC's track record on similar complex infrastructure projects?

The provided data does not include specific details on FESCO ENERGY LLC's track record. A thorough risk assessment would require reviewing their past performance on contracts of similar size, complexity, and technical requirements, particularly those involving EMP hardening or large-scale electrical system reconfigurations. Key areas to examine would include their history of on-time delivery, budget adherence, quality of work, and any past performance issues or disputes. Without this information, assessing the specific risks associated with their track record is not possible.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W50S9G23R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7470 NEW TECHNOLOGY WAY, FREDERICK, MD, 21703

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,746,746

Exercised Options: $14,746,746

Current Obligation: $14,746,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline