DoD Awards $34.6M for 56MW Power Plant O&M, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $34,584,756 ($34.6M)
Contractor: Domestic Awardees (undisclosed)
Awarding Agency: Department of Defense
Start Date: 2014-09-24
End Date: 2018-04-01
Contract Duration: 1,285 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CONTRACT AWARD OF O&M OF 56MW POWER PLANT AND DISTRIBUTION FY14-007
Plain-Language Summary
Department of Defense obligated $34.6 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: CONTRACT AWARD OF O&M OF 56MW POWER PLANT AND DISTRIBUTION FY14-007 Key points: 1. Significant contract value for power plant operations. 2. Limited information on domestic awardees hinders competitive analysis. 3. Potential risks associated with undisclosed awardees and fixed-price contracts. 4. Spending falls within the energy sector, specifically fossil fuel power generation.
Value Assessment
Rating: questionable
The contract value of $34.6 million over approximately 3.5 years for O&M of a 56MW plant is difficult to benchmark without more specific details on the plant's condition and services required. The lack of disclosed awardees makes direct comparison to similar contracts challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the undisclosed domestic awardees obscure the actual competitive landscape and the specific entities that participated.
Taxpayer Impact: Taxpayer funds are being used for essential power plant operations. The effectiveness of competition and the final price paid are obscured by the lack of transparency regarding the awardee.
Public Impact
Essential infrastructure maintenance funded by taxpayers. Lack of transparency regarding the awarded company raises concerns about accountability. Potential for inflated costs due to limited visibility into the competitive process. Impact on energy security and reliability through power plant operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undisclosed awardees
- Lack of detailed performance metrics
- Fixed-price contract may not incentivize efficiency
Positive Signals
- Awarded under full and open competition
- Contract addresses critical infrastructure needs
Sector Analysis
This contract falls under the energy sector, specifically fossil fuel electric power generation. Spending benchmarks for O&M of similar-sized power plants can vary widely based on age, technology, and fuel source, making direct comparison difficult without more data.
Small Business Impact
The data indicates the awardee was a domestic entity, but it does not specify if it was a small business. Without this information, it's impossible to assess the impact on small businesses in this sector.
Oversight & Accountability
Oversight is primarily the responsibility of the Department of the Army. The lack of disclosed awardee information limits public oversight and the ability to scrutinize the value and fairness of the contract.
Related Government Programs
- Fossil Fuel Electric Power Generation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of awardee transparency
- Potential for reduced competition due to undisclosed bidders
- Fixed-price contract risks
- Difficulty in benchmarking costs
- Limited public accountability
Tags
fossil-fuel-electric-power-generation, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to DOMESTIC AWARDEES (UNDISCLOSED). CONTRACT AWARD OF O&M OF 56MW POWER PLANT AND DISTRIBUTION FY14-007
Who is the contractor on this award?
The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.6 million.
What is the period of performance?
Start: 2014-09-24. End: 2018-04-01.
What was the specific rationale for keeping the domestic awardee undisclosed, and how does this impact the perceived value for money?
The rationale for undisclosed awardees is not provided in the data. This lack of transparency significantly hinders the ability to assess the true value for money, as it prevents comparison with other potential bidders and makes it difficult to determine if the price reflects a competitive market outcome. It raises concerns about potential favoritism or lack of robust competition.
Given the fixed-price contract type, what are the primary risks to the government regarding cost overruns or quality of service?
The primary risk with a fixed-price contract is that the contractor may cut corners on quality or service to maximize profit, especially if the initial price was set too low or if unforeseen issues arise. Conversely, if the price was set too high, the government overpays. Without performance metrics, it's hard to gauge the risk of substandard service.
How effective is 'full and open competition' when the identity of the winning bidder is not publicly disclosed?
While the initial solicitation process may have been open, the non-disclosure of the awardee undermines the effectiveness of competition from a transparency and accountability standpoint. It prevents public scrutiny of the winning bid's competitiveness and makes it difficult to verify that the best value was achieved for taxpayer dollars. True effectiveness is diminished without this final layer of openness.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912BU14R0008
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 F ST NW, WASHINGTON, DC, 20405
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,352,217
Exercised Options: $34,584,756
Current Obligation: $34,584,756
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-24
Current End Date: 2018-04-01
Potential End Date: 2018-04-01 00:00:00
Last Modified: 2021-08-21
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