DoD's $10.5M Power Line Construction Contract Awarded to Eastern Construction & Electric Inc

Contract Overview

Contract Amount: $10,478,007 ($10.5M)

Contractor: Eastern Construction & Electric Inc

Awarding Agency: Department of Defense

Start Date: 2006-03-28

End Date: 2007-10-25

Contract Duration: 576 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to EASTERN CONSTRUCTION & ELECTRIC INC for work described as: Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Contract duration of 576 days indicates a substantial project timeline. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded by the Department of the Army, highlighting defense infrastructure needs. 6. Project located in New Jersey, impacting regional power and communication infrastructure.

Value Assessment

Rating: fair

The contract value of $10,478,007 for power and communication line construction appears within a reasonable range for a project of this scope and duration. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar projects in the region or for the Department of Defense would provide a clearer picture of whether the pricing reflects competitive market rates. The firm fixed-price nature of the contract suggests the contractor bears the risk of cost overruns, which can be a positive indicator if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 13 bids received, the competition level appears robust, suggesting that the government likely received a range of pricing and technical proposals. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel and their families residing in the affected New Jersey area, who rely on stable power and communication lines. The contract delivers essential construction services for power and communication lines, crucial for operational readiness and infrastructure integrity. The geographic impact is concentrated in New Jersey, where the construction and upgrades will take place. The project likely involves a skilled construction workforce, including electricians, line workers, and project managers, contributing to local employment in the trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting operational readiness if construction is not completed on time.
Risk of unforeseen site conditions requiring change orders, potentially increasing costs despite fixed-price contract.
Ensuring the quality of materials and workmanship meets stringent military infrastructure standards.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Robust competition with 13 bidders suggests a competitive pricing environment.
Contract awarded to a company with experience in construction, likely possessing relevant expertise.

Sector Analysis

The construction sector, particularly infrastructure development, is a significant area of federal spending. This contract falls under the 'Power and Communication Line and Related Structures Construction' category, which is vital for maintaining and upgrading essential services. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. Federal spending in this area is often driven by modernization efforts, capacity expansion, and the need to ensure the resilience of critical infrastructure, especially for defense installations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Eastern Construction & Electric Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and the availability of qualified small business subcontractors for specialized tasks within the project scope. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) from the Department of the Army. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may also conduct audits or investigations if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Military Base Infrastructure Modernization
Department of Defense Construction Projects
Utility Infrastructure Upgrades
Federal Power Grid Investments

Risk Flags

Potential for schedule slippage impacting military readiness.
Risk of cost overruns if unforeseen site conditions arise (though contractor bears risk).
Ensuring compliance with stringent military infrastructure standards.
Dependency on timely material and equipment delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to EASTERN CONSTRUCTION & ELECTRIC INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EASTERN CONSTRUCTION & ELECTRIC INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2006-03-28. End: 2007-10-25.

What is the track record of Eastern Construction & Electric Inc. with federal contracts, particularly with the Department of Defense?

Eastern Construction & Electric Inc. has a history of federal contracting, with this specific award from the Department of the Army being a notable example. Analyzing their past performance on similar projects, including adherence to schedules, budget management, and quality of work, is crucial for assessing their reliability. Federal procurement data often includes past performance ratings and contract histories that can shed light on their experience with government requirements. Understanding their prior successes and any challenges encountered on previous contracts provides valuable context for evaluating their capability to successfully execute this current project.

How does the awarded amount compare to the average cost of similar power and communication line construction projects undertaken by the Department of Defense?

To benchmark the value of this $10.5 million contract, it's essential to compare it against similar projects. This involves identifying contracts with comparable scopes of work, geographic locations, and durations within the Department of Defense or other federal agencies. Factors such as the complexity of the terrain, the specific types of lines being installed (e.g., high-voltage transmission vs. fiber optic), and prevailing labor and material costs in New Jersey would need to be considered. If data indicates that this contract's cost per mile or per unit of work is significantly higher or lower than comparable projects, it could signal either exceptional value or potential overpricing.

What are the primary risks associated with the execution of this contract, and how are they being mitigated?

Key risks for this contract include potential delays due to unforeseen site conditions, weather disruptions, or supply chain issues for materials. Given it's a firm fixed-price contract, cost overruns due to these risks would primarily fall on Eastern Construction & Electric Inc. Mitigation strategies likely involve detailed project planning, robust scheduling, contingency planning for weather, and proactive management of material procurement. The Department of the Army's oversight, through the COR, plays a vital role in monitoring progress and addressing issues promptly to keep the project on track and within scope.

What is the expected impact of this contract on the operational capabilities of the relevant military installation or defense infrastructure in New Jersey?

The successful completion of this contract is expected to enhance the reliability and capacity of power and communication infrastructure supporting defense operations in New Jersey. Upgraded lines can improve the resilience of critical systems against outages, ensure consistent power supply for sensitive equipment, and potentially increase bandwidth for communication networks. This directly contributes to the operational readiness and effectiveness of military activities by providing a stable and robust utility foundation. The modernization aspect ensures that the infrastructure can support current and future technological demands.

How has federal spending in power and communication line construction evolved over the past five years, and where does this contract fit within that trend?

Federal spending on power and communication line construction has generally seen fluctuations driven by infrastructure modernization initiatives, defense spending priorities, and broader economic conditions. Analyzing historical spending data for this specific NAICS code (237130) across federal agencies can reveal trends. This $10.5 million contract represents a specific investment within that broader landscape. Its size and scope should be compared to the average contract value and the total annual federal expenditure in this sector to understand if it aligns with, exceeds, or falls short of typical spending patterns.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 GEORGETOWN RD, WRIGHTSTOWN, NJ, 03

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline