DOJ's FBI awards $5.96M for electric power distribution in DC, with limited competition
Contract Overview
Contract Amount: $5,958,860 ($6.0M)
Contractor: Potomac Electric Power CO
Awarding Agency: Department of Justice
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JEH ELECTRIC 2026
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Justice obligated $6.0 million to POTOMAC ELECTRIC POWER CO for work described as: JEH ELECTRIC 2026 Key points: 1. Value for money appears fair given the fixed-price nature and duration, but a lack of competition limits upside. 2. Competition dynamics are heavily skewed towards a sole-source award, raising concerns about price discovery. 3. Risk indicators are moderate, primarily stemming from the limited competition and potential for price escalation if not managed. 4. Performance context is a one-year contract for essential utility services, indicating a need for reliable power. 5. Sector positioning is within the essential utilities and infrastructure services for federal law enforcement operations.
Value Assessment
Rating: fair
The contract's value of $5.96 million for one year of electric power distribution is difficult to benchmark without specific usage data. However, as a fixed-price contract, it offers some cost certainty. Compared to similar utility contracts, the price per year seems within a reasonable range for a major metropolitan area like Washington D.C., but the lack of competitive bidding prevents a definitive assessment of optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Potomac Electric Power Co., was solicited. This approach is typically used when only one source is capable of providing the required service, often due to infrastructure ownership or unique service delivery capabilities. The lack of competition means there was no opportunity for price negotiation or comparison against other potential providers, potentially leading to a higher price than if multiple bids were received.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without alternative bids, it's challenging to ensure the government is receiving the most cost-effective solution for essential electric power.
Public Impact
The Federal Bureau of Investigation (FBI) benefits from reliable electric power to support its operations. Essential services including power for facilities, data centers, and administrative functions are delivered. The geographic impact is localized to Washington D.C., where the FBI facilities are located. Workforce implications are minimal, as this contract primarily covers utility services rather than direct personnel support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential savings for taxpayers.
- Lack of competition may reduce incentives for the contractor to offer innovative or cost-saving solutions.
- Dependence on a single provider for a critical utility creates a potential single point of failure if not managed proactively.
Positive Signals
- Fixed-price contract provides cost certainty for the duration of the award.
- Awarding to a known utility provider in the region suggests a focus on reliability and established service.
- Contract duration of one year allows for re-evaluation of competition in subsequent periods.
Sector Analysis
The electric power distribution sector is a critical infrastructure industry dominated by regulated utilities. Federal agencies are significant consumers of electricity, and contracts for these services are often awarded to incumbent providers due to the nature of the infrastructure. Market size for federal electricity procurement is substantial, but individual contracts are typically service agreements with established utility companies rather than competitive procurements for new infrastructure development.
Small Business Impact
This contract does not appear to involve small business set-asides. As a sole-source award to a large utility provider, there are no direct subcontracting opportunities for small businesses specified within this award notice. The impact on the small business ecosystem is negligible for this specific contract.
Oversight & Accountability
Oversight for this contract would typically fall under the contracting officer's representative (COR) within the FBI, responsible for monitoring service delivery and adherence to terms. Accountability measures are inherent in the fixed-price agreement, with payment contingent on service provision. Transparency is limited due to the sole-source nature, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Buildings and Facilities Maintenance
- Utility Services Contracts
- Law Enforcement Agency Support Services
- Department of Justice - General Services
Risk Flags
- Sole-source award
- Lack of competition
- Potential for non-competitive pricing
Tags
utilities, electric-power-distribution, department-of-justice, federal-bureau-of-investigation, purchase-order, firm-fixed-price, sole-source, washington-dc, district-of-columbia, infrastructure, essential-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $6.0 million to POTOMAC ELECTRIC POWER CO. JEH ELECTRIC 2026
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER CO.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $6.0 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the historical spending pattern for electric power distribution services at this FBI facility?
Historical spending data for electric power distribution at this specific FBI facility is not directly available in the provided data. However, the award amount of $5.96 million for a one-year period suggests a significant operational requirement. To assess historical patterns, one would need to examine previous contract awards for utility services at this location, looking at both the annual cost and the duration of those contracts. Understanding if this award represents an increase, decrease, or stable spending trend compared to prior years would provide valuable context for evaluating the current contract's value and necessity.
How does the price of this contract compare to similar electric power distribution contracts awarded by other federal agencies in the same geographic region?
Direct comparison of this $5.96 million contract to similar federal electric power distribution contracts in the Washington D.C. area is challenging without access to detailed usage metrics and specific service level agreements for each contract. However, as a sole-source award to Potomac Electric Power Co. (PEPCO), the pricing is likely influenced by PEPCO's established rate structure for commercial and government clients in its service territory. To perform a robust comparison, one would need to analyze contracts with similar facility sizes, power consumption levels, and contract durations awarded to utilities serving comparable federal installations in the Mid-Atlantic region. The absence of competition here inherently limits the ability to determine if this price is truly market-competitive.
What are the specific risks associated with a sole-source award for essential utility services like electric power?
The primary risk associated with a sole-source award for essential utility services is the lack of competitive pressure, which can lead to inflated prices and reduced incentives for the contractor to innovate or improve efficiency. Taxpayers may bear a higher cost than necessary. Furthermore, reliance on a single provider creates a critical dependency; any service disruption, pricing dispute, or change in the contractor's operational capacity could have significant consequences for the agency's mission. While utilities often operate under regulatory oversight that aims to ensure fair pricing, the absence of a competitive bidding process removes a key mechanism for verifying cost-effectiveness from the government's perspective.
What is the track record of Potomac Electric Power Co. in serving federal government contracts?
Potomac Electric Power Co. (PEPCO) has a long-standing history of providing electric utility services in the Washington D.C. metropolitan area, including to numerous federal government facilities. While specific performance metrics for past federal contracts are not detailed here, PEPCO is a major utility provider responsible for maintaining the power grid infrastructure in the region. Federal agencies typically award contracts to such established utilities based on their existing infrastructure, reliability, and regulatory compliance. Their track record is generally characterized by consistent service delivery, though like any large utility, they may face challenges related to grid maintenance, weather events, and infrastructure upgrades.
What are the potential implications if the FBI needs to switch providers in the future, given this sole-source award?
Switching providers for electric power distribution, especially in a sole-source scenario, can be complex and costly. It typically involves a lengthy transition period to ensure continuity of service and may require significant infrastructure modifications or coordination with the incumbent utility and any potential new provider. The current sole-source award to PEPCO suggests that they own and operate the distribution infrastructure serving the FBI facility. Therefore, a future switch would likely necessitate a new competitive procurement process to identify a provider capable of integrating with or replacing the existing infrastructure, potentially involving substantial upfront investment and planning to mitigate service interruption risks.
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: 701 9TH ST NW, WASHINGTON, DC, 20001
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $5,958,860
Exercised Options: $5,958,860
Current Obligation: $5,958,860
Actual Outlays: $1,697,408
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-03-31
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