Department of Energy awards $2.25M contract for Devils Lake substation construction to Conductor Power, LLC
Contract Overview
Contract Amount: $2,254,240 ($2.3M)
Contractor: Conductor Power, LLC
Awarding Agency: Department of Energy
Start Date: 2020-08-31
End Date: 2022-07-30
Contract Duration: 698 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CONSTRUCT DEVILS LAKE SUBSTATION, STAGE 06 IN NORTH DAKOTA
Place of Performance
Location: DEVILS LAKE, RAMSEY County, NORTH DAKOTA, 58301
Plain-Language Summary
Department of Energy obligated $2.3 million to CONDUCTOR POWER, LLC for work described as: CONSTRUCT DEVILS LAKE SUBSTATION, STAGE 06 IN NORTH DAKOTA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 698 days indicates a significant construction project. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project is located in North Dakota, potentially impacting local workforce and economy. 5. The specific nature of the work involves power and communication line construction. 6. The awarding agency is the Department of Energy, highlighting its role in infrastructure development.
Value Assessment
Rating: fair
The contract value of $2.25 million for the construction of a substation and related power/communication lines appears to be within a reasonable range for such infrastructure projects. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar substation construction projects of comparable size and complexity would be necessary for a more definitive evaluation. The firm-fixed-price contract type suggests an effort to manage 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,' which implies that while the competition was open, certain sources may have been excluded for specific reasons. The presence of 5 bidders indicates a degree of competition. The level of competition is generally positive for price discovery, but the exclusion of sources warrants further investigation to ensure no potentially better offers were missed.
Taxpayer Impact: The competitive bidding process, even with exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. Understanding the rationale behind source exclusion is key to confirming optimal taxpayer value.
Public Impact
The primary beneficiaries are likely the residents and businesses in and around Devils Lake, North Dakota, who will benefit from improved power infrastructure. The project delivers essential construction services for power and communication lines, crucial for reliable energy supply. The geographic impact is concentrated in North Dakota, specifically the Devils Lake area. The project may have implications for the local construction workforce, providing employment opportunities during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work was not fully defined, despite the firm-fixed-price contract.
- Risk associated with the exclusion of certain sources in the competitive bidding process.
- Dependency on the contractor's ability to manage complex construction timelines and potential weather-related delays in North Dakota.
Positive Signals
- The use of a firm-fixed-price contract provides cost certainty for the government.
- Awarding through full and open competition suggests a robust selection process.
- The contract duration of nearly two years indicates a commitment to completing a substantial infrastructure project.
Sector Analysis
The construction of electrical substations and power lines falls within the broader energy infrastructure and utilities sector. This sector is critical for national energy security and economic development. Spending in this area is often driven by the need to upgrade aging infrastructure, meet growing energy demands, and integrate new energy sources. Comparable spending benchmarks would typically be found within federal and state energy department budgets for infrastructure projects.
Small Business Impact
The data indicates that small business participation was not a primary focus, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically set aside for small businesses, and the prime contractor, Conductor Power, LLC, may not be a small business. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the work required.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed price. Transparency is generally facilitated by federal contract databases, though specific project oversight details may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy - Grid Modernization Initiative
- Rural Electrification Administration Programs
- Army Corps of Engineers - Civil Works Projects
- Federal Energy Regulatory Commission (FERC) - Infrastructure Permitting
Risk Flags
- Competition Level - Potential for missed value due to source exclusion.
- Scope Definition - Risk of cost escalation if scope is not fully defined.
- Geographic Risk - Potential for weather-related delays in North Dakota construction.
Tags
energy, department-of-energy, north-dakota, construction, substation, power-lines, full-and-open-competition, firm-fixed-price, infrastructure, utilities, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.3 million to CONDUCTOR POWER, LLC. CONSTRUCT DEVILS LAKE SUBSTATION, STAGE 06 IN NORTH DAKOTA
Who is the contractor on this award?
The obligated recipient is CONDUCTOR POWER, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.3 million.
What is the period of performance?
Start: 2020-08-31. End: 2022-07-30.
What is the specific scope of work for the Devils Lake substation construction, and how does it compare to similar projects awarded by the Department of Energy?
The contract data specifies 'CONSTRUCT DEVILS LAKE SUBSTATION, STAGE 06 IN NORTH DAKOTA' and identifies the North American Industry Classification System (NAICS) code as 237130, which pertains to 'Power and Communication Line and Related Structures Construction.' This suggests the project involves building or significantly upgrading a substation, including the installation of power lines and potentially communication infrastructure. To compare this to similar projects, one would need to analyze other DOE contracts for substation construction, looking at factors like substation size (voltage capacity), acreage, number of transformers, complexity of the transmission/distribution network integration, and the specific services included (e.g., design, engineering, procurement, construction, commissioning). Without more detailed project documentation, a direct comparison is limited, but the $2.25 million award for a 698-day project provides a baseline cost and duration metric.
What was the rationale for excluding certain sources in the 'full and open competition after exclusion of sources' process?
The designation 'full and open competition after exclusion of sources' indicates that while the solicitation was broadly advertised, specific potential bidders were intentionally excluded from participating. The rationale for such exclusions can vary widely. Common reasons include pre-qualification requirements based on technical expertise, past performance, financial stability, or security clearances. It could also stem from specific government mandates or policies that limit participation to certain types of entities or those meeting particular criteria. In some cases, exclusions might be related to prior contractual issues or performance problems with specific contractors. Understanding the precise justification requires reviewing the solicitation documents and any associated justifications for excluding specific entities, which are typically not detailed in summary contract award data.
How does the firm-fixed-price contract type mitigate risks for the Department of Energy compared to other contract types?
A firm-fixed-price (FFP) contract is generally considered the least risky for the buyer (the Department of Energy) in terms of cost. Under an FFP contract, the contractor agrees to a set price for the work, regardless of the contractor's actual costs. This shifts the risk of cost overruns from the government to the contractor. If the contractor's expenses are higher than anticipated, their profit margin decreases. Conversely, if they manage costs effectively, their profit increases. This contract type incentivizes the contractor to control costs and work efficiently. It contrasts with cost-plus contracts, where the government reimburses the contractor's costs plus a fee, carrying a higher risk of cost escalation for the agency. The FFP structure provides budget certainty for the DOE, making financial planning more predictable.
What is the historical spending pattern for substation construction projects by the Department of Energy in North Dakota?
Analyzing historical spending patterns for substation construction by the Department of Energy in North Dakota requires access to comprehensive federal procurement databases and historical contract data. This specific award of $2.25 million for the Devils Lake substation is one data point. To establish a pattern, one would need to aggregate data on similar projects within North Dakota over several fiscal years, noting the number of contracts, their values, the types of construction (new build, upgrade, specific components), and the awarding offices within the DOE. Factors influencing historical spending could include regional energy demand, grid modernization efforts, renewable energy integration projects, and federal infrastructure funding initiatives. Without this aggregated historical data, it's difficult to determine if this $2.25 million award represents a typical, high, or low investment for such projects in the region.
What are the potential workforce implications of this $2.25 million construction contract in North Dakota?
A $2.25 million construction contract for a substation and related infrastructure in North Dakota is likely to have positive, albeit localized, workforce implications. The project duration of 698 days (approximately 23 months) suggests a sustained need for skilled labor throughout its lifecycle. This would typically include construction managers, engineers, electricians, heavy equipment operators, laborers, and potentially specialized technicians for power systems. The direct employment generated by the prime contractor and any subcontractors could provide significant job opportunities. Furthermore, indirect employment effects may arise in supporting industries such as material suppliers, equipment rental companies, and local services catering to the construction workforce. The specific impact will depend on the availability of local skilled labor and the extent to which the contractor utilizes local hiring practices versus bringing in workers from outside the immediate area.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
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: SEALED BID
Solicitation ID: 89503420BWA000017
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4993 GULL LAKE DAM RD, BRAINERD, MN, 56401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,011,521
Exercised Options: $5,011,521
Current Obligation: $2,254,240
Actual Outlays: $373,426
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-31
Current End Date: 2022-07-30
Potential End Date: 2022-07-30 00:00:00
Last Modified: 2026-03-03
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