Saturday, December 16, 2017

USACE adds $265 million to Puerto Rico contract with Fluor Corp.

By on December 6, 2017

SAN JUAN – The U.S. Army Corps of Engineers (USACE) has added $265 million to the contract with Fluor Corp. to repair the power grid in Puerto Rico.

This modification increases the ceiling on the original contract awarded Oct. 16 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 José E. Sánchez, director of USACE’s Puerto Rico Power Grid Restoration Program. “Our goal is to help PREPA [Puerto Rico Electric Power Authority] 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.

Fluor awarded additional $831 million to repair Puerto Rico grid

The contract to repair transmission and distribution lines, includes equipment evaluation and repair, as well as the re-energizing and recommissioning of substations and switching stations.

The announcement of intent to increase the contract capacity was posted on the Federal Business Opportunities website Oct. 29, but listed as an increase in $600 million, “but approval from the senior procurement executive was for $265 million,” according to Wednesday’s release.

USACE to increase Fluor contract by $600M to repair Puerto Rico electric grid

USACE also awarded a “time and materials” contract with an $831 million cap to Fluor on Dec. 1 for grid-repair work as well.

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

Gov. Ricardo Rosselló had promised that by Dec. 1, 80% of Prepa’s customers would have service restored. However, at the moment, the government-published figure for energy generation stands at 68%, which does not necessarily translate into customers with service.

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