NARA Awards $12M Electricity Task Order to Potomac Electric Power Co. for 10-Year Service

Contract Overview

Contract Amount: $12,022,616 ($12.0M)

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: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW ELECTRICITY TASK ORDER FOR ARCHIVES II. IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $12.0 million to POTOMAC ELECTRIC POWER CO for work described as: NEW ELECTRICITY TASK ORDER FOR ARCHIVES II. IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Significant 10-year contract for essential electricity distribution services. 2. Sole provider, Potomac Electric Power Co., suggests limited competition. 3. FIRM FIXED PRICE contract type mitigates cost escalation risk. 4. Spending is concentrated in Maryland, impacting regional energy infrastructure. 5. Long duration may present opportunities for cost savings or increased risk.

Value Assessment

Rating: fair

The $12 million contract over 10 years averages $1.2 million annually. Benchmarking electricity distribution costs is complex due to regional variations and service levels. Without specific service details, a precise comparison is difficult, but the annual spend appears moderate for a federal agency's needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, the specific awardee, Potomac Electric Power Co., may be the primary or sole provider of electricity in the service area, potentially limiting true price discovery.

Taxpayer Impact: Taxpayers benefit from competitive bidding, but the long-term nature and potential lack of ongoing competition could lead to suboptimal pricing over the decade.

Public Impact

Ensures continuous power supply for critical National Archives and Records Administration (NARA) operations. Supports federal data preservation and accessibility by maintaining essential infrastructure. Impacts the regional energy market in Maryland through a substantial federal contract. Long-term commitment provides stability for the utility provider and NARA's energy needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may not reflect current market rates.
Potential for vendor lock-in if competition was limited in practice.
Dependence on a single provider for a critical utility.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract protects against cost overruns.
Ensures reliable service for a vital government function.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on electric power distribution. Federal spending on utilities is a consistent necessity, with costs influenced by energy market fluctuations, regulatory environments, and the specific needs of agency facilities. Benchmarks vary widely by location and service type.

Small Business Impact

The data indicates no specific set-aside for small businesses. The awardee, Potomac Electric Power Co., is a large utility provider, suggesting that small businesses were likely not primary contractors for this specific task order, though they may be subcontractors.

Oversight & Accountability

The National Archives and Records Administration is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and performance. The long duration necessitates periodic reviews to ensure continued value and adherence to terms.

Related Government Programs

Electric Power Distribution
National Archives and Records Administration Contracting
National Archives and Records Administration Programs

Risk Flags

Long-term contract duration may not capture future market efficiencies.
Potential for limited practical competition due to geographic service area.
Dependence on a single utility provider for critical infrastructure.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $12.0 million to POTOMAC ELECTRIC POWER CO. NEW ELECTRICITY TASK ORDER FOR ARCHIVES II. 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 $12.0 million.

What is the period of performance?

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

What was the competitive landscape like during the bidding process, and did the incumbent provider have an advantage?

While listed as 'full and open competition,' the reality of utility services in a specific geographic area often means only one or a few providers can physically deliver the service. Potomac Electric Power Co. likely has significant infrastructure in Maryland, potentially giving them an advantage in meeting NARA's requirements efficiently and cost-effectively compared to a new entrant.

How does the firm fixed price structure impact potential cost savings or risks over the 10-year period?

The firm fixed price protects NARA from unexpected increases in electricity rates or operational costs incurred by the provider. However, it also means NARA may not benefit from potential decreases in market energy prices. Over a decade, this could either be advantageous or disadvantageous depending on market trends.

What are the key performance indicators (KPIs) for this contract, and how is service reliability measured?

Specific KPIs are not detailed in the provided data. Typically, for electricity distribution, KPIs would include uptime percentages, response times to outages, and adherence to service level agreements. NARA's oversight would involve monitoring these metrics to ensure consistent and reliable power delivery essential for their archival functions.

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: $23,752,283

Exercised Options: $23,752,283

Current Obligation: $12,022,616

Actual Outlays: $9,626,668

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