HHS awards $10.26M for electrical equipment upgrades, with a 2011 contract duration

Contract Overview

Contract Amount: $10,257,007 ($10.3M)

Contractor: Potomac Electric Power CO

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-27

End Date: 2026-02-28

Contract Duration: 2,011 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UESC 9 - DESIGN AND INSTALLATION FOR ELECTRICAL EQUIPMENT UPGRADES UNDER THE POTOMAC POWER ELECTRIC COMPANY INC., CONTRACT NO.: GS-00P-10-BSD-0725

Place of Performance

Location: LAUREL, PRINCE GEORGES County, MARYLAND, 20708

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to POTOMAC ELECTRIC POWER CO for work described as: UESC 9 - DESIGN AND INSTALLATION FOR ELECTRICAL EQUIPMENT UPGRADES UNDER THE POTOMAC POWER ELECTRIC COMPANY INC., CONTRACT NO.: GS-00P-10-BSD-0725 Key points: 1. Value for money appears fair given the long performance period and fixed-price nature. 2. Competition dynamics indicate a full and open process, likely promoting competitive pricing. 3. Risk indicators are moderate, with a long performance period potentially introducing execution risks. 4. Performance context is tied to essential infrastructure upgrades for the FDA. 5. Sector positioning is within the utility and infrastructure maintenance domain.

Value Assessment

Rating: fair

The contract value of $10.26 million for electrical equipment upgrades over approximately six years suggests a moderate annual spend. Benchmarking against similar federal contracts for electrical infrastructure modernization is challenging without more granular data on the scope of work. However, the firm-fixed-price structure provides cost certainty for the government, which is a positive indicator for value, assuming the contractor can deliver within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and better terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process maximizes the potential for taxpayer savings by encouraging multiple companies to bid, driving down costs through competitive pressure.

Public Impact

The Food and Drug Administration (FDA) benefits from upgraded electrical infrastructure, ensuring operational continuity and safety. Services delivered include the design and installation of electrical equipment upgrades. The geographic impact is localized to Maryland, where the FDA facilities are located. Workforce implications include potential employment opportunities for electricians, engineers, and project managers involved in the installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to scope creep or increased costs if not managed effectively.
Potential for unforeseen technical challenges during installation of electrical equipment upgrades.
Reliance on a single contractor for a critical infrastructure project introduces some level of dependency.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Full and open competition suggests a robust bidding process that likely secured a competitive price.
Upgrading critical electrical infrastructure enhances operational reliability for a key government agency.

Sector Analysis

This contract falls within the broader utilities and infrastructure maintenance sector, specifically focusing on electrical power distribution and upgrades. The market for such services is substantial, encompassing both public and private sector entities responsible for maintaining and modernizing critical infrastructure. Comparable spending benchmarks would typically involve large-scale electrical system overhauls in government facilities or large commercial buildings.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Potomac Electric Power Co., chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Food and Drug Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though detailed performance monitoring reports may not be publicly accessible.

Related Government Programs

Federal Buildings Fund
General Services Administration (GSA) Schedules
Energy Infrastructure Modernization Projects
Public Utility Contracts

Risk Flags

Long contract duration
Potential for scope creep
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to POTOMAC ELECTRIC POWER CO. UESC 9 - DESIGN AND INSTALLATION FOR ELECTRICAL EQUIPMENT UPGRADES UNDER THE POTOMAC POWER ELECTRIC COMPANY INC., CONTRACT NO.: GS-00P-10-BSD-0725

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER CO.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2020-08-27. End: 2026-02-28.

What is the historical spending pattern for electrical equipment upgrades at the FDA?

Analyzing historical spending patterns for electrical equipment upgrades at the FDA is crucial for understanding the context of this $10.26 million award. Without access to specific historical data for this contract line item or similar projects within the FDA, a precise comparison is difficult. However, federal agencies like the FDA often undertake multi-year infrastructure modernization efforts. These can range from routine maintenance to significant overhauls of critical systems. The duration of this contract (2020-2026) suggests a substantial project, potentially part of a larger, ongoing capital improvement plan. Understanding the frequency and scale of past upgrades, as well as the costs associated with them, would help determine if this current award represents a typical investment, an increase, or a decrease in spending for such services.

How does the annual cost of this contract compare to industry benchmarks for similar electrical upgrade projects?

The total contract value is $10.26 million over approximately six years (from August 2020 to February 2028, considering the delivery order period). This averages to roughly $1.71 million per year. Benchmarking this annual cost against industry standards for similar electrical equipment upgrades requires detailed information about the scope of work, the specific types of equipment being installed or upgraded, and the complexity of the installation environment (e.g., active facility, seismic requirements, specific power loads). General industry benchmarks for large-scale electrical infrastructure projects can vary widely. However, for a federal agency like the FDA, which likely has stringent requirements for reliability, safety, and compliance, costs might be at the higher end of the spectrum compared to standard commercial projects. Without a detailed breakdown of the 'design and installation for electrical equipment upgrades,' a precise comparison is not feasible, but the annual spend appears substantial for infrastructure work.

What are the specific risks associated with a long-duration contract for electrical equipment installation?

A long-duration contract, such as this one spanning over six years, for electrical equipment installation presents several potential risks. Firstly, there's the risk of 'scope creep,' where the requirements may evolve over time due to changing needs or unforeseen site conditions, potentially leading to cost overruns if not managed through formal change orders. Secondly, technological advancements in electrical equipment could render the initially specified systems outdated before the project's completion, necessitating costly upgrades or modifications. Thirdly, contractor performance can degrade over extended periods, or key personnel might leave, impacting project continuity and quality. Finally, prolonged construction or installation activities within an operational facility can lead to disruptions, safety hazards, and increased logistical challenges. Effective project management, clear communication, and robust oversight are critical to mitigating these risks.

What is Potomac Electric Power Co.'s track record with similar federal contracts?

Information regarding Potomac Electric Power Co.'s (PEPCO) specific track record with similar federal contracts, particularly for design and installation of electrical equipment upgrades, is not detailed in the provided data. PEPCO is primarily known as a utility company serving the Washington D.C. metropolitan area. While they possess extensive experience in electrical power distribution and infrastructure management, their direct experience as a prime contractor for federal design-build projects of this nature would need further investigation. Federal contract databases (like SAM.gov or FPDS) would typically contain records of past performance, including contract values, agencies served, and performance ratings. Without this specific data, it's difficult to assess their suitability and past success in executing similar federal contracts beyond their core utility operations.

How does the 'firm fixed price' contract type influence the government's risk and potential for cost savings?

A Firm Fixed Price (FFP) contract type, as used here, places the primary responsibility for cost overruns on the contractor. This means the contractor agrees to a set price for the defined scope of work, and any costs incurred above that price are absorbed by them. For the government, this offers significant cost certainty and predictability, making budgeting easier. It also incentivizes the contractor to manage their costs efficiently and perform the work as economically as possible to maximize their profit. The main risk for the government under an FFP contract is that the contractor might cut corners on quality or scope to stay within budget, although this is mitigated by contract specifications and oversight. For a project like electrical equipment upgrades, where the scope can be well-defined, FFP is generally considered a favorable contract type for the government, promoting value for money.

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

Address: 701 9TH ST NW, WASHINGTON, DC, 20068

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

Financial Breakdown

Contract Ceiling: $10,257,007

Exercised Options: $10,257,007

Current Obligation: $10,257,007

Actual Outlays: $9,677,183

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P10BSD0725

IDV Type: IDC

Timeline