October 4, 2023

Six Contractors to Compete for $5B in Puerto Rico Power Grid Stabilization Work

America's Engineers

An aerial view of the Palo Seco power plant in San Juan, Puerto Rico. (Photo U.S. Army)

The U.S. Army Corps of Engineers (USACE) has chosen six contractors to compete for contracts worth up to $5 billion aimed at stabilizing Puerto Rico's power system. This decision comes in the wake of several storms and an earthquake over recent years that have left the power grid in Puerto Rico in a precarious state.

These multiple award task order contracts, granted by USACE, Savannah District, span a five-year ordering period. The primary objective of these contracts is to provide temporary power augmentation and address related issues with power generation facilities, as outlined by USACE. At an industry event earlier this year, officials stated that the contractors' task would involve enabling the generation of 350 MW to 700 MW at various locations across Puerto Rico.

The anticipated scope of work encompasses supplying equipment such as dual-fuel generators capable of running on natural gas or diesel, the installation of said equipment, and its operation for periods estimated to range from six to 18 months, according to USACE solicitation documents. Task orders may also entail the repair and replacement of components within existing transmission and distribution facilities. Close coordination with the public Puerto Rico Electric Power Authority and utility company LUMA Energy will be a crucial aspect of the contractors' responsibilities.

Leaders from the U.S. Army Corps of Engineers and FEMA conduct a site visit at the Costa Sur Power Plant near Ponce, Puerto Rico, Nov. 30, 2022. The U.S. Army Corps of Engineers is working closely with federal agency partners in response to the Government of Puerto Rico’s request for assistance stabilizing the power system following the impacts of Hurricane Fiona. (U.S. Army photo by Maj. Grace Geiger) — Leaders from the U.S. Army Corps of Engineers and Federal Emergency Management Agency (FEMA) conduct a site visit at the Costa Sur Power Plant near Ponce, Puerto Rico, Nov. 30, 2022. USACE is working closely with federal agency partners in response to the Government of Puerto Rico’s request for assistance stabilizing the power system following the impacts of Hurricane Fiona. (U.S. Army photo by Maj. Grace Geiger)

The selected firms include Amentum Services; AshBritt; CDM Constructors; OMP Solutions; PTSI Managed Services; and Weston Solutions, as confirmed by the U.S. Dept. of Defense contract award notice.

USACE intends to employ hybrid firm-fixed price task orders that incorporate elements of cost-plus fixed fees to account for fluctuations in fuel prices. The solicitation emphasizes that fuel costs pose the highest risk for this work, given the historical volatility of the petroleum market.

The U.S. Army Corps of Engineers Task Force Power Restoration assists with the installation of a microgrid in Arecibo, Puerto Rico, Jan. 30, 2018. Category 5 Hurricane Irma and Category 4 Hurricane Maria ravaged the American territory leaving many of its 3.4 million residents without shelter, food, water, and all without power.(Photo Credit: U.S. Army) — The U.S. Army Corps of Engineers Task Force Power Restoration assists with the installation of a microgrid in Arecibo, Puerto Rico, Jan. 30, 2018. Category 5 Hurricane Irma and Category 4 Hurricane Maria ravaged the American territory leaving many of its 3.4 million residents without shelter, food, water, and all without power.(U.S. Army photo)

In response to last year's Hurricane Fiona, which temporarily plunged the island into darkness, the Biden administration established the Puerto Rico Power System Stabilization Task Force. This task force, consisting of USACE, FEMA, Department of Energy, and Environmental Protection Agency, has prioritized initiatives to add 150 MW in temporary power generation units at the Palo Seco Power Plant and another 200 MW of temporary generation at different facilities, according to the White House.

President Joe Biden underlined the importance of this effort, stating, "We know that the climate crisis and more extreme weather are going to continue to hit this island and hit the United States overall, and as we rebuild, we have to ensure that we build it to last. We're particularly focused on the power grid."

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Six Contractors to Compete for $5B in Puerto Rico Power Grid Stabilization Work

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