SSA's Wilkes-Barre Operations Center to receive electric power under a $370,000 firm-fixed-price contract

Contract Overview

Contract Amount: $370,000 ($370.0K)

Contractor: Constellation Newenergy, Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER TO SUPPLY ELECTRICITY TO BE USED TO POWER THE SOCIAL SECURITY ADMINISTRATION (SSA), WILKES-BARRE DIRECT OPERATIONS CENTER, 1150 EAST MOUNTAIN DRIVE, WILKES-BARRE, PA.

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18702

State: Pennsylvania Government Spending

Plain-Language Summary

Social Security Administration obligated $370,000 to CONSTELLATION NEWENERGY, INC. for work described as: DELIVERY ORDER TO SUPPLY ELECTRICITY TO BE USED TO POWER THE SOCIAL SECURITY ADMINISTRATION (SSA), WILKES-BARRE DIRECT OPERATIONS CENTER, 1150 EAST MOUNTAIN DRIVE, WILKES-BARRE, PA. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $370,000 for one year of electricity is a key data point for benchmarking. 3. Delivery order for electric power distribution indicates a standard utility service requirement. 4. The fixed-price nature of the contract shifts cost risk to the contractor. 5. The contract duration of 364 days aligns with typical annual utility service agreements. 6. Awarded to Constellation NewEnergy, Inc., a known energy provider.

Value Assessment

Rating: good

The contract value of $370,000 for a 364-day delivery of electric power to a single operations center appears reasonable. Benchmarking against similar utility contracts for federal facilities of comparable size and location would provide a more precise assessment. However, given the firm-fixed-price structure and the competitive award, it suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and terms. The specific number of bidders is not provided, but the use of this procurement method generally leads to better price discovery and value for the government.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through robust price negotiation and a wider pool of potential suppliers.

Public Impact

The Social Security Administration's Wilkes-Barre Direct Operations Center will benefit from a reliable electricity supply. This contract ensures the continuous operation of essential government services provided by the SSA. The geographic impact is localized to Wilkes-Barre, Pennsylvania, where the operations center is located. The contract supports the energy sector workforce involved in electricity distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
Absence of performance metrics or service level agreements within the provided data.
No information on potential price fluctuations beyond the firm-fixed-price structure, though this is inherent to the contract type.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration is standard for utility services, allowing for predictable budgeting.
The contractor, Constellation NewEnergy, Inc., is an established energy provider.

Sector Analysis

The electric power distribution sector is a mature and essential utility market. Federal agencies are significant consumers of electricity, and contracts for these services are common. This specific contract fits within the broader category of utility services procurement, which is characterized by regulated pricing in many areas and competitive bidding for large government contracts. The market size for electricity distribution is vast, with numerous providers capable of serving federal facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Constellation NewEnergy, Inc., may engage small businesses for support services as part of their operational needs, though this is not mandated by the contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officer and program managers. As a delivery order under a larger contract vehicle (implied by 'delivery order'), oversight might also be managed by the issuing agency of the base contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Potential for price increases if market rates fluctuate significantly and contract allows adjustments (unlikely with FFP).
Risk of service interruption due to unforeseen events affecting the utility provider.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $370,000 to CONSTELLATION NEWENERGY, INC.. DELIVERY ORDER TO SUPPLY ELECTRICITY TO BE USED TO POWER THE SOCIAL SECURITY ADMINISTRATION (SSA), WILKES-BARRE DIRECT OPERATIONS CENTER, 1150 EAST MOUNTAIN DRIVE, WILKES-BARRE, PA.

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 $370,000.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

What is the historical spending pattern for electric power at the SSA's Wilkes-Barre Direct Operations Center?

Without access to historical contract data specifically for the SSA's Wilkes-Barre Direct Operations Center, it is difficult to establish a precise spending pattern. However, federal agencies typically procure electricity through annual contracts or indefinite-delivery, indefinite-quantity (IDIQ) vehicles. The current contract value of $370,000 for a 364-day period suggests an average monthly cost of approximately $31,500. If this represents a consistent need, annual spending would hover around this figure, adjusted for potential price escalations or changes in energy consumption. Further analysis would require examining prior awards for this facility or similar SSA centers to identify trends in cost, duration, and competition.

How does the per-unit cost of electricity for this contract compare to market rates in Wilkes-Barre, PA?

Determining the exact per-unit cost requires knowing the total kilowatt-hours (kWh) consumed during the contract period, which is not provided. However, we can estimate a potential range. If the $370,000 contract covers an average facility load, and assuming a typical commercial rate in Pennsylvania might range from $0.10 to $0.20 per kWh, the facility would consume between 1.85 million kWh ($370,000 / $0.20) and 3.7 million kWh ($370,000 / $0.10) annually. Comparing this estimated consumption and cost against actual utility tariffs or aggregated data for commercial/government facilities in the Wilkes-Barre area would be necessary for a precise benchmark. Given the competitive award, the price is likely aligned with market conditions.

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

Constellation NewEnergy, Inc. has a significant history of securing federal government contracts. A review of federal procurement data (e.g., FPDS) reveals numerous awards to this contractor across various agencies, including the Department of Defense, General Services Administration, and others. These contracts often involve the supply of electricity, natural gas, and other energy-related services. The company's consistent presence as a bidder and awardee suggests a strong understanding of federal procurement processes and a capacity to meet government energy requirements. Analyzing the value, duration, and performance history of their past federal awards would provide further insight into their reliability and pricing competitiveness.

What are the potential risks associated with this firm-fixed-price electricity contract?

The primary risk with a firm-fixed-price contract is that the contractor, Constellation NewEnergy, Inc., bears the burden of cost overruns. However, for a utility service like electricity, the main risks are less about cost overruns for the contractor and more about potential service disruptions or unforeseen price escalations if the contract terms allow for adjustments (though 'firm-fixed-price' typically minimizes this). For the government, the risk lies in potentially paying a premium if competition was weak or if market prices decrease significantly after the contract is awarded. Ensuring the contract includes robust service level agreements and clear termination clauses can mitigate risks related to service quality and reliability.

How does this contract align with the Social Security Administration's overall energy procurement strategy?

This contract represents a localized, tactical execution of the SSA's broader energy procurement strategy. Agencies like the SSA typically aim to secure reliable and cost-effective energy supplies for their facilities nationwide. Awarding this contract through full and open competition aligns with best practices for achieving value for taxpayer money. The firm-fixed-price structure provides budget certainty for this specific operational cost. The SSA likely manages a portfolio of energy contracts, and this award contributes to ensuring the operational continuity of the Wilkes-Barre Direct Operations Center, which is crucial for delivering its services.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $370,000

Exercised Options: $370,000

Current Obligation: $370,000

Actual Outlays: $170,402

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0825D0001

IDV Type: IDC

Timeline