Davenport Electric awarded $10.1M for electrical work, exceeding benchmark by 9.2% in Illinois

Contract Overview

Contract Amount: $10,100,144 ($10.1M)

Contractor: Davenport Electric Contract Company

Awarding Agency: Department of Defense

Start Date: 2023-06-01

End Date: 2026-06-01

Contract Duration: 1,096 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECTS 2023-2974 AND 2019-4350.

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to DAVENPORT ELECTRIC CONTRACT COMPANY for work described as: PROJECTS 2023-2974 AND 2019-4350. Key points: 1. Contract value of $10.1M for electrical services. 2. Awarded to Davenport Electric Contract Company. 3. Contract duration of 1096 days. 4. Firm Fixed Price contract type. 5. Geographic location: Illinois. 6. No small business set-aside noted.

Value Assessment

Rating: fair

The contract value of $10.1 million for electrical contractors and wiring installation appears to be within a reasonable range for a multi-year project of this scope. However, the benchmark of 9.2% higher than expected suggests potential overpricing or a less competitive bidding environment. Further analysis of the specific services rendered and comparison with similar projects in the region would be necessary to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, full and open competition generally promotes price discovery and can lead to more competitive pricing. The fact that the award was 9.2% above the benchmark warrants further investigation into the bidding process and the specific technical requirements.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, though the observed benchmark deviation suggests vigilance is needed to ensure optimal value.

Public Impact

The Department of the Army will receive electrical installation and maintenance services. The project is located in Illinois, potentially impacting the local workforce and economy. The services are critical for maintaining military infrastructure and operational readiness. The contract supports the electrical contracting industry within the specified geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpricing indicated by benchmark deviation.
Lack of specific bidder count limits full assessment of competition effectiveness.
Firm Fixed Price contract may not fully account for unforeseen cost escalations if scope changes.

Positive Signals

Awarded through full and open competition, suggesting broad market engagement.
Contract duration of nearly three years allows for project stability and planning.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

The contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). This sector is crucial for both public and private infrastructure development, encompassing a wide range of services from basic wiring to complex electrical system installations. Federal spending in this area is consistent with the need to maintain and upgrade government facilities, including military installations. Benchmarking against similar projects is essential to ensure cost-effectiveness, especially given the observed deviation from the expected benchmark.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While full and open competition was utilized, there is no explicit information regarding subcontracting opportunities for small businesses. Further review would be needed to determine if small business participation is mandated or encouraged through subcontracting plans, which is important for fostering the small business ecosystem within the construction sector.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically be managed by the contracting officer and relevant program managers within the Army. Transparency is generally facilitated through contract award databases like FPDS. The specific Inspector General jurisdiction would be that of the Department of Defense Inspector General, who can investigate allegations of fraud, waste, and abuse.

Related Government Programs

Department of Defense Construction Contracts
Army Facilities Maintenance
Electrical Infrastructure Projects
Firm Fixed Price Contracts

Risk Flags

Potential cost overruns due to benchmark deviation.
Long contract duration increases risk exposure for both parties.
Lack of detailed competition metrics requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to DAVENPORT ELECTRIC CONTRACT COMPANY. PROJECTS 2023-2974 AND 2019-4350.

Who is the contractor on this award?

The obligated recipient is DAVENPORT ELECTRIC CONTRACT COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-06-01.

What specific electrical services are covered under projects 2023-2974 and 2019-4350?

The provided data does not detail the specific electrical services covered under projects 2023-2974 and 2019-4350. However, given the NAICS code 238210 (Electrical Contractors and Other Wiring Installation Contractors), the services likely encompass a broad range of electrical work. This could include installation of power generation and distribution systems, lighting, security and fire alarm systems, telecommunications wiring, and other electrical infrastructure. The firm fixed price nature of the contract suggests a well-defined scope of work was established prior to award.

How does the $10.1 million contract value compare to similar projects awarded by the Department of the Army in Illinois?

Comparing the $10.1 million contract value to similar projects requires access to a broader dataset of Army contracts in Illinois for electrical work. The provided benchmark indicates the award is 9.2% higher than expected, suggesting it may be on the higher end. Without specific comparable contract data, it's difficult to definitively state if this is high or low. However, the deviation from the benchmark warrants scrutiny. Factors such as project complexity, duration, and specific technical requirements would influence cost, making direct comparisons challenging without detailed project information.

What are the primary risks associated with a firm fixed price contract of this duration for electrical services?

The primary risks associated with a firm fixed price (FFP) contract of this duration (1096 days) for electrical services involve potential cost overruns for the contractor and scope creep for the government. If unforeseen issues arise during installation (e.g., unexpected site conditions, material price increases beyond projections), the contractor bears the financial burden, which could lead to quality compromises or contractor default if the price is too low. Conversely, the government risks paying for work that exceeds the original scope if change orders are not managed rigorously. For long-duration FFP contracts, ensuring the initial price accurately reflects anticipated costs and risks is paramount.

What is the historical spending pattern for electrical contracting services by the Department of the Army in Illinois?

The provided data snippet does not offer historical spending patterns for electrical contracting services by the Department of the Army in Illinois. To analyze this, one would need to query historical contract databases (like FPDS) for contracts awarded by the Army in Illinois within the NAICS code 238210 over several fiscal years. This analysis would reveal trends in contract values, types of services procured, and average contract durations, providing context for the current $10.1 million award and its benchmark deviation.

What is Davenport Electric Contract Company's track record with federal contracts, particularly with the Department of the Army?

The provided data identifies Davenport Electric Contract Company as the awardee but does not include information on their track record with federal contracts or the Department of the Army. A comprehensive assessment would require searching federal procurement databases (e.g., FPDS) for past awards to this contractor. This would reveal their history of performance, contract types, values, and any past performance issues or accolades. Understanding their experience, especially with similar projects and agencies, is crucial for evaluating the reliability and potential risks associated with this award.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W519TC23R2041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 529 PERSHING AVE, DAVENPORT, IA, 52803

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: $20,200,288

Exercised Options: $20,200,288

Current Obligation: $10,100,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline