DOE awards $5M contract to East Coast Powerline LLC for transmission line rebuild
Contract Overview
Contract Amount: $5,000,000 ($5.0M)
Contractor: East Coast Powerline LLC
Awarding Agency: Department of Energy
Start Date: 2026-01-30
End Date: 2027-10-14
Contract Duration: 622 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REBUILD OF THE LIBERTY TO VAN BUREN PORTION OF SOUTHWESTERNS VAN BUREN TO WELEETKA 161KV TRANSMISSION LINE
Place of Performance
Location: VAN BUREN, CRAWFORD County, ARKANSAS, 72956
State: Arkansas Government Spending
Plain-Language Summary
Department of Energy obligated $5.0 million to EAST COAST POWERLINE LLC for work described as: REBUILD OF THE LIBERTY TO VAN BUREN PORTION OF SOUTHWESTERNS VAN BUREN TO WELEETKA 161KV TRANSMISSION LINE Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially limited but justified bidding process. 2. The definitive contract type suggests flexibility in scope or requirements, which could introduce performance risks. 3. A firm-fixed-price structure aims to control costs, but the duration of the project may still present budget challenges. 4. The project focuses on critical infrastructure, specifically a 161kV transmission line, highlighting its importance for regional power reliability. 5. The contract duration of 622 days suggests a significant undertaking requiring substantial resource allocation and project management. 6. The award to East Coast Powerline LLC, with a bid of $5M, will be benchmarked against similar projects for value. 7. The project is located in Arkansas, potentially impacting local workforce and economic activity in the region.
Value Assessment
Rating: fair
The contract value of $5 million for the rebuild of a 161kV transmission line segment appears within a reasonable range for such infrastructure projects. However, without specific details on the scope of work, length of the line segment, and complexity of the terrain, a precise value-for-money assessment is challenging. Benchmarking against similar transmission line construction projects in the region or nationally would provide a clearer picture of whether this price reflects competitive market rates. The firm-fixed-price nature of the contract suggests an attempt to cap costs, but the long duration could still lead to unforeseen expenses if not managed meticulously.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications, prior performance, or other justifiable reasons. The fact that there were 6 bidders suggests a degree of competition, but the exclusion of sources might have limited the overall pool of potential offerors. This could potentially impact price discovery, as a broader range of competitors might have driven prices lower.
Taxpayer Impact: The exclusion of sources, even with multiple bidders, may mean taxpayers did not benefit from the absolute lowest price achievable through unrestricted competition. However, if the exclusion was justified by technical requirements or risk mitigation, it could lead to a more successful project outcome, ultimately saving taxpayer money in the long run through reduced rework or delays.
Public Impact
The primary beneficiaries are residents and businesses in the service area of the Southwestern power grid, who will experience improved reliability of electricity transmission. The project delivers essential infrastructure maintenance and upgrades, ensuring the continued flow of power and preventing potential outages. The geographic impact is concentrated in Arkansas, specifically along the route of the transmission line between Liberty and Van Buren. The project will likely create temporary employment opportunities for skilled labor in construction, engineering, and project management within Arkansas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure the exclusion was fully justified and did not unduly limit competition.
- The definitive contract type can sometimes lead to scope creep if not managed tightly, potentially increasing costs beyond the initial $5M.
- The long project duration (622 days) increases the risk of material cost fluctuations or unforeseen site conditions impacting the final price.
- Lack of specific details on the scope of work makes it difficult to fully assess the value proposition and potential risks.
Positive Signals
- The use of a firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
- The award resulted from a competitive process with 6 bidders, indicating some level of market interest and potential for fair pricing.
- The project addresses critical infrastructure, contributing to the reliability and security of the regional power grid.
- The Department of Energy's involvement suggests adherence to established procurement and oversight standards.
Sector Analysis
This contract falls within the construction and maintenance sector of the energy industry, specifically focusing on power transmission infrastructure. The market for high-voltage transmission line construction and repair is specialized, often dominated by a few experienced firms capable of handling large-scale, complex projects. The Department of Energy frequently awards contracts in this area to ensure grid modernization and reliability. Comparable spending benchmarks would typically involve analyzing the cost per mile or per megawatt of transmission capacity for similar projects, considering factors like terrain and technology.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor is there information suggesting subcontracting opportunities specifically targeted at small businesses. Given the specialized nature of high-voltage transmission line construction, it is possible that the prime contractor, East Coast Powerline LLC, may engage larger subcontractors or utilize its own workforce. Further analysis would be needed to determine if any subcontracting plans exist or if small businesses are likely to be involved in supporting roles.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases and public reporting mechanisms. While no specific Inspector General jurisdiction is mentioned, the DOE Office of Inspector General would have oversight authority over potential fraud, waste, and abuse related to this contract.
Related Government Programs
- Power Grid Modernization Projects
- Transmission Infrastructure Upgrades
- Electric Utility Construction Contracts
- Department of Energy Energy Infrastructure Programs
Risk Flags
- Potential for scope creep due to definitive contract type.
- Risk of cost overruns due to long project duration and potential material price fluctuations.
- Uncertainty regarding the justification for excluding certain sources in the competition.
- Limited public information on contractor's past performance for similar projects.
Tags
construction, energy, department-of-energy, definitive-contract, firm-fixed-price, limited-competition, transmission-line, infrastructure, arkansas, power-grid, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $5.0 million to EAST COAST POWERLINE LLC. REBUILD OF THE LIBERTY TO VAN BUREN PORTION OF SOUTHWESTERNS VAN BUREN TO WELEETKA 161KV TRANSMISSION LINE
Who is the contractor on this award?
The obligated recipient is EAST COAST POWERLINE LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $5.0 million.
What is the period of performance?
Start: 2026-01-30. End: 2027-10-14.
What is the track record of East Coast Powerline LLC in completing similar transmission line projects on time and within budget?
Information regarding East Coast Powerline LLC's specific track record on similar transmission line projects is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract completion reports, and any documented instances of delays or cost overruns on previous projects of comparable scale and complexity. Examining their history with federal contracts, particularly with the Department of Energy or other energy sector agencies, would be crucial. Understanding their safety record and any significant incidents on prior jobs would also be important for evaluating their capability and reliability for this $5 million project.
How does the $5 million award compare to the average cost of rebuilding a 161kV transmission line segment of similar length and complexity?
The provided data does not include the specific length or complexity of the transmission line segment being rebuilt, making a direct cost comparison difficult. However, the $5 million award for a 161kV transmission line rebuild is a significant investment. Industry benchmarks for transmission line construction can vary widely based on factors such as terrain, environmental considerations, labor costs, and the specific technology employed. To assess value, this contract's cost would need to be benchmarked against data from similar projects, potentially looking at cost per mile or cost per megawatt-mile. Without these comparative metrics, it's challenging to definitively state if $5 million represents excellent, fair, or concerning value.
What are the primary risks associated with a definitive contract for power line construction, and how are they mitigated?
Definitive contracts, while offering flexibility, carry inherent risks such as potential scope creep, which can lead to cost overruns and schedule delays if not managed meticulously. For power line construction, other risks include unforeseen geological or environmental conditions, material price volatility, labor shortages, and safety incidents. Mitigation strategies typically involve robust project management, detailed site assessments prior to contract finalization, contingency planning for unexpected issues, clear communication protocols between the contractor and the agency, and performance-based payment schedules tied to milestones. The firm-fixed-price nature of this contract aims to mitigate cost risks, provided the scope is well-defined and change orders are strictly controlled.
What is the historical spending pattern of the Department of Energy on transmission line construction and maintenance?
Historical spending data from the Department of Energy (DOE) on transmission line construction and maintenance would likely show significant and consistent investment, reflecting the critical role of the national power grid. The DOE manages numerous programs aimed at upgrading and maintaining energy infrastructure, including transmission lines, to ensure reliability, efficiency, and security. Annual spending can fluctuate based on federal budget allocations, specific infrastructure initiatives (like grid modernization efforts), and the number and scale of awarded contracts. Analyzing past DOE budgets and contract awards for similar projects would reveal trends in investment levels, average contract values, and the types of projects prioritized, providing context for the current $5 million award.
How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact the potential for cost savings for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method presents a nuanced impact on taxpayer cost savings. While it aims for open competition, the explicit exclusion of certain sources means the government is not considering bids from all potential offerors. If the exclusions are well-justified (e.g., based on highly specialized capabilities or security requirements), the resulting competition among the remaining qualified bidders might still yield competitive pricing. However, if the exclusions were overly broad or not strictly necessary, it could limit the number of bidders, potentially reducing competitive pressure and leading to higher prices than might have been achieved in a truly unrestricted open competition. The presence of 6 bidders suggests a reasonable level of competition, but the ultimate cost-saving impact depends on the validity of the exclusions.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89503625RSW000052
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3297 REAMER RD, LAPEER, MI, 48446
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: $12,929,158
Exercised Options: $12,929,158
Current Obligation: $5,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-01-30
Current End Date: 2027-10-14
Potential End Date: 2027-10-14 00:00:00
Last Modified: 2026-01-30
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