DoD's $27.6M Wake Island Solar Array Project Awarded to WSP USA, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $27,598,102 ($27.6M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-08
End Date: 2019-07-31
Contract Duration: 783 days
Daily Burn Rate: $35.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF UPGRADE ELECTRICAL DISTRIBUTION AND CONSTRUCT SOLAR ARAY AT WAKE ISLAND
Place of Performance
Location: WAKE ISLAND, HONOLULU County, HAWAII, 96898
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: IGF::OT::IGF UPGRADE ELECTRICAL DISTRIBUTION AND CONSTRUCT SOLAR ARAY AT WAKE ISLAND Key points: 1. The project aims to upgrade electrical distribution and construct a solar array, a critical infrastructure improvement. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract was awarded as a delivery order under a larger IDIQ, which can sometimes obscure true cost. 4. The sector is commercial and institutional building construction, with a specific focus on renewable energy infrastructure.
Value Assessment
Rating: questionable
The contract value is $27.6 million. Benchmarking against similar solar array and electrical infrastructure projects is difficult without more granular cost data. The base award amount of $35.2 million suggests potential for growth.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, as a delivery order under an IDIQ, the specific price discovery for this particular order might be less transparent than a standalone solicitation.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure upgrades and renewable energy development. The final cost and effectiveness will determine the overall value for taxpayers.
Public Impact
Enhances energy resilience and sustainability at a remote military installation. Supports the Department of Defense's renewable energy goals. Potential for long-term cost savings on energy for the Air Force base. Creates jobs in the construction and renewable energy sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost growth beyond the initial award amount.
- Lack of detailed cost breakdown for the specific delivery order.
- Performance risk associated with construction in a remote location (Wake Island).
Positive Signals
- Utilizes renewable energy, aligning with sustainability goals.
- Full and open competition was utilized.
- Addresses critical infrastructure needs.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, specifically focusing on renewable energy infrastructure. Spending benchmarks for similar large-scale solar array installations on government facilities can vary widely based on location, size, and integration complexity.
Small Business Impact
The data indicates the prime contractor is WSP USA Environment & Infrastructure Inc., a large business. There is no explicit information provided regarding small business participation in this specific delivery order.
Oversight & Accountability
The contract was awarded by the Department of the Air Force. Oversight would typically involve contract management by the contracting officer and technical representatives to ensure performance and adherence to terms. The use of an IDIQ structure requires careful management to ensure fair pricing across all delivery orders.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost growth beyond initial award.
- Lack of detailed cost breakdown for the specific delivery order.
- Performance risk due to remote location.
- Complexity of integrating new infrastructure with existing systems.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. IGF::OT::IGF UPGRADE ELECTRICAL DISTRIBUTION AND CONSTRUCT SOLAR ARAY AT WAKE ISLAND
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $27.6 million.
What is the period of performance?
Start: 2017-06-08. End: 2019-07-31.
What is the total projected cost of the project, including all potential modifications and options, and how does this compare to industry benchmarks for similar solar installations?
The initial award is $27.6 million, with a base amount of $35.2 million noted, suggesting potential for growth. A comprehensive comparison to industry benchmarks requires detailed project specifications, including panel efficiency, storage capacity, and grid integration costs. Without this granular data, a precise value assessment is challenging.
What are the specific risks associated with constructing a solar array and upgrading electrical distribution on Wake Island, and what mitigation strategies are in place?
Risks likely include logistical challenges due to the remote location, potential environmental impacts, and the complexities of integrating new solar infrastructure with existing electrical systems. Mitigation strategies would typically involve detailed site surveys, robust logistical planning, environmental impact assessments, and phased construction approaches to minimize disruption.
How effectively will this solar array contribute to the Air Force's energy resilience and sustainability goals, and what are the projected long-term operational cost savings?
The effectiveness will depend on the array's actual energy output, its integration with the base's power grid, and its ability to withstand local environmental conditions. Projected long-term savings are contingent on factors like solar irradiance, maintenance costs, and fluctuations in traditional energy prices. A post-completion analysis would be needed to quantify actual savings.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: John Wood Group P.L.C. (UEI: 214007270)
Address: 751 ARBOR WAY STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,598,102
Exercised Options: $27,598,102
Current Obligation: $27,598,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA300208D0003
IDV Type: IDC
Timeline
Start Date: 2017-06-08
Current End Date: 2019-07-31
Potential End Date: 2019-07-31 00:00:00
Last Modified: 2019-07-08
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