NARA awards $11.7M electric service contract to Potomac Electric Power Co. for 10 years

Contract Overview

Contract Amount: $11,747,103 ($11.7M)

Contractor: Potomac Electric Power CO

Awarding Agency: National Archives and Records Administration

Start Date: 2017-10-01

End Date: 2027-09-30

Contract Duration: 3,651 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER FOR ELECTRIC SERVICE AT ARCHIVES I. IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20408

State: District of Columbia Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $11.7 million to POTOMAC ELECTRIC POWER CO for work described as: NEW TASK ORDER FOR ELECTRIC SERVICE AT ARCHIVES I. IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract provides essential electric power distribution services for National Archives facilities. 2. Long-term contract duration suggests a need for stable, ongoing utility provision. 3. Awarded under full and open competition, indicating a potentially competitive bidding process. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Washington D.C. highlights critical infrastructure support for federal operations. 6. Contractor has a history of providing utility services, suggesting established capability.

Value Assessment

Rating: good

The contract value of $11.7 million over 10 years averages approximately $1.17 million annually for electric power distribution. Benchmarking this requires specific data on utility rates in Washington D.C. for large federal facilities. However, the firm fixed-price structure suggests an effort to manage costs predictably. Without detailed breakdowns of energy consumption and specific rate structures, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This process typically leads to a more competitive environment, potentially driving down prices and ensuring the government receives the best value. The specific number of bidders is not provided, but the open competition is a positive indicator for price discovery and market responsiveness.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive marketplace, which can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Federal agencies, specifically the National Archives and Records Administration, benefit from reliable electric service. Ensures continuous operation of critical federal records storage and access facilities. Services are geographically concentrated in Washington D.C., supporting federal infrastructure in the capital. Supports the operational workforce at the National Archives by providing a stable work environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the 10-year term if not adequately managed within the fixed-price structure.
Dependence on a single utility provider for critical infrastructure could pose a risk during widespread outages.
Long contract duration may limit opportunities to leverage newer, more cost-effective technologies if they emerge.

Positive Signals

Firm fixed-price contract provides budget certainty and cost control for the agency.
Awarded through full and open competition, suggesting a competitive and potentially cost-effective selection.
Long-term nature of the contract ensures stable and reliable service delivery for a critical federal function.

Sector Analysis

This contract falls within the Utilities and Energy sector, specifically focusing on electric power distribution. The market for utility services is typically characterized by regulated monopolies or oligopolies, especially for essential services like electricity in a specific geographic area. Federal agencies are significant consumers of energy, and contracts like this represent a substantial portion of spending in this category. Comparable spending benchmarks would involve analyzing other large federal utility contracts in similar urban environments.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a utility service contract likely awarded to a major provider, it is improbable that small businesses would be primary awardees. Subcontracting opportunities for small businesses might exist in ancillary services, but this is not specified. The overall impact on the small business ecosystem is likely minimal unless specific subcontracting goals were mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Archives and Records Administration's contracting officers and program managers. The firm fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's performance or administration.

Related Government Programs

Federal Utility Contracts
Energy Services for Government Facilities
National Archives and Records Administration Operations
Washington D.C. Federal Infrastructure

Risk Flags

Long contract duration may not capture potential future cost savings from market shifts or technology.
Dependence on a single utility provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $11.7 million to POTOMAC ELECTRIC POWER CO. NEW TASK ORDER FOR ELECTRIC SERVICE AT ARCHIVES I. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER CO.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2017-10-01. End: 2027-09-30.

What is the historical spending pattern for electric services at the National Archives and Records Administration prior to this contract?

Analyzing historical spending for electric services at the National Archives and Records Administration (NARA) prior to this 10-year contract (2017-2027) would involve examining previous contracts for similar utility services. Without access to NARA's specific procurement history, we can infer that prior contracts likely existed to cover the agency's energy needs. These could have been shorter-term agreements, potentially with different providers or under different contract types. The annual value of this current contract is approximately $1.17 million. Historical spending might have fluctuated based on energy prices, consumption levels, and the specific terms of prior agreements. A detailed review of NARA's contract database or federal procurement records (like FPDS or USASpending) for the years preceding 2017 would be necessary to establish a precise spending trend and compare the current contract's value against past expenditures.

How does the annual cost of this contract compare to similar federal electric service contracts in the Washington D.C. metropolitan area?

Comparing the annual cost of approximately $1.17 million for this National Archives and Records Administration (NARA) electric service contract to similar federal contracts in the Washington D.C. metropolitan area requires access to a benchmark database of utility contracts. Factors influencing cost include the specific energy consumption of the facilities served, the negotiated rates, and the scope of services (e.g., distribution only vs. generation and distribution). Given that Potomac Electric Power Co. (PEPCO) is the primary utility provider in D.C., this contract likely reflects standard commercial or government rates applicable to large consumers in the region. The firm fixed-price nature aims to stabilize costs. Without specific data on the energy load of NARA facilities and a comparison set of other large federal buildings' utility contracts, a precise benchmark is difficult. However, the competitive award process suggests the pricing is likely within a reasonable market range for the services provided.

What are the potential risks associated with a 10-year fixed-price contract for electric services?

A significant risk associated with a 10-year firm fixed-price contract for electric services is the potential for market price volatility. While the fixed price provides budget certainty for the government, it can expose the contractor to risks if energy prices or operational costs increase substantially over the contract's long duration. Conversely, if energy prices were to decrease significantly, the government might be overpaying relative to market rates. Another risk is technological obsolescence; the contract might not easily accommodate newer, more efficient energy technologies or distribution methods that emerge during the 10-year period. Furthermore, long-term reliance on a single provider for a critical utility like electricity can create vulnerabilities in the event of widespread grid failures or emergencies, although this is often mitigated by broader utility infrastructure resilience planning.

What is the track record of Potomac Electric Power Co. in serving federal government contracts?

Potomac Electric Power Co. (PEPCO) is the primary electric utility provider for Washington D.C. and surrounding areas, and as such, it has a long-standing and extensive track record of serving federal government facilities within its service territory. This includes numerous contracts and agreements for electricity supply and distribution to various federal agencies. Given its role as the incumbent utility, PEPCO likely has established infrastructure and operational procedures tailored to meet the demands of large government installations. While specific details of past performance on individual federal contracts are not provided here, PEPCO's continuous operation and service provision to the capital region's federal entities suggest a generally reliable performance history. Federal agencies typically conduct thorough past performance reviews during the procurement process, implying that PEPCO's selection indicates a satisfactory record.

How does the firm fixed-price (FFP) contract type impact cost management and potential for overspending compared to other contract types?

The Firm Fixed-Price (FFP) contract type is generally considered one of the most effective for controlling costs and preventing government overspending, especially for services with well-defined requirements like electric power distribution. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's actual costs. This places the risk of cost overruns squarely on the contractor. For the government, this provides significant budget certainty and predictability. Unlike cost-reimbursement contracts, where the government pays the contractor's allowable costs plus a fee, FFP minimizes the risk of the government paying inflated costs. The primary way overspending could occur under FFP is if the initial price negotiated was too high due to inadequate market research or competition, or if the scope of work significantly changes, necessitating a contract modification at a potentially higher price.

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

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: $14,447,103

Exercised Options: $14,447,103

Current Obligation: $11,747,103

Actual Outlays: $9,053,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P10BSD0725

IDV Type: IDC

Timeline