DoD Navy Awards $6.4M Power Line Contract to Southern California Edison, Ending 2026
Contract Overview
Contract Amount: $6,389,406 ($6.4M)
Contractor: Southern California Edison Company
Awarding Agency: Department of Defense
Start Date: 2010-12-20
End Date: 2026-01-01
Contract Duration: 5,491 days
Daily Burn Rate: $1.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: UESC BOA
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $6.4 million to SOUTHERN CALIFORNIA EDISON COMPANY for work described as: UESC BOA Key points: 1. Contract value is $6.4 million over 15 years. 2. Sole-source award limits competition and potentially increases costs. 3. Long duration may not reflect current market prices. 4. Construction sector focus on essential infrastructure.
Value Assessment
Rating: questionable
The contract value is spread over 15 years, making direct comparison difficult. Without competitive bidding, it's hard to assess if the pricing is optimal compared to market rates for similar construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Long-term infrastructure project impacting California. Potential for higher costs due to lack of competition. Ensures essential power and communication line services for the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competitive pricing data
Positive Signals
- Essential infrastructure maintenance
- Long-term service provision
Sector Analysis
This contract falls within the Construction sector, specifically for power and communication line construction. Benchmarks for similar long-term sole-source infrastructure projects are difficult to establish due to unique requirements and limited public data.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and adherence to procurement regulations. Further oversight is needed to confirm the necessity of the sole-source justification.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration may not reflect current market value.
- Lack of transparency in pricing justification.
- Potential for overpayment due to lack of competitive bidding.
Tags
power-and-communication-line-and-related, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.4 million to SOUTHERN CALIFORNIA EDISON COMPANY. UESC BOA
Who is the contractor on this award?
The obligated recipient is SOUTHERN CALIFORNIA EDISON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $6.4 million.
What is the period of performance?
Start: 2010-12-20. End: 2026-01-01.
What is the justification for the sole-source award, and was a market research conducted to ensure no other qualified vendors could provide the service at a better price?
The justification for a sole-source award is typically based on specific circumstances, such as the unique capabilities of the contractor or the urgency of the requirement. Without access to the contract's detailed documentation, it's impossible to confirm if thorough market research was performed. However, the absence of competition inherently raises questions about whether alternative, potentially more cost-effective, solutions were overlooked.
How does the long contract duration (over 15 years) impact the overall cost-effectiveness and risk of price escalation for the government?
A long contract duration can lock in prices, which might be beneficial if prices rise significantly. However, it also carries the risk of price escalation if the initial pricing was not optimized or if market conditions change favorably for the contractor. The extended period limits the government's ability to renegotiate terms or take advantage of new technologies or more competitive offerings that may emerge during the contract's life.
What is the estimated taxpayer impact of awarding this contract sole-source versus a competitive process, considering the potential for inflated pricing?
The primary taxpayer impact of a sole-source award is the potential for paying a premium due to the lack of competitive pressure. While the exact amount is unknown without a benchmark, competitive bidding typically drives down prices. This contract's sole-source nature suggests that taxpayers may be bearing a higher cost than if multiple vendors had vied for the contract, potentially impacting the efficient allocation of defense funds.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2244 WALNUT GROVE AVE, ROSEMEAD, CA, 91770
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,352,641
Exercised Options: $13,352,641
Current Obligation: $6,389,406
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247308G0605
IDV Type: IDC
Timeline
Start Date: 2010-12-20
Current End Date: 2026-01-01
Potential End Date: 2026-01-01 00:00:00
Last Modified: 2025-12-22
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