DoD's $21.4M contract for Joint Base Andrews substation upgrades awarded to MTNT ENERGY, LLC

Contract Overview

Contract Amount: $21,385,397 ($21.4M)

Contractor: Mtnt Energy, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-29

End Date: 2019-08-03

Contract Duration: 1,769 days

Daily Burn Rate: $12.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF UPGRADES TO THE MAIN SUBSTATION BUILDING 1870 AND SWITCHING STATION BUILDING 3297 AT JOINT BASE ANDREWS, MARYLAND

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to MTNT ENERGY, LLC for work described as: IGF::OT::IGF UPGRADES TO THE MAIN SUBSTATION BUILDING 1870 AND SWITCHING STATION BUILDING 3297 AT JOINT BASE ANDREWS, MARYLAND Key points: 1. The contract value of $21.4 million represents a significant investment in critical infrastructure at Joint Base Andrews. 2. Awarded as a sole-source contract, the lack of competition may have implications for price optimization. 3. The project duration of nearly five years suggests a complex scope of work involving substantial construction and upgrades. 4. The firm-fixed-price contract type shifts most of the cost risk to the contractor, MTNT ENERGY, LLC. 5. The absence of small business set-aside indicates this contract was not specifically targeted to boost small business participation. 6. The project falls under the broad category of Commercial and Institutional Building Construction, highlighting the need for specialized expertise.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable projects. The total award of $21.4 million for substation upgrades at a major military installation is substantial. However, without specific details on the scope of work, materials, and labor involved, it's difficult to definitively assess if this represents excellent value for money. The firm-fixed-price nature suggests the government sought cost certainty, but the lack of competition could have led to a higher price than a competitive bid might have achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The specific reasons for this sole-source award are not detailed in the provided data. A lack of competition can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no market pressure to drive down the price.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel stationed at Joint Base Andrews, who will receive improved and reliable electrical infrastructure. The services delivered include upgrades to the main substation building and switching station, ensuring operational continuity and safety. The geographic impact is localized to Joint Base Andrews in Maryland, a critical military installation. Workforce implications include employment opportunities for construction workers and specialists employed by MTNT ENERGY, LLC and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency regarding the justification for sole-source procurement.
Long project duration could indicate potential for cost overruns or delays, though the firm-fixed-price contract mitigates some of this risk.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single entity streamlines project management.
Upgrades to critical infrastructure enhance base operational resilience.
Project addresses essential maintenance and modernization needs for a key military facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The market for such construction services is substantial, driven by both private and public sector demand for infrastructure development and maintenance. Federal spending in this sector is significant, supporting military bases, government facilities, and public works. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects for federal agencies, particularly those involving specialized electrical infrastructure upgrades on military installations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific requirements for small business subcontracting. Consequently, the direct impact on the small business ecosystem is likely minimal unless MTNT ENERGY, LLC voluntarily engages small businesses as subcontractors. The absence of set-aside provisions means that larger, established firms were eligible to compete, and in this sole-source scenario, the opportunity for small businesses to participate was entirely dependent on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract award data is generally made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Infrastructure Modernization
Electrical Grid Upgrades
Department of Defense Construction Contracts
Joint Base Andrews Operations Support
Commercial and Institutional Building Construction

Risk Flags

Sole-source award lacks competitive transparency.
Potential for inflated pricing due to lack of competition.
Long project duration requires careful monitoring.
Limited information on contractor's specific experience with similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to MTNT ENERGY, LLC. IGF::OT::IGF UPGRADES TO THE MAIN SUBSTATION BUILDING 1870 AND SWITCHING STATION BUILDING 3297 AT JOINT BASE ANDREWS, MARYLAND

Who is the contractor on this award?

The obligated recipient is MTNT 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 $21.4 million.

What is the period of performance?

Start: 2014-09-29. End: 2019-08-03.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when there is a compelling urgency, or when it is in the best interest of the government. Common justifications include unique capabilities of a specific contractor, lack of adequate competition, or national security concerns. Without the official justification document, it is impossible to determine the precise rationale behind awarding this $21.4 million contract to MTNT ENERGY, LLC without competition.

How does the $21.4 million contract value compare to similar substation upgrade projects at other military bases?

Direct comparison of the $21.4 million contract value for substation upgrades at Joint Base Andrews to similar projects at other military bases is difficult without detailed project scopes and specifications. The cost of such projects can vary significantly based on the size and complexity of the existing infrastructure, the scope of the required upgrades (e.g., capacity increases, technology modernization, resilience enhancements), geographic location, and prevailing labor and material costs. However, $21.4 million represents a substantial investment, suggesting a significant scope of work, potentially involving major overhauls or capacity expansions of the electrical distribution system at a large, active military installation.

What are the primary risks associated with a sole-source contract of this magnitude?

The primary risks associated with a sole-source contract of this magnitude include a lack of price competition, which can lead to inflated costs for the government. Without competing bids, there is less incentive for the contractor to offer the lowest possible price. Additionally, sole-source awards can raise concerns about fairness and transparency in the procurement process. There's also a risk that the government may not be aware of alternative solutions or more cost-effective approaches that could have emerged from a competitive bidding process. The government must ensure robust oversight to mitigate these risks.

What is the expected impact of these substation upgrades on the operational capabilities of Joint Base Andrews?

The substation upgrades are expected to significantly enhance the operational capabilities of Joint Base Andrews by ensuring a more reliable, stable, and potentially higher-capacity electrical supply. Modernized substations reduce the risk of power outages, which can disrupt critical base operations, including flight operations, command and control, housing, and training. Improved infrastructure can also support increased energy demands from new equipment or facilities. Ultimately, these upgrades contribute to the overall resilience and security of the base, ensuring it can effectively carry out its mission.

What is MTNT ENERGY, LLC's track record with similar federal construction contracts?

Information regarding MTNT ENERGY, LLC's specific track record with similar federal construction contracts, particularly large-scale substation upgrades, is not provided in the data. A comprehensive assessment would require reviewing their past performance on government contracts, including project history, client satisfaction, adherence to schedule and budget, and any past performance issues or awards. Without this detailed history, it's difficult to evaluate their experience and capability in executing a project of this scale and technical complexity for the Department of Defense.

How does the firm-fixed-price contract type influence contractor performance and government risk?

The firm-fixed-price (FFP) contract type is designed to provide the government with cost certainty. Under an FFP contract, the contractor agrees to a total price for a well-defined scope of work, and is responsible for controlling costs to achieve a profit. This shifts the majority of the cost risk from the government to the contractor. If the contractor's costs exceed the agreed-upon price, their profit margin decreases or they may incur a loss. Conversely, if they manage costs effectively, they can achieve a higher profit. This structure incentivizes the contractor to perform efficiently and manage risks proactively to meet the contract requirements within the fixed price.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BU14R0035

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mtnt, Ltd. (UEI: 021324108)

Address: 880 H STREET, SUITE 100, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,385,397

Exercised Options: $21,385,397

Current Obligation: $21,385,397

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline