Department of Defense awarded $23.9M for power generation and distribution, with 3 bids received

Contract Overview

Contract Amount: $23,956,098 ($24.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2010-05-31

Contract Duration: 425 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PWR GENERATION & DIST OPT & MAINT

Plain-Language Summary

Department of Defense obligated $24.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: PWR GENERATION & DIST OPT & MAINT Key points: 1. The contract value of $23.9 million for power generation and distribution services appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a healthy market response and potential for competitive pricing. 3. The contract duration of 425 days indicates a medium-term need for these services. 4. The award was made by the Department of the Army, a major component of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 221310 points to a focus on water supply and irrigation systems, which may include power infrastructure. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $23.9 million for a 425-day period for power generation and distribution services seems within a reasonable range for such specialized work. Without specific details on the exact services rendered or the geographic location, a direct comparison is challenging. However, the presence of multiple bids suggests that the pricing was likely competitive. The firm fixed-price nature of the contract also indicates that the government secured a defined cost for the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for this requirement. While three bidders is not an exceptionally high number, it suggests that the market was sufficiently engaged to provide a basis for price discovery and selection of a qualified contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently in securing these services.

Public Impact

The primary beneficiaries of this contract are likely military installations or facilities requiring reliable power generation and distribution. The services delivered include the operation, maintenance, and potentially the distribution of power. The geographic impact is likely localized to the specific military installation or region where the services are being performed. Workforce implications may include the employment of skilled technicians and engineers for power systems management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service description makes it difficult to fully assess value for money.
The specific nature of 'power generation and distribution' in the context of water supply and irrigation systems could imply specialized or niche requirements.
Limited information on contractor past performance for this specific type of work.

Positive Signals

Awarded under full and open competition, indicating broad market access.
Firm Fixed Price contract type provides cost certainty for the government.
Multiple bids received suggest a competitive process.

Sector Analysis

The contract falls within the Utilities and Power Generation sector, specifically related to infrastructure maintenance and operation. The total federal spending on utilities and power generation can be substantial, often supporting critical government functions and facilities. This contract represents a portion of that broader spending, focusing on ensuring operational readiness for Department of Defense assets.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans with small businesses, but the absence of a set-aside suggests that large businesses were likely the primary awardees, with potential for subcontracting opportunities depending on their business practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract databases, though specific performance details may be less publicly accessible.

Related Government Programs

Department of Defense Utilities Contracts
Army Power and Water Infrastructure
Federal Energy Management Programs
Infrastructure Maintenance and Operations Contracts

Risk Flags

Potential for service disruption if contractor fails to perform.
Dependence on contractor's technical expertise and equipment reliability.
Environmental compliance risks associated with power generation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to MISCELLANEOUS FOREIGN AWARDEES. PWR GENERATION & DIST OPT & MAINT

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 $24.0 million.

What is the period of performance?

Start: 2009-04-01. End: 2010-05-31.

What specific types of power generation and distribution systems were covered under this contract, and what was the operational context within the water supply and irrigation systems?

The provided data indicates the contract was for 'PWR GENERATION & DIST OPT & MAINT' under NAICS code 221310 (Water Supply and Irrigation Systems). This suggests the power generation and distribution services were likely integral to the operation of water infrastructure, such as pumping stations, treatment facilities, or irrigation control systems. The specific technologies (e.g., diesel generators, grid connections, distribution networks) and the scale of the systems are not detailed. The contract's purpose was to ensure the reliable functioning of these power-dependent water systems, crucial for military base operations or other government functions reliant on water supply and irrigation.

How does the awarded amount of $23.9 million compare to similar contracts for power generation and distribution services within the Department of Defense or similar agencies?

Comparing the $23.9 million award for a 425-day contract requires context regarding the specific services, location, and complexity. However, for large-scale power generation and distribution operations and maintenance, this figure appears to be within a moderate range. Contracts for similar services can vary significantly, from smaller, localized support to multi-year, multi-million dollar agreements for entire installations. The fact that this was a full and open competition with three bids suggests the price was likely competitive within its specific market segment. Benchmarking against publicly available data for similar duration and scope would be necessary for a precise valuation.

What were the key performance indicators (KPIs) or service level agreements (SLAs) established for this contract to measure contractor performance?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for power generation and distribution, typical KPIs would likely include metrics such as power availability (uptime percentage), response time to outages, fuel efficiency (if applicable), adherence to safety standards, and maintenance schedule compliance. These would be crucial for ensuring the continuous and reliable operation of the power systems supporting the water infrastructure. The firm fixed-price nature suggests that meeting these performance standards was a condition for full payment.

What is the historical spending pattern for power generation and distribution services by the Department of the Army, and does this contract represent a significant deviation?

Historical spending patterns for power generation and distribution by the Department of the Army are substantial, given the vast infrastructure they manage. This $23.9 million contract, awarded in 2009-2010 for a period of approximately 14 months, represents a specific, medium-sized requirement within that broader spending. Without access to detailed historical data for similar contracts or specific installation needs, it's difficult to ascertain if this contract was a significant deviation. However, it aligns with the general need for operational support services for critical infrastructure within the Army's portfolio.

Were there any specific risks identified during the procurement process, and what mitigation strategies were put in place?

The provided data does not detail specific risks identified during the procurement process for this contract. However, common risks associated with power generation and distribution contracts include technical failures, supply chain disruptions for fuel or parts, environmental compliance issues, and contractor performance deficiencies. Mitigation strategies typically involve thorough pre-award assessments of contractor capabilities, robust contract language defining performance expectations and remedies, and potentially contingency planning for backup power sources. The firm fixed-price structure itself mitigates financial risk for the government by capping costs.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $57,466,098

Exercised Options: $23,956,098

Current Obligation: $23,956,098

Contract Characteristics

Cost or Pricing Data: NO

Timeline