Agriculture Department awards $3.87M for generator replacement, highlighting need for reliable infrastructure

Contract Overview

Contract Amount: $3,869,089 ($3.9M)

Contractor: Firelake Construction Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-07-09

End Date: 2026-08-27

Contract Duration: 779 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY24 BRL B2 GENERATOR CONSTRUCTION - REPLACE AND INSTALL 2 POWER GENERATORS.

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to FIRELAKE CONSTRUCTION INC for work described as: FY24 BRL B2 GENERATOR CONSTRUCTION - REPLACE AND INSTALL 2 POWER GENERATORS. Key points: 1. Contract addresses critical infrastructure needs for agricultural research facilities. 2. Focus on replacing aging power generation equipment to ensure operational continuity. 3. Fixed-price contract structure aims to control costs for the government. 4. Competition was open, suggesting a competitive bidding process. 5. Project duration of nearly two years indicates a significant scope of work. 6. Geographic focus on North Dakota points to specific regional operational requirements.

Value Assessment

Rating: good

The contract value of $3.87 million for replacing and installing two power generators appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects for federal facilities suggests that pricing is within expected ranges. The firm fixed-price nature of the contract provides cost certainty for the government, mitigating risks associated with potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The specific exclusion of sources might suggest a prior issue or a need to broaden the competitive pool beyond initial considerations. The open competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the most cost-effective solution for replacing essential power generation equipment.

Public Impact

Benefits agricultural research operations by ensuring uninterrupted power supply. Services delivered include the replacement and installation of two critical power generators. Geographic impact is concentrated in North Dakota, supporting regional agricultural research. Workforce implications include employment for skilled trades in construction and electrical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if specialized generator components face supply chain issues.
Ensuring compliance with all environmental and safety regulations during installation.

Positive Signals

Addresses a critical infrastructure need, enhancing operational resilience.
Firm fixed-price contract provides budget predictability.
Open competition suggests a robust market response.

Sector Analysis

The contract falls within the construction and facilities maintenance sector, specifically addressing critical infrastructure for government operations. The market for industrial generator installation and maintenance is competitive, with numerous contractors capable of performing such work. This contract represents a significant investment in maintaining essential services for the Agricultural Research Service.

Small Business Impact

The contract was awarded to FIRELAKE CONSTRUCTION INC. Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and potentially the Agricultural Research Service's program managers. Accountability is ensured through the firm fixed-price contract terms and performance requirements. Transparency is facilitated by public contract databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Federal Buildings and Facilities Construction
Emergency Power Systems
Agricultural Research Infrastructure

Risk Flags

Potential for supply chain delays impacting project timeline.
Ensuring contractor's adherence to stringent federal safety and environmental standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to FIRELAKE CONSTRUCTION INC. FY24 BRL B2 GENERATOR CONSTRUCTION - REPLACE AND INSTALL 2 POWER GENERATORS.

Who is the contractor on this award?

The obligated recipient is FIRELAKE CONSTRUCTION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2024-07-09. End: 2026-08-27.

What is the track record of FIRELAKE CONSTRUCTION INC. with federal contracts, particularly in generator installation?

A review of federal procurement data indicates that FIRELAKE CONSTRUCTION INC. has been awarded multiple federal contracts. While specific details on generator installation projects are not immediately available in the summary data, their past performance on similar construction and infrastructure projects would be a key factor in their selection for this contract. Further investigation into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their capabilities and reliability for this specific task.

How does the awarded amount compare to similar generator replacement projects for federal agencies?

The awarded amount of $3.87 million for two generators is a substantial figure, suggesting a complex installation or high-capacity units. To benchmark effectively, comparisons should be made with contracts for similar-sized federal facilities, considering factors like the age and condition of existing infrastructure, site accessibility, and the specific technical requirements of the new generators. Without detailed project specifications and regional cost variations, a precise comparison is difficult, but the firm fixed-price nature suggests the government sought to lock in costs based on competitive bids for the defined scope.

What are the primary risks associated with this generator replacement project?

Key risks include potential delays due to unforeseen site conditions during demolition or installation, supply chain disruptions for specialized generator components, and ensuring seamless integration with existing power infrastructure. There's also a risk related to the contractor's ability to meet the stringent performance and safety standards required for federal facilities. The firm fixed-price contract mitigates financial risk for the government, but performance risk remains a consideration.

How effective is the Agricultural Research Service in managing infrastructure upgrade projects like this?

The effectiveness of the Agricultural Research Service (ARS) in managing infrastructure projects is generally assessed through project completion rates, adherence to budget and schedule, and the long-term reliability of the installed systems. This contract's success will depend on ARS's project oversight, the clarity of their requirements, and their ability to monitor contractor performance throughout the project lifecycle. Past ARS infrastructure projects, if publicly evaluated, could offer insights into their management capabilities.

What has been the historical spending pattern for generator maintenance and replacement within the Agricultural Research Service?

Historical spending data for the Agricultural Research Service on generator maintenance and replacement would reveal trends in infrastructure investment and potential patterns of aging equipment. Analyzing past expenditures can indicate whether this $3.87 million contract represents a significant increase or a typical investment cycle for critical power infrastructure. Understanding this pattern helps assess the urgency and scale of the current need and informs future budgeting for similar upgrades across ARS facilities.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12805B24Q0244

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Firelake Construction, Inc.

Address: 14217 W 95TH ST, LENEXA, KS, 66215

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,929,961

Exercised Options: $3,869,089

Current Obligation: $3,869,089

Actual Outlays: $1,564,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12805B21D0001

IDV Type: IDC

Timeline