Department of the Army awarded $23.8M for electric power distribution, with a firm fixed price contract

Contract Overview

Contract Amount: $23,827,178 ($23.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-06-08

End Date: 2012-03-15

Contract Duration: 1,011 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: [PIIN: W91B4L-09-C-0045] ELECT POWER DISTRIBUTION LNK

Plain-Language Summary

Department of Defense obligated $23.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: [PIIN: W91B4L-09-C-0045] ELECT POWER DISTRIBUTION LNK Key points: 1. The contract utilized a firm fixed price structure, which shifts cost risk to the contractor. 2. Awarded by the Department of the Army, this contract falls under defense sector spending. 3. The contract duration was 1011 days, indicating a medium-term project. 4. The total value of $23.8 million suggests a significant investment in infrastructure. 5. The contract was awarded under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The contract value of $23.8 million for electric power distribution over approximately 3 years appears to be within a reasonable range for such infrastructure projects. Without specific details on the scope of work, such as the mileage of distribution lines or the complexity of the substations, a precise value-for-money assessment is challenging. However, the firm fixed price nature of the contract suggests that the initial price was determined through negotiation and competitive bidding, aiming for cost efficiency.

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 a bid. This suggests a robust bidding process where multiple contractors likely vied for the award. The level of competition can contribute to price discovery and potentially lead to more favorable pricing for the government.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

This contract directly benefits the Department of the Army by ensuring reliable electric power distribution for its facilities. The services delivered include the maintenance, repair, or installation of electric power distribution infrastructure. The geographic impact is likely localized to a specific Army installation or base. Workforce implications may include the employment of electricians, engineers, and project managers involved in power distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific details on the scope of work makes it difficult to fully assess value for money.
  • The undisclosed nature of domestic awardees prevents a review of contractor past performance or potential conflicts of interest.

Positive Signals

  • Firm fixed price contract shifts cost overrun risk to the contractor.
  • Full and open competition suggests a potentially competitive pricing environment.
  • The contract duration of over 1000 days indicates a sustained commitment to the project.

Sector Analysis

Electric power distribution is a critical component of infrastructure, supporting military bases, government facilities, and civilian communities. The market for such services involves specialized engineering, construction, and maintenance firms. This contract represents a specific instance of federal investment in maintaining and upgrading essential power infrastructure, aligning with broader government efforts to ensure operational readiness and resilience.

Small Business Impact

The provided data indicates that small business participation (sb) was false (false). This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned in the summary data. Further investigation into the contract's clauses would be needed to determine if any subcontracting opportunities were mandated or encouraged.

Oversight & Accountability

The contract was awarded by the Department of the Army, which is subject to various oversight mechanisms including internal audits, program management reviews, and potentially Inspector General investigations. Transparency regarding the specific performance metrics and deliverables would be crucial for a thorough assessment of accountability. The firm fixed price nature of the contract provides a degree of financial accountability by capping the government's expenditure.

Related Government Programs

  • Military Base Infrastructure Modernization
  • Department of Defense Energy Programs
  • Federal Electric Grid Maintenance
  • Army Corps of Engineers Construction Contracts

Risk Flags

  • Lack of detailed scope of work
  • Undisclosed awardee information
  • Limited performance metrics available

Tags

defense, department-of-the-army, electric-power-distribution, definitive-contract, firm-fixed-price, full-and-open-competition, infrastructure, medium-value, us-federal-government

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to DOMESTIC AWARDEES (UNDISCLOSED). [PIIN: W91B4L-09-C-0045] ELECT POWER DISTRIBUTION LNK

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2009-06-08. End: 2012-03-15.

What specific services were included in the $23.8 million for electric power distribution?

The provided data identifies the contract as 'ELECT POWER DISTRIBUTION LNK' with a Product Service Code (PSC) likely related to electrical power distribution systems. However, the specific scope of work is not detailed. This could encompass a range of activities such as the installation of new power lines, upgrades to existing substations, maintenance of underground or overhead distribution networks, or the integration of new power sources. Without a detailed statement of work, it is difficult to ascertain the precise nature and extent of the services rendered under this $23.8 million contract.

How does the $23.8 million contract value compare to similar electric power distribution contracts awarded by the Department of Defense?

Benchmarking this $23.8 million contract requires comparison with similar electric power distribution projects undertaken by the Department of Defense (DoD) or other federal agencies. Factors such as contract duration, geographic location, scope of work (e.g., new construction vs. maintenance), and specific technological requirements heavily influence cost. While $23.8 million over approximately three years is a substantial sum, it may be considered moderate for large-scale infrastructure projects like upgrading power grids for a major military installation. A comprehensive analysis would involve examining the average cost per mile of distribution line installed or maintained, or the average cost of substation upgrades within the DoD over a similar timeframe.

What were the key performance indicators (KPIs) for this contract, and how was contractor performance measured?

The provided summary data does not include specific Key Performance Indicators (KPIs) or details on how the contractor's performance was measured for this electric power distribution contract. Typically, for such infrastructure projects, KPIs might include adherence to project timelines, quality of workmanship, safety compliance, and successful integration of the power distribution system. Performance would likely be assessed through regular progress reports, site inspections, and final acceptance testing by government representatives. The firm fixed price nature of the contract implies that meeting the defined scope and quality standards within the agreed price was paramount.

What is the historical spending pattern for electric power distribution contracts by the Department of the Army?

Analyzing historical spending patterns for electric power distribution contracts by the Department of the Army (DoA) would involve reviewing contract databases for similar procurements over several fiscal years. This would reveal trends in contract values, durations, types of services procured (e.g., installation, maintenance, upgrades), and the prevalence of different contract types (e.g., firm fixed price, cost-plus). Understanding these patterns can help contextualize the $23.8 million award, indicating whether it represents a typical investment, an increase, or a decrease in spending for this category. It also helps identify major projects or recurring needs within the DoA's infrastructure.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

The summary data does not explicitly detail risks or mitigation strategies for this specific contract. However, common risks in electric power distribution projects include unforeseen site conditions (e.g., underground utilities, soil stability), weather delays, material cost fluctuations, and potential labor shortages. Given the firm fixed price structure, the primary risk mitigation for the government is the contractor's responsibility for cost overruns. The government's mitigation would involve thorough pre-award vetting of the contractor's technical capabilities and financial stability, clear contract specifications, and robust project oversight to ensure compliance and timely issue resolution.

Industry Classification

NAICS: UtilitiesElectric Power Generation, Transmission and DistributionElectric Power Distribution

Product/Service Code: RESEARCH AND DEVELOPMENTEnergy R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $23,827,178

Exercised Options: $23,827,178

Current Obligation: $23,827,178

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2009-06-08

Current End Date: 2012-03-15

Potential End Date: 2012-03-15 00:00:00

Last Modified: 2021-08-25

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