DHS awards $2.9M contract for electrical upgrades at Coast Guard base, highlighting infrastructure needs

Contract Overview

Contract Amount: $2,896,722 ($2.9M)

Contractor: District Veterans Contracting, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-02

End Date: 2026-08-14

Contract Duration: 499 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE TRANSFORMERS AND CABLES IN PHASE 1 HOUSING, ELECTRICAL DISTRIBUTION SYSTEM, TRACEN CAPE MAY CAPE MAY, NEW JERSEY

Place of Performance

Location: CAPE MAY, CAPE MAY County, NEW JERSEY, 08204

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.9 million to DISTRICT VETERANS CONTRACTING, INC. for work described as: REPLACE TRANSFORMERS AND CABLES IN PHASE 1 HOUSING, ELECTRICAL DISTRIBUTION SYSTEM, TRACEN CAPE MAY CAPE MAY, NEW JERSEY Key points: 1. Contract focuses on essential infrastructure modernization at a key Coast Guard facility. 2. Competition was open, suggesting potential for competitive pricing. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration spans over a year, indicating a significant scope of work. 5. The awardee, District Veterans Contracting, Inc., is a service-disabled veteran-owned small business. 6. Geographic focus on New Jersey aligns with regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of $2.9 million for electrical system upgrades appears reasonable for a project of this scope and duration. Benchmarking against similar commercial and institutional building construction projects for federal facilities suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific sources were excluded. The number of bidders is not explicitly stated, but the 'limited' competition level suggests that the government may have had fewer than ideal options, potentially impacting price discovery. Further details on the exclusion rationale would be beneficial.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price achievable through a fully open and unrestricted bidding process.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel and operations at TRACEN Cape May, who will receive improved electrical infrastructure. The services delivered include the replacement of transformers and cables, crucial for maintaining reliable power. The geographic impact is concentrated in Cape May, New Jersey, supporting local federal operations. Workforce implications include potential job creation for construction and electrical trades in the New Jersey area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure fair market access.
Lack of specific bidder count limits the assessment of competitive pressure on pricing.
The duration of the contract (499 days) could introduce risks related to material cost fluctuations or labor availability.

Positive Signals

The award to District Veterans Contracting, Inc., a service-disabled veteran-owned small business, aligns with federal goals to support veteran entrepreneurs.
The firm-fixed-price contract type offers cost predictability for the government.
The project addresses critical infrastructure needs, enhancing operational reliability for the Coast Guard.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on electrical system upgrades. The federal government is a significant consumer of construction services, with spending often driven by infrastructure modernization needs, facility maintenance, and new construction projects. Comparable spending benchmarks for electrical upgrades at federal facilities can vary widely based on size, complexity, and location, but projects in the multi-million dollar range are common for significant overhauls.

Small Business Impact

While the awardee, District Veterans Contracting, Inc., is a small business (specifically, a service-disabled veteran-owned small business), the contract was not explicitly a small business set-aside. The 'full and open competition after exclusion of sources' suggests a broader competition initially. The subcontracting implications are not detailed, but for a project of this nature, there may be opportunities for other small businesses to participate in specialized trades or material supply.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and relevant program managers within the Department of Homeland Security. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Buildings and Facilities Construction
Military Construction
Department of Homeland Security Infrastructure Modernization
U.S. Coast Guard Facilities Maintenance
Electrical Infrastructure Projects

Risk Flags

Limited competition due to source exclusion
Potential for cost escalation over contract duration
Reliance on specific contractor capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.9 million to DISTRICT VETERANS CONTRACTING, INC.. REPLACE TRANSFORMERS AND CABLES IN PHASE 1 HOUSING, ELECTRICAL DISTRIBUTION SYSTEM, TRACEN CAPE MAY CAPE MAY, NEW JERSEY

Who is the contractor on this award?

The obligated recipient is DISTRICT VETERANS CONTRACTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2025-04-02. End: 2026-08-14.

What is the track record of District Veterans Contracting, Inc. on similar federal contracts?

District Veterans Contracting, Inc. has a track record of performing federal contracts, particularly within the construction and facilities maintenance domains. As a service-disabled veteran-owned small business, their awards often align with federal small business and veteran preference programs. A detailed review of their past performance on contracts of similar size and scope, particularly those involving electrical systems or infrastructure upgrades for agencies like the Coast Guard or other DoD entities, would provide further insight into their capabilities and reliability. Analyzing past performance evaluations, if publicly available, would be crucial for a comprehensive assessment of their suitability for this project.

How does the awarded price compare to similar electrical upgrade projects at federal facilities?

The awarded price of approximately $2.9 million for replacing transformers and cables in a housing and electrical distribution system at TRACEN Cape May needs to be benchmarked against similar projects. Factors influencing cost include the scale of the facility, the complexity of the existing electrical infrastructure, the specific types and capacities of transformers and cables required, and prevailing labor and material costs in the New Jersey region. Without specific details on these factors or access to a database of comparable federal construction projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests an effort to lock in costs, which is generally favorable for the government if the initial estimate was sound.

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

Primary risks for this contract include potential delays due to unforeseen site conditions, contractor performance issues, or supply chain disruptions for specialized electrical components like transformers and cables. The 499-day duration also introduces risks related to potential cost escalations for materials and labor if not adequately accounted for in the fixed price. Mitigation strategies likely include robust project management by the U.S. Coast Guard, clear performance milestones in the contract, and potentially liquidated damages clauses for significant delays. The firm-fixed-price contract itself mitigates cost overrun risk for the government, shifting that burden to the contractor, provided the initial pricing was competitive and realistic.

What is the historical spending pattern for electrical upgrades at U.S. Coast Guard facilities like TRACEN Cape May?

Historical spending on electrical upgrades at U.S. Coast Guard facilities, including training centers like TRACEN Cape May, is generally driven by the need to maintain aging infrastructure, comply with updated safety and environmental regulations, and support increased power demands from modern equipment. Spending patterns can fluctuate based on congressional appropriations, infrastructure assessment priorities, and the overall readiness posture of the Coast Guard. Projects can range from minor repairs to comprehensive system overhauls, with costs varying significantly. This $2.9 million award represents a substantial investment in a critical operational facility, suggesting a recognized need for significant upgrades.

What does the 'Full and Open Competition After Exclusion of Sources' contracting method imply for cost efficiency?

The 'Full and Open Competition After Exclusion of Sources' method implies that the government initially intended to solicit bids from all responsible sources but subsequently excluded certain ones. This could be due to various reasons, such as specific technical requirements that only a limited number of contractors could meet, national security concerns, or prior performance issues with certain potential bidders. While it aims for broad competition, the exclusion of sources inherently limits the pool of potential bidders. This limitation could potentially reduce competitive pressure, leading to higher prices than might be achieved in a truly unrestricted full and open competition. The justification for the exclusion is critical in assessing the impact on cost efficiency.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z08325RCMAY0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5772 2ND ST NE, WASHINGTON, DC, 20011

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,896,722

Exercised Options: $2,896,722

Current Obligation: $2,896,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08318DPCR07100

IDV Type: IDC

Timeline