NASA Awards $5.6M for White Sands Electrical Power Services to El Paso Electric
Contract Overview
Contract Amount: $5,637,332 ($5.6M)
Contractor: EL Paso Electric Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-02-25
End Date: 2025-03-20
Contract Duration: 1,850 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE COMMERCIAL ELECTRICAL POWER SERVICE FOR THE NASA WHITE SAND COMPLEX FACILITY IN LAS CRUCES, NEW MEXICO. THE CONTRACTOR SHALL PROVIDE ALL MATERIAL AND EQUIPMENT, QUALIFIED PERSONNEL, AND TECHNICAL SUPERVISION TO PERFORM THE SERVICE..
Place of Performance
Location: LAS CRUCES, DONA ANA County, NEW MEXICO, 88012
Plain-Language Summary
National Aeronautics and Space Administration obligated $5.6 million to EL PASO ELECTRIC COMPANY for work described as: PROVIDE COMMERCIAL ELECTRICAL POWER SERVICE FOR THE NASA WHITE SAND COMPLEX FACILITY IN LAS CRUCES, NEW MEXICO. THE CONTRACTOR SHALL PROVIDE ALL MATERIAL AND EQUIPMENT, QUALIFIED PERSONNEL, AND TECHNICAL SUPERVISION TO PERFORM THE SERVICE.. Key points: 1. Contract awarded to a single, established utility provider for essential facility operations. 2. Long-term contract (5 years) ensures consistent power supply for critical NASA research. 3. Sole-source award limits competitive pricing, potentially increasing costs for taxpayers. 4. Focus on reliable service delivery for a high-security, research-intensive environment.
Value Assessment
Rating: fair
The contract price of $5.6M over five years for electrical power services appears reasonable given the sole-source nature and the critical infrastructure it supports. Benchmarking is difficult without competitive data, but utility rates are often regulated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competitively procured, likely due to the nature of utility services requiring a specific provider for the location. This lack of competition means pricing was not optimized through market forces.
Taxpayer Impact: Taxpayer costs may be higher than in a competitive scenario, but the necessity of reliable power for NASA operations justifies the expenditure.
Public Impact
Ensures uninterrupted power for NASA's White Sands Complex, crucial for research and operations. Supports national security and scientific advancement by maintaining critical infrastructure. Provides essential services to a government facility, impacting federal operations in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Long contract duration may not reflect evolving market prices.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Ensures reliable and continuous power supply for critical NASA operations.
- Awarded to an established utility provider with a proven track record.
- Supports essential infrastructure for scientific research and development.
Sector Analysis
This contract falls under utility services, specifically electric power distribution. Spending in this sector is generally stable, driven by essential infrastructure needs. Benchmarks are typically based on regulated utility rates rather than competitive bids.
Small Business Impact
This contract does not appear to involve small businesses, as it is awarded to a large utility company for essential infrastructure services.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the pricing remains fair and reasonable throughout the contract term. NASA should monitor usage and service quality closely.
Related Government Programs
- Electric Power Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost increases over the contract term.
- Lack of transparency in pricing without competitive bids.
- Dependence on a single provider for critical infrastructure.
Tags
electric-power-distribution, national-aeronautics-and-space-administr, nm, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $5.6 million to EL PASO ELECTRIC COMPANY. PROVIDE COMMERCIAL ELECTRICAL POWER SERVICE FOR THE NASA WHITE SAND COMPLEX FACILITY IN LAS CRUCES, NEW MEXICO. THE CONTRACTOR SHALL PROVIDE ALL MATERIAL AND EQUIPMENT, QUALIFIED PERSONNEL, AND TECHNICAL SUPERVISION TO PERFORM THE SERVICE..
Who is the contractor on this award?
The obligated recipient is EL PASO ELECTRIC 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 $5.6 million.
What is the period of performance?
Start: 2020-02-25. End: 2025-03-20.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from the unique nature of the service or the provider's exclusive ability to deliver it, such as in the case of utility services tied to a specific geographic location. Agencies must document why full and open competition is not feasible. Alternative strategies might include negotiating specific terms or exploring options for future competition if infrastructure changes.
How does the per-unit cost of electricity compare to commercial rates in the region?
Without specific usage data and a breakdown of the contract's pricing structure, a direct per-unit cost comparison is difficult. However, as a regulated utility, El Paso Electric's rates are subject to oversight. NASA likely benefits from established tariffs, but the absence of competition means there's no direct price discovery against other potential providers for this specific site.
What mechanisms are in place to ensure the long-term effectiveness and reliability of the electrical service provided?
The contract likely includes performance standards and service level agreements (SLAs) that define reliability metrics and response times for outages. NASA's oversight team would monitor adherence to these terms. Regular infrastructure maintenance by El Paso Electric, as per industry standards and regulatory requirements, is also crucial for sustained effectiveness.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
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: 100 N STANTON ST, EL PASO, TX, 79901
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,637,332
Exercised Options: $5,637,332
Current Obligation: $5,637,332
Actual Outlays: $5,637,278
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0420D0013
IDV Type: IDC
Timeline
Start Date: 2020-02-25
Current End Date: 2025-03-20
Potential End Date: 2025-03-20 00:00:00
Last Modified: 2026-03-30
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