Coast Guard awards $842K FFP task order to GE Energy for USCGC Healy power plant services

Contract Overview

Contract Amount: $842,129 ($842.1K)

Contractor: GE Energy Power Conversion USA Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-04

End Date: 2023-09-27

Contract Duration: 146 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A FIRM FIXED-PRICE (FFP) TASK ORDER ISSUED UNDER U.S. COAST GUARD REQUIREMENTS CONTRACT CONTRACT NUMBER 70Z08522DLREP0012 TO PURCHASE SERVICES IN SUPPORT OF THE INTEGRATED POWER PLANT ON USCGC HEALY.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $842,128.95 to GE ENERGY POWER CONVERSION USA INC. for work described as: THIS IS A FIRM FIXED-PRICE (FFP) TASK ORDER ISSUED UNDER U.S. COAST GUARD REQUIREMENTS CONTRACT CONTRACT NUMBER 70Z08522DLREP0012 TO PURCHASE SERVICES IN SUPPORT OF THE INTEGRATED POWER PLANT ON USCGC HEALY. Key points: 1. The contract is a Firm Fixed-Price (FFP) task order for services supporting the USCGC Healy's Integrated Power Plant. 2. Awarded to GE Energy Power Conversion USA Inc., a significant player in power systems. 3. The contract was not competed, raising questions about potential price discovery. 4. The sector is Ship Building and Repairing, a critical area for national security and maritime operations.

Value Assessment

Rating: questionable

This is a Firm Fixed-Price (FFP) contract, which shifts risk to the contractor. However, without competition, it's difficult to assess if the $842,128.95 price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have prevented the government from obtaining the best possible price through a competitive bidding process.

Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these services.

Public Impact

Ensures operational readiness of a critical Coast Guard asset (USCGC Healy). Supports specialized services for the Integrated Power Plant, a complex system. Potential for higher costs due to lack of competitive bidding. Impacts the maritime defense and logistics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Firm Fixed Price contract shifts risk to contractor
Supports critical Coast Guard asset

Sector Analysis

This contract falls within the Ship Building and Repairing sector (NAICS 336611). Spending in this sector is often high due to the complexity and specialized nature of vessels and their systems, like the Integrated Power Plant.

Small Business Impact

The awardee, GE Energy Power Conversion USA Inc., is a large business. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.

Oversight & Accountability

The contract was issued as a delivery order under an existing requirements contract. Oversight should focus on ensuring the services performed meet the contract's technical requirements and that the pricing, despite being FFP, remains reasonable given the lack of competition.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for cost overruns if not managed closely
Reliance on a single contractor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $842,128.95 to GE ENERGY POWER CONVERSION USA INC.. THIS IS A FIRM FIXED-PRICE (FFP) TASK ORDER ISSUED UNDER U.S. COAST GUARD REQUIREMENTS CONTRACT CONTRACT NUMBER 70Z08522DLREP0012 TO PURCHASE SERVICES IN SUPPORT OF THE INTEGRATED POWER PLANT ON USCGC HEALY.

Who is the contractor on this award?

The obligated recipient is GE ENERGY POWER CONVERSION USA 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 $842,128.95.

What is the period of performance?

Start: 2023-05-04. End: 2023-09-27.

What was the justification for not competing this task order, given its significant value?

The justification for not competing this task order is not provided in the data. Typically, sole-source awards require a Justification and Approval (J&A) document outlining why full and open competition is not feasible or not in the government's best interest. Further investigation into the contract file would be needed to determine the specific rationale.

What are the risks associated with a sole-source FFP contract for specialized power plant services?

The primary risk is the potential for inflated pricing, as the contractor faces no competitive pressure to offer the best value. Additionally, without competition, the government may lack visibility into alternative solutions or more cost-effective approaches to maintaining the power plant. Ensuring strict adherence to technical specifications is crucial.

How does this award contribute to the operational effectiveness of the USCGC Healy?

This award is critical for maintaining the operational effectiveness of the USCGC Healy by ensuring its Integrated Power Plant functions correctly. The Healy is a vital asset for polar region operations, research, and national security. Reliable power is fundamental to its mission capabilities.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 N CAMPUS DR, IMPERIAL, PA, 15126

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $842,129

Exercised Options: $842,129

Current Obligation: $842,129

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $131,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08522DLREP0012

IDV Type: IDC

Timeline