HHS awards $31.4M for electric power distribution to PEPCO, serving NIH facilities in Maryland
Contract Overview
Contract Amount: $31,363,666 ($31.4M)
Contractor: Potomac Electric Power CO
Awarding Agency: Department of Health and Human Services
Start Date: 2019-10-29
End Date: 2021-10-30
Contract Duration: 732 days
Daily Burn Rate: $42.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: POTOMAC ELECTRIC POWER CO. (PEPCO) UTILITY BILLS. CAN - MULTIPLE. SEE INDIVIDUAL CLINS.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $31.4 million to POTOMAC ELECTRIC POWER CO for work described as: POTOMAC ELECTRIC POWER CO. (PEPCO) UTILITY BILLS. CAN - MULTIPLE. SEE INDIVIDUAL CLINS. Key points: 1. The contract value of $31.4M is significant for utility services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans two years, indicating a medium-term need for these services. 4. The primary risk is potential service disruption, though utility contracts typically have robust contingency plans.
Value Assessment
Rating: fair
Benchmarking utility pricing is complex due to regional variations and service levels. The provided data lacks specific unit costs for comparison, making a precise assessment difficult. However, the total award amount appears substantial for two years of electric distribution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a delivery order under a larger contract structure implies that pricing was established through a prior competitive process, aiming for fair market value.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which should lead to more cost-effective procurement of essential utility services for federal facilities.
Public Impact
Ensures continuous power supply to critical National Institutes of Health (NIH) facilities. Supports the operational needs of vital research and healthcare services. Impacts federal employees and researchers working at NIH locations. Contributes to the stability of essential public services in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single utility provider for essential services.
Positive Signals
- Awarded through full and open competition.
- Supports critical government research and health functions.
Sector Analysis
This contract falls within the Utilities sector, specifically electric power distribution. Federal spending on utilities is a consistent and necessary expenditure, often benchmarked against regional commercial rates and historical government contract data. The $31.4M award is a significant sum for this type of service over two years.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large utility providers like PEPCO typically handle these types of contracts, suggesting limited direct opportunities for small businesses in this specific award.
Oversight & Accountability
The contract was awarded under full and open competition, indicating a standard procurement process. Oversight would involve monitoring service delivery, adherence to terms, and financial accountability by the Department of Health and Human Services (HHS) and NIH.
Related Government Programs
- Electric Power Distribution
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for price escalation in future renewals.
- Dependence on a single provider for essential services.
- Lack of specific unit cost data for granular benchmarking.
- Limited visibility into small business participation.
Tags
electric-power-distribution, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $31.4 million to POTOMAC ELECTRIC POWER CO. POTOMAC ELECTRIC POWER CO. (PEPCO) UTILITY BILLS. CAN - MULTIPLE. SEE INDIVIDUAL CLINS.
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $31.4 million.
What is the period of performance?
Start: 2019-10-29. End: 2021-10-30.
What is the average per-kilowatt-hour cost compared to regional averages?
Without detailed usage data and specific rate schedules from the contract, calculating an average per-kilowatt-hour cost is not possible. Benchmarking would require access to the contract's pricing structure and comparing it against publicly available commercial rates for the Maryland region, considering factors like demand charges and service level agreements.
What are the contingency plans in case of power outages affecting NIH facilities?
Utility contracts typically include service level agreements (SLAs) and contingency plans for outages. These often involve redundant systems, emergency response protocols, and communication channels between the utility provider and the federal agency. The specific details would be outlined in the contract's statement of work and associated appendices.
How does the firm fixed price structure mitigate cost overruns for the government?
A firm fixed price (FFP) contract establishes a set price for the goods or services, regardless of the contractor's actual costs. This structure shifts the risk of cost overruns to the contractor (PEPCO), providing the government (HHS/NIH) with cost certainty and protecting taxpayer funds from unexpected increases in the utility provider's expenses.
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
Parent Company: Exelon Corporation
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: $31,363,666
Exercised Options: $31,363,666
Current Obligation: $31,363,666
Actual Outlays: $4,599,867
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
Start Date: 2019-10-29
Current End Date: 2021-10-30
Potential End Date: 2021-10-30 00:00:00
Last Modified: 2022-06-16
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