DoD awards $21.8M for generator and turbine services, with GE Renewables as the sole awardee

Contract Overview

Contract Amount: $21,857,526 ($21.9M)

Contractor: GE Renewables US LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-16

End Date: 2026-12-06

Contract Duration: 2,060 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UNIT 1 AND 2 GENERATORS AND TURBINES, PHILPOTTS

Place of Performance

Location: BASSETT, HENRY County, VIRGINIA, 24055

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to GE RENEWABLES US LLC for work described as: UNIT 1 AND 2 GENERATORS AND TURBINES, PHILPOTTS Key points: 1. The contract value of $21.8 million appears reasonable for specialized heavy engineering construction services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The award to GE Renewables US LLC suggests a reliance on specialized expertise. 5. The fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $21.8 million for generator and turbine services is within a typical range for large-scale infrastructure projects. Benchmarking against similar heavy and civil engineering construction contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is generally favorable for the government, as it caps costs and transfers risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The Department of Defense benefits from the maintenance and potential upgrades of critical power generation equipment. Services include the provision of generator and turbine components and related heavy engineering construction. The geographic impact is likely concentrated around the specific military installation where Philpotts is located. The contract supports specialized labor within the heavy construction and power generation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on performance metrics makes it difficult to assess contractor efficiency.
Potential for cost overruns if unforeseen issues arise, despite the fixed-price nature.
Dependence on a single awardee for critical infrastructure services could pose a long-term risk.

Positive Signals

Firm fixed-price contract type limits the government's financial exposure.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
Long contract duration allows for sustained support and planning for critical infrastructure.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to power generation equipment. The market for such specialized services is often dominated by a few large, experienced firms due to the technical expertise and capital investment required. Comparable spending benchmarks would involve looking at other large-scale infrastructure maintenance and construction contracts within the federal government, particularly those managed by the Department of Defense for power systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary awardee is likely a large corporation. Further review would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract and if any outreach efforts were made.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Infrastructure Modernization Programs
Army Corps of Engineers Construction Contracts
Federal Energy Infrastructure Maintenance
Heavy Equipment Procurement and Services

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Lack of explicit small business subcontracting goals.
Sole awardee for critical infrastructure services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to GE RENEWABLES US LLC. UNIT 1 AND 2 GENERATORS AND TURBINES, PHILPOTTS

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 $21.9 million.

What is the period of performance?

Start: 2021-04-16. End: 2026-12-06.

What is the track record of GE Renewables US LLC in performing similar federal contracts?

GE Renewables US LLC, a subsidiary of General Electric, has a significant history of providing power generation equipment and services to various sectors, including the federal government. While specific performance data for this exact contract is not yet available due to its ongoing nature, GE's broader portfolio includes large-scale projects involving turbines, generators, and associated infrastructure. Past performance on similar federal contracts would typically be assessed by the awarding agency during the procurement process, considering factors like on-time delivery, quality of work, and adherence to budget. A review of historical contract awards and performance evaluations for GE Renewables within federal databases could provide further insight into their reliability and expertise in fulfilling complex engineering and construction requirements.

How does the awarded amount compare to similar generator and turbine maintenance contracts?

The awarded amount of $21.8 million for generator and turbine services, covering a period of over five years, appears to be within a reasonable range for specialized heavy and civil engineering construction. However, a precise value-for-money assessment requires detailed benchmarking against comparable contracts. Factors such as the specific type and age of the generators and turbines, the scope of work (e.g., routine maintenance, major overhauls, component replacement), geographic location, and prevailing market rates for specialized labor and materials all influence pricing. Without access to detailed specifications of similar contracts, it is difficult to definitively state if this represents an exceptional deal or an overpayment. The firm fixed-price nature, however, suggests a degree of cost certainty for the government.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract for the government include potential performance issues if the contractor, GE Renewables US LLC, fails to deliver services as specified, leading to disruptions in power generation. Although it's a firm fixed-price contract, there's a residual risk of cost increases if unforeseen technical challenges or scope changes necessitate contract modifications. The long duration (over 5 years) also introduces the risk of technological obsolescence or changes in government requirements that may not be fully accommodated by the current contract. Furthermore, reliance on a single contractor for critical infrastructure maintenance can create dependency and limit flexibility in the future. The absence of explicit small business subcontracting goals could also be a missed opportunity for broader economic impact.

What is the expected effectiveness of the services provided under this contract?

The expected effectiveness of the services provided under this contract is the reliable operation and maintenance of critical generator and turbine units at the Philpotts facility. This ensures consistent power supply for military operations and infrastructure. The contract's firm fixed-price structure incentivizes the contractor to perform efficiently and effectively to meet the defined scope of work. The long-term nature of the contract suggests a focus on sustained performance and potentially extending the operational lifespan of the equipment. Effectiveness will ultimately be measured by the uptime of the generators and turbines, the quality of repairs and maintenance performed, and the contractor's adherence to safety and environmental standards throughout the contract period.

How has federal spending on similar heavy and civil engineering construction contracts evolved?

Federal spending on heavy and civil engineering construction contracts, particularly those related to infrastructure and defense facilities, has historically been substantial and fluctuates based on government priorities, infrastructure needs, and budget allocations. The Department of Defense, as a major agency, consistently awards significant contracts in this category for base maintenance, upgrades, and specialized equipment support. Trends can be influenced by factors such as aging infrastructure requiring modernization, national security imperatives, and economic stimulus initiatives. Analyzing historical spending data from sources like the Federal Procurement Data System (FPDS) for NAICS code 237990 (Other Heavy and Civil Engineering Construction) would reveal patterns, identify major spending areas, and highlight shifts in investment over time.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127820R0069

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Electric Company

Address: 8000 E MAPLEWOOD AVE STE 250, GREENWOOD VILLAGE, CO, 80111

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

Financial Breakdown

Contract Ceiling: $22,842,061

Exercised Options: $21,857,526

Current Obligation: $21,857,526

Actual Outlays: $993,644

Subaward Activity

Number of Subawards: 119

Total Subaward Amount: $15,127,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline