DoD's $23.4M contract for generator repair awarded to GE Renewables, highlighting motor manufacturing needs

Contract Overview

Contract Amount: $23,394,422 ($23.4M)

Contractor: GE Renewables US LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-07

End Date: 2019-05-06

Contract Duration: 1,460 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CARTERS GENERATOR REWIND UNITS 3 AND 4, CHATSWORTH, GA

Place of Performance

Location: CHATSWORTH, MURRAY County, GEORGIA, 30705

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to GE RENEWABLES US LLC for work described as: CARTERS GENERATOR REWIND UNITS 3 AND 4, CHATSWORTH, GA Key points: 1. The contract value suggests a significant investment in maintaining critical power generation infrastructure. 2. Awarded to a major player in the energy sector, indicating reliance on established industry expertise. 3. The duration of the contract points to a long-term need for specialized maintenance services. 4. The firm-fixed-price structure aims to control costs and provide predictability for the government. 5. The procurement method suggests a competitive environment for specialized generator repair services.

Value Assessment

Rating: good

The contract value of $23.4 million for generator repair services appears reasonable given the specialized nature of the work and the involvement of a major manufacturer like GE Renewables. Benchmarking against similar large-scale generator maintenance contracts would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the award suggests an effort to establish clear cost expectations upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The fact that there were 5 proposals received suggests a healthy level of interest and competition for this type of specialized service. This competitive process is expected to drive more favorable pricing and service terms for the government.

Taxpayer Impact: A competitive bidding process for essential infrastructure maintenance like generator repair helps ensure taxpayer dollars are used efficiently by fostering price discovery and encouraging providers to offer their best terms.

Public Impact

The Department of Defense benefits from the reliable operation of critical power generation equipment. Services delivered include the repair and maintenance of specific generator units, ensuring operational readiness. The geographic impact is centered in Chatsworth, Georgia, where the repair work is likely conducted or supported. The contract supports specialized technical jobs within the motor and generator manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical maintenance could pose risks if performance falters.
The long contract duration might limit opportunities to leverage newer technologies or more cost-effective solutions if they emerge.

Positive Signals

Award to a well-established manufacturer like GE Renewables suggests a high likelihood of technical expertise and quality service.
The firm-fixed-price contract provides cost certainty for the government, minimizing budget uncertainty.
Full and open competition indicates a robust market for these services, potentially leading to better outcomes.

Sector Analysis

The motor and generator manufacturing sector is a critical component of the broader industrial and defense supply chains. This contract falls within the specialized maintenance and repair segment of this industry. Spending in this area is often driven by the need to maintain aging infrastructure and ensure the operational readiness of essential equipment for both civilian and military applications. Comparable spending benchmarks would typically involve large-scale industrial equipment maintenance contracts.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, GE Renewables US LLC, may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on GE's subcontracting plan and the availability of qualified small businesses for specific components or services related to generator repair.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of the Army, as the awarding agency, will monitor performance and compliance. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract databases, and any significant issues could be subject to review by the Government Accountability Office (GAO) or the Inspector General.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Operations (MRO) Contracts
Army Corps of Engineers Construction and Engineering Contracts
General Services Administration (GSA) Federal Supply Schedule Contracts for Industrial Equipment

Risk Flags

Long contract duration may limit flexibility for technological upgrades.
Firm-fixed-price contracts can sometimes lead to reduced scope or quality if not carefully monitored.
Dependence on a single contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to GE RENEWABLES US LLC. CARTERS GENERATOR REWIND UNITS 3 AND 4, CHATSWORTH, GA

Who is the contractor on this award?

The obligated recipient is GE RENEWABLES US LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2015-05-07. End: 2019-05-06.

What is the historical spending pattern for generator repair and maintenance services by the Department of Defense?

Historical spending on generator repair and maintenance by the Department of Defense (DoD) is substantial, reflecting the critical need to maintain power generation capabilities across various installations globally. While specific figures for generator repair alone are difficult to isolate without detailed analysis of MRO (Maintenance, Repair, and Operations) spending categories, the DoD consistently allocates significant resources to ensure the operational readiness of its power infrastructure. This includes routine maintenance, emergency repairs, and overhauls of various types of generators, from small tactical units to large industrial-scale systems. The spending is influenced by factors such as the age of existing equipment, new installations, geopolitical requirements, and technological upgrades. Analyzing trends over multiple fiscal years would reveal fluctuations based on budget allocations and specific operational demands, often involving contracts with major manufacturers and specialized service providers.

How does the awarded price of $23.4 million compare to similar generator repair contracts for large industrial units?

Comparing the $23.4 million contract value for GE Renewables US LLC requires context regarding the scope, duration, and specific type of generator units involved. Large industrial generator repairs, especially for critical infrastructure like military bases or power plants, can range widely in cost. Factors influencing price include the size and complexity of the generator, the extent of the required repairs (e.g., routine maintenance vs. major overhaul), the availability of specialized parts, and the labor costs associated with highly skilled technicians. Contracts for similar services can range from a few million dollars for less intensive work to tens of millions for comprehensive overhauls or upgrades of multiple units. Without specific details on the 'CARTERS GENERATOR REWIND UNITS 3 AND 4,' a precise benchmark is challenging, but the awarded amount suggests a significant scope of work likely involving substantial component replacement or refurbishment.

What are the key performance indicators (KPIs) typically used to evaluate the success of such generator maintenance contracts?

Key Performance Indicators (KPIs) for generator maintenance contracts typically focus on reliability, availability, response time, and cost-effectiveness. For this contract, relevant KPIs might include: 1. **Uptime/Availability:** Percentage of time the generators are operational and ready for use, meeting the required service levels. 2. **Mean Time Between Failures (MTBF):** The average time the generators operate without a failure, indicating the effectiveness of preventive maintenance. 3. **Mean Time To Repair (MTTR):** The average time taken to repair a generator after a failure, crucial for minimizing downtime. 4. **Response Time:** The time taken by the contractor to respond to a service call or emergency. 5. **Preventive Maintenance Completion Rate:** Ensuring all scheduled preventive maintenance tasks are completed on time. 6. **Cost Performance:** Adherence to budget, particularly within the firm-fixed-price structure, and managing costs for any potential change orders. 7. **Technical Compliance:** Ensuring all work meets specified technical standards and manufacturer guidelines.

What is GE Renewables US LLC's track record with similar government contracts?

GE Renewables US LLC, as a subsidiary of General Electric, has a substantial track record in providing power generation equipment and services to both government and commercial clients. Their experience spans a wide range of energy technologies, including wind, hydro, and conventional power generation. For government contracts, GE has historically supplied turbines, generators, and related maintenance services to various agencies, including the Department of Defense and the Department of Energy. Their performance on past contracts would typically be assessed through contract performance reports (e.g., CPARS - Contractor Performance Assessment Reporting System), which evaluate factors like technical quality, schedule adherence, cost control, and management. A review of these reports would provide insight into their reliability and effectiveness in fulfilling similar large-scale industrial service agreements.

What are the potential risks associated with a long-term contract for specialized generator repair?

Long-term contracts for specialized generator repair, like this one with a duration of approximately 4 years (1460 days), carry several potential risks. Firstly, **technological obsolescence** is a concern; newer, more efficient, or cost-effective repair technologies might emerge during the contract period, but the government may be locked into the existing approach. Secondly, **price escalation** beyond the initial fixed price could occur if unforeseen issues arise or if market conditions for parts and labor change significantly, although a firm-fixed-price contract aims to mitigate this. Thirdly, **contractor performance degradation** is a risk; a contractor's commitment or quality might wane over time, especially if competition was limited in subsequent phases or if oversight is insufficient. Finally, **dependency** on a single provider for critical infrastructure maintenance can create vulnerabilities if the contractor faces financial difficulties, operational disruptions, or changes in strategic focus.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127814R0069

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Electric Company (UEI: 001367960)

Address: 7901 SOUTHPARK PLZ STE 110, LITTLETON, CO, 80130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,012,025

Exercised Options: $23,394,422

Current Obligation: $23,394,422

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline