Electricity delivery contract for Philadelphia building awarded to Constellation NewEnergy for $790,000

Contract Overview

Contract Amount: $790,000 ($790.0K)

Contractor: Constellation Newenergy, Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A DELIVERY ORDER FOR THE DELIVERY OF ELECTRICITY DISTRIBUTION TO THE MATSSC PHILADELPHIA PA BUILDING.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21213

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $790,000 to CONSTELLATION NEWENERGY, INC. for work described as: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A DELIVERY ORDER FOR THE DELIVERY OF ELECTRICITY DISTRIBUTION TO THE MATSSC PHILADELPHIA PA BUILDING. Key points: 1. Contract focuses on essential utility service delivery, a recurring need for federal facilities. 2. The fixed-price structure provides cost certainty for the government. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract duration is one year, allowing for periodic re-evaluation of needs and pricing. 5. The service is critical for the operational continuity of the MATSSC Philadelphia building. 6. The North American Industry Classification System (NAICS) code 221112 indicates a focus on electric power distribution.

Value Assessment

Rating: good

The contract value of $790,000 for a one-year electricity delivery service appears reasonable for a federal facility of this nature. Benchmarking against similar utility contracts for federal buildings in major metropolitan areas would provide a more precise assessment, but the price seems aligned with typical operational costs for essential services. The firm fixed-price contract type helps manage budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding environment, which typically drives competitive pricing and encourages a wider range of potential providers to participate. The specific number of bidders is not provided, but the method of competition implies a market where multiple entities could vie for the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where the most cost-effective solutions are likely to be selected, potentially leading to lower prices and better service quality.

Public Impact

The primary beneficiary is the Social Security Administration (SSA) facility in Philadelphia, ensuring continuous operation. The service delivered is the essential provision of electricity distribution to the MATSSC Philadelphia building. The geographic impact is localized to Philadelphia, Pennsylvania. There are no direct workforce implications mentioned, as this is a utility service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the energy market over the contract term, despite the fixed-price nature, if market conditions drastically shift.
Dependence on a single contractor for a critical utility service requires robust performance monitoring.

Positive Signals

The use of full and open competition suggests a proactive approach to securing competitive pricing.
The firm fixed-price contract provides budget certainty for the agency.
The contract is for a defined period, allowing for reassessment and potential re-competition.

Sector Analysis

This contract falls within the energy sector, specifically focusing on electric power generation and distribution. The market for utility services to federal facilities is typically characterized by established providers and regulated pricing structures. Federal agencies often procure such services through competitive bidding processes to ensure value for money, with contracts varying in duration and scope based on facility needs and energy market conditions.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on securing the utility service through the most competitive means available. There are no explicit subcontracting implications for small businesses mentioned in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officer and program managers. Performance will be monitored to ensure timely and reliable delivery of electricity. Transparency is maintained through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Utility Services
Electric Power Contracts
Government Facility Operations
Social Security Administration Procurement

Risk Flags

Potential for market volatility impacting contractor viability
Dependence on single supplier for critical utility

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $790,000 to CONSTELLATION NEWENERGY, INC.. THE PURPOSE OF THIS ACTION IS TO ESTABLISH A DELIVERY ORDER FOR THE DELIVERY OF ELECTRICITY DISTRIBUTION TO THE MATSSC PHILADELPHIA PA BUILDING.

Who is the contractor on this award?

The obligated recipient is CONSTELLATION NEWENERGY, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $790,000.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the historical spending pattern for electricity at the MATSSC Philadelphia PA building?

The provided data does not include historical spending patterns for electricity at the MATSSC Philadelphia PA building. To assess this, one would need to review past contracts for utility services at this specific facility. Analyzing previous contract values, durations, and awarded vendors would reveal trends in energy consumption and cost over time. This historical context is crucial for evaluating whether the current contract's value of $790,000 represents an increase, decrease, or stable expenditure compared to prior periods, and whether the current pricing is competitive relative to past performance.

How does the awarded price compare to similar contracts for federal buildings in the Philadelphia region?

Without specific data on comparable contracts for federal buildings in the Philadelphia region, a direct price comparison is challenging. However, the contract value of $790,000 for a one-year electricity delivery service for a facility like MATSSC Philadelphia suggests a significant operational cost. A thorough analysis would involve identifying other federal facilities in the vicinity, their size and energy needs, and the terms of their electricity supply contracts. Factors such as the specific energy provider, the type of electricity (e.g., renewable vs. traditional), and the contract structure (fixed-price, variable) would need to be considered to establish a meaningful benchmark and assess if this contract offers good value for money.

What are the key performance indicators (KPIs) for this electricity delivery contract?

Key performance indicators for this electricity delivery contract would likely focus on the reliability and quality of the electricity supply. Essential KPIs would include ensuring continuous power delivery without significant interruptions, maintaining voltage and frequency within specified tolerances, and adherence to delivery schedules if applicable. Performance metrics might also encompass response times to any outages or service disruptions, and compliance with all relevant safety and environmental regulations. The Social Security Administration would establish these KPIs in the contract's performance work statement to ensure the contractor meets the required service levels for the MATSSC Philadelphia building.

What is Constellation NewEnergy, Inc.'s track record with federal government contracts?

Constellation NewEnergy, Inc. has a history of securing federal government contracts, particularly for energy supply and related services. A comprehensive review of their federal contracting performance would involve examining past awards, contract values, and any reported performance issues or successes. Analyzing data from sources like the Federal Procurement Data System (FPDS) can provide insights into their experience with agencies like the Social Security Administration and their ability to meet contractual obligations. Their track record would inform the assessment of risk associated with this specific contract award.

What is the potential impact of energy market volatility on this fixed-price contract?

While this contract is structured as a firm fixed price, which aims to shield the government from price volatility, significant and sustained shifts in the energy market could still present indirect impacts. For the contractor, extreme volatility might strain their ability to maintain profitability if their underlying energy procurement costs change drastically. This could potentially lead to performance issues if the contractor struggles financially. For the government, the primary benefit of a fixed-price contract is budget certainty. However, if the market price for electricity significantly deviates from the contracted price over the long term, future re-competition might result in substantially higher prices for the agency.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exelon Corporation

Address: 1310 POINT ST FL 8, BALTIMORE, MD, 21231

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

Financial Breakdown

Contract Ceiling: $790,000

Exercised Options: $790,000

Current Obligation: $790,000

Actual Outlays: $279,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47PA0422D0045

IDV Type: IDC

Timeline