DoD awards $218M for 2-month Puerto Rico power after Hurricane Maria
Contract Overview
Contract Amount: $218,389,743 ($218.4M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2017-10-08
End Date: 2019-10-31
Contract Duration: 753 days
Daily Burn Rate: $290.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: TEMPORARY POWER FOR 2 MONTHS FOR PUERTO RICO IN SUPPORT OF HURRICANE MARIA RECOVERY EFFORTS.
Place of Performance
Location: TOA BAJA, TOA BAJA County, PUERTO RICO, 00949
Plain-Language Summary
Department of Defense obligated $218.4 million to WESTON SOLUTIONS INC for work described as: TEMPORARY POWER FOR 2 MONTHS FOR PUERTO RICO IN SUPPORT OF HURRICANE MARIA RECOVERY EFFORTS. Key points: 1. Significant award for emergency power restoration. 2. Weston Solutions Inc. secured the contract. 3. High cost per day suggests urgency and specialized needs. 4. Construction sector award highlights infrastructure resilience needs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract awarded to Weston Solutions Inc. for $218.4 million over 753 days (though intended for 2 months of power) indicates a high daily cost. This pricing structure can lead to cost overruns if not managed tightly, especially in emergency situations.
Cost Per Unit: $289,840 per day (estimated based on total award and duration)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the urgency of Hurricane Maria recovery may have influenced the final price and the specific terms negotiated.
Taxpayer Impact: Taxpayer funds were used for critical infrastructure repair and support in a disaster zone, aiming to restore essential services.
Public Impact
Restored essential power to Puerto Rico following devastating Hurricane Maria. Supported long-term recovery efforts by providing temporary power infrastructure. Demonstrated government's ability to mobilize resources during national emergencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost per day
- Extended duration beyond initial need
- Cost-plus contract type
Positive Signals
- Fulfilled critical need during disaster
- Full and open competition utilized
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, specifically for temporary power solutions. The award amount is substantial for a short-term need, reflecting the scale of disaster recovery and the specialized nature of emergency power provision.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The prime contractor is Weston Solutions Inc.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, oversaw this contract. Oversight would focus on ensuring the timely and effective delivery of temporary power and managing the cost-plus fixed fee structure.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High cost per day
- Potential for cost overruns with CPFF
- Extended duration vs. stated need
- Lack of small business participation noted
Tags
commercial-and-institutional-building-co, department-of-defense, pr, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $218.4 million to WESTON SOLUTIONS INC. TEMPORARY POWER FOR 2 MONTHS FOR PUERTO RICO IN SUPPORT OF HURRICANE MARIA RECOVERY EFFORTS.
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $218.4 million.
What is the period of performance?
Start: 2017-10-08. End: 2019-10-31.
Was the extended contract duration of 753 days truly necessary for the temporary power, or was it a result of scope creep or inefficient execution?
The data indicates a 753-day contract duration with an initial stated need for 2 months of power. This significant discrepancy warrants investigation into whether the full duration was utilized for temporary power, if the scope expanded, or if there were delays in project completion or demobilization that extended the contract's life beyond the immediate emergency requirement.
How did the Cost Plus Fixed Fee structure impact the final cost, and were there mechanisms in place to control potential overruns given the emergency context?
Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as a portion of their profit is tied to the total cost. In an emergency, the urgency might lead to less stringent cost controls. It's crucial to understand if the fixed fee was reasonable and if the government effectively monitored expenditures to prevent excessive costs beyond the actual need for temporary power.
What was the process for determining the 'fair and reasonable' price for this emergency power solution, especially considering the high daily cost?
Determining a fair and reasonable price for emergency services is challenging. While full and open competition was used, the urgency of Hurricane Maria recovery likely influenced negotiations. The government would typically rely on historical data, market research for similar emergency services, and contractor cost proposals, but the unique circumstances and high daily rate suggest a premium was paid for rapid deployment and essential support.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128F14R0002
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)
Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $260,426,630
Exercised Options: $218,389,743
Current Obligation: $218,389,743
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F14D0024
IDV Type: IDC
Timeline
Start Date: 2017-10-08
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2021-02-26
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