OPM awards $505K for electrical utility services to Georgia Power Company, citing no competition

Contract Overview

Contract Amount: $505,742 ($505.7K)

Contractor: Georgia Power Company

Awarding Agency: Office of Personnel Management

Start Date: 2025-03-21

End Date: 2026-04-30

Contract Duration: 405 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL UTILITY SERVICE FOR THE MACON, GA FACILITY

Place of Performance

Location: MACON, BIBB County, GEORGIA, 31201

State: Georgia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $505,741.89 to GEORGIA POWER COMPANY for work described as: ELECTRICAL UTILITY SERVICE FOR THE MACON, GA FACILITY Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the duration. 2. The contract duration of 405 days suggests a need for ongoing, essential utility services. 3. Awarded as a delivery order, indicating it's part of a larger, potentially pre-existing agreement. 4. The lack of competition raises questions about price reasonableness and potential for better value. 5. Geographic concentration in Georgia may limit broader market engagement for this service. 6. The service category, 'Electric Power Distribution,' is a fundamental operational requirement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for electrical utility services. The price of $505,741.89 for approximately 13 months of service appears to be within a reasonable range for a large facility's electrical needs, but the absence of competition prevents a definitive assessment of whether it represents the best possible value for taxpayers. Without competitive bids, it's difficult to ascertain if Georgia Power Company's pricing is optimized against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or 'not available for competition' basis. This implies that only one vendor, Georgia Power Company, was considered capable of providing the required electrical utility services for the Macon, GA facility. The specific justifications for this determination are not detailed, but typically such awards occur when a unique capability or existing infrastructure necessitates a single provider. The lack of competition means there was no opportunity for other vendors to bid, potentially limiting price discovery.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the most economical option available in the market.

Public Impact

The primary beneficiary is the Office of Personnel Management (OPM), which will receive reliable electrical utility services for its Macon, GA facility. The service delivered is essential electrical power distribution, ensuring the operational continuity of the facility. The geographic impact is localized to Macon, Georgia, where the OPM facility is situated. Workforce implications are minimal, as this contract likely covers existing utility infrastructure rather than new construction or significant labor deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source justification needs thorough review to ensure necessity.
Potential for price increases in future contract renewals without competition.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Award to an established utility provider ensures service reliability.
Delivery order structure suggests integration with existing OPM infrastructure.

Sector Analysis

The energy sector, particularly utility services, is characterized by regulated monopolies and significant infrastructure investments. Electrical utility services are essential for the operation of government facilities, and contracts in this space often involve long-term relationships with established providers. While the broader energy market is dynamic, the provision of power to a specific location is typically handled by the incumbent utility. The contract value of $505,741.89 is modest within the context of large federal energy expenditures but represents a critical operational cost for the OPM facility.

Small Business Impact

This contract does not appear to involve any small business set-asides, nor are there indications of subcontracting opportunities for small businesses. Georgia Power Company is a large utility provider, and the nature of electrical distribution services typically does not lend itself to significant subcontracting, especially in a sole-source scenario. The impact on the small business ecosystem is therefore likely negligible.

Oversight & Accountability

Oversight for this contract would primarily fall under the Office of Personnel Management's contracting and facility management divisions. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of services as specified. Transparency is limited due to the sole-source nature of the award, with details on the justification for not competing the contract being key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Contracts
Government Facility Operations
Energy Services for Government

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $505,741.89 to GEORGIA POWER COMPANY. ELECTRICAL UTILITY SERVICE FOR THE MACON, GA FACILITY

Who is the contractor on this award?

The obligated recipient is GEORGIA POWER COMPANY.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $505,741.89.

What is the period of performance?

Start: 2025-03-21. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. The specific justification for this determination is not detailed in the provided information. Typically, such justifications are based on factors like the existence of only one responsible source, urgent and compelling needs where another source cannot be identified in time, or specific government requirements that only one contractor can meet. For utility services, this often relates to the incumbent provider's established infrastructure and service territory. A thorough review of OPM's contracting documentation would be necessary to understand the precise rationale and ensure it aligns with federal procurement regulations.

How does the price of $505,741.89 compare to similar electrical utility contracts for federal facilities?

Directly comparing this $505,741.89 contract for electrical utility services is difficult without more specific data on the size and energy consumption of the Macon, GA facility, as well as the scope of services included (e.g., distribution, maintenance, specific power levels). However, for a facility requiring continuous power over approximately 13 months, this amount is not inherently excessive, especially considering it's awarded to a major utility provider. Benchmarking would ideally involve comparing per-kilowatt-hour costs or total energy expenditure as a percentage of facility operating budget against similar government facilities or commercial entities of comparable size and function. The lack of competition, however, prevents a definitive assessment of whether this represents optimal value.

What are the potential risks associated with a sole-source award for essential utility services?

The primary risk associated with a sole-source award for essential utility services is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Another risk is a lack of incentive for the sole provider to innovate or improve service quality beyond the contractually mandated minimums. Furthermore, reliance on a single provider can create vulnerability if that provider experiences operational issues or decides to significantly increase prices upon contract renewal. Ensuring robust contract management and performance monitoring becomes crucial in sole-source situations to mitigate these risks.

What is the historical spending pattern for electrical utility services at the OPM Macon, GA facility?

The provided data does not include historical spending patterns for electrical utility services at the OPM Macon, GA facility. To assess historical spending, one would need to access previous contract awards for this specific service at this location. Analyzing past expenditures would allow for a comparison against the current award to identify trends in pricing, contract duration, and vendor performance. Understanding historical spending is crucial for evaluating whether the current $505,741.89 award represents an increase, decrease, or stable cost compared to previous periods, and whether the duration and scope remain consistent.

What is Georgia Power Company's track record in providing services to the federal government?

Georgia Power Company, as a major utility provider in Georgia, likely has a history of providing services to various entities, potentially including federal government facilities within its service area. However, the provided data does not specifically detail Georgia Power Company's track record with the federal government, particularly concerning sole-source awards or contracts of this nature. A comprehensive assessment would require reviewing federal procurement databases (like SAM.gov or FPDS) for past contracts awarded to Georgia Power Company by OPM or other federal agencies, examining performance ratings, and identifying any past issues or disputes. This information is crucial for evaluating the contractor's reliability and past performance.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Southern CO Services Inc

Address: 241 RALPH MCGILL BLVD NE, ATLANTA, GA, 30308

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $505,742

Exercised Options: $505,742

Current Obligation: $505,742

Actual Outlays: $465,498

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P15BSD1134

IDV Type: IDC

Timeline