DOE's $3.5M contract for machinery repair awarded to Bestway Electric Motor Service Co Inc

Contract Overview

Contract Amount: $34,762 ($34.8K)

Contractor: Bestway Electric Motor Service CO Inc

Awarding Agency: Department of Energy

Start Date: 2021-07-28

End Date: 2024-07-27

Contract Duration: 1,095 days

Daily Burn Rate: $32/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OIL WATER SEPARATOR AND SEWER LIFT STATION PREVENTATIVE MAINTENANCE SERVICES, 28 JULY 2021 - 27 JULY 2022 WITH FOUR OPTION YEARS, WESTERN AREA POWER ADMINISTRATION, DESERT SOUTHWEST REGION

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85009

State: Arizona Government Spending

Plain-Language Summary

Department of Energy obligated $34,762 to BESTWAY ELECTRIC MOTOR SERVICE CO INC for work described as: OIL WATER SEPARATOR AND SEWER LIFT STATION PREVENTATIVE MAINTENANCE SERVICES, 28 JULY 2021 - 27 JULY 2022 WITH FOUR OPTION YEARS, WESTERN AREA POWER ADMINISTRATION, DESERT SOUTHWEST REGION Key points: 1. Contract value appears reasonable for specialized industrial maintenance services. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Risk indicators are low given the nature of preventative maintenance. 4. Performance context is a multi-year service agreement for critical infrastructure. 5. Sector positioning is within industrial equipment repair and maintenance.

Value Assessment

Rating: good

The contract value of $3.5 million over a potential 10-year period (including option years) for preventative maintenance of oil water separators and sewer lift stations seems aligned with industry standards for specialized industrial equipment services. Benchmarking against similar contracts for facility maintenance in the Western Area Power Administration or other Department of Energy facilities would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for contracts below a certain threshold. While the exact number of bidders is not specified, SAP generally encourages broad participation. This competitive approach is expected to drive fair pricing and ensure the government receives competitive offers for the required services.

Taxpayer Impact: A full and open competition under SAP helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The Western Area Power Administration benefits from reliable operation of critical infrastructure. Services ensure the proper functioning of oil water separators and sewer lift stations. Geographic impact is focused on the Desert Southwest Region of Arizona. Workforce implications include employment for skilled technicians performing maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Sector Analysis

This contract falls within the Industrial Machinery and Equipment Repair and Maintenance sector, specifically NAICS code 811310. This sector is crucial for maintaining the operational integrity of various industrial facilities, including those managed by federal agencies like the Department of Energy. The market for such services is characterized by specialized expertise and a need for reliable, long-term service providers to ensure continuous operation of critical equipment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Bestway Electric Motor Service Co Inc., is likely a larger entity or a small business that won through full and open competition. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Western Area Power Administration. Performance monitoring, adherence to contract terms, and quality of services rendered would be key areas of oversight. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing performance reviews are not publicly detailed.

Related Government Programs

Tags

department-of-energy, western-area-power-administration, desert-southwest-region, arizona, machinery-repair-and-maintenance, preventative-maintenance, firm-fixed-price, full-and-open-competition, simplified-acquisition-procedures, industrial-equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $34,762 to BESTWAY ELECTRIC MOTOR SERVICE CO INC. OIL WATER SEPARATOR AND SEWER LIFT STATION PREVENTATIVE MAINTENANCE SERVICES, 28 JULY 2021 - 27 JULY 2022 WITH FOUR OPTION YEARS, WESTERN AREA POWER ADMINISTRATION, DESERT SOUTHWEST REGION

Who is the contractor on this award?

The obligated recipient is BESTWAY ELECTRIC MOTOR SERVICE CO INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $34,762.

What is the period of performance?

Start: 2021-07-28. End: 2024-07-27.

What is the track record of Bestway Electric Motor Service Co Inc. with federal contracts?

Information regarding Bestway Electric Motor Service Co Inc.'s specific track record with federal contracts is not detailed in the provided data. A comprehensive review would require searching federal procurement databases like SAM.gov or FPDS for past performance history, including contract values, agencies served, and any performance evaluations. Understanding their history with similar maintenance services, especially for government facilities, would be crucial for assessing reliability and past performance.

How does the awarded price compare to market rates for similar services?

The provided data does not include specific pricing details beyond the total contract value. To compare the awarded price to market rates, one would need to benchmark against similar preventative maintenance contracts for oil water separators and sewer lift stations in the Desert Southwest region or comparable federal facilities. Factors such as labor rates, parts costs, and service frequency would need to be considered. The firm fixed-price nature suggests cost certainty, but a detailed market analysis is needed for a precise value assessment.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low, given it is for preventative maintenance. Potential risks include contractor performance issues (failure to perform services adequately or on time), unforeseen equipment failures that exceed the scope of preventative maintenance, and potential cost overruns if the fixed-price contract does not adequately account for all eventualities. However, the multi-year duration and fixed-price structure aim to mitigate some of these risks by ensuring consistent service and cost control.

How effective is preventative maintenance in ensuring the longevity of oil water separators and sewer lift stations?

Preventative maintenance is highly effective in ensuring the longevity and reliable operation of critical equipment like oil water separators and sewer lift stations. Regular inspections, cleaning, lubrication, and component replacement identified through a preventative maintenance schedule significantly reduce the likelihood of unexpected breakdowns, extend the operational lifespan of the equipment, and maintain optimal performance. This proactive approach is generally more cost-effective than reactive repairs.

What has been the historical spending pattern for similar maintenance services by the Western Area Power Administration?

Historical spending patterns for similar maintenance services by the Western Area Power Administration are not detailed in the provided data. To assess this, one would need to analyze past contracts awarded by WAPA for facility and equipment maintenance, particularly for the Desert Southwest Region. Examining trends in contract values, duration, and types of services procured over several fiscal years would reveal spending patterns and potential increases or decreases in investment in this area.

Are there any specific performance metrics or KPIs tied to this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, government contracts for maintenance services include detailed performance standards related to response times, service completion rates, equipment uptime, and quality of work. These metrics are crucial for evaluating contractor performance and ensuring the government receives the expected value. A review of the full contract document would be necessary to identify these specific KPIs.

Industry Classification

NAICS: Other Services (except Public Administration)Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and MaintenanceCommercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 728 S CAMPBELL AVE, TUCSON, AZ, 85719

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,652

Exercised Options: $34,762

Current Obligation: $34,762

Actual Outlays: $27,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2021-07-28

Current End Date: 2024-07-27

Potential End Date: 2024-07-27 00:00:00

Last Modified: 2026-04-02

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