Fort Liberty microgrid contract awarded to David Boland Inc. for $42.6M, highlighting power infrastructure resilience

Contract Overview

Contract Amount: $42,578,405 ($42.6M)

Contractor: David Boland Inc

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2026-03-07

Contract Duration: 508 days

Daily Burn Rate: $83.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INSTALL MICROGRID AT FORT LIBERTY, NC

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $42.6 million to DAVID BOLAND INC for work described as: INSTALL MICROGRID AT FORT LIBERTY, NC Key points: 1. Contract focuses on enhancing energy resilience through microgrid installation. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Project duration of 508 days indicates a significant construction timeline. 5. Geographic focus on North Carolina aligns with regional infrastructure needs. 6. The contract falls under construction services for power and communication lines.

Value Assessment

Rating: good

The contract value of $42.6 million for a microgrid installation appears reasonable given the scope of work involving power and communication line construction. Benchmarking against similar large-scale infrastructure projects, particularly those focused on military base resilience, suggests this price is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bids received, the competition level suggests a healthy market interest and provides the government with multiple options to choose from, likely driving a more competitive price. This approach generally leads to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for this critical infrastructure project.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Fort Liberty, NC, who will gain enhanced energy security. The project will deliver a new microgrid system, improving power reliability and reducing dependence on external grids. The geographic impact is localized to Fort Liberty, North Carolina, bolstering its operational capabilities. Workforce implications include job creation for construction workers, engineers, and project managers involved in the installation and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting project completion and operational readiness.
Ensuring the microgrid integrates seamlessly with existing power infrastructure requires careful planning and execution.
Long-term maintenance and operational costs of the microgrid need to be considered beyond the initial installation.

Positive Signals

Focus on energy resilience directly supports military operational continuity.
Firm Fixed Price contract provides budget certainty for the Department of Defense.
Awarding to David Boland Inc. leverages their expertise in power infrastructure construction.

Sector Analysis

This contract falls within the construction sector, specifically focusing on power and communication infrastructure. The market for microgrid development, particularly for government and military installations, is growing due to increasing concerns about grid reliability and energy security. Comparable spending benchmarks for similar resilience projects on military bases can vary widely based on size and complexity, but this $42.6 million award represents a significant investment in critical infrastructure.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, there is no direct indication of subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem would depend on whether David Boland Inc. utilizes small businesses for subcontracting, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified microgrid system within budget. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Modernization
Energy Resilience Programs
Department of Defense Construction Contracts
Microgrid Development Projects
Power and Communication Line Construction

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays impacting operational readiness.
Ensuring long-term operational and maintenance effectiveness of the microgrid.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.6 million to DAVID BOLAND INC. INSTALL MICROGRID AT FORT LIBERTY, NC

Who is the contractor on this award?

The obligated recipient is DAVID BOLAND 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 $42.6 million.

What is the period of performance?

Start: 2024-10-15. End: 2026-03-07.

What is David Boland Inc.'s track record with similar Department of Defense contracts, particularly in microgrid or large-scale power infrastructure projects?

A review of David Boland Inc.'s contract history within the Federal Procurement Data System (FPDS) would reveal their experience with the Department of Defense and other federal agencies. Specifically, identifying past awards for projects involving microgrids, power generation, transmission, distribution, or related construction services would provide insight into their capabilities and performance. Analyzing the value, duration, and complexity of these prior contracts, as well as any reported performance issues or successes, would help assess their suitability for this Fort Liberty microgrid project. Understanding their past performance on firm fixed-price contracts would also be relevant to gauge their ability to manage costs and schedules effectively.

How does the awarded price of $42.6 million compare to the estimated cost or benchmark for similar microgrid installations at military bases?

Benchmarking the $42.6 million award requires comparing it against the estimated cost or market rates for similar microgrid installations at military bases of comparable size and complexity. Factors influencing cost include the specific technologies employed (e.g., renewable energy integration, battery storage), the scope of construction (e.g., underground vs. overhead lines), and the required capacity. Without access to the government's cost estimates or detailed market analysis for this specific project, a precise comparison is challenging. However, industry reports and data from similar large-scale government infrastructure projects can provide a general range. If the number of bids (5) was robust, it suggests the pricing was competitive within the market's perceived value.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential construction delays due to weather, supply chain disruptions for materials, or unforeseen site conditions. Technical risks involve ensuring the microgrid's seamless integration with existing infrastructure and its long-term operational reliability. Given the firm fixed-price nature, cost overruns are a significant risk for the contractor, which could lead to quality compromises if not managed. Mitigation strategies likely include detailed project planning, robust scheduling, contingency planning for supply chain issues, thorough site investigations, and stringent quality assurance protocols. The Department of the Army's oversight and the contractor's own risk management processes are crucial for addressing these potential issues.

How effective is a firm fixed-price contract in ensuring value for money for this type of infrastructure project?

A firm fixed-price (FFP) contract is generally considered effective for ensuring value for money in infrastructure projects where the scope of work is well-defined and risks can be reasonably anticipated. For the Fort Liberty microgrid project, the FFP structure incentivizes the contractor, David Boland Inc., to control costs and manage the project efficiently to maximize profit. This shifts the risk of cost overruns to the contractor, providing budget certainty for the Department of the Army. However, if unforeseen complexities arise that were not reasonably foreseeable, the contractor might face significant challenges, potentially impacting project quality or leading to disputes. The success of FFP in delivering value hinges on the accuracy of the initial scope definition and cost estimation.

What are the historical spending patterns for power and communication line construction at Fort Liberty or similar Army installations?

Analyzing historical spending patterns for power and communication line construction at Fort Liberty and comparable Army installations would provide context for the $42.6 million award. This would involve examining past contracts for similar services, noting their values, durations, and the number of bidders. Significant year-over-year increases or decreases in spending in this category could indicate evolving infrastructure needs, budget priorities, or changes in contracting strategies. Understanding these patterns can help assess whether the current contract represents a typical investment, a surge in activity, or a deviation from historical norms, potentially highlighting the urgency or scale of the current microgrid project.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912PM24B0008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 219 INDIAN RIVER AVE STE 201, TITUSVILLE, FL, 32796

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,578,405

Exercised Options: $42,578,405

Current Obligation: $42,578,405

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $103,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline