HHS awards $1.3M for electric commodity delivery to FirstEnergy Pennsylvania Electric Company

Contract Overview

Contract Amount: $1,301,667 ($1.3M)

Contractor: Firstenergy Pennsylvania Electric Company

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-01

End Date: 2026-04-30

Contract Duration: 484 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC COMMODITY DELIVERY NIOSH PITTSBURGH

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.3 million to FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY for work described as: ELECTRIC COMMODITY DELIVERY NIOSH PITTSBURGH Key points: 1. Value for money appears fair given the fixed-price nature and duration, though specific performance metrics are not detailed. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and competitive pressure. 3. Risk indicators include the sole-source nature and the potential for price volatility in energy commodities. 4. Performance context is limited to a 484-day delivery period for electric power. 5. Sector positioning places this contract within the utility services sector, supporting federal facilities.

Value Assessment

Rating: fair

The contract's value of approximately $1.3 million over 484 days for electric commodity delivery is difficult to benchmark without specific energy usage data or comparable federal facility contracts in the region. The firm fixed-price structure provides cost certainty for the government, but the absence of detailed performance metrics or unit cost breakdowns makes a precise value-for-money assessment challenging. It is noted that energy commodity prices can fluctuate, and the fixed price may either benefit or disadvantage the government depending on market trends.

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 approach is typically used when only one responsible source is available or authorized by statute. The lack of competition means that multiple bidders were not considered, which can limit the government's ability to secure the most favorable pricing and terms through a competitive bidding process. Price discovery is therefore constrained.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from potential cost savings that could have arisen from a competitive bidding process. This could lead to a higher overall cost for the government compared to a competed contract.

Public Impact

The primary beneficiary is the National Institute for Occupational Safety and Health (NIOSH) facility in Pittsburgh, PA, which will receive reliable electric power. The service delivered is the provision of electricity, a critical utility for facility operations. The geographic impact is localized to Pittsburgh, Pennsylvania, where the NIOSH facility is located. There are no direct workforce implications as this is a commodity delivery contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure and potential cost savings.
Potential for energy price volatility impacting the fixed-price contract's value over time.
Lack of detailed performance metrics makes assessing efficiency difficult.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Ensures essential utility service delivery to a critical federal research facility.
Contract duration aligns with operational needs for the specified period.

Sector Analysis

This contract falls within the utility services sector, specifically focusing on the delivery of electric power. The market for electricity is typically dominated by regulated utilities within specific geographic service areas. Federal agencies often procure such essential services through direct contracts with the incumbent utility provider, especially when facilities are located in areas with limited alternative providers. Comparable spending benchmarks for electricity vary widely based on facility size, energy consumption, and regional pricing.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities, as it is a sole-source award to a large utility provider for a commodity service. The focus is on direct service delivery rather than engaging a diverse range of contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of Health and Human Services (HHS), and its respective program offices responsible for facility management. Accountability measures would be tied to the delivery of electricity as per the contract terms. Transparency is limited due to the sole-source nature and the lack of public performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Contracts
Energy Procurement
Government Facility Operations
NIOSH Operations Support

Risk Flags

Sole-source award may indicate a lack of market research or limited vendor options.
Lack of detailed performance metrics hinders objective evaluation of service quality.
Potential for price fluctuations in energy markets could impact long-term value, despite fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.3 million to FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY. ELECTRIC COMMODITY DELIVERY NIOSH PITTSBURGH

Who is the contractor on this award?

The obligated recipient is FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $1.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-04-30.

What is the historical spending pattern for electric commodity delivery at the NIOSH Pittsburgh facility?

Historical spending data for electric commodity delivery at the NIOSH Pittsburgh facility is not directly available in the provided data. However, the current award of approximately $1.3 million over 484 days (roughly $2,689 per day on average) suggests a significant but not exceptionally large expenditure for a federal facility's power needs. To understand historical patterns, one would need to access past contract awards for this specific facility or similar facilities managed by HHS/CDC in the region. Analyzing trends in energy consumption, pricing fluctuations, and the duration of previous contracts would provide valuable context for assessing the current award's reasonableness and identifying any significant deviations or escalations in spending.

How does the per-unit cost of electricity under this contract compare to market rates in Pittsburgh, PA?

Determining the precise per-unit cost of electricity under this contract is challenging without knowing the total kilowatt-hours (kWh) to be delivered. The total award is $1,301,666.66 over 484 days. If we assume an average daily cost of approximately $2,689, this figure needs to be converted to a per-kWh rate. Market rates for commercial electricity in Pennsylvania can vary significantly based on the utility provider, time of use, and whether the energy is purchased on the spot market or through a fixed-price contract. Generally, commercial rates in Pennsylvania have ranged from $0.10 to $0.15 per kWh in recent years. Without the volume of electricity specified in the contract, a direct comparison is not feasible. However, the total award suggests a substantial energy demand consistent with a research facility.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this electric commodity delivery contract. Typically, such contracts would include requirements for reliability (e.g., uptime percentage), response times for outages, and potentially power quality standards. The absence of this information in the summary data makes it difficult to assess the contractor's performance obligations and the government's recourse in case of service failures. A thorough review of the full contract document would be necessary to identify these critical performance parameters and ensure they align with the operational needs of the NIOSH Pittsburgh facility.

What is the track record of FirstEnergy Pennsylvania Electric Company in serving federal government contracts?

FirstEnergy Pennsylvania Electric Company, as a major utility provider, likely has a history of serving various customers, including potentially federal facilities within its service territory. However, specific details regarding its track record with federal government contracts, such as past performance ratings, number of awards, or any significant issues encountered, are not provided in this data summary. Federal agencies often maintain past performance information databases. To assess their track record comprehensively, one would need to consult these databases or review publicly available contract award data for other federal agencies that may have contracted with FirstEnergy.

What is the potential impact of energy market volatility on this fixed-price contract?

The firm fixed-price nature of this contract offers cost certainty to the government, shielding it from immediate price increases in the electricity market. However, if energy commodity prices rise significantly above the contracted rate during the 484-day period, FirstEnergy Pennsylvania Electric Company could experience reduced profit margins or even losses. Conversely, if prices fall, the contractor benefits from higher-than-anticipated profits. The risk of market volatility is thus borne by the contractor in this structure. The long-term impact depends on the duration of the contract and the magnitude of price fluctuations. For a contract of this duration, significant volatility could still impact the contractor's willingness to bid competitively on future sole-source renewals if they perceive substantial risk.

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: 75D301-25-Q-78582

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 76 S MAIN ST, AKRON, OH, 44308

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

Financial Breakdown

Contract Ceiling: $1,301,667

Exercised Options: $1,301,667

Current Obligation: $1,301,667

Actual Outlays: $582,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0033

IDV Type: IDC

Timeline