NIH Awards $207M UESC to PEPCO for Energy Conservation Project
Contract Overview
Contract Amount: $2,069,574 ($2.1M)
Contractor: Potomac Electric Power CO
Awarding Agency: Department of Health and Human Services
Start Date: 2023-05-25
End Date: 2042-12-01
Contract Duration: 7,130 days
Daily Burn Rate: $290/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: UTILITY ENERGY SERVICES CONTRACT (UESC) ENERGY CONSERVATION PROJECT WITH POTOMAC ELECTRIC POWER COMPANY (PEPCO) IN ACCORDANCE WITH THE AREA WIDE PUBLIC UTILITY CONTRACT 47PA0420D0064, THE TASK ORDER, AND THE PROPOSAL DATED 12/22/2022. ATTACHMENT 1
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.1 million to POTOMAC ELECTRIC POWER CO for work described as: UTILITY ENERGY SERVICES CONTRACT (UESC) ENERGY CONSERVATION PROJECT WITH POTOMAC ELECTRIC POWER COMPANY (PEPCO) IN ACCORDANCE WITH THE AREA WIDE PUBLIC UTILITY CONTRACT 47PA0420D0064, THE TASK ORDER, AND THE PROPOSAL DATED 12/22/2022. ATTACHMENT 1 Key points: 1. Significant long-term contract for energy efficiency upgrades. 2. Sole-source award to PEPCO, limiting competitive options. 3. Potential for substantial energy cost savings over contract life. 4. Focus on utility services suggests a mature, established sector.
Value Assessment
Rating: fair
The contract value of $207M over 19 years is substantial. Without comparable UESC contracts or detailed cost breakdowns, assessing value for money is difficult. The firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. While UESCs often leverage existing utility relationships, the lack of competition limits price discovery and potentially higher savings.
Taxpayer Impact: Taxpayers may not receive the best possible price due to the sole-source nature of the award, though energy savings are expected.
Public Impact
Potential for reduced energy consumption and environmental impact at NIH facilities. Long-term commitment may ensure sustained energy efficiency improvements. Dependence on a single utility provider for critical energy services. Contract duration extends beyond typical federal acquisition cycles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of detailed cost justification
Positive Signals
- Potential for significant energy savings
- Firm fixed-price contract
- Focus on energy conservation
Sector Analysis
This contract falls within the utility services sector, specifically energy conservation projects. Benchmarks for UESCs vary widely based on scope, but $207M over 19 years represents a significant investment in facility modernization.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to a large utility company.
Oversight & Accountability
Oversight will be crucial to ensure PEPCO meets performance obligations and delivers the projected energy savings. The long duration necessitates consistent monitoring by NIH.
Related Government Programs
- Other Electric Power Generation
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration (19 years) increases long-term risk.
- Lack of detailed cost and savings justification in summary data.
- Potential for vendor lock-in with a single utility provider.
Tags
other-electric-power-generation, department-of-health-and-human-services, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.1 million to POTOMAC ELECTRIC POWER CO. UTILITY ENERGY SERVICES CONTRACT (UESC) ENERGY CONSERVATION PROJECT WITH POTOMAC ELECTRIC POWER COMPANY (PEPCO) IN ACCORDANCE WITH THE AREA WIDE PUBLIC UTILITY CONTRACT 47PA0420D0064, THE TASK ORDER, AND THE PROPOSAL DATED 12/22/2022. ATTACHMENT 1
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 $2.1 million.
What is the period of performance?
Start: 2023-05-25. End: 2042-12-01.
What is the projected return on investment and payback period for this energy conservation project?
The projected return on investment and payback period are not explicitly detailed in the provided data. While the contract aims for energy conservation, a thorough analysis of the proposal's financial projections is needed to quantify these metrics. Without this information, it's difficult to definitively assess the project's financial viability and long-term value for taxpayers.
What specific energy conservation measures are included, and what are their estimated savings?
The provided data references an 'Energy Conservation Project' and a proposal dated 12/22/2022, but does not list the specific measures or their estimated savings. A detailed review of the proposal and any subsequent technical documentation would be required to identify the technologies and strategies employed, and to validate the projected energy and cost reductions.
How was the 'fairness' of the sole-source price determined without competitive bidding?
The determination of the 'fairness' of the sole-source price likely involved a price analysis by the agency against historical data, established utility rates, or industry benchmarks for similar projects. However, without access to the proposal's cost breakdown and the agency's justification, it's impossible to independently verify the thoroughness of this analysis or confirm if the price represents the best value achievable.
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
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: $60,022,891
Exercised Options: $2,069,574
Current Obligation: $2,069,574
Actual Outlays: $2,069,574
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0420D0064
IDV Type: IDC
Timeline
Start Date: 2023-05-25
Current End Date: 2042-12-01
Potential End Date: 2042-12-01 00:00:00
Last Modified: 2026-04-09
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