GSA awards $4.08M utility energy service contract for Oklahoma federal facilities, extending through 2045

Contract Overview

Contract Amount: $4,078,192 ($4.1M)

Contractor: Oklahoma GAS and Electric Company

Awarding Agency: General Services Administration

Start Date: 2020-09-16

End Date: 2045-03-31

Contract Duration: 8,962 days

Daily Burn Rate: $455/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTILITY ENERGY SERVICE CONTRACT FOR OKLAHOMA CITY FEDERAL PARKING GARAGE AND OKLAHOMA CITY FEDERAL BUILDING,OKLAHOMA CITY, OK AND ED EDMUNDSON US COURTHOUSE IN MUSKOGEE, OK

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73102

State: Oklahoma Government Spending

Plain-Language Summary

General Services Administration obligated $4.1 million to OKLAHOMA GAS AND ELECTRIC COMPANY for work described as: UTILITY ENERGY SERVICE CONTRACT FOR OKLAHOMA CITY FEDERAL PARKING GARAGE AND OKLAHOMA CITY FEDERAL BUILDING,OKLAHOMA CITY, OK AND ED EDMUNDSON US COURTHOUSE IN MUSKOGEE, OK Key points: 1. Contract aims to improve energy efficiency and reduce utility costs for federal buildings. 2. Long-term nature of the contract suggests a focus on sustained performance and savings. 3. Sole-source award raises questions about potential cost savings compared to a competitive process. 4. Performance period spans over 14 years, indicating a significant commitment to the service provider. 5. The contract falls under the Public Buildings Service, responsible for federal building operations. 6. Focus on utility energy services aligns with broader government goals for sustainability and cost reduction.

Value Assessment

Rating: fair

The contract value of $4.08 million over its extended period appears to be a fixed price for energy services. Without specific performance metrics or benchmarks for energy savings, it is difficult to definitively assess value for money. Comparing this to similar utility energy service contracts for federal buildings of comparable size and scope would be necessary for a more robust evaluation. The long duration suggests potential for significant long-term savings if energy efficiency targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific circumstances like utility services where a single provider may be the only option. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage competitive bidding to secure the lowest possible price. This could result in a higher overall expenditure for the government compared to a competitively awarded contract.

Public Impact

Federal employees and visitors using the Oklahoma City Federal Parking Garage, Oklahoma City Federal Building, and Edmundson US Courthouse will benefit from improved facility operations. The contract delivers essential utility energy services, likely including electricity and potentially other energy-related management and efficiency improvements. The geographic impact is concentrated in Oklahoma City, Oklahoma, and Muskogee, Oklahoma. While not directly creating new jobs, the contract supports the ongoing operations and maintenance of federal infrastructure, indirectly impacting the federal workforce and associated service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration (until 2045) may reduce flexibility to adapt to new technologies or market changes.
Lack of detailed performance metrics in the provided data makes it challenging to assess actual energy savings achieved.
Fixed-price contract could expose the government to risks if energy prices fluctuate significantly beyond projections.

Positive Signals

Addresses energy efficiency and utility costs, aligning with federal sustainability goals.
Long-term commitment allows for sustained investment in energy-saving measures.
Contract covers multiple federal facilities, potentially offering economies of scale for the provider.
Awarded by the General Services Administration (GSA), an agency with significant experience in facility management.

Sector Analysis

This contract falls within the broader energy services sector, specifically focusing on utility energy services for federal buildings. The market for energy service companies (ESCOs) is competitive, but utility-specific contracts can sometimes be sole-sourced due to existing infrastructure or regulatory frameworks. The General Services Administration (GSA) is a major procurer of such services for federal real estate. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per unit of energy consumed for similar federal facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited based on this information. Without specific subcontracting plans, it's difficult to assess the extent to which small businesses might be involved in fulfilling parts of this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures would be tied to the contract's performance clauses and the achievement of energy savings targets. Transparency is generally facilitated through GSA's contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Energy Management Program (FEMP)
GSA Energy Programs
Utility Energy Service Contracts (UESC)
Federal Building Operations and Maintenance

Risk Flags

Sole-source award
Long contract duration
Lack of detailed performance metrics
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.1 million to OKLAHOMA GAS AND ELECTRIC COMPANY. UTILITY ENERGY SERVICE CONTRACT FOR OKLAHOMA CITY FEDERAL PARKING GARAGE AND OKLAHOMA CITY FEDERAL BUILDING,OKLAHOMA CITY, OK AND ED EDMUNDSON US COURTHOUSE IN MUSKOGEE, OK

Who is the contractor on this award?

The obligated recipient is OKLAHOMA GAS AND ELECTRIC COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2020-09-16. End: 2045-03-31.

What is the historical spending pattern for utility energy services at these specific Oklahoma federal facilities prior to this contract?

Detailed historical spending data for utility energy services at the Oklahoma City Federal Parking Garage, Oklahoma City Federal Building, and Edmundson US Courthouse prior to the September 2020 award is not publicly available in the provided data. To assess historical patterns, one would need to access GSA's internal financial records or previous utility bills for these specific locations. Understanding past expenditures would allow for a more accurate comparison to the projected savings and overall value of this new contract. Without this baseline, it's challenging to quantify the 'before and after' impact of the energy service contract on government spending for these facilities.

How does the per-unit cost of energy services under this contract compare to market rates for similar federal facilities in the region?

The provided data does not include specific per-unit cost breakdowns (e.g., cost per kilowatt-hour, cost per therm) for the energy services rendered under this contract. The total award amount of $4.08 million is for the entire duration and scope of services, not a direct per-unit rate. To compare this to market rates, one would need to know the estimated energy consumption of the facilities and then calculate the implied per-unit cost from the contract value. This calculation would then need to be benchmarked against average utility rates and energy service contract costs for comparable federal buildings in Oklahoma or similar climatic and economic regions. Given the sole-source nature, a direct comparison might be difficult without access to benchmark data from competitively procured contracts.

What are the specific energy efficiency measures or technologies being implemented under this contract?

The provided data summary does not specify the exact energy efficiency measures or technologies to be implemented under this Utility Energy Service Contract (UESC). Typically, UESCs involve a range of upgrades such as LED lighting retrofits, HVAC system improvements, building envelope enhancements (insulation, window upgrades), smart building controls, and potentially renewable energy installations. The Oklahoma Gas and Electric Company, as the utility provider, would likely focus on measures that reduce electricity consumption and demand. A detailed review of the contract's scope of work or associated technical exhibits would be necessary to identify the specific technologies and expected energy savings associated with each.

What is the track record of Oklahoma Gas and Electric Company in delivering similar energy service contracts for federal agencies?

Oklahoma Gas and Electric Company (OG&E) is a major utility provider in Oklahoma. While their primary business is energy delivery, utilities often engage in energy efficiency programs and services for their customers, including government facilities. Information regarding OG&E's specific track record in delivering comprehensive Utility Energy Service Contracts (UESCs) for federal agencies, particularly those of this duration and scope, is not detailed in the provided data. A thorough assessment would require reviewing past federal contract awards to OG&E, performance evaluations (e.g., CPARS reports), and any case studies they may have published regarding federal energy projects. Their established presence as a utility suggests operational capacity, but specific federal project experience would need independent verification.

What are the projected energy savings, and how are they guaranteed or verified under this contract?

The provided data does not include specific figures for projected energy savings or details on the guarantee and verification mechanisms for this contract. Utility Energy Service Contracts (UESCs) often operate on a 'shared savings' model or include a guaranteed energy savings performance (GESP) clause. This means the contractor is typically obligated to achieve a certain level of energy reduction, and the government's payment may be tied to these achieved savings. Verification usually involves ongoing measurement and verification (M&V) processes, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). Without explicit details in the summary, it's assumed these elements are defined within the full contract documents.

What is the potential risk associated with the long contract duration (ending in 2045) regarding technological obsolescence or changing energy markets?

The long duration of this contract, extending to March 2045, presents a potential risk of technological obsolescence. Energy efficiency technologies are constantly evolving, and measures installed early in the contract term might become outdated or less efficient compared to newer innovations available later. Furthermore, energy markets can be volatile, with fluctuating prices and shifts towards different energy sources (e.g., renewables). A fixed-price contract over such a long period might not fully capture these market dynamics or allow the government to capitalize on potentially cheaper future technologies or energy supplies. Contract clauses addressing technology upgrades, market reviews, or flexibility could mitigate some of this risk, but these are not detailed in the summary.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: EQ7PMD-20-0057

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 321 N HARVEY, OKLAHOMA CITY, OK, 73101

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

Financial Breakdown

Contract Ceiling: $14,665,099

Exercised Options: $4,078,192

Current Obligation: $4,078,192

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0417D0001

IDV Type: IDC

Timeline