DOJ's $15.1M electricity contract with Plumas-Sierra Rural Electric Co-operative awarded in 2001

Contract Overview

Contract Amount: $12,422,676 ($12.4M)

Contractor: Plumas-Sierra Rural Electric Co-Operative

Awarding Agency: Department of Justice

Start Date: 2001-09-15

End Date: 2013-01-15

Contract Duration: 4,140 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: 151060 ELECTRICITY

Place of Performance

Location: HERLONG, LASSEN County, CALIFORNIA, 96113

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $12.4 million to PLUMAS-SIERRA RURAL ELECTRIC CO-OPERATIVE for work described as: 151060 ELECTRICITY Key points: 1. Contract awarded for electricity distribution services to the Federal Prison System. 2. The contract duration was 4140 days, spanning over 11 years. 3. Awarded as a sole-source contract, limiting competitive bidding. 4. The contract type is Fixed Price with Economic Price Adjustment. 5. The geographic location of service is California. 6. The contractor is Plumas-Sierra Rural Electric Co-operative. 7. The contract was awarded by the Department of Justice. 8. The contract was awarded in 2001 and ended in 2013.

Value Assessment

Rating: fair

Benchmarking the value of this electricity contract is challenging due to its age and the specific nature of rural electric cooperative pricing. The fixed price with economic price adjustment suggests an attempt to manage cost fluctuations over a long period. Without current market data or comparable sole-source contracts for similar correctional facilities, a precise value-for-money assessment is difficult. However, the extended duration and the nature of essential utility services imply a consistent need and potentially stable pricing, though the economic price adjustment could have led to significant cost increases over 11 years.

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. This typically occurs when only one responsible source is available or capable of providing the required service. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. The justification for a sole-source award would need to be thoroughly documented by the agency to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's ability to leverage market competition for cost savings.

Public Impact

The Federal Prison System benefits from a reliable supply of electricity. This contract ensures the continuous operation of essential services within the correctional facility. The geographic impact is localized to the area served by Plumas-Sierra Rural Electric Co-operative in California. The contract supports the operational workforce of the correctional facility by ensuring power availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Long contract duration (over 11 years) with economic price adjustment introduces uncertainty in final cost.
Lack of transparency in the justification for sole-source award.

Positive Signals

Ensured continuous and reliable electricity supply for a critical federal facility.
Contractor is a rural electric cooperative, potentially serving a specific community need.
Fixed price component provides some cost predictability.

Sector Analysis

Electricity distribution is a critical utility sector. Contracts for electricity are common across all federal agencies, particularly for facilities requiring continuous power. The market for electricity distribution is often localized, with regulated utilities serving specific geographic areas. The size of this contract, approximately $1.24 million annually on average, is moderate for a federal utility contract, but its sole-source nature is a key characteristic. Comparable spending would involve other federal facilities' utility contracts, but direct comparisons are difficult due to varying rates and service areas.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Plumas-Sierra Rural Electric Co-operative is a member-owned cooperative, and its structure may differ from traditional for-profit businesses. The impact on the broader small business ecosystem is likely minimal given the nature of the award and the service provided.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's procurement and financial management systems. Given the contract's age and sole-source nature, the level of transparency and specific oversight mechanisms would depend on internal DOJ policies at the time of award and during its performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Utilities
Department of Justice Energy Contracts
Rural Electric Cooperative Contracts
Sole-Source Utility Awards

Risk Flags

Sole-source award may indicate limited competition.
Economic Price Adjustment introduces cost uncertainty over long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.4 million to PLUMAS-SIERRA RURAL ELECTRIC CO-OPERATIVE. 151060 ELECTRICITY

Who is the contractor on this award?

The obligated recipient is PLUMAS-SIERRA RURAL ELECTRIC CO-OPERATIVE.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2001-09-15. End: 2013-01-15.

What was the specific justification provided by the Department of Justice for awarding this electricity contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification would typically be documented in a Justification for Other Than Full and Open Competition (JOFOC) or a similar agency document. Common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs where competition is not feasible, or specific statutory authority. For a rural electric cooperative serving a federal facility, the justification might have centered on the unique service territory of the cooperative, the lack of alternative providers in that specific geographic area, or the need to maintain continuity of essential services without interruption. Without access to the agency's internal documentation from 2001, the precise justification remains unconfirmed.

How did the economic price adjustment (EPA) clause impact the total cost of the contract over its 11-year duration?

The economic price adjustment (EPA) clause in this contract allowed for modifications to the fixed price based on changes in specific economic factors, likely related to the cost of electricity generation and distribution. Over an 11-year period (2001-2013), significant fluctuations in fuel costs (natural gas, coal), regulatory changes, and infrastructure investment by the utility could have led to substantial price increases. While the EPA aims to protect both the contractor from unforeseen cost increases and the government from excessive pricing, it introduces variability. To determine the total impact, one would need to analyze the specific indices or formulas tied to the EPA and compare the adjusted prices to what a fixed-price contract or a more competitive scenario might have yielded. Without detailed billing records and the specific EPA formula, quantifying the exact cost impact is not possible from the provided summary data.

What is the typical annual spending for electricity distribution services for federal correctional facilities of similar size and location?

Determining typical annual spending for electricity distribution for similar federal correctional facilities is complex due to several factors. Firstly, the cost of electricity varies significantly by region, state, and even local utility provider rates. Secondly, the size and operational demands (e.g., HVAC, lighting, equipment) of correctional facilities differ greatly. Thirdly, the contract type (fixed price, cost-plus, with or without EPA) and competition level heavily influence pricing. For a facility requiring approximately $1.24 million annually (based on the total award divided by duration), this might be considered moderate to high depending on the specific location and facility size. Facilities in areas with higher energy costs or those with older, less efficient infrastructure might incur higher expenses. A comprehensive benchmark would require analyzing recent contracts for similar facilities, factoring in geographic cost differences and contract terms.

What is the track record of Plumas-Sierra Rural Electric Co-operative in serving federal government contracts?

Plumas-Sierra Rural Electric Co-operative (PSREC) is a utility cooperative serving a specific rural region in California. Its primary mission is to provide reliable and affordable electricity to its members. While PSREC has a long history of serving its service area, its track record specifically with federal government contracts, beyond this DOJ award, is not detailed in the provided data. Federal contracts, especially sole-source awards, often require specific administrative capabilities and compliance protocols. As a cooperative, its operational focus is typically on its membership rather than broad federal contracting. Information regarding past performance, any disputes, or other federal awards would need to be sought from federal procurement databases or the contractor directly.

Were there any performance issues or contract disputes reported during the execution of this 11-year electricity contract?

The provided data summary does not contain information regarding performance issues or contract disputes related to this specific electricity contract between the Department of Justice and Plumas-Sierra Rural Electric Co-operative. Contract performance is typically monitored by the Contracting Officer's Representative (COR) or the Contracting Officer (CO) throughout the contract's life. Issues could range from service interruptions, billing discrepancies, or failure to meet service level agreements. Disputes, if unresolved, could escalate to formal claims or litigation. To ascertain if any such issues occurred, one would need to consult contract administration records, agency performance reports, or legal dockets associated with the contract.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 73233 STATE ROUTE 70 A, PORTOLA, CA, 03

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,422,676

Exercised Options: $12,422,676

Current Obligation: $12,422,676

Timeline