DOE Awards $2.36M for NETL Pittsburgh Electric Services to FirstEnergy Pennsylvania Electric Company
Contract Overview
Contract Amount: $2,362,000 ($2.4M)
Contractor: Firstenergy Pennsylvania Electric Company
Awarding Agency: Department of Energy
Start Date: 2023-10-01
End Date: 2033-09-30
Contract Duration: 3,652 days
Daily Burn Rate: $647/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELECTRIC SERVICES FOR NETL PITTSBURGH, PA FROM 10/01/2023 TO 09/30/2033
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236
Plain-Language Summary
Department of Energy obligated $2.4 million to FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY for work described as: ELECTRIC SERVICES FOR NETL PITTSBURGH, PA FROM 10/01/2023 TO 09/30/2033 Key points: 1. The contract is for electric services at the NETL Pittsburgh facility. 2. The sole awardee is FirstEnergy Pennsylvania Electric Company. 3. The contract duration is 10 years, from October 2023 to September 2033. 4. The total award amount is $2,362,000. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $2.36M over 10 years averages $236,000 annually. Without specific usage data or benchmarks for similar federal facilities, it's difficult to definitively assess pricing. However, the long duration suggests potential for price stability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This procurement method may limit price discovery and potentially lead to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are committed for a decade without competitive bidding, potentially impacting overall cost-effectiveness.
Public Impact
Ensures continuous operation of the National Energy Technology Laboratory (NETL) in Pittsburgh. Provides essential utility services for critical research and development activities. Supports energy infrastructure reliability for a key federal research facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long-term commitment without clear performance metrics.
- Potential for price escalation over the 10-year period.
Positive Signals
- Ensures reliable electric service for a critical research facility.
- Long-term contract provides budget certainty for the agency.
Sector Analysis
This contract falls under the utility services sector, specifically electric power. Federal spending in this area is generally stable, driven by the operational needs of facilities. Benchmarks are highly dependent on location and facility size.
Small Business Impact
This contract does not appear to have any specific provisions or set-asides for small businesses. The award was made directly to a large utility provider.
Oversight & Accountability
The sole-source nature of this award warrants careful oversight to ensure fair pricing and adherence to contract terms throughout its 10-year duration. Regular reviews of energy consumption and market rates would be prudent.
Related Government Programs
- Other Electric Power Generation
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition
- Long contract duration without clear performance metrics
- Potential for price escalation
- Sole-source justification not provided
Tags
other-electric-power-generation, department-of-energy, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.4 million to FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY. ELECTRIC SERVICES FOR NETL PITTSBURGH, PA FROM 10/01/2023 TO 09/30/2033
Who is the contractor on this award?
The obligated recipient is FIRSTENERGY PENNSYLVANIA ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2023-10-01. End: 2033-09-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. For electric utility services, this might be due to geographic monopoly or specific infrastructure requirements. However, the agency should have explored if any competitive options, even for a portion of the service or through alternative providers, were feasible before resorting to a sole-source designation.
How will the agency ensure cost-effectiveness and prevent price gouging over the 10-year contract term, given the lack of competition?
To ensure cost-effectiveness, the agency should implement robust price monitoring mechanisms. This could involve regularly benchmarking FirstEnergy's rates against regional utility prices, incorporating price adjustment clauses tied to objective market indices, and conducting periodic reviews of the contract's value proposition. Strong contract management and clear communication channels with the vendor are crucial to address any potential cost escalations proactively.
Are there any performance metrics or service level agreements (SLAs) associated with this contract to ensure service quality?
The provided data does not specify any performance metrics or service level agreements (SLAs). For a critical utility service contract of this duration, it is essential to have clearly defined SLAs related to power reliability, outage response times, and service quality. The Department of Energy should ensure these are established and monitored to hold FirstEnergy accountable for delivering consistent and high-quality electric services.
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: 76 S MAIN ST, AKRON, OH, 44308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,516,918
Exercised Options: $15,516,918
Current Obligation: $2,362,000
Actual Outlays: $1,783,896
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0418D0033
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2033-09-30
Potential End Date: 2033-09-30 00:00:00
Last Modified: 2026-01-20
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