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USACE adds $265 million to contract with Fluor Corporation

Published Dec. 7, 2017
A USACE contractor works on repairing power lines near San Juan, Puerto Rico as part of the agency's work to help restore power on the island.

A USACE contractor works on repairing power lines near San Juan, Puerto Rico as part of the agency's work to help restore power on the island.

SAN JUAN, Puerto Rico (Dec. 6, 2017)-  The U.S. Army Corps of Engineers (USACE), Engineering and Support Center in Huntsville, Alabama, awarded a $265 million modification to an existing contract with Fluor Corp. to repair the power grid in Puerto Rico.

 This modification increases the ceiling on the original contract awarded Oct. 16 to Fluor Corp., Irving, Texas, from $240 million to $505 million.

 “This will increase our ability to provide the manpower, equipment and technical expertise as we work to help repair the power grid,” said Mr. José E. Sánchez, Director, Puerto Rico Power Grid Restoration Program U.S. Army Corps of Engineers. “Our goal is to help PREPA return electricity to homes and businesses as quickly as possible, and this additional funding for this contract is a significant step in meeting that goal,” he said.

 This increase in the contract ceiling ensures there is no gap in the ongoing efforts to repair transmission and distribution lines, and includes equipment evaluation and repair, as well as the re-energizing and recommissioning of substations and switching stations.

 The announcement of intent to increase contract capacity was posted on the Federal Business Opportunities website Oct. 29, with the intent to award to only one responsible source in accordance with Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B). 

This announcement listed the intent as an increase in $600 million, but approval from the Senior Procurement Executive was for $265 million.

 USACE also awarded a time and materials contract with an $831 million ceiling to Fluor Corp., Dec. 1, to support ongoing work to restore the power grid in Puerto Rico.

 The total dollar amount for the two Fluor contracts equals $1.3 billion.

Repairing the power grid is a process that includes four main efforts:  provide temporary emergency power and spot generation for critical facilities; ensure adequate generation at power plants; reinstall and repair transmission lines; and restore and repair distribution lines, ultimately providing power to local residences.

 USACE looks forward to the continuing partnership with the Puerto Rico Electric Power Authority, the Department of Energy and Federal Emergency Management Agency on this important endeavor.