National Park Service awards $16.4M contract for critical electrical system rehabilitation at Kalaupapa National Historical Park

Contract Overview

Contract Amount: $16,379,570 ($16.4M)

Contractor: TDX Power Services LLC

Awarding Agency: Department of the Interior

Start Date: 2023-04-05

End Date: 2027-07-30

Contract Duration: 1,577 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REHABILITATE UNSAFE AND FAILING ELECTRICAL SYSTEM FOR SETTLEMENT, KALAUPAPA NATIONAL HISTORICAL PARK, KALA-217676

Place of Performance

Location: KALAUPAPA, KALAWAO County, HAWAII, 96742

State: Hawaii Government Spending

Plain-Language Summary

Department of the Interior obligated $16.4 million to TDX POWER SERVICES LLC for work described as: REHABILITATE UNSAFE AND FAILING ELECTRICAL SYSTEM FOR SETTLEMENT, KALAUPAPA NATIONAL HISTORICAL PARK, KALA-217676 Key points: 1. Contract addresses essential infrastructure upgrades to ensure safety and operational continuity. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. The project duration spans over four years, indicating a significant scope of work. 5. The contractor, TDX Power Services LLC, is responsible for delivering the rehabilitation. 6. The work is located in Hawaii, a state with unique logistical considerations for construction projects.

Value Assessment

Rating: good

The contract value of $16.4 million for rehabilitating an electrical system appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure projects within the National Park Service or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has a clear understanding of the project's costs, and the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to unrestricted full and open competition. Further investigation into the justification for excluding sources would be beneficial.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may have reduced the number of competitive bids, potentially impacting the final price paid by taxpayers. A more robust competition could have driven down costs further.

Public Impact

Preserves the historical integrity and visitor experience at Kalaupapa National Historical Park by ensuring reliable power. Enhances the safety of residents and staff at the park by upgrading a failing electrical system. Supports the operational continuity of essential services within the park. The project is geographically focused on the island of Molokai in Hawaii. Likely involves a skilled construction workforce for the electrical system rehabilitation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to limited competition if source exclusions were not fully justified.
Logistical challenges in Hawaii could impact project timelines and costs.
The long duration of the contract increases the risk of unforeseen issues arising.

Positive Signals

Addresses a critical safety and infrastructure need for a historic national park.
Firm-fixed-price contract provides cost certainty for the government.
The project aims to ensure long-term operational stability for the park.

Sector Analysis

This contract falls within the Construction and Utilities sector, specifically focusing on power infrastructure. The market for large-scale electrical system rehabilitation is specialized, often involving contractors with expertise in both construction and complex electrical systems. Comparable spending benchmarks would involve looking at other federal contracts for similar infrastructure upgrades in remote or historically significant locations, which can command premium pricing due to logistical and specialized requirements.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, TDX Power Services LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Park Service's contracting officers and program managers. The firm-fixed-price nature of the contract shifts cost risk to the contractor, but performance monitoring remains crucial. Transparency is facilitated by public contract databases, but detailed project progress reports and Inspector General involvement would depend on specific contract clauses and any identified performance issues or fraud concerns.

Related Government Programs

National Park Service Infrastructure Projects
Federal Electrical System Upgrades
Historic Site Preservation Contracts
Department of the Interior Construction Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Logistical complexities of working in Hawaii.
Long project duration increases risk exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $16.4 million to TDX POWER SERVICES LLC. REHABILITATE UNSAFE AND FAILING ELECTRICAL SYSTEM FOR SETTLEMENT, KALAUPAPA NATIONAL HISTORICAL PARK, KALA-217676

Who is the contractor on this award?

The obligated recipient is TDX POWER SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2023-04-05. End: 2027-07-30.

What is the track record of TDX Power Services LLC in performing similar federal electrical system rehabilitation projects?

A review of federal contract databases indicates that TDX Power Services LLC has been awarded contracts for electrical work, including power line construction and related structures. While specific details on the scale and complexity of past projects are not fully elaborated in summary data, their award for this significant rehabilitation at Kalaupapa National Historical Park suggests they possess the necessary qualifications and experience. Further due diligence would involve examining past performance reviews, any past performance questionnaires (PPQs), and the number and nature of any past disputes or claims filed against the contractor on similar federal projects to fully assess their track record.

How does the awarded value compare to similar electrical system rehabilitation projects within the National Park Service or other federal agencies?

Benchmarking the $16.4 million contract value requires comparing it to projects of similar scope, complexity, and location. Large-scale electrical system rehabilitations, especially in remote or historically sensitive areas like Kalaupapa, can incur higher costs due to specialized labor, material transport, and adherence to preservation standards. Without specific comparable project data, it's difficult to definitively state if this represents excellent or fair value. However, the firm-fixed-price contract type suggests a degree of cost certainty was established during negotiation, which is generally favorable for the government. Further analysis would involve identifying projects with comparable square footage, system age, and required upgrades across federal agencies.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen site conditions or material price escalations, although the contractor bears this risk. Logistical challenges in Hawaii, particularly on Molokai, pose schedule risks. The long duration (over four years) increases the possibility of scope creep or changes. Mitigation strategies likely include detailed site investigations prior to award, robust contract management by the NPS, clear communication protocols, and potentially contingency planning within the contractor's bid. The 'exclusion of sources' in the competition also presents a risk of reduced competition, potentially impacting price.

What is the expected effectiveness of the rehabilitated electrical system in meeting the park's long-term needs?

The contract's objective is to 'REHABILITATE UNSAFE AND FAILING ELECTRICAL SYSTEM,' implying the current system is inadequate and poses risks. A successful rehabilitation should result in a modern, reliable, and safe electrical infrastructure capable of supporting the park's current and future operational needs, including power for facilities, visitor services, and potentially research or conservation efforts. The effectiveness will be measured by the system's performance post-completion, its ability to withstand environmental conditions, and its compliance with current electrical codes and safety standards. The long-term nature of the project suggests an intent to provide a durable solution.

How has federal spending on electrical system rehabilitation projects within the National Park Service trended over the past five years?

Analyzing historical spending trends for electrical system rehabilitation within the NPS requires access to detailed budget and contract data over multiple fiscal years. Generally, federal agencies like the NPS face ongoing needs for infrastructure modernization and repair, driven by aging facilities and the need to comply with modern standards. Spending in this category can fluctuate based on congressional appropriations, the identification of critical infrastructure needs, and the prioritization of projects. A significant award like this suggests a continued commitment to addressing deferred maintenance and safety concerns within the park system, potentially indicating an increasing focus or sustained investment in such critical upgrades.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2022R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 C ST STE 1000-57, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,379,570

Exercised Options: $16,379,570

Current Obligation: $16,379,570

Actual Outlays: $8,103,689

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $14,791,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline