DoD Awards $10.4M for Mobile Substation Construction to Foreign Entities
Contract Overview
Contract Amount: $10,380,488 ($10.4M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2007-04-28
End Date: 2011-11-30
Contract Duration: 1,677 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 33/11 KV 16MVA MOBILE SUBSTATION
Plain-Language Summary
Department of Defense obligated $10.4 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: 33/11 KV 16MVA MOBILE SUBSTATION Key points: 1. Significant investment in critical power infrastructure. 2. Awarded to 'Miscellaneous Foreign Awardees,' raising questions about domestic industrial base utilization. 3. Contract duration of nearly 5 years suggests a complex or lengthy project. 4. The 'Power and Communication Line and Related Structures Construction' NAICS code indicates a specialized construction service.
Value Assessment
Rating: fair
The contract value of $10.4M for a mobile substation appears reasonable given the specialized nature of the equipment and construction. However, without specific benchmarks for similar mobile substations or comparable construction projects, a definitive assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad solicitation. However, the award to 'Miscellaneous Foreign Awardees' implies that domestic firms may not have bid or were not selected, potentially impacting price discovery and domestic economic benefits.
Taxpayer Impact: Taxpayer funds were used for a critical infrastructure project. The use of foreign awardees may limit direct economic benefits to the U.S. economy, though the necessity of the equipment could outweigh this.
Public Impact
Ensures power continuity for military operations, especially in remote or disaster-stricken areas. Supports the Department of Defense's infrastructure resilience and operational readiness. Potential for technology transfer or reliance on foreign suppliers for critical infrastructure components.
Waste & Efficiency Indicators
Waste Risk Score: 61 / 10
Warning Flags
- Award to foreign entities may indicate a gap in domestic capabilities or competitive pricing.
- Long contract duration could lead to cost overruns or scope creep.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition, maximizing potential bidder pool.
- Mobile substation provides flexibility and rapid deployment for critical power needs.
Sector Analysis
The construction and deployment of mobile substations fall under the broader infrastructure and defense sector. Spending benchmarks for similar projects are difficult to ascertain due to the specialized nature and mobility aspect of the equipment, but this award represents a significant investment in power grid resilience.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the award to 'Miscellaneous Foreign Awardees' suggests limited direct participation or benefit for U.S. small businesses in this particular contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on performance, delivery, and financial accountability.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Award to foreign entities.
- Lack of specific small business participation.
- Long contract duration.
- Potential for supply chain dependency.
Tags
power-and-communication-line-and-related, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to MISCELLANEOUS FOREIGN AWARDEES. 33/11 KV 16MVA MOBILE SUBSTATION
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.4 million.
What is the period of performance?
Start: 2007-04-28. End: 2011-11-30.
What was the rationale for awarding this contract to foreign entities instead of domestic U.S. companies, and did this impact the final price?
The rationale for awarding to foreign entities could stem from several factors, including specialized expertise, unique technological capabilities, or more competitive pricing offered by international suppliers. Without further documentation, it's unclear if this choice led to a lower or higher price compared to potential domestic bids. The 'full and open competition' suggests a market assessment was conducted.
What are the long-term risks associated with relying on foreign awardees for critical infrastructure like mobile substations?
Long-term risks include potential supply chain vulnerabilities, dependence on foreign technology, and reduced domestic industrial base capacity. Maintenance, repair, and future upgrades could become more complex and costly if reliant on foreign support. Geopolitical factors could also disrupt access to necessary parts or services, impacting operational readiness.
How effectively does this mobile substation contribute to the Department of Defense's overall power resilience and operational flexibility?
A mobile substation significantly enhances power resilience by providing a rapidly deployable source of electricity, crucial for forward operating bases, disaster relief, or replacing damaged fixed infrastructure. Its effectiveness lies in its ability to restore power quickly and adapt to diverse operational environments, thereby supporting mission continuity and troop safety.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W917BG07R0077
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $10,380,488
Exercised Options: $10,380,488
Current Obligation: $10,380,488
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-28
Current End Date: 2011-11-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2021-02-25
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