DoD's $7.5M Automatic Transfer Switch Replacement Project Awarded to HDD JV Under Full and Open Competition

Contract Overview

Contract Amount: $7,555,000 ($7.6M)

Contractor: HDD JV

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2027-07-24

Contract Duration: 662 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE INTENT OF THIS PROJECT IS TO PROVIDE FULL TURNKEY DESIGN/BUILD REPLACEMENT OF THE LISTED AUTOMATIC TRANSFER SWITCHES (ATS).

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.6 million to HDD JV for work described as: THE INTENT OF THIS PROJECT IS TO PROVIDE FULL TURNKEY DESIGN/BUILD REPLACEMENT OF THE LISTED AUTOMATIC TRANSFER SWITCHES (ATS). Key points: 1. The contract focuses on a critical infrastructure upgrade for the Department of the Army, ensuring operational continuity. 2. Awarded via full and open competition, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The project duration of approximately 22 months aligns with typical construction and replacement timelines. 5. The contractor, HDD JV, is a key player in the commercial and institutional building construction sector. 6. The project is located in Maryland, indicating a specific geographic focus for this infrastructure investment.

Value Assessment

Rating: good

The contract value of $7.56 million for the design and build replacement of Automatic Transfer Switches (ATS) appears reasonable for a project of this scope. Benchmarking against similar infrastructure replacement projects within the Department of Defense or other federal agencies would provide a more precise value assessment. The firm fixed-price nature of the contract is a positive indicator for cost control, as it shifts most of the cost risk to the contractor. Without specific details on the number and type of ATS units being replaced, a direct per-unit cost comparison is difficult, but the overall budget seems aligned with the criticality of ensuring reliable power transfer systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army solicited bids from all responsible prospective contractors. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the solicitation and the evaluation process would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of at least two bidders suggests that taxpayers are likely receiving a fair price, as the contractor had to compete to win the award.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will benefit from enhanced power reliability and operational continuity. The project delivers essential infrastructure upgrades, specifically the design and build replacement of Automatic Transfer Switches (ATS). The geographic impact is concentrated in Maryland, where the facilities requiring these upgrades are located. The project will likely involve construction and electrical trades workforce in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if unforeseen site conditions are encountered during the design/build phase.
Dependence on the contractor's ability to procure specialized ATS components within the project timeline.
Ensuring the new ATS systems are fully compatible with existing power infrastructure and meet future load requirements.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, HDD JV, has experience in commercial and institutional building construction, indicating relevant expertise.
The project addresses a critical infrastructure need for reliable power transfer.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), which encompasses a wide range of construction projects for non-residential buildings. This specific project involves the critical electrical infrastructure component of Automatic Transfer Switches (ATS), essential for maintaining uninterrupted power supply in facilities. The federal government is a significant client in this sector, awarding numerous contracts for facility maintenance, upgrades, and new construction. Comparable spending benchmarks would involve analyzing other federal contracts for electrical system upgrades, particularly those involving critical power solutions like ATS.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The data indicates the award went to HDD JV. Further analysis would be needed to determine if HDD JV is a small business itself or if there are subcontracting opportunities for small businesses within this project. Without explicit information on subcontracting plans or set-asides, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve a tiered subcontracting structure.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. The firm fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General jurisdiction would depend on the agency and the nature of any potential issues that may arise, but the DoD IG would typically have oversight over Army contracts.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Infrastructure Upgrades
Federal Building Electrical Systems
Critical Power Infrastructure Projects
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for schedule slippage
Supply chain risks for critical components
Integration challenges with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.6 million to HDD JV. THE INTENT OF THIS PROJECT IS TO PROVIDE FULL TURNKEY DESIGN/BUILD REPLACEMENT OF THE LISTED AUTOMATIC TRANSFER SWITCHES (ATS).

Who is the contractor on this award?

The obligated recipient is HDD JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-07-24.

What is the track record of HDD JV in performing similar design/build projects for the federal government, particularly involving critical power systems?

A review of federal procurement data indicates that HDD JV has been awarded contracts related to construction and building services. To assess their track record specifically for design/build projects involving Automatic Transfer Switches (ATS), a deeper dive into their past performance evaluations and contract history would be necessary. This would involve examining contract databases for projects with similar scope, complexity, and technical requirements. Understanding their experience with critical power systems, adherence to schedules, and quality of work on previous federal projects is crucial for evaluating their capability to successfully execute this $7.56 million contract.

How does the awarded price of $7.56 million compare to similar ATS replacement projects within the Department of Defense or other federal agencies?

Benchmarking the $7.56 million award against similar Automatic Transfer Switch (ATS) replacement projects requires access to detailed cost data from comparable federal contracts. Factors such as the number of ATS units, their capacity (kVA), the complexity of the design/build scope, and the specific facility requirements significantly influence project costs. Without these granular details, a precise comparison is challenging. However, the firm fixed-price nature of this contract suggests that the Department of the Army has established a clear budget expectation. Further analysis would involve identifying contracts with similar technical specifications and geographic locations to ascertain if this award represents a competitive market rate.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential schedule delays due to unforeseen site conditions during the design/build phase, challenges in procuring specialized ATS components, and ensuring seamless integration with existing power infrastructure. The firm fixed-price contract type mitigates financial risk for the government by capping costs. Mitigation strategies likely involve thorough site assessments during the design phase, robust project management by HDD JV, and clear communication channels between the contractor and the Department of the Army. The contract's duration of approximately 22 months also provides a reasonable timeframe, but proactive risk management will be essential.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific ATS replacement project?

The 'full and open competition' strategy is generally effective in promoting value for money by allowing all responsible sources to submit bids. In this case, with two bidders identified, the competition level is moderate. While this suggests some price pressure, a higher number of bids could potentially lead to even more competitive pricing. The effectiveness also depends on the clarity and completeness of the solicitation documents, the evaluation criteria used, and the overall market landscape for ATS design and installation services. The firm fixed-price contract type further supports value for money by locking in costs.

What is the historical spending pattern for ATS replacement and related electrical infrastructure upgrades within the Department of the Army?

Analyzing historical spending patterns for ATS replacement and electrical infrastructure upgrades within the Department of the Army would reveal trends in contract values, award types, and contractor participation. This data can help contextualize the current $7.56 million award. For instance, understanding the average cost per ATS unit replaced or the typical project duration for similar upgrades can indicate whether this contract is within the expected range. Examining past solicitations and awards can also highlight any recurring challenges or successful strategies employed by the Army in managing such projects, providing insights into the program's lifecycle and investment priorities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 DAVIS AVE SW, LEESBURG, VA, 20175

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,555,000

Exercised Options: $7,555,000

Current Obligation: $7,555,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY25D0022

IDV Type: IDC

Timeline