NASA awards $51.8M for electricity generation and distribution to Potomac Electric Power Co
Contract Overview
Contract Amount: $51,814,483 ($51.8M)
Contractor: Potomac Electric Power CO
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2017-07-01
End Date: 2021-11-30
Contract Duration: 1,613 days
Daily Burn Rate: $32.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE THE GENERATION, TRANSMISSION, CAPACITY AND DISTRIBUTION OF ELECTRICITY TO NASA/GODDARD SPACE FLIGHT CENTER (GSFC) IN GREENBELT, MD IN ACCORDANCE WITH GSA AREAWIDE CONTRACT GS00P16PDD7061
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $51.8 million to POTOMAC ELECTRIC POWER CO for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE THE GENERATION, TRANSMISSION, CAPACITY AND DISTRIBUTION OF ELECTRICITY TO NASA/GODDARD SPACE FLIGHT CENTER (GSFC) IN GREENBELT, MD IN ACCORDANCE WITH GSA AREAWIDE CONTRACT GS00P16PDD7061 Key points: 1. Contract value of $51.8M over approximately 4 years for essential utility services. 2. Procurement was conducted under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 4. Performance is located in Greenbelt, Maryland, indicating a specific geographic service area. 5. The contract supports NASA's Goddard Space Flight Center, a critical research and development facility. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: good
The contract value of $51.8M for electricity supply over roughly 4 years appears reasonable for a large federal facility. Benchmarking against similar utility contracts for federal installations of comparable size and energy needs would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, but the ultimate value depends on the prevailing market rates for electricity in the region during the contract period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The agency likely sought the best value proposition from multiple qualified utility providers.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best value by allowing a wide range of potential contractors to participate.
Public Impact
NASA's Goddard Space Flight Center benefits from a reliable and continuous supply of electricity, essential for its operations. The contract ensures the generation, transmission, capacity, and distribution of electricity, supporting critical research and development activities. The services are delivered within Greenbelt, Maryland, directly impacting the local utility infrastructure and services. The contract supports the operational workforce at Goddard Space Flight Center by ensuring the necessary utilities are available.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in electricity markets not fully mitigated by fixed-price contract if market rates significantly deviate.
- Dependence on a single utility provider for a critical service could pose a risk if service is interrupted.
Positive Signals
- Firm Fixed Price contract structure provides cost certainty for the government.
- Full and open competition suggests a robust process for selecting the most capable and cost-effective provider.
- Contract supports a vital national asset (Goddard Space Flight Center).
Sector Analysis
This contract falls within the Utilities and Energy sector, specifically focusing on the provision of electric power. The market for electricity is typically characterized by regulated monopolies or oligopolies at the local distribution level, but competitive procurement processes can still be employed for large federal contracts. The value of $51.8M is significant for a single utility contract, reflecting the substantial energy demands of a facility like NASA's Goddard Space Flight Center.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary contractor, Potomac Electric Power Co., is a large utility provider, and the contract's nature likely did not lend itself to small business participation as prime contractors. Further review would be needed to ascertain any indirect small business involvement through the prime contractor's supply chain.
Oversight & Accountability
The contract is managed under a Delivery Order against a GSA Areawide Contract, which typically includes established oversight and accountability mechanisms. The Firm Fixed Price nature of the contract provides a degree of financial oversight by fixing the cost. Transparency would be enhanced by public availability of the contract details and performance reports. Inspector General jurisdiction would likely extend to ensuring the proper use of funds and contract compliance.
Related Government Programs
- NASA Goddard Space Flight Center Operations
- Federal Utility Services Contracts
- GSA Areawide Contracts
- Electric Power Generation and Distribution
Risk Flags
- Potential for price volatility in energy markets impacting fixed-price contract value over time.
- Dependence on a single provider for critical infrastructure (electricity).
Tags
utilities, energy, nasa, goddard-space-flight-center, delivery-order, firm-fixed-price, full-and-open-competition, maryland, electric-power, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $51.8 million to POTOMAC ELECTRIC POWER CO. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE THE GENERATION, TRANSMISSION, CAPACITY AND DISTRIBUTION OF ELECTRICITY TO NASA/GODDARD SPACE FLIGHT CENTER (GSFC) IN GREENBELT, MD IN ACCORDANCE WITH GSA AREAWIDE CONTRACT GS00P16PDD7061
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER 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 $51.8 million.
What is the period of performance?
Start: 2017-07-01. End: 2021-11-30.
What is the historical spending pattern for electricity at NASA's Goddard Space Flight Center?
Historical spending data for electricity at NASA's Goddard Space Flight Center prior to this contract would provide crucial context for evaluating the $51.8M award. Analyzing past expenditures would reveal trends in energy consumption, price per kilowatt-hour, and the stability of costs over time. If previous contracts were significantly lower or higher, it could indicate changes in energy prices, facility usage, or procurement strategies. Understanding this historical baseline is essential for determining if the current contract represents a fair price and good value for the government, and whether spending has increased or decreased relative to previous periods.
How does the per-unit cost of electricity under this contract compare to other federal facilities in the region?
Benchmarking the per-unit cost of electricity (e.g., cost per kilowatt-hour) under this $51.8M contract against similar federal facilities in the Maryland/DC region is vital for assessing value for money. If Goddard Space Flight Center is paying a higher rate than comparable agencies for similar service levels, it could indicate suboptimal pricing. Conversely, a lower rate might suggest effective negotiation or competitive advantage. This comparison helps identify potential inefficiencies or cost savings opportunities and ensures the government is not overpaying for essential utility services, especially given the firm fixed-price nature of the contract which aims for cost predictability.
What are the specific performance metrics and service level agreements (SLAs) associated with this electricity contract?
The contract details should outline specific performance metrics and Service Level Agreements (SLAs) to ensure the reliable generation, transmission, capacity, and distribution of electricity to NASA's Goddard Space Flight Center. Key metrics might include uptime percentages, response times for outages, power quality standards (e.g., voltage and frequency stability), and capacity availability. Robust SLAs with defined penalties for non-performance and potential incentives for exceeding standards are crucial for accountability. Without these, it is difficult to fully assess the contractor's performance and the overall effectiveness of the service delivery beyond the financial aspects.
What is Potomac Electric Power Co.'s track record with federal contracts, particularly for utility services?
Investigating Potomac Electric Power Co.'s (PEPCO) track record with federal contracts, especially those involving utility services for government installations, is important for assessing reliability and performance. Reviewing past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of disputes, contract modifications, or service disruptions would provide insight into their capabilities and dependability. A strong history suggests a lower risk of performance issues, while a problematic record might warrant closer scrutiny of oversight and contingency planning for this specific NASA contract.
What are the potential risks associated with a firm fixed-price contract for electricity supply over a multi-year period?
A firm fixed-price (FFP) contract for electricity supply over a multi-year period, like this $51.8M NASA award, carries specific risks. While FFP transfers cost overrun risk to the contractor (Potomac Electric Power Co.), it can lead to higher initial pricing to account for potential market volatility. If electricity prices decrease significantly during the contract term, the government might be locked into paying above-market rates. Conversely, if prices surge unexpectedly, the contractor could face financial strain, potentially impacting service reliability. The agency must ensure the initial price reflects a reasonable assessment of future market conditions.
How does the competition level (full and open) for this contract typically influence pricing and service quality compared to sole-source or limited competition?
Awarding this contract under full and open competition generally fosters a more competitive pricing environment and encourages higher service quality. By allowing all qualified vendors to bid, NASA likely received multiple proposals, driving down costs and incentivizing providers to offer their best terms and capabilities. This contrasts with sole-source or limited competition, where fewer bidders may lead to less downward pressure on price and potentially less innovation or urgency in service delivery. The broad competition suggests that PEPCO's pricing and service offering were deemed the most advantageous among a range of options.
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: $60,051,904
Exercised Options: $60,051,904
Current Obligation: $51,814,483
Actual Outlays: $24,948,556
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P10BSD0725
IDV Type: IDC
Timeline
Start Date: 2017-07-01
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2022-04-02
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