NASA awards $13M for Kennedy Space Center electric service to Florida Power & Light
Contract Overview
Contract Amount: $13,020,941 ($13.0M)
Contractor: Florida Power & Light Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-07-01
End Date: 2025-06-30
Contract Duration: 364 days
Daily Burn Rate: $35.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: FLORIDA POWER AND LIGHT (FPL) ELECTRIC SERVICE AT KENNEDY SPACE CENTER
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $13.0 million to FLORIDA POWER & LIGHT COMPANY for work described as: FLORIDA POWER AND LIGHT (FPL) ELECTRIC SERVICE AT KENNEDY SPACE CENTER Key points: 1. Contract value of $13.02M for one year of electric distribution services. 2. Sole-source award to Florida Power & Light Company, limiting competition. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector is essential utility services for critical government operations.
Value Assessment
Rating: fair
The contract value of $13.02M for a one-year period appears reasonable for essential utility services at a large facility like Kennedy Space Center. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning Florida Power & Light Company was the only vendor considered. This approach bypasses the competitive process, potentially leading to less favorable pricing and reduced innovation.
Taxpayer Impact: Taxpayers may be paying a premium for electric services due to the absence of a competitive bidding process, as the agency did not explore alternative providers.
Public Impact
Ensures continuous power supply for critical NASA operations at Kennedy Space Center. Supports ongoing space exploration and research activities. Potential for increased costs to taxpayers due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment without competitive benchmarking.
- Reliance on a single provider for essential services.
Positive Signals
- Ensures continuity of essential services for a critical government facility.
- Established provider with a track record at the location.
Sector Analysis
This contract falls within the utility services sector, providing essential electric power distribution. Spending benchmarks for such services can vary widely based on location, demand, and infrastructure, but competitive bidding typically ensures cost-effectiveness.
Small Business Impact
The contract was awarded to Florida Power & Light Company, a large utility provider. There is no indication that small businesses were involved in this sole-source award, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. NASA's procurement oversight should confirm the justification for not seeking competitive proposals.
Related Government Programs
- Electric Power Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for non-competitive pricing
- Limited transparency in price discovery
Tags
electric-power-distribution, national-aeronautics-and-space-administr, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $13.0 million to FLORIDA POWER & LIGHT COMPANY. FLORIDA POWER AND LIGHT (FPL) ELECTRIC SERVICE AT KENNEDY SPACE CENTER
Who is the contractor on this award?
The obligated recipient is FLORIDA POWER & LIGHT 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 $13.0 million.
What is the period of performance?
Start: 2024-07-01. End: 2025-06-30.
What is the justification for awarding this electric service contract sole-source to Florida Power & Light Company, and has a price reasonableness analysis been conducted?
The justification for a sole-source award typically stems from unique capabilities, lack of alternatives, or urgent needs. NASA's procurement regulations require a thorough price reasonableness analysis, comparing the proposed price to historical data, market research, or other benchmarks, even in sole-source situations, to ensure taxpayer funds are used efficiently.
What are the potential risks associated with relying solely on Florida Power & Light for this essential service at Kennedy Space Center?
The primary risk is the potential for inflated costs due to the lack of competitive pressure. Additionally, reliance on a single provider could create vulnerabilities in service continuity if the provider faces operational issues. Without competition, there's less incentive for the provider to offer innovative or cost-saving solutions.
How does this contract contribute to the overall effectiveness of NASA's mission at Kennedy Space Center, and what is the taxpayer impact?
Ensuring a reliable electric supply is fundamental to the effectiveness of Kennedy Space Center's operations, supporting everything from research to launch activities. The taxpayer impact is primarily the cost of the service; while essential, the sole-source nature means taxpayers may not be receiving the most cost-effective rate achievable through competition.
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: 700, UNIVERSE BOULEVARD, JUNO BEACH, FL, 33408
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,600,000
Exercised Options: $13,600,000
Current Obligation: $13,020,941
Actual Outlays: $13,007,997
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P15BSD1124
IDV Type: IDC
Timeline
Start Date: 2024-07-01
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-09-23
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