DoD's $54M contract for temporary power in Yabucoa, Puerto Rico, awarded to APTIM FEDERAL SERVICES, LLC

Contract Overview

Contract Amount: $54,158,552 ($54.2M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-06

End Date: 2019-09-30

Contract Duration: 693 days

Daily Burn Rate: $78.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: TEMPORARY POWER YABUCOA PUERTO RICO

Place of Performance

Location: YABUCOA, YABUCOA County, PUERTO RICO, 00767

Plain-Language Summary

Department of Defense obligated $54.2 million to APTIM FEDERAL SERVICES, LLC for work described as: TEMPORARY POWER YABUCOA PUERTO RICO Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was 693 days, indicating a significant period for service delivery. 4. The contract was awarded to APTIM FEDERAL SERVICES, LLC, a known entity in federal contracting. 5. The contract's purpose was for temporary power, likely in response to a disaster or emergency situation. 6. The contract's value of over $54 million highlights the scale of the federal response.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of temporary power services required in Yabucoa, Puerto Rico. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risks for cost control. While APTIM FEDERAL SERVICES, LLC is a capable contractor, the CPFF structure necessitates robust oversight to ensure the fixed fee remains reasonable and that costs incurred are directly attributable to the contract's objectives. Without comparable data on temporary power solutions in disaster-stricken areas, a definitive value-for-money assessment is difficult, but the potential for cost escalation warrants careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this requirement. While multiple bidders are positive, the specific number does not inherently guarantee the lowest possible price. The effectiveness of the competition in driving down costs would depend on the clarity of the solicitation, the evaluation criteria, and the specific capabilities and proposals submitted by each bidder.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better value for the government.

Public Impact

Residents and businesses in Yabucoa, Puerto Rico, benefited from the restoration of essential temporary power services. The contract facilitated the delivery of critical infrastructure support following a potential disaster or emergency. The geographic impact was concentrated in Yabucoa, Puerto Rico, addressing a specific regional need. The contract likely supported local employment through the contractor's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The duration of the contract (693 days) suggests a prolonged need for services, potentially indicating ongoing challenges.
Lack of specific details on the scope of 'temporary power' makes it difficult to assess the efficiency of the spending.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
The contract was awarded to a known federal contractor, APTIM FEDERAL SERVICES, LLC, suggesting a level of established capability.
The contract addressed a critical need for temporary power, likely in a region requiring urgent support.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of services, including emergency and temporary infrastructure support. Federal spending in this sector often surges during disaster recovery efforts. This contract for temporary power in Puerto Rico falls within this broad category, addressing a critical need for essential services. Comparable spending benchmarks for temporary power solutions in disaster zones are highly variable, depending on the scale of the event, duration of need, and specific technological requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, APTIM FEDERAL SERVICES, LLC, would determine any subcontracting opportunities. Without specific subcontracting plans or performance data, the impact on the small business ecosystem is not directly ascertainable from this award alone.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be crucial to ensure that incurred costs are reasonable and allowable, and that the fixed fee is justified. Transparency would be enhanced through contract reporting mechanisms and potentially through Inspector General reviews if any performance or financial irregularities were suspected.

Related Government Programs

Federal Emergency Management Agency (FEMA) disaster relief efforts
Department of Energy - Grid Reliability Programs
Army Corps of Engineers - Infrastructure Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
The duration of the contract suggests a prolonged need, potentially indicating complex recovery challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to APTIM FEDERAL SERVICES, LLC. TEMPORARY POWER YABUCOA PUERTO RICO

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, 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 $54.2 million.

What is the period of performance?

Start: 2017-11-06. End: 2019-09-30.

What was the specific nature of the temporary power solution provided under this contract?

The provided data does not specify the exact nature of the temporary power solution. However, contracts for temporary power in disaster-affected areas typically involve the deployment of generators, fuel supply, and distribution infrastructure to restore electricity to critical facilities such as hospitals, shelters, water treatment plants, and communication networks. The scale and complexity would depend on the extent of damage to the existing power grid and the duration for which temporary power was required. Further details would likely be found in the contract's statement of work.

How does the Cost Plus Fixed Fee (CPFF) structure potentially impact the final cost compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is significant uncertainty. While it allows for flexibility, it places a greater burden on the government to meticulously track and audit costs to prevent overspending. Compared to a Firm-Fixed-Price (FFP) contract, where the contractor assumes more risk for cost overruns, CPFF can potentially lead to higher final costs if not managed with stringent oversight, as the contractor has less financial incentive to control costs beyond what is necessary to complete the work.

What is APTIM FEDERAL SERVICES, LLC's track record with similar temporary power or disaster response contracts?

APTIM FEDERAL SERVICES, LLC has a significant history of performing federal contracts, including those related to disaster response and infrastructure support. While specific details on their temporary power contracts in Puerto Rico are not provided here, the company has been involved in various recovery efforts following natural disasters across the United States. Their experience often includes engineering, construction, and environmental services, which are relevant to deploying and managing temporary power solutions. A deeper dive into their contract history with agencies like the Army Corps of Engineers or FEMA would provide a more comprehensive view of their capabilities in this specific niche.

Were there any performance issues or cost overruns reported for this specific contract?

The provided data does not contain information regarding performance issues or cost overruns for this specific contract. Such details would typically be found in contract performance reports, agency inspection records, or reports from the Government Accountability Office (GAO) or the Department of Defense's Inspector General. Without access to these specific oversight documents, it is not possible to assess whether the contract was completed successfully within budget or if any challenges were encountered.

How does the spending on this temporary power contract compare to overall federal spending on disaster recovery in Puerto Rico?

This contract represents a significant expenditure of over $54 million for temporary power in Yabucoa, Puerto Rico. To compare it to overall federal spending on disaster recovery in Puerto Rico, one would need to aggregate data from multiple agencies (e.g., FEMA, Army Corps of Engineers, HUD) and numerous contracts awarded in response to the same or subsequent disaster events. Puerto Rico has experienced multiple significant natural disasters, including hurricanes and earthquakes, necessitating substantial federal aid. This single contract is a component of a much larger federal response effort, and its proportion within the total recovery spending would depend on the specific disaster event it addressed and the overall scope of reconstruction and aid provided.

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: Aptim Federal Services LLC

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $71,132,025

Exercised Options: $54,158,552

Current Obligation: $54,158,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F14D0034

IDV Type: IDC

Timeline