Navajo Tribal Utility Authority awarded $32.6M for electric power distribution in Arizona

Contract Overview

Contract Amount: $32,600 ($32.6K)

Contractor: Navajo Tribal Utility Authority

Awarding Agency: Department of Health and Human Services

Start Date: 2025-03-26

End Date: 2027-03-31

Contract Duration: 735 days

Daily Burn Rate: $44/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2025 - UTILITY SERVICES FOR SFC-OEHE FIELD OFFICE IN FORT DEFIANCE

Place of Performance

Location: FORT DEFIANCE, APACHE County, ARIZONA, 86504

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32,600 to NAVAJO TRIBAL UTILITY AUTHORITY for work described as: 2025 - UTILITY SERVICES FOR SFC-OEHE FIELD OFFICE IN FORT DEFIANCE Key points: 1. Contract awarded to a tribal entity, potentially reflecting specific socio-economic considerations. 2. The contract is for utility services, a critical but often overlooked component of federal operations. 3. Fixed-price contract type suggests cost certainty for the government. 4. Long-term duration of over two years indicates a stable need for these services. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. Geographic focus on Fort Defiance, Arizona, highlights service to a specific region.

Value Assessment

Rating: fair

The contract value of $32.6 million over approximately two years for electric power distribution services appears reasonable for a remote service area. Benchmarking against similar utility contracts is challenging due to the specialized nature and geographic location. However, the fixed-price structure provides a degree of cost control. Further analysis would require comparing per-unit energy costs or service delivery metrics to regional averages, which are not readily available in the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing. The agency sought proposals from all responsible sources, suggesting a desire to secure the best value through a broad market search.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and better value for the government's money.

Public Impact

The Navajo Tribal Utility Authority benefits directly as the contractor, receiving significant revenue. The Indian Health Service facilities in Fort Defiance, Arizona, will receive essential electric power. Residents and staff at the Fort Defiance Indian Health Service facility will have reliable power. The contract supports the local economy in Arizona through employment and business activity for the utility provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the contract term if energy market fluctuates significantly, despite fixed-price structure.
Dependence on a single provider for critical utility services could pose a risk if service is interrupted.
Limited data on the contractor's specific performance history for federal contracts.

Positive Signals

Award to a tribal entity can support specific government objectives related to economic development and self-determination.
Fixed-price contract type offers budget predictability.
Long-term nature of the contract suggests a stable and ongoing need, indicating essential service provision.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on electric power distribution. The market for utility services to federal installations, particularly in remote or underserved areas, can be specialized. The Navajo Tribal Utility Authority's role suggests a focus on serving tribal lands and associated federal facilities. Comparable spending benchmarks for utility services can vary widely based on location, infrastructure, and service level agreements.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The award to a tribal utility authority may have implications for local economic development but does not directly address small business participation in the subcontracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) contracting office and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed performance reports or Inspector General reviews are not publicly detailed in this data.

Related Government Programs

Indian Health Service Operations
Federal Utility Contracts
Tribal Economic Development Programs
Arizona Federal Spending

Risk Flags

Potential for service disruption due to geographic isolation.
Dependence on a single provider for critical infrastructure.
Limited public data on contractor's specific federal performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32,600 to NAVAJO TRIBAL UTILITY AUTHORITY. 2025 - UTILITY SERVICES FOR SFC-OEHE FIELD OFFICE IN FORT DEFIANCE

Who is the contractor on this award?

The obligated recipient is NAVAJO TRIBAL UTILITY AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $32,600.

What is the period of performance?

Start: 2025-03-26. End: 2027-03-31.

What is the historical spending pattern for utility services at the Fort Defiance Indian Health Service facility?

Historical spending data for utility services at the Fort Defiance Indian Health Service facility is not provided in the current dataset. To assess historical patterns, one would need to examine previous contracts for electricity, water, and other utilities at this specific location over several fiscal years. This would involve searching federal procurement databases for awards made to various utility providers. Analyzing these past awards would reveal trends in contract values, durations, competition levels, and the types of services procured, allowing for a comparison to the current $32.6 million award and its duration. Understanding historical spending is crucial for identifying potential cost escalations or efficiencies over time.

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

The provided data does not include specific per-unit cost metrics (e.g., cost per kilowatt-hour) for the electricity supplied under this contract. The total award of $32.6 million is for electric power distribution services over a period of approximately two years. To compare per-unit costs to market rates in Arizona, one would need to obtain the detailed pricing structure within the contract and compare it against average commercial or industrial electricity rates published by the Arizona Corporation Commission or the U.S. Energy Information Administration for the relevant service area. Without these specific unit costs, a direct benchmark is not possible, making it difficult to definitively assess value for money on a per-unit basis.

What is the track record of the Navajo Tribal Utility Authority in performing similar federal contracts?

The provided data identifies the Navajo Tribal Utility Authority (NTUA) as the contractor but does not detail their specific track record with federal contracts. To assess NTUA's performance history, one would need to consult federal contract databases (like SAM.gov or FPDS) for past awards to NTUA, particularly those involving utility services for federal agencies. Reviewing past performance evaluations, contract modifications, and any instances of disputes or terminations would provide insight into their reliability, quality of service, and ability to meet federal requirements. A strong performance history would indicate lower risk for this current contract.

What are the specific services included in 'Electric Power Distribution' for this contract?

The contract specifies 'Electric Power Distribution' as the service, valued at $32.6 million. This typically encompasses the operation, maintenance, and management of the electrical distribution infrastructure necessary to deliver power to the Indian Health Service (IHS) facilities in Fort Defiance, Arizona. Services likely include maintaining substations, power lines, transformers, and associated equipment; ensuring reliable power supply; managing load balancing; and potentially responding to outages. The exact scope would be detailed in the contract's Statement of Work (SOW), which would outline specific performance standards, service level agreements, and reporting requirements.

Are there any known risks associated with utility service contracts in remote or tribal areas?

Yes, utility service contracts in remote or tribal areas can present specific risks. These include potential challenges in accessing specialized maintenance personnel or equipment, longer lead times for repairs or upgrades, and greater vulnerability to environmental factors (e.g., weather events impacting power lines). Furthermore, reliance on a single provider in geographically isolated areas can reduce redundancy and increase the impact of service disruptions. Ensuring robust contingency plans, clear communication protocols, and performance incentives within the contract is crucial to mitigate these risks.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HIGHWAY 12 N, FORT DEFIANCE, AZ, 86504

Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,600

Exercised Options: $32,600

Current Obligation: $32,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0425D0008

IDV Type: IDC

Timeline