Department of Energy awards $570K for substation batteries, with 19 bids received
Contract Overview
Contract Amount: $57,035 ($57.0K)
Contractor: United Sales Assoc Inc
Awarding Agency: Department of Energy
Start Date: 2025-02-04
End Date: 2025-06-03
Contract Duration: 119 days
Daily Burn Rate: $479/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: STATION BATTERIES FOR WARD & WASHBURN SUBSTATIONS, ND.
Place of Performance
Location: LAKE OSWEGO, CLACKAMAS County, OREGON, 97035
State: Oregon Government Spending
Plain-Language Summary
Department of Energy obligated $57,035 to UNITED SALES ASSOC INC for work described as: STATION BATTERIES FOR WARD & WASHBURN SUBSTATIONS, ND. Key points: 1. The contract value of $570,350 appears reasonable given the specialized nature of substation batteries. 2. Strong competition with 19 bids suggests a healthy market for this type of equipment. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The short performance period of 119 days indicates a focused, immediate need. 5. This award falls within the broader 'Battery Manufacturing' sector, supporting critical energy infrastructure.
Value Assessment
Rating: good
The award of $570,350 for substation batteries seems to be a fair price, especially considering the competitive bidding process which typically drives prices down. Without specific benchmark data for similar substation battery systems, a direct comparison is difficult. However, the presence of 19 bids suggests that the pricing offered by United Sales Assoc Inc was competitive within the market for this type of specialized equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to eligible vendors. The receipt of 19 bids demonstrates robust competition for this requirement. A high number of bidders generally leads to better price discovery and ensures the government receives competitive offers, maximizing value for taxpayer dollars.
Taxpayer Impact: The extensive competition for this battery supply contract suggests that taxpayers are likely benefiting from a lower, more competitive price than might be achieved with fewer bidders.
Public Impact
The primary beneficiaries are the Department of Energy and the specific substations (Ward & Washburn) receiving the batteries. The services delivered include the manufacturing and supply of essential batteries for critical energy infrastructure. The geographic impact is localized to the areas served by the Ward & Washburn substations in North Dakota. This contract supports the manufacturing sector, potentially impacting jobs in battery production and related logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Strong competition with 19 bids indicates a healthy market and potential for good value.
- Firm-fixed-price contract type limits the government's exposure to cost increases.
- The award is to a single vendor, United Sales Assoc Inc, simplifying contract management.
Sector Analysis
The battery manufacturing sector is crucial for energy storage solutions, supporting grid stability and renewable energy integration. This contract for substation batteries fits within the broader industrial and manufacturing landscape, contributing to the modernization of energy infrastructure. Comparable spending benchmarks for large-scale battery installations can vary significantly based on capacity and technology, but this award appears to be for a specific, localized need.
Small Business Impact
The data indicates this contract was competed under SAP and the award was not specifically set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans. The high number of bidders suggests that both large and small businesses had the opportunity to compete, but the ultimate award went to United Sales Assoc Inc.
Oversight & Accountability
The contract is managed by the Department of Energy. Oversight would typically involve contract officers ensuring timely delivery and adherence to specifications. As a purchase order, it is a standard procurement instrument. Transparency is generally maintained through federal procurement databases where such awards are reported.
Related Government Programs
- Energy Infrastructure Modernization
- Grid Reliability Programs
- Substation Equipment Procurement
- Battery Technology Research and Development
Risk Flags
- Potential for delivery delays given the short performance period.
- Risk of battery performance not meeting stringent substation requirements.
- Dependence on a single supplier for this critical component.
Tags
energy-department, purchase-order, firm-fixed-price, battery-manufacturing, north-dakota, simplified-acquisition-procedures, full-and-open-competition, critical-infrastructure, substation-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $57,035 to UNITED SALES ASSOC INC. STATION BATTERIES FOR WARD & WASHBURN SUBSTATIONS, ND.
Who is the contractor on this award?
The obligated recipient is UNITED SALES ASSOC INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $57,035.
What is the period of performance?
Start: 2025-02-04. End: 2025-06-03.
What is the track record of United Sales Assoc Inc. in supplying similar substation batteries to the federal government?
Information regarding the specific track record of United Sales Assoc Inc. in supplying substation batteries to the federal government is not detailed in the provided data. A comprehensive review would require searching federal procurement databases (like SAM.gov or FPDS) for past awards to this contractor for similar products or services. This would help assess their experience, past performance ratings, and any history of delivery issues or contract modifications on previous government contracts. Without this external data, it's difficult to definitively assess their suitability and reliability for this specific award beyond the competitive nature of the bidding process.
How does the awarded price compare to market rates for similar substation batteries?
The provided data does not include specific unit costs or detailed specifications for the batteries, making a direct market rate comparison challenging. However, the fact that 19 bids were received under Simplified Acquisition Procedures suggests a competitive market. Typically, SAP is used for purchases under $250,000, and this award is $570,350, which might indicate it was competed under a different threshold or that the SAP designation is an approximation. A thorough analysis would involve benchmarking the price against recent similar procurements by other federal agencies or comparing it to commercial price lists from battery manufacturers, adjusted for volume and specific technical requirements.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks for this contract include potential delays in delivery, issues with battery performance or compatibility, and unforeseen price fluctuations if the contract terms were not sufficiently fixed. The mitigation strategies appear to be the firm-fixed-price (FFP) contract type, which shifts most cost risk to the contractor, and the short performance period (119 days), which limits the window for potential disruptions. The Department of Energy's oversight and acceptance testing processes would further mitigate performance risks. The competitive bidding process also helps mitigate the risk of overpaying.
What is the expected impact of these batteries on the reliability and efficiency of the Ward & Washburn substations?
The primary impact of these new substation batteries is expected to be an enhancement in the reliability and potentially the efficiency of the Ward & Washburn substations. Batteries can provide backup power during grid outages, help stabilize voltage and frequency, and support the integration of renewable energy sources by storing excess power. This contributes to a more resilient and potentially more efficient energy grid. The specific impact on efficiency would depend on how the batteries are utilized (e.g., for peak shaving or load leveling) and the overall grid conditions they are supporting.
How does this spending compare to historical federal spending on substation batteries?
The provided data does not offer historical spending context for substation batteries, either for the Department of Energy or government-wide. To assess this, one would need to analyze historical procurement data over several fiscal years. This analysis would involve identifying similar contract actions using Product Service Codes (like 335910 for Battery Manufacturing) or keywords related to 'substation batteries' and 'energy storage'. Comparing the current $570,350 award against the volume and value of past awards would reveal trends, identify significant shifts in spending, and indicate whether this contract represents a typical, increased, or decreased investment in such equipment.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Battery Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 89503425QWA001000
Offers Received: 19
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5966 BONITA RD, LAKE OSWEGO, OR, 97035
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,035
Exercised Options: $57,035
Current Obligation: $57,035
Actual Outlays: $57,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-02-04
Current End Date: 2025-06-03
Potential End Date: 2025-06-03 00:00:00
Last Modified: 2026-04-02
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