NASA awards $21M contract for electricity distribution services at Lewis Field, Ohio
Contract Overview
Contract Amount: $21,077,393 ($21.1M)
Contractor: THE Cleveland Electric Illuminating CO
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-05-26
End Date: 2025-05-31
Contract Duration: 1,466 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELECTRICITY - UTILITIES GRC LEWIS FIELD
Place of Performance
Location: AKRON, SUMMIT County, OHIO, 44308
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $21.1 million to THE CLEVELAND ELECTRIC ILLUMINATING CO for work described as: ELECTRICITY - UTILITIES GRC LEWIS FIELD Key points: 1. Contract value appears reasonable given the duration and essential service provided. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include service disruptions and price fluctuations over the contract term. 4. This contract supports critical infrastructure operations for NASA's research facilities. 5. The provider is a long-standing utility company with established infrastructure in the region. 6. The fixed-price nature of the contract offers cost certainty for the agency.
Value Assessment
Rating: good
The contract value of $21,077,393.44 over approximately 5 years (May 2021 - May 2025) for electricity distribution services at NASA's Lewis Field appears to be within a reasonable range for a large-scale utility contract. Benchmarking against similar contracts for essential utility services to federal facilities is challenging without more specific data on energy consumption and grid infrastructure, but the price per year is approximately $4.2 million. The firm fixed-price structure provides cost predictability for NASA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process designed to achieve the best value for the government. While the number of bidders is not specified, the 'full and open' designation implies that multiple proposals were likely considered, fostering price discovery and potentially driving down costs.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of securing services at a fair market price and reduces the risk of overpayment.
Public Impact
NASA's Lewis Field research and development operations will benefit from reliable electricity supply. Essential services for scientific research and aeronautical testing will be maintained. The contract supports the continued operation of a key federal research facility. Local workforce employed by The Cleveland Electric Illuminating Company will be engaged in service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals if market conditions change.
- Dependence on a single utility provider for a critical service.
- Risk of service interruptions due to unforeseen events or infrastructure failures.
Positive Signals
- Award to an established utility provider with a proven track record in the region.
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a competitive pricing environment.
- Long contract duration allows for stable service provision.
Sector Analysis
The energy utilities sector, specifically electric power distribution, is a critical component of infrastructure supporting government operations. This contract falls within the broader utilities market, which is characterized by regulated pricing and significant capital investment in grid infrastructure. NASA's Lewis Field, a major research center, requires a reliable and robust electricity supply, making this contract essential for its continued functioning. Comparable spending benchmarks for utility services to large federal installations can vary widely based on location, size, and specific energy demands.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, The Cleveland Electric Illuminating Co., may engage small businesses as subcontractors for certain aspects of service delivery or maintenance, though this is not explicitly detailed in the award information. The primary focus appears to be on securing essential utility services from a large, established provider.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within NASA's Glenn Research Center (Lewis Field). Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. While specific Inspector General jurisdiction for this particular contract isn't detailed, the NASA OIG generally oversees all agency contracts to ensure efficiency and prevent fraud.
Related Government Programs
- NASA Research and Development Facilities
- Federal Utility Services
- Electric Power Distribution Contracts
- Ohio State Contracts
Risk Flags
- Potential for price increases in future renewals.
- Dependence on a single provider for critical services.
- Risk of service disruption due to external factors.
Tags
nasa, lewis-field, electricity-distribution, ohio, definitive-contract, firm-fixed-price, full-and-open-competition, utilities, infrastructure, research-and-development
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $21.1 million to THE CLEVELAND ELECTRIC ILLUMINATING CO. ELECTRICITY - UTILITIES GRC LEWIS FIELD
Who is the contractor on this award?
The obligated recipient is THE CLEVELAND ELECTRIC ILLUMINATING CO.
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 $21.1 million.
What is the period of performance?
Start: 2021-05-26. End: 2025-05-31.
What is the historical spending pattern for electricity distribution services at NASA's Lewis Field?
Analyzing historical spending for electricity at NASA's Lewis Field requires access to past contract awards and financial data. Without specific historical data, it's difficult to provide a precise pattern. However, it is reasonable to assume that NASA has had ongoing contracts for electricity services at this location for many years, given its status as a long-standing research center. The annual cost of approximately $4.2 million for this current contract suggests a significant and consistent demand for power. Future analysis could involve comparing this contract's value to previous awards for similar services to identify trends in pricing, volume, and provider stability. Examining the duration and value of prior contracts would reveal whether this award represents an increase, decrease, or stable level of spending for this essential utility.
How does the price per kilowatt-hour (kWh) for this contract compare to market rates?
Determining the exact price per kilowatt-hour (kWh) for this contract is not possible with the provided data, as it only states the total contract value and duration, not the energy consumption volume. To perform this comparison, one would need to know the total kWh purchased over the contract period. Once that information is available, the average price per kWh could be calculated by dividing the total contract cost by the total kWh consumed. This calculated rate could then be benchmarked against average commercial or industrial electricity rates in the Ohio region during the contract period. Factors such as demand charges, time-of-use pricing, and transmission fees would also need to be considered for a comprehensive comparison. Without consumption data, a direct kWh price comparison remains speculative.
What is the track record of The Cleveland Electric Illuminating Co. in serving federal agencies?
The Cleveland Electric Illuminating Company (CEI) has a long-standing history of providing utility services in Ohio, including to various federal entities within its service territory. As a major regional utility, CEI is accustomed to meeting the demands of large industrial and governmental customers. While specific details of past federal contracts are not provided here, CEI's operational scale and experience suggest a capacity to fulfill the requirements of an agency like NASA. Federal procurement databases and agency performance reviews, if publicly available, would offer more granular insights into CEI's past performance, reliability, and pricing for government contracts. Generally, established utilities serving large geographic areas have established processes for managing government accounts and ensuring service continuity.
What are the potential risks associated with relying on a single utility provider for critical infrastructure?
Relying on a single utility provider like The Cleveland Electric Illuminating Company for critical infrastructure at NASA's Lewis Field presents several potential risks. Firstly, there is a risk of service disruption due to factors beyond the provider's control, such as severe weather events, natural disasters, or unforeseen equipment failures. Secondly, the agency is dependent on the provider's pricing structure, which could increase in future contract periods or renewals, potentially leading to higher operational costs if not managed through competitive bidding or regulatory oversight. Thirdly, a single provider may have less incentive to innovate or offer highly customized solutions compared to a market with multiple competing utility providers. Finally, any labor disputes or operational issues within the utility company could directly impact NASA's ability to conduct its research and operations.
How does the firm fixed-price contract structure benefit NASA in this scenario?
The firm fixed-price (FFP) contract structure offers significant benefits to NASA for electricity distribution services. Primarily, it provides cost certainty and predictability. NASA knows the exact amount it will pay for the electricity distribution services over the contract's duration, assuming no changes in scope or unforeseen contract modifications. This FFP structure shifts the risk of cost overruns due to fluctuating market prices or unforeseen expenses from NASA to the contractor, The Cleveland Electric Illuminating Company. This allows NASA to budget more effectively and reduces the financial uncertainty associated with variable utility costs. It also simplifies contract administration, as there is less need for complex cost audits or adjustments compared to cost-reimbursement contracts.
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
Offers Received: 1
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,000,000
Exercised Options: $60,000,000
Current Obligation: $21,077,393
Actual Outlays: $21,077,393
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-26
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2026-01-30
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