DoD awards $11.98M for Consolidated Power Gen. Plant, highlighting reliance on fossil fuels
Contract Overview
Contract Amount: $11,977,521 ($12.0M)
Contractor: Aggreko, LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-07
End Date: 2011-11-13
Contract Duration: 1,681 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CONSOLIDATED POWER GEN. PLANT 7.0 MVA
Plain-Language Summary
Department of Defense obligated $12.0 million to AGGREKO, LLC for work described as: CONSOLIDATED POWER GEN. PLANT 7.0 MVA Key points: 1. The contract for a 7.0 MVA power plant was awarded to Aggreko, LLC. 2. This expenditure falls under the Department of the Army's fossil fuel electric power generation sector. 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. The total award amount was $11,977,521.11 over a duration of 1681 days.
Value Assessment
Rating: fair
The award of $11.98 million for a 7.0 MVA power generation plant appears to be within a reasonable range for specialized, temporary power solutions. Benchmarking against similar large-scale, temporary power contracts is difficult due to unique deployment needs and durations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing, although the specific nature of the equipment and deployment may limit the number of qualified bidders.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. The long-term operational costs and efficiency of the plant will ultimately determine the full taxpayer impact.
Public Impact
Ensures critical power generation capabilities for military operations. Supports Department of Defense energy infrastructure needs. Potential environmental impact associated with fossil fuel reliance. Highlights the use of private sector expertise for specialized government needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on fossil fuels
- Long-term operational costs not detailed
- Potential for environmental concerns
Positive Signals
- Competitive award process
- Addresses critical infrastructure need
- Utilizes specialized private sector capabilities
Sector Analysis
The Department of the Army's procurement of fossil fuel electric power generation services falls within the broader energy sector. Spending benchmarks for temporary, high-capacity power generation units are highly variable based on MVA rating, duration, and deployment location.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The award was managed by the Department of the Army, a component of the Department of Defense. Standard procurement oversight processes would apply, focusing on contract compliance and performance monitoring.
Related Government Programs
- Fossil Fuel Electric Power Generation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Fossil fuel dependency
- Potential environmental impact
- Long-term cost uncertainty
- Temporary solution may mask infrastructure gaps
Tags
fossil-fuel-electric-power-generation, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to AGGREKO, LLC. CONSOLIDATED POWER GEN. PLANT 7.0 MVA
Who is the contractor on this award?
The obligated recipient is AGGREKO, 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 $12.0 million.
What is the period of performance?
Start: 2007-04-07. End: 2011-11-13.
What is the projected operational efficiency and fuel consumption rate of this 7.0 MVA plant over its lifespan?
The provided data does not include specific details on the operational efficiency or fuel consumption rates of the Consolidated Power Generation Plant. Understanding these metrics is crucial for assessing the long-term operational costs and environmental impact, especially given its reliance on fossil fuels. Further analysis of contract performance reports or technical specifications would be necessary to obtain this information.
What are the specific risks associated with relying on a temporary fossil fuel power plant for extended periods?
Key risks include fuel supply chain disruptions, price volatility of fossil fuels, increased greenhouse gas emissions contributing to climate change, and potential air quality issues. Furthermore, reliance on temporary solutions may indicate a lack of permanent, sustainable energy infrastructure, posing long-term operational and strategic risks.
How does the cost of this temporary power solution compare to investing in permanent, renewable energy infrastructure?
The cost-effectiveness of this temporary fossil fuel plant versus permanent renewable infrastructure depends heavily on the duration of need, upfront investment, operational costs, and potential long-term energy savings. While temporary solutions offer flexibility, they often incur higher per-unit energy costs and environmental externalities over time compared to well-planned, permanent installations.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912D107R0013
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aggreko PLC (UEI: 536039696)
Address: 12000 AEROSPACE AVE STE 300, HOUSTON, TX, 90
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,978,521
Exercised Options: $11,978,521
Current Obligation: $11,977,521
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-07
Current End Date: 2011-11-13
Potential End Date: 2012-12-30 00:00:00
Last Modified: 2012-12-12
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