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  • Writer's pictureThe San Juan Daily Star

USACE to issue bid for emergency power generation in Puerto Rico

By The Star Staff

The U.S. Army Corps of Engineers (USACE) expects to issue a formal solicitation notice by June 20 regarding a potential $5 billion multiple-award task order contract (MATOC) for emergency power generation and stabilization of energy services in Puerto Rico.

USACE’s Savannah District will be responsible for the projects, according to a notice posted last week on

The agency is seeking contractors to provide land-based temporary generating units, temporary transformers, control cabling as well as equipment installation, operation and maintenance (O&M) services.

O&M services will include coordinating with the Puerto Rico Electric Power Authority (PREPA) and LUMA Energy, the private operator of PREPA’s transmission & distribution system.

The notice said the purpose of the acquisition is to establish a MATOC with a shared capacity of $5 billion, with a five-year ordering period, to accomplish power system stabilization and power generation services under the North American Industry Classification System. The primary contract focus is on temporary emergency power augmentation and on related repairs of generation facilities to stabilize the Puerto Rico power system. The work will consist of providing land-based temporary generating units (dual fuel – liquefied natural gas/diesel), temporary transformers, control cabling, and installation of equipment. In addition, the work will cover operation of the equipment, including maintenance, fuel, coordination with PREPA and LUMA on an operation schedule and connections to their equipment.

“Price will be a selection factor for all orders placed under the awarded contracts,” the notice says. “Under this MATOC, hybrid firm-fixed price (FFP) Task Orders with cost-plus fixed fee (CPFF) elements are anticipated due to the uncertainty and volatility surrounding the cost of the fuel required to power the generators. FAR [Federal Acquisition Regulation] 16.103(b) states a firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be predicted with an acceptable degree of certainty.”

The proposal due date is July 20.

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