NASA awards $51.5M contract for electricity generation, transmission, and distribution to Potomac Electric Power Co
Contract Overview
Contract Amount: $51,502,725 ($51.5M)
Contractor: Potomac Electric Power CO
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-12-01
End Date: 2025-11-30
Contract Duration: 1,460 days
Daily Burn Rate: $35.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY.
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $51.5 million to POTOMAC ELECTRIC POWER CO for work described as: GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY. Key points: 1. The contract value is $51.5 million over its duration. 2. Potomac Electric Power Co. is the sole provider for this service. 3. The contract is for electricity services, falling under the 'Other Electric Power Generation' NAICS code. 4. The contract is a Firm Fixed Price type, awarded via Delivery Order.
Value Assessment
Rating: fair
Pricing is not directly comparable as the contract is not available for competition. Benchmarking is difficult without competitive bids or detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as a Delivery Order and noted as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition scenario. This limits price discovery and potentially leads to higher costs.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding for essential electricity services.
Public Impact
Ensures continuous power supply for NASA operations. Supports critical agency functions through reliable electricity. Impacts local Maryland economy through service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service provision
- Long-term contract duration
Sector Analysis
This contract falls within the utility sector, specifically focusing on electricity generation, transmission, and distribution. Spending benchmarks for such services can vary significantly based on location and demand.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was awarded to a large utility provider.
Oversight & Accountability
Oversight is crucial to ensure the contracted services meet NASA's needs and that pricing remains reasonable, even in a limited competition environment.
Related Government Programs
- Other Electric Power Generation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Limited competition
- Potential for non-competitive pricing
- Reliance on a single provider
Tags
other-electric-power-generation, national-aeronautics-and-space-administr, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $51.5 million to POTOMAC ELECTRIC POWER CO. GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY.
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 $51.5 million.
What is the period of performance?
Start: 2021-12-01. End: 2025-11-30.
What is the justification for the limited competition for these essential electricity services?
The justification for limited competition is not provided in the data. Typically, such justifications might include unique infrastructure requirements, existing service agreements, or specific geographic limitations that make other providers unsuitable or prohibitively expensive to engage.
How does the firm fixed price structure mitigate risks associated with fluctuating energy costs?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. For fluctuating energy costs, an FFP contract means Potomac Electric Power Co. has agreed to provide the electricity at the stated price regardless of market fluctuations, potentially absorbing losses or benefiting from price decreases.
What is the potential impact on NASA's budget if energy prices increase significantly during the contract period?
Under a firm fixed price contract, NASA's budget is protected from significant increases in energy prices. The contractor, Potomac Electric Power Co., would bear the financial burden of any such increases, as they are obligated to deliver the service at the agreed-upon price.
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: $112,655,567
Exercised Options: $51,502,725
Current Obligation: $51,502,725
Actual Outlays: $51,502,725
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: 2021-12-01
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2026-01-14
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