GSA's $17.4M renewable energy credit and electricity contract awarded to WGL Energy Services for National Capital Region

Contract Overview

Contract Amount: $17,427,115 ($17.4M)

Contractor: WGL Energy Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-07-01

End Date: 2026-10-31

Contract Duration: 852 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: TRANSACTION MANAGER SERVICES JULY TO SEPTEMBER 2024 - MANAGING RENEWABLE ENERGY CREDITS AND ELECTRICITY SUPPLY FOR THE NATIONAL CAPITAL REGION

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $17.4 million to WGL ENERGY SERVICES, INC. for work described as: TRANSACTION MANAGER SERVICES JULY TO SEPTEMBER 2024 - MANAGING RENEWABLE ENERGY CREDITS AND ELECTRICITY SUPPLY FOR THE NATIONAL CAPITAL REGION Key points: 1. Contract focuses on managing renewable energy credits and electricity supply, indicating a strategic move towards sustainable energy procurement. 2. The award to WGL Energy Services suggests a competitive process, though specific bidder numbers are not detailed. 3. Performance period spans over two years, allowing for consistent energy management and potential for long-term cost optimization. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government. 5. This contract aligns with broader federal initiatives to increase renewable energy usage and reduce carbon footprints. 6. The geographic focus on the National Capital Region highlights the importance of reliable energy for critical federal operations.

Value Assessment

Rating: good

The contract value of $17.4 million over approximately two years for transaction manager services related to renewable energy credits and electricity supply appears reasonable given the scope. Benchmarking against similar contracts for energy management and renewable credit procurement is challenging without more granular data on service specifics and market fluctuations. However, the firm fixed-price structure offers predictability. The General Services Administration (GSA) is a major procurer of energy, and their established processes likely ensure a degree of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing. The specific number of bidders and the evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where vendors strive to offer the most cost-effective solutions.

Public Impact

Federal agencies within the National Capital Region will benefit from a stable and potentially more sustainable electricity supply. The contract facilitates the management of renewable energy credits, supporting the transition to cleaner energy sources. This initiative contributes to the federal government's broader environmental and sustainability goals. The services provided ensure the continuity of essential energy services for government operations in a key region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in energy markets impacting the fixed-price contract over its duration.
Dependence on a single contractor for critical energy management services requires robust performance monitoring.

Positive Signals

Award to an established entity (WGL Energy Services) suggests a degree of reliability and expertise.
Firm Fixed Price contract provides budget certainty for the government.
Focus on renewable energy credits aligns with federal sustainability mandates.

Sector Analysis

The energy sector, particularly the procurement of electricity and renewable energy credits, is a significant area of federal spending. This contract fits within the broader market for energy services, where utilities and specialized energy management firms compete to supply government agencies. Federal agencies are increasingly prioritizing renewable energy sources to meet climate goals, driving demand for services like those provided by WGL Energy Services. Comparable spending benchmarks would depend on the specific volume of electricity and credits managed, but GSA's overall energy procurement budget is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem may be indirect, potentially through opportunities if WGL Energy Services utilizes small business subcontractors, which is not explicitly stated.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and financial accountability. The Public Buildings Service (PBS) division, responsible for this contract, likely employs contract officers and technical monitors to ensure compliance with terms and conditions. Transparency is generally maintained through contract databases, though specific performance metrics and detailed audit reports may not always be publicly accessible.

Related Government Programs

Federal Energy Management Program
Renewable Energy Procurement
Electricity Supply Contracts
Government Energy Services

Risk Flags

Potential for market volatility impacting fixed-price contract value.
Reliance on contractor performance for critical energy services.
Need for ongoing monitoring of renewable energy credit market dynamics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.4 million to WGL ENERGY SERVICES, INC.. TRANSACTION MANAGER SERVICES JULY TO SEPTEMBER 2024 - MANAGING RENEWABLE ENERGY CREDITS AND ELECTRICITY SUPPLY FOR THE NATIONAL CAPITAL REGION

Who is the contractor on this award?

The obligated recipient is WGL ENERGY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-10-31.

What is the historical spending pattern of the General Services Administration (GSA) on energy management services, particularly for the National Capital Region?

Analyzing GSA's historical spending on energy management services reveals a consistent and significant investment, driven by the operational needs of federal agencies across the nation, especially in high-demand areas like the National Capital Region. While specific figures for 'transaction manager services' for renewable energy credits and electricity supply are detailed in individual contract awards, the overall trend shows an increasing allocation towards sustainable energy solutions. GSA's Public Buildings Service (PBS) manages a vast portfolio of federal buildings, necessitating continuous procurement of electricity and related services. Over the past decade, there has been a marked shift towards incorporating renewable energy sources and credits into these procurements, reflecting federal mandates and environmental goals. For instance, data from previous years might show fluctuating but generally rising expenditures on electricity contracts, with a growing proportion dedicated to renewable energy components. This particular contract, valued at approximately $17.4 million over two years, represents a segment of this larger, ongoing federal commitment to energy security and environmental stewardship within the National Capital Region.

How does the pricing of this contract compare to similar energy management contracts awarded by other federal agencies or within different regions?

Benchmarking the pricing of this $17.4 million contract for transaction manager services against similar energy management contracts requires access to detailed pricing structures and service level agreements across various federal agencies and regions. However, given that this is a Firm Fixed Price contract awarded under full and open competition by the General Services Administration (GSA), it suggests a competitive pricing strategy. GSA, as a major federal procurement entity, often leverages economies of scale and established relationships to secure favorable rates. The specific nature of managing renewable energy credits alongside electricity supply introduces complexities that can influence pricing. Contracts focusing solely on electricity might have different cost structures than those incorporating the management and trading of credits. Without direct comparative data on per-unit costs for electricity or per-credit management fees, a precise comparison is difficult. However, the duration of the contract (over two years) and the geographic focus (National Capital Region) are key factors that would be considered in any benchmarking exercise, alongside the specific services rendered by WGL Energy Services.

What are the key performance indicators (KPIs) used to evaluate the performance of WGL Energy Services under this contract?

While the specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data, typical performance metrics for energy management and renewable energy credit services would likely include: 1. Reliability of electricity supply: Ensuring uninterrupted power delivery to federal facilities within the National Capital Region. 2. Accuracy and timeliness of renewable energy credit management: Ensuring credits are procured, tracked, and retired in accordance with regulatory requirements and contract specifications. 3. Cost management and savings: Monitoring energy expenditures and identifying opportunities for cost reduction or optimization, especially concerning the fixed-price nature of the contract. 4. Reporting accuracy and timeliness: Providing comprehensive and timely reports on energy consumption, credit status, and financial performance. 5. Compliance: Adherence to all federal regulations, environmental standards, and contract terms. The General Services Administration (GSA) would typically establish a performance evaluation plan outlining these KPIs and the methods for measuring contractor performance throughout the contract duration.

What is the track record of WGL Energy Services in managing similar federal contracts, particularly those involving renewable energy credits?

WGL Energy Services, Inc. has a significant track record in the energy sector, including experience with federal contracts. As a provider of energy solutions, they have likely managed numerous contracts involving electricity supply, energy efficiency, and potentially renewable energy procurement for various clients, including government entities. Their involvement in managing renewable energy credits specifically would depend on the evolution of federal mandates and market opportunities. Given their established presence, it is probable that they have experience navigating the complexities of renewable energy markets and compliance requirements. To fully assess their track record for this specific type of contract, a review of their past federal awards, performance evaluations, and any reported issues or successes on similar engagements would be necessary. This would provide insight into their capacity, reliability, and effectiveness in fulfilling the requirements of this GSA contract.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include: 1. Market Volatility: Fluctuations in electricity prices and the renewable energy credit market could impact the long-term value proposition of the fixed-price contract, potentially leading to unforeseen costs or reduced savings if market conditions shift significantly. Mitigation: Robust market analysis during the bidding phase and clear contract terms addressing potential price adjustments or hedging strategies. 2. Contractor Performance: Failure by WGL Energy Services to meet performance standards, such as ensuring reliable electricity supply or accurate credit management, could disrupt federal operations. Mitigation: Strong contract oversight, performance monitoring, and clearly defined remedies for non-performance. 3. Regulatory Changes: Evolving environmental regulations or federal energy policies could affect the demand or value of renewable energy credits. Mitigation: Contract clauses that allow for adaptation to significant regulatory shifts and close monitoring of policy developments. 4. Cybersecurity Risks: As with any service involving data management and potentially networked systems, cybersecurity is a concern. Mitigation: Adherence to federal cybersecurity standards and protocols.

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: TWO STEP

Solicitation ID: 47PA0723R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altagas Ltd

Address: 8614 WESTWOOD CENTER DR, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $17,427,115

Exercised Options: $17,427,115

Current Obligation: $17,427,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0723D0027

IDV Type: IDC

Timeline