NASA awards $75.2M for electricity services to Virginia Electric and Power Company, with a significant portion allocated for future delivery orders
Contract Overview
Contract Amount: $75,244,919 ($75.2M)
Contractor: Virginia Electric and Power Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-01-01
End Date: 2028-08-21
Contract Duration: 3,520 days
Daily Burn Rate: $21.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELECTRICITY SERVICES
Place of Performance
Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23681
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $75.2 million to VIRGINIA ELECTRIC AND POWER COMPANY for work described as: ELECTRICITY SERVICES Key points: 1. The contract's total value suggests a substantial, long-term need for electricity services. 2. The "NOT AVAILABLE FOR COMPETITION" status raises questions about potential cost efficiencies and market engagement. 3. The contract duration extends over nine years, indicating a stable but potentially inflexible arrangement. 4. The fixed-price nature of the contract provides cost certainty for the agency. 5. The contract is managed by NASA's own agency, suggesting internal expertise in managing utility services. 6. The specific services are categorized under 'Other Electric Power Generation,' implying a broad scope beyond simple utility provision.
Value Assessment
Rating: fair
Benchmarking electricity services contracts is challenging without specific service details and location. However, a nine-year duration for a fixed-price contract of this magnitude suggests a potentially negotiated rate that may or may not reflect current market fluctuations. The lack of competition makes it difficult to assess if the pricing is optimal compared to what could be achieved through a competitive bidding process. Further analysis would require understanding the specific energy needs and the prevailing market rates in the service area.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION.' This means that only one vendor was considered, likely due to specific circumstances such as existing infrastructure, unique service requirements, or a lack of alternative providers meeting NASA's needs at the time of award. The absence of competition limits the agency's ability to leverage market forces to drive down prices or encourage innovation.
Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential services due to the lack of competitive bidding. The absence of competition could lead to higher costs than if multiple vendors had vied for the contract.
Public Impact
NASA facilities in Virginia will receive a consistent and reliable supply of electricity. The contract supports the operational continuity of critical NASA missions and research. The workforce at NASA facilities in Virginia benefits from uninterrupted power for their work. The contract ensures the availability of essential infrastructure services for a government agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in above-market pricing.
- Long contract duration could lead to inflexibility in adapting to new technologies or pricing models.
- Sole-source award requires strong justification to ensure taxpayer value.
Positive Signals
- Fixed-price contract provides cost certainty for NASA.
- Long-term award indicates a stable and reliable energy supply.
- Contract managed by the agency itself suggests internal oversight capabilities.
Sector Analysis
The energy sector, particularly electricity services, is a critical component of government operations. This contract falls under the utility services segment, which is often characterized by regulated pricing and established providers. While large-scale energy procurement can be competitive, specific utility services tied to geographic locations or existing infrastructure may necessitate sole-source or limited competition awards. Benchmarking would typically involve comparing rates with other government utility contracts in similar regions or with commercial rates from the same provider.
Small Business Impact
There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award for electricity services, it is likely that the primary contractor is a large utility provider, and opportunities for small businesses may be limited unless they are suppliers or subcontractors to Virginia Electric and Power Company.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a sole-source award, there is an increased emphasis on ensuring the reasonableness of the price and the necessity of the services. Transparency is limited by the non-competitive nature of the award. NASA's internal audit and contracting offices would be responsible for monitoring performance and ensuring compliance with the contract terms.
Related Government Programs
- Federal Utility Contracts
- Government Energy Procurement
- NASA Operational Support Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Long contract duration may reduce flexibility.
- Potential for above-market pricing due to lack of competition.
Tags
nasa, electricity-services, virginia, sole-source, fixed-price, utility, long-term, federal-agency, energy-procurement, other-electric-power-generation
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $75.2 million to VIRGINIA ELECTRIC AND POWER COMPANY. ELECTRICITY SERVICES
Who is the contractor on this award?
The obligated recipient is VIRGINIA ELECTRIC AND POWER 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 $75.2 million.
What is the period of performance?
Start: 2019-01-01. End: 2028-08-21.
What is the specific justification for awarding this electricity services contract on a sole-source basis to Virginia Electric and Power Company?
The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. The specific justification for this sole-source award is not detailed in the provided data. Typically, such justifications would stem from reasons like the existence of a monopoly, a unique capability possessed by the vendor, or an urgent need where competition is not feasible. For a utility service like electricity in a specific geographic area, it is common for there to be only one or a limited number of providers due to infrastructure limitations. NASA would have had to document the rationale for not seeking competitive bids, likely related to the service area and the established provider.
How does the total contract value of $75.2 million compare to typical electricity service contracts for federal agencies of similar size and scope?
Comparing this $75.2 million contract to 'typical' federal electricity service contracts is challenging without more granular data on the specific energy consumption, service level agreements, and geographic locations involved. However, for a nine-year duration (January 1, 2019, to August 21, 2028), this averages to approximately $8.36 million per year. This figure can be considered substantial and reflects significant energy needs, likely for multiple NASA facilities or large installations. Federal agencies often have complex energy requirements, and costs can vary widely based on demand, pricing structures (e.g., fixed vs. variable rates), and the local utility market. Without specific benchmarks for NASA's energy usage or comparable agency contracts in Virginia, a definitive value comparison is difficult.
What are the potential risks associated with a long-term, sole-source contract for essential services like electricity?
A long-term, sole-source contract for essential services like electricity carries several potential risks. Firstly, the lack of competition can lead to suboptimal pricing, where the contractor may not be incentivized to offer the most competitive rates, potentially costing taxpayers more. Secondly, the long duration (over nine years in this case) can result in inflexibility. If energy markets shift significantly, or if new, more cost-effective technologies emerge, the agency may be locked into a less advantageous arrangement. Thirdly, sole-source awards can sometimes indicate a lack of proactive market research or a failure to foster a competitive environment for essential services. Finally, there's a risk of vendor complacency or reduced service quality over time, as the primary incentive for superior performance (competition) is absent.
What is the historical spending pattern for electricity services by NASA, and does this contract represent an increase or decrease?
The provided data only pertains to this specific contract awarded to Virginia Electric and Power Company. It does not offer historical spending data for NASA's electricity services. To determine if this $75.2 million contract represents an increase or decrease in historical spending, one would need access to NASA's past contract awards for similar services, ideally covering the preceding years and potentially other facilities. Analyzing past obligations and contract values would be necessary to establish a trend and assess whether this award is in line with, above, or below previous spending levels for electricity. Without that historical context, it's impossible to make a comparison.
Given the 'Other Electric Power Generation' classification, what specific types of electricity services might this contract encompass beyond standard utility provision?
The classification 'Other Electric Power Generation' (ND code) suggests that this contract might involve more than just the standard delivery of electricity from the grid. It could potentially include services related to on-site power generation, backup power systems, energy management solutions, or even the procurement of specialized energy sources. For instance, NASA might be procuring electricity generated from renewable sources managed by the vendor, or the contract could involve the maintenance and operation of power generation facilities at NASA sites. The 'Other' designation implies a scope that extends beyond typical residential or commercial utility supply, possibly tailored to the unique operational demands of a space agency.
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
Parent Company: Dominion Energy, Inc.
Address: 120 TREDEGAR ST, RICHMOND, VA, 23219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $75,311,079
Exercised Options: $75,311,079
Current Obligation: $75,244,919
Actual Outlays: $63,848,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0418D0072
IDV Type: IDC
Timeline
Start Date: 2019-01-01
Current End Date: 2028-08-21
Potential End Date: 2028-08-21 00:00:00
Last Modified: 2026-04-14
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