Treasury's Mint Spends $5.6M on Hydroelectric Power from Public Service Company of Colorado
Contract Overview
Contract Amount: $5,642,168 ($5.6M)
Contractor: Public Service Company of Colorado
Awarding Agency: Department of the Treasury
Start Date: 2020-10-01
End Date: 2025-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $3.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: PUBLIC UTILITIES - ELECTRICAL SERVICE
Place of Performance
Location: DENVER, DENVER County, COLORADO, 80204
State: Colorado Government Spending
Plain-Language Summary
Department of the Treasury obligated $5.6 million to PUBLIC SERVICE COMPANY OF COLORADO for work described as: PUBLIC UTILITIES - ELECTRICAL SERVICE Key points: 1. Significant contract value of $5.6 million for essential utility services. 2. Sole-source procurement limits competitive pricing and potential savings. 3. Long-term contract (5 years) locks in current pricing. 4. Focus on hydroelectric power generation highlights renewable energy sourcing.
Value Assessment
Rating: questionable
Pricing is not available for comparison due to the sole-source nature of the award. Without competitive bids, it's difficult to assess if the price is optimal or reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery process found in competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in the government paying more than necessary for electrical services, impacting taxpayer funds.
Public Impact
Ensures continuous operation of critical government facilities through reliable power. Supports the use of renewable energy sources like hydroelectric power. Potential for higher costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long-term commitment
Positive Signals
- Reliable utility service
- Use of renewable energy
Sector Analysis
This contract falls under public utilities, specifically electrical services. Spending benchmarks for such services vary widely based on location, demand, and energy source. The $5.6 million over five years suggests a substantial, consistent need for power.
Small Business Impact
The awardee is Public Service Company of Colorado, a large utility provider. There is no indication that small businesses were involved in this specific procurement, nor is it typical for utility services at this scale.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. While sometimes necessary, it should be justified to ensure taxpayer funds are used efficiently and that competition was not feasible or overlooked.
Related Government Programs
- Hydroelectric Power Generation
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpayment
- Long-term commitment without re-evaluation
Tags
hydroelectric-power-generation, department-of-the-treasury, co, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $5.6 million to PUBLIC SERVICE COMPANY OF COLORADO. PUBLIC UTILITIES - ELECTRICAL SERVICE
Who is the contractor on this award?
The obligated recipient is PUBLIC SERVICE COMPANY OF COLORADO.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2020-10-01. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supply or service. This could be due to unique capabilities, proprietary technology, or specific geographic requirements. Without further documentation, it's impossible to confirm the exact reason, but it implies a lack of viable alternatives for the United States Mint's electrical needs at the specified location.
What are the potential risks associated with a sole-source contract for essential services like electricity?
The primary risk of a sole-source contract for essential services is the potential for inflated pricing due to the absence of competitive pressure. The government may end up paying a premium without the benefit of market-driven cost reductions. Additionally, there's a reduced incentive for the sole provider to innovate or improve service quality if they face no competition.
How does the long-term nature of this contract impact the government's flexibility and potential cost savings?
A five-year fixed-price contract provides cost certainty but limits flexibility. If market electricity prices were to decrease significantly, the government would be locked into the higher rate. Conversely, if prices were to rise sharply, the government would benefit from the fixed rate. The lack of periodic renegotiation or competitive re-bidding opportunities means potential savings from market fluctuations are foregone.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Hydroelectric Power Generation
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: Xcel Energy Services Inc.
Address: 1800 LARIMER ST STE 1100, DENVER, CO, 80202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,642,168
Exercised Options: $5,642,168
Current Obligation: $5,642,168
Actual Outlays: $5,642,168
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2020-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-12-31
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