NRC Awards $4.1M for Electric Power Services to Potomac Electric Power Co

Contract Overview

Contract Amount: $4,125,097 ($4.1M)

Contractor: Potomac Electric Power CO

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2024-09-27

End Date: 2029-11-30

Contract Duration: 1,890 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: THIS ACQUISITION IS FOR ELECTRIC DISTRIBUTION, TRANSMISSION AND SUPPLY AND ENERGY MANAGEMENT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $4.1 million to POTOMAC ELECTRIC POWER CO for work described as: THIS ACQUISITION IS FOR ELECTRIC DISTRIBUTION, TRANSMISSION AND SUPPLY AND ENERGY MANAGEMENT SERVICES Key points: 1. Contract awarded to a single, established utility provider. 2. Focus on essential energy services for the Nuclear Regulatory Commission. 3. Long-term contract duration suggests potential for stable pricing. 4. Limited competition raises questions about optimal price discovery.

Value Assessment

Rating: fair

The contract value of $4.1M over approximately 5 years is difficult to benchmark without specific service details. However, for utility services, this amount appears reasonable for a federal agency's operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This approach may limit price negotiation opportunities and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: Taxpayer funds are being used for essential energy services. The lack of competition could mean a less cost-effective outcome than if multiple vendors had bid.

Public Impact

Ensures reliable energy supply for critical federal operations. Supports the functioning of the Nuclear Regulatory Commission. Potential for increased energy costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls under the 'Other Electric Power Generation' sector, specifically for distribution, transmission, and supply. Utility services are typically provided by established regional providers, often leading to limited competition for specific geographic areas.

Small Business Impact

There is no indication that small businesses were involved in this contract. The award to a large utility company suggests that small business participation was not a primary consideration or opportunity.

Oversight & Accountability

The Nuclear Regulatory Commission is the awarding and contracting agency. Oversight would focus on service delivery, adherence to contract terms, and financial management. The limited competition aspect warrants scrutiny to ensure fair pricing.

Related Government Programs

Risk Flags

Tags

other-electric-power-generation, nuclear-regulatory-commission, md, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $4.1 million to POTOMAC ELECTRIC POWER CO. THIS ACQUISITION IS FOR ELECTRIC DISTRIBUTION, TRANSMISSION AND SUPPLY AND ENERGY MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER CO.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-09-27. End: 2029-11-30.

What is the justification for limiting competition for these essential energy services?

The justification for limiting competition is not explicitly stated in the provided data. Typically, such limitations occur when a specific vendor is the only viable option due to geographic exclusivity, existing infrastructure integration, or unique service capabilities. Further investigation into the agency's procurement records would be needed to understand the precise rationale.

What are the potential risks associated with a sole-source energy contract?

The primary risk of a sole-source energy contract is the potential for inflated pricing due to the absence of competitive pressure. The agency may not be receiving the most cost-effective rates available in the market. Additionally, there's a risk of vendor complacency regarding service quality or innovation over the contract's long duration.

How does this contract ensure the effective delivery of energy services to the NRC?

The effectiveness of this contract relies on the established track record and infrastructure of Potomac Electric Power Co. as a major utility provider. The long-term nature of the contract (over 5 years) suggests a commitment to ensuring consistent and reliable energy supply. However, effectiveness also depends on the NRC's contract management and performance monitoring.

Industry Classification

NAICS: UtilitiesElectric Power Generation, Transmission and DistributionOther Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 9TH ST NW, WASHINGTON, DC, 20068

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

Financial Breakdown

Contract Ceiling: $10,037,050

Exercised Options: $10,037,050

Current Obligation: $4,125,097

Actual Outlays: $1,828,321

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0420D0064

IDV Type: IDC

Timeline

Start Date: 2024-09-27

Current End Date: 2029-11-30

Potential End Date: 2029-11-30 00:00:00

Last Modified: 2026-03-24

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