VA awards $2.58M electric utility contract to Constellation NewEnergy, Inc. for Pennsylvania facility

Contract Overview

Contract Amount: $2,575,000 ($2.6M)

Contractor: Constellation Newenergy, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC UTILITY

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to CONSTELLATION NEWENERGY, INC. for work described as: ELECTRIC UTILITY Key points: 1. Contract value appears reasonable for a one-year electric utility service agreement. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period aligns with typical utility service cycles. 5. This contract supports essential facility operations for the VA. 6. No small business set-aside was utilized, indicating a focus on broader market participation.

Value Assessment

Rating: good

The contract value of $2.58 million for a 364-day period for electric utility services seems within a reasonable range for a facility of this nature. Benchmarking against similar utility contracts is challenging without specific facility size and energy consumption data. However, the firm fixed-price structure provides cost certainty. The award to Constellation NewEnergy, Inc., a known energy provider, suggests a degree of reliability.

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 bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which should theoretically lead to more favorable pricing for the government. The VA's decision to use this procurement method suggests confidence in the market's ability to provide adequate service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

Veterans receiving services at the Pennsylvania VA facility will benefit from reliable electricity. Essential healthcare and administrative operations at the facility will be sustained. The contract ensures the continuous functioning of critical infrastructure. Local workforce may be indirectly supported through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality beyond basic delivery.
Limited detail on energy efficiency or renewable energy components within the service offering.
No information on the number of bidders limits a deeper analysis of competitive intensity.

Positive Signals

Firm fixed-price contract provides budget certainty.
Award to an established energy provider suggests a lower risk of performance failure.
Full and open competition indicates a robust market engagement process.

Sector Analysis

The electric utility sector is a mature and essential industry providing power to all government facilities. Contracts in this space typically involve long-term service agreements, often with fixed pricing structures to manage volatility. The market is characterized by established providers and regional monopolies or oligopolies, making competition dynamics vary by location. This contract represents a standard procurement for essential operational support within the broader federal energy spending landscape.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the most competitive offer from the broader market, rather than specifically targeting small business participation. The absence of set-asides means that opportunities for small businesses to directly participate in this specific contract are limited.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature of the contract simplifies financial oversight by limiting potential for cost-reimbursement disputes. Performance monitoring would typically be handled by the contracting officer's representative (COR) at the VA facility. Transparency is maintained through public contract databases, though detailed performance data is not usually publicly disclosed.

Related Government Programs

Federal Energy Management Program
Utility Services Contracts
Department of Veterans Affairs Facility Operations

Risk Flags

Lack of detailed performance metrics.
Limited information on the number of bidders.
No explicit mention of renewable energy or efficiency goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to CONSTELLATION NEWENERGY, INC.. ELECTRIC UTILITY

Who is the contractor on this award?

The obligated recipient is CONSTELLATION NEWENERGY, INC..

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 $2.6 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for electric utility services at this specific VA facility?

Detailed historical spending data for this specific VA facility's electric utility services is not readily available in the provided information. However, the current award of $2.58 million for a 364-day period suggests an annual expenditure in that range. To assess historical patterns, one would need to examine previous contract awards for the same facility, noting any significant increases or decreases in cost that might correlate with changes in energy prices, facility usage, or contract scope. Without prior contract data, it's difficult to establish a trend or benchmark against past performance.

How does the awarded price compare to market rates for similar electric utility services in Pennsylvania?

Directly comparing the awarded price of $2.58 million for a 364-day electric utility contract to specific market rates in Pennsylvania is challenging without granular data on the facility's energy consumption, peak demand, and the specific utility service area. Electricity prices vary significantly based on location, usage volume, and negotiated rates. However, given that the contract was awarded under full and open competition, it implies that the price was deemed competitive among the bidders. Further analysis would require access to regional energy market data and the specific consumption profile of the VA facility.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) for this electric utility contract. Typically, for such services, KPIs might include reliability of service (e.g., minimizing outages), adherence to billing cycles, response times to service requests, and potentially energy efficiency targets if included in the scope. Performance measurement would likely be overseen by a Contracting Officer's Representative (COR) at the VA facility, who would monitor service delivery against the contract terms and conditions. Formal performance evaluations might be documented in Contractor Performance Assessment Reporting System (CPARS).

What is Constellation NewEnergy, Inc.'s track record with federal contracts, particularly with the Department of Veterans Affairs?

Constellation NewEnergy, Inc. is a known provider of energy services and has a history of contracting with various federal agencies, including the Department of Veterans Affairs. While specific details of their past performance on VA contracts are not provided here, their continued engagement suggests a generally satisfactory performance history. A deeper dive into their CPARS reports and other contract databases would offer a more comprehensive view of their reliability, quality of service, and adherence to contractual obligations across their federal portfolio.

Are there any provisions for renewable energy sourcing or energy efficiency improvements within this contract?

The provided contract data does not explicitly mention any provisions for renewable energy sourcing or specific energy efficiency improvements. The primary description is 'Electric Power Distribution,' suggesting a focus on the reliable delivery of electricity. Federal agencies are increasingly encouraged to procure renewable energy and implement efficiency measures, but these are not always explicitly detailed in basic contract award notices. Further review of the full contract document would be necessary to determine if such clauses are included.

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: $2,575,000

Exercised Options: $2,575,000

Current Obligation: $2,575,000

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