DoD's $276M Puerto Rico Grid Repair Contract Awarded to Fluor Enterprises Amidst Full and Open Competition
Contract Overview
Contract Amount: $276,296,707 ($276.3M)
Contractor: Fluor Enterprises, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-01
End Date: 2018-06-26
Contract Duration: 207 days
Daily Burn Rate: $1.3M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Construction
Official Description: REPAIR AND RESTORE ALL ASPECTS OF THE PUERTO RICO POWER GRID. IGF::OT::IGF
Place of Performance
Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901
Plain-Language Summary
Department of Defense obligated $276.3 million to FLUOR ENTERPRISES, INC. for work described as: REPAIR AND RESTORE ALL ASPECTS OF THE PUERTO RICO POWER GRID. IGF::OT::IGF Key points: 1. Significant investment in critical infrastructure restoration post-disaster. 2. Fluor Enterprises, a large contractor, secured the award. 3. Competition method was 'Full and Open Competition after Exclusion of Sources', suggesting a complex procurement. 4. The sector is Commercial and Institutional Building Construction, vital for recovery efforts.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar large-scale infrastructure repair contracts is difficult due to unique disaster recovery circumstances.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized 'Full and Open Competition after Exclusion of Sources,' indicating a potentially complex process to ensure broad participation while addressing specific needs. This method aims for competitive pricing but can be influenced by specialized requirements.
Taxpayer Impact: Taxpayers funded a substantial amount for essential grid repair, with the ultimate impact depending on the efficiency and effectiveness of the restoration.
Public Impact
Restoration of essential services (power) to Puerto Rico residents. Economic impact through job creation and contractor spending in the region. Demonstrates federal commitment to disaster recovery and infrastructure resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing risk
- Potential for scope creep in disaster recovery
- Complexity of 'Exclusion of Sources' competition
Positive Signals
- Addresses critical infrastructure need
- Utilized full and open competition
- Significant federal investment in recovery
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale infrastructure repair. Spending benchmarks for such unique, post-disaster grid restoration projects are scarce, making direct comparisons challenging.
Small Business Impact
The contract was awarded to Fluor Enterprises, Inc., a large business. There is no explicit indication of small business subcontracting participation in the provided data, which could be an area for further review.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, oversaw this contract. Oversight would focus on ensuring timely and effective restoration of the power grid within the awarded budget and terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to T&M pricing
- Lack of explicit small business participation noted
- Complexity of the procurement method ('Exclusion of Sources')
- Uncertainty regarding long-term resilience improvements
Tags
commercial-and-institutional-building-co, department-of-defense, pr, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $276.3 million to FLUOR ENTERPRISES, INC.. REPAIR AND RESTORE ALL ASPECTS OF THE PUERTO RICO POWER GRID. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is FLUOR ENTERPRISES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $276.3 million.
What is the period of performance?
Start: 2017-12-01. End: 2018-06-26.
What was the rationale for excluding specific sources prior to the full and open competition phase?
The 'Exclusion of Sources' designation suggests that certain entities or capabilities were initially considered or required, potentially due to specialized expertise or prior involvement. The subsequent 'Full and Open Competition' phase aimed to solicit bids from all qualified offerors, ensuring a competitive process while acknowledging initial considerations.
How effectively was the Time and Materials pricing managed to control costs during this critical repair effort?
Assessing the cost control effectiveness of Time and Materials (T&M) contracts requires detailed financial and performance data beyond the initial award. While T&M offers flexibility for unforeseen issues common in disaster recovery, robust oversight mechanisms are crucial to prevent cost overruns and ensure value for taxpayer money.
What is the long-term impact of this repair on Puerto Rico's grid resilience and future disaster preparedness?
The long-term impact hinges on the quality and scope of the repairs executed. If the project successfully modernized and strengthened the grid, it would enhance resilience against future storms. However, without details on upgrades versus basic restoration, the full preparedness impact remains to be seen.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $276,296,707
Exercised Options: $276,296,707
Current Obligation: $276,296,707
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15G0007
IDV Type: BOA
Timeline
Start Date: 2017-12-01
Current End Date: 2018-06-26
Potential End Date: 2018-06-26 00:00:00
Last Modified: 2022-04-01
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