BIA Awards $40,847 Contract for Electric Utility Services to Otter Tail Power Co
Contract Overview
Contract Amount: $40,847 ($40.8K)
Contractor: Otter Tail Power CO
Awarding Agency: Department of the Interior
Start Date: 2023-12-19
End Date: 2024-12-31
Contract Duration: 378 days
Daily Burn Rate: $108/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), TURTLE MOUNTAIN AGENCY IN BELCOURT, ND.
Place of Performance
Location: FERGUS FALLS, OTTER TAIL County, MINNESOTA, 56537
Plain-Language Summary
Department of the Interior obligated $40,847.22 to OTTER TAIL POWER CO for work described as: ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), TURTLE MOUNTAIN AGENCY IN BELCOURT, ND. Key points: 1. Contract awarded for essential electric utility services to the Turtle Mountain Agency. 2. Sole-source award to Otter Tail Power Co. raises questions about competition. 3. Fixed price contract for one year with a potential for renewal. 4. Spending is relatively low, but the lack of competition is a concern.
Value Assessment
Rating: fair
The contract value of $40,847.22 for one year of electric utility services appears reasonable for a remote agency. However, without competitive bids, it's difficult to definitively assess if this is the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, meaning no other vendors were considered. This limits price discovery and may not result in the most cost-effective solution for taxpayers.
Taxpayer Impact: The direct taxpayer impact is limited due to the relatively small contract value, but the lack of competition sets a precedent for potential future sole-source awards.
Public Impact
Ensures reliable electricity for the Bureau of Indian Affairs' Turtle Mountain Agency. Supports essential operations and services for the local community. Potential for higher costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive bidding
Positive Signals
- Essential service provision
- Fixed price contract
Sector Analysis
Electric utility services are a critical infrastructure component. Spending benchmarks vary widely based on location, demand, and provider. This contract is for a specific agency's needs, not a broad utility procurement.
Small Business Impact
There is no indication that small businesses were considered or involved in this sole-source award. Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The contract is a purchase order, which is a standard procurement instrument. Oversight would focus on ensuring service delivery and adherence to the contract terms by the Bureau of Indian Affairs.
Related Government Programs
- Electric Power Distribution
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-optimal pricing.
- Lack of transparency in procurement justification.
- No small business consideration evident.
Tags
electric-power-distribution, department-of-the-interior, mn, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $40,847.22 to OTTER TAIL POWER CO. ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), TURTLE MOUNTAIN AGENCY IN BELCOURT, ND.
Who is the contractor on this award?
The obligated recipient is OTTER TAIL POWER CO.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).
What is the total obligated amount?
The obligated amount is $40,847.22.
What is the period of performance?
Start: 2023-12-19. End: 2024-12-31.
What is the justification for the sole-source award, and were any attempts made to solicit competitive bids?
The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Without further documentation, it's unclear if alternative vendors were explored or if specific circumstances (e.g., existing infrastructure, unique service requirements) necessitated this approach. Agencies typically need to document why full and open competition is not feasible.
How does the per-unit cost of electricity compare to similar contracts in the region or for other BIA agencies?
A direct per-unit cost comparison is not possible without knowing the exact kilowatt-hour usage and the corresponding rate structure from Otter Tail Power Co. The total contract value of $40,847.22 for a year of service provides a general cost, but without usage data and a breakdown of rates, benchmarking against other contracts is challenging.
What is the long-term strategy for ensuring competitive pricing for electric utility services at this agency?
The current sole-source award is for a one-year duration. The long-term strategy should involve exploring options for future procurements to introduce competition, such as re-evaluating the market for alternative providers or investigating opportunities for aggregation with other nearby federal facilities to potentially achieve better pricing through larger-scale contracts.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Otter Tail Corporation
Address: 215 S CASCADE ST, FERGUS FALLS, MN, 56537
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,847
Exercised Options: $40,847
Current Obligation: $40,847
Actual Outlays: $40,847
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-12-19
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2026-04-06
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