VA awards $1.47M contract for electric utility supply to Direct Energy Business LLC in Rhode Island

Contract Overview

Contract Amount: $1,472,931 ($1.5M)

Contractor: Direct Energy Business LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ELECTRIC UTILITY SUPPLY

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.5 million to DIRECT ENERGY BUSINESS LLC for work described as: ELECTRIC UTILITY SUPPLY Key points: 1. Contract value of $1.47 million for a 1-year period. 2. Direct Energy Business LLC is the awardee. 3. The contract falls under the Fossil Fuel Electric Power Generation NAICS code. 4. Awarded via full and open competition.

Value Assessment

Rating: good

The contract value appears reasonable for a one-year utility supply agreement. Benchmarking against similar utility contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that likely resulted in fair market pricing.

Taxpayer Impact: Taxpayer funds are being used for essential utility services, with competition aiming to ensure cost-effectiveness.

Public Impact

Ensures reliable electricity for VA facilities in Rhode Island. Supports energy infrastructure and services for a federal agency. Potential impact on local energy market dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on fossil fuels for electricity generation.
Potential for price volatility in energy markets.

Positive Signals

Awarded through full and open competition.
Contract supports essential government operations.

Sector Analysis

This contract is within the electric utility sector, specifically focusing on fossil fuel-based power generation. Spending benchmarks for utility services can vary significantly based on location, demand, and fuel prices.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award process through full and open competition suggests a degree of oversight. However, ongoing monitoring of service delivery and pricing is crucial for accountability.

Related Government Programs

Fossil Fuel Electric Power Generation
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential price volatility of fossil fuels.
Environmental impact of fossil fuel reliance.
Lack of detail on energy consumption.
Unclear benchmark price context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.5 million to DIRECT ENERGY BUSINESS LLC. ELECTRIC UTILITY SUPPLY

Who is the contractor on this award?

The obligated recipient is DIRECT ENERGY BUSINESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the projected energy consumption for the VA facilities covered by this contract?

The provided data does not specify the projected energy consumption. This information is critical for accurately assessing the per-unit cost and overall value of the contract. Understanding consumption patterns would allow for a more detailed comparison with industry benchmarks and historical spending.

Are there any provisions for renewable energy sources or energy efficiency measures within this contract?

The contract description focuses on 'Fossil Fuel Electric Power Generation' and does not explicitly mention provisions for renewable energy or energy efficiency. This raises questions about the VA's commitment to sustainability goals and potential missed opportunities for cost savings through greener energy solutions.

How does the awarded price compare to the government's estimate or independent market research for similar utility services in Rhode Island?

The data includes a 'benchmark price' (br) of 4047, but its context or unit is unclear. Without knowing what this benchmark represents (e.g., per kWh, per MWh, or a monthly service fee), a direct comparison is difficult. A thorough price analysis against established government estimates or market research would be necessary to confirm cost-effectiveness.

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

Address: 1001 LIBERTY AVE STE 1200, PITTSBURGH, PA, 15222

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,472,931

Exercised Options: $1,472,931

Current Obligation: $1,472,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0422D0023

IDV Type: IDC

Timeline