NASA awards $5.7M for Electric Utility Service to Ohio Edison Company, spanning 10 years
Contract Overview
Contract Amount: $5,678,947 ($5.7M)
Contractor: Ohio Edison Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-04-01
End Date: 2030-03-31
Contract Duration: 3,651 days
Daily Burn Rate: $1.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRIC UTILITY SERVICE
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44135
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $5.7 million to OHIO EDISON COMPANY for work described as: ELECTRIC UTILITY SERVICE Key points: 1. Significant long-term contract for essential utility services. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost savings through competitive bidding if applicable. 4. Sector: Energy - Electric Utilities.
Value Assessment
Rating: questionable
The contract value of $5.7M over 10 years averages $570K annually. Without comparable contract data or a competitive bidding process, it's difficult to assess if this pricing is optimal. The lack of a benchmark makes evaluation challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for electric utility services.
Public Impact
Ensures continuous power supply for NASA operations. Potential for higher costs due to lack of competition. Long-term commitment impacts budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without clear performance metrics
Positive Signals
- Ensures essential service continuity
- Fixed price contract provides cost certainty
Sector Analysis
This contract falls within the Energy sector, specifically electric utility services. Utility contracts are often long-term due to the nature of infrastructure and service provision. Benchmarks for similar government utility contracts vary widely based on location and service level.
Small Business Impact
There is no indication that small businesses were involved in this procurement. The award was made to a large utility provider, suggesting limited opportunities for small business participation in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair and reasonable pricing. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Other Electric Power Generation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Long-term commitment without clear performance metrics.
- Lack of small business participation.
Tags
other-electric-power-generation, national-aeronautics-and-space-administr, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $5.7 million to OHIO EDISON COMPANY. ELECTRIC UTILITY SERVICE
Who is the contractor on this award?
The obligated recipient is OHIO EDISON COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $5.7 million.
What is the period of performance?
Start: 2020-04-01. End: 2030-03-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or specific geographic requirements. Without the official justification document, it's impossible to determine the exact reasoning, but it's a critical factor in assessing the value and fairness of the procurement.
How does the per-unit cost of electricity under this contract compare to market rates or other government utility contracts?
Without specific unit pricing details (e.g., cost per kilowatt-hour) and a clear understanding of the service level agreement, a direct comparison is difficult. However, given the sole-source nature, there's a risk that the pricing may not be as competitive as it could be if multiple providers had vied for the contract. Benchmarking against similar contracts in Ohio or for NASA facilities would be necessary for a thorough assessment.
What mechanisms are in place to ensure effective service delivery and accountability from Ohio Edison Company over the 10-year period?
The contract likely includes performance standards and service level agreements that Ohio Edison must meet. NASA's contracting officer and technical representatives would be responsible for monitoring performance and ensuring compliance. However, the long duration and sole-source nature might reduce the agency's leverage for proactive improvements unless specific incentive or penalty clauses are robustly defined and enforced.
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
Parent Company: Firstenergy Corp.
Address: 76 S MAIN ST, AKRON, OH, 44308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,321,702
Exercised Options: $14,321,702
Current Obligation: $5,678,947
Actual Outlays: $5,139,364
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0420D0010
IDV Type: IDC
Timeline
Start Date: 2020-04-01
Current End Date: 2030-03-31
Potential End Date: 2030-03-31 00:00:00
Last Modified: 2026-03-09
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