Interior's $3.45M Electric Power Contract with Evergy Kansas Central Inc. Faces Limited Competition
Contract Overview
Contract Amount: $3,453,000 ($3.5M)
Contractor: Evergy Kansas Central Inc
Awarding Agency: Department of the Interior
Start Date: 2021-10-01
End Date: 2026-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $1.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: HINU ELECTRICAL UTILITIES
Place of Performance
Location: TOPEKA, SHAWNEE County, KANSAS, 66612
State: Kansas Government Spending
Plain-Language Summary
Department of the Interior obligated $3.5 million to EVERGY KANSAS CENTRAL INC for work described as: HINU ELECTRICAL UTILITIES Key points: 1. Contract awarded for electric power distribution in Kansas. 2. Limited competition due to contract type. 3. Potential risk associated with sole-source or limited competition. 4. Spending falls within typical utility sector benchmarks.
Value Assessment
Rating: fair
The contract value of $3.45M over 5 years for electric power distribution is difficult to assess without specific usage data. Benchmarking is challenging as pricing is often regulated or based on market rates for utilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is marked as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition approach. This could impact price discovery and potentially lead to higher costs compared to a fully competitive process.
Taxpayer Impact: Taxpayer impact is likely neutral to slightly negative due to potentially reduced price competition, but the essential nature of the service mitigates significant waste.
Public Impact
Ensures essential electricity supply for Bureau of Indian Affairs and Education facilities in Kansas. Impacts federal operations reliant on consistent power. Potential for cost savings if competition were enhanced in future procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdown
- Potential for price increases over contract duration
Positive Signals
- Essential service provision
- Long-term contract provides stability
Sector Analysis
This contract falls within the Utilities sector, specifically electric power distribution. Spending benchmarks for such services are highly localized and dependent on regional energy markets and regulatory frameworks.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract, as the awardee is a large utility provider and the contract was not set aside for small business participation.
Oversight & Accountability
Oversight would focus on ensuring Evergy Kansas Central Inc. meets service level agreements and adheres to the firm fixed price terms. The Bureau of Indian Affairs and Bureau of Indian Education are responsible for monitoring performance.
Related Government Programs
- Electric Power Distribution
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of transparency in pricing justification.
- Potential for price increases if market conditions change significantly.
- Dependence on a single provider for essential services.
Tags
electric-power-distribution, department-of-the-interior, ks, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $3.5 million to EVERGY KANSAS CENTRAL INC. HINU ELECTRICAL UTILITIES
Who is the contractor on this award?
The obligated recipient is EVERGY KANSAS CENTRAL INC.
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 $3.5 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-09-30.
What is the justification for limiting competition on this essential utility service contract?
The justification for limiting competition is not explicitly provided in the data. Typically, utility services might be considered sole-source or limited competition due to existing infrastructure, geographic monopolies, or specific regulatory requirements that make it impractical or impossible to solicit bids from multiple providers.
How does the firm fixed price structure mitigate risk for the government in this utility contract?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, Evergy Kansas Central Inc. The government knows the total price upfront, providing budget certainty. However, for utilities, FFP can be less effective if underlying commodity prices fluctuate significantly, potentially leading to the contractor absorbing losses or seeking adjustments if contract terms allow.
What is the potential impact on service quality given the limited competition?
Limited competition could theoretically reduce the incentive for the contractor to proactively improve service quality beyond the contractually mandated minimums. However, as a regulated utility, Evergy Kansas Central Inc. is likely subject to state-level service standards and public scrutiny, which generally ensures a baseline level of service quality regardless of the contract type.
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
Address: 818 S KANSAS AVE, TOPEKA, KS, 66612
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,453,000
Exercised Options: $3,453,000
Current Obligation: $3,453,000
Actual Outlays: $3,215,225
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-29
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