DoD awards $7.7M contract for Site 512 power generation O&M to TDX Global Solutions, LLC

Contract Overview

Contract Amount: $7,743,413 ($7.7M)

Contractor: TDX Global Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-20

End Date: 2026-06-22

Contract Duration: 1,098 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SITE 512 POWER GENERATION O&M BASE PERIO

Plain-Language Summary

Department of Defense obligated $7.7 million to TDX GLOBAL SOLUTIONS, LLC for work described as: SITE 512 POWER GENERATION O&M BASE PERIO Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. TDX Global Solutions, LLC, is the sole awardee, raising questions about competition. 3. The contract duration of approximately three years suggests a need for sustained services. 4. The North American Industry Classification System (NAICS) code 238210 points to electrical contracting services. 5. Awarded by the Department of the Army, highlighting a defense-related need. 6. The contract is not a small business set-aside, with no indication of subcontracting plans.

Value Assessment

Rating: fair

The contract value of $7.7 million over approximately three years for power generation O&M appears reasonable for a specialized defense facility. However, without specific benchmarks for Site 512's power needs or comparable contracts for similar facilities, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but the absence of competitive bidding limits the ability to benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and the potential for cost savings that typically arise from a competitive bidding process. The rationale for a sole-source award, such as unique capabilities or urgent need, is not provided in the available data, making it difficult to assess the necessity of foregoing competition.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the downward pressure on prices that competition usually provides.

Public Impact

The Department of Defense benefits from the reliable operation of power generation facilities at Site 512. Services include operations and maintenance for essential power infrastructure. The geographic impact is localized to the specific military installation where Site 512 is located. The contract supports jobs within the electrical contracting and facility maintenance sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award raises concerns about the necessity and justification for not seeking competitive bids.
Limited transparency into the contractor's pricing structure due to sole-source nature.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract duration suggests a stable, ongoing need for these critical services.
Award to TDX Global Solutions, LLC, implies they possess the necessary qualifications for this specialized work.

Sector Analysis

The electrical contractors and other wiring installation contractors sector (NAICS 238210) is a vital part of the construction industry, providing essential services for power generation, distribution, and maintenance. Federal spending in this area often supports critical infrastructure at military bases, government facilities, and research installations. Comparable spending benchmarks are difficult to establish without knowing the specific scale and complexity of Site 512's power generation systems, but federal contracts for O&M of critical infrastructure can range from hundreds of thousands to tens of millions of dollars annually.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no information provided regarding subcontracting plans. This suggests that small businesses are unlikely to directly benefit from this specific award, nor is there an explicit mechanism in place to ensure their participation through subcontracting opportunities. The impact on the broader small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, as detailed justifications and competitive proposals are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Operations Support
Electrical Infrastructure Contracts
Power Generation Services
Government Contracting Sole Source Awards

Risk Flags

Sole Source Award
Lack of Competition
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to TDX GLOBAL SOLUTIONS, LLC. SITE 512 POWER GENERATION O&M BASE PERIO

Who is the contractor on this award?

The obligated recipient is TDX GLOBAL SOLUTIONS, 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 $7.7 million.

What is the period of performance?

Start: 2023-06-20. End: 2026-06-22.

What is the specific nature of the power generation systems at Site 512 that necessitates a sole-source award?

The provided data does not specify the exact nature of the power generation systems at Site 512. However, sole-source awards are typically justified when a contractor possesses unique capabilities, proprietary technology, or when there is an urgent and compelling need that cannot be met through competitive means. For power generation O&M, this could involve highly specialized equipment, existing infrastructure integration challenges, or security requirements unique to the site. Without further details from the awarding agency, the precise technical or operational reasons for the sole-source designation remain unclear, making it difficult to fully assess the necessity of foregoing competition.

How does the $7.7 million contract value compare to similar power generation O&M contracts for defense facilities?

Benchmarking this $7.7 million contract against similar power generation O&M contracts for defense facilities is challenging without more specific data points. Factors such as the capacity of the power generation systems (e.g., megawatts), the type of fuel used, the age and complexity of the infrastructure, and the specific geographic location all significantly influence contract value. A contract of this size over approximately three years suggests a medium-scale operation or a facility with moderate power demands. To provide a robust comparison, one would need to analyze contracts for facilities with comparable power output, operational requirements, and service scopes, ideally within the same military branch or region, to identify a relevant price range and assess potential value for money.

What are the potential risks associated with a sole-source award for critical infrastructure maintenance like power generation?

Sole-source awards for critical infrastructure maintenance, such as power generation O&M, carry several potential risks. The primary risk is the lack of price competition, which can lead to inflated costs for the government and taxpayers. Without competing bids, the government may pay more than necessary for the services. Another risk is reduced incentive for the contractor to innovate or provide exceptional service, as there is no competitive pressure from other potential providers. Furthermore, a sole-source award can limit the government's access to a broader range of technical expertise or newer technologies that might be available from other qualified contractors. This can also create vendor lock-in, making it difficult to switch providers in the future if performance issues arise or better options become available.

What is TDX Global Solutions, LLC's track record with similar Department of Defense contracts?

The provided data indicates that TDX Global Solutions, LLC, is the awardee of this $7.7 million contract. However, it does not offer specific details about their past performance, track record, or experience with similar Department of Defense contracts. To assess their suitability and reliability for this critical power generation O&M role, a review of their contract history, past performance evaluations (e.g., CPARS reports), and any prior experience with operating and maintaining power generation facilities for the DoD would be necessary. Without this information, it's difficult to gauge their expertise and history of successful contract execution in this domain.

How does the firm-fixed-price (FFP) contract type mitigate risks for the government in this scenario?

The firm-fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and risks of cost overruns are manageable. In this case, for power generation O&M, an FFP contract means TDX Global Solutions, LLC, is obligated to perform the specified services for the agreed-upon price, regardless of their actual costs. This shifts the risk of cost overruns to the contractor, providing the government with budget certainty. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, the benefit of FFP is somewhat diminished in a sole-source context, as the initial price negotiation lacks competitive pressure, potentially leading to a higher baseline price than might be achieved in a competitive FFP environment.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BU22R0074

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 C STREET, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $22,094,927

Exercised Options: $7,743,413

Current Obligation: $7,743,413

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline