USACE to solicit $5B contract for Puerto Rico power system stabilization
The U.S. Army Corps of Engineers (USACE) is expected to issue a solicitation notice by June 20 for a potential $5 billion multiple-award contract for “temporary emergency power augmentation” and “related repairs of generation facilities to stabilize” the electric service in Puerto Rico, according to a recent notice posted on SAM.gov.
USACE is looking for contractors that can provide “land based temporary generating units (dual fuel – LNG/diesel), temporary transformers, control cabling, and installation of equipment,” along with operation and maintenance (O&M) services, which include maintenance, fuel procurement and coordination with the Puerto Rico Electric Power Authority and Luma Energy regarding operation schedules and connections to their equipment.
The multiple award task order contract (Matoc) has a five-year ordering period. USACE anticipates vendors to carry out work under “hybrid firm-fixed price (FFP) Task Orders with cost-plus fixed fee (CPFF) elements … due to the uncertainty and volatility surrounding the cost of the fuel required to power the generators,” the notice explains.
The proposal due date for the contract, listed under Notice ID W912HN23R5005, is estimated to be July 20. The Savannah District of the USACE will be responsible for overseeing the projects. Qualifying offerors must submit “a technically acceptable proposal that conforms to the requirements of the solicitation,” and offer fair and reasonable pricing, the notice reads. Price will be a selection factor for all orders placed under the contracts.
The contract represents a significant step toward addressing the stabilization of Puerto Rico’s grid as part of the rebuilding of the island’s infrastructure after years of mismanagement and a series of natural disasters worsened the availability of the electric service.
