Fort Riley Electric Services Contract Awarded for $59.5 Million, Lasting Over 10 Years
Contract Overview
Contract Amount: $59,436,689 ($59.4M)
Contractor: Evergy Kansas Central Inc
Awarding Agency: Department of Defense
Start Date: 2003-07-24
End Date: 2013-06-30
Contract Duration: 3,629 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: 200311!000921!2100!BJ41 !ACA, FORT RILEY !DABJ4103C0001 !A!N! !N! !20030724!20030731!006943781!006943781!006943781!N!WESTERN RESOURCES, INC !818 KANSAS AVE !TOPEKA !KS!66612!23965!161!20!FORT RILEY !RILEY !KANSAS !+000000663988!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !221121!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!N!J!1!001!N!1E!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! !DDFAES!0001! !
Place of Performance
Location: FORT RILEY, GEARY County, KANSAS, 66442
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $59.4 million to EVERGY KANSAS CENTRAL INC for work described as: 200311!000921!2100!BJ41 !ACA, FORT RILEY !DABJ4103C0001 !A!N! !N! !20030724!20030731!006943781!006943781!006943781!N!WESTERN RESOURCES, INC !818 KANSAS AVE !TOPEKA !KS!66612!23965!161!20!FORT RILEY !RILEY… Key points: 1. The contract for electric services at Fort Riley was awarded to Western Resources, Inc. for a significant amount. 2. Competition was limited, with the contract type listed as 'NOT AVAILABLE FOR COMPETITION'. 3. The duration of the contract is substantial, spanning over 10 years. 4. The sector is primarily utilities, specifically electric services.
Value Assessment
Rating: questionable
The contract value of $59.5 million over 10 years suggests a high per-unit cost, especially given the 'NOT AVAILABLE FOR COMPETITION' status. Benchmarking against similar long-term utility contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a potential lack of price discovery and potentially higher costs for the government. The sole source nature limits opportunities for competitive bidding.
Taxpayer Impact: The significant contract value and lack of competition raise concerns about the optimal use of taxpayer funds for essential utility services.
Public Impact
Military base operations rely heavily on consistent and affordable utility services. Long-term contracts can offer stability but may also lock in prices that become uncompetitive over time. The lack of competition for essential services like electricity warrants scrutiny to ensure fair pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- High total value
Positive Signals
- Potential for stable utility provision
Sector Analysis
This contract falls within the Utilities sector, specifically focusing on electric services for a military installation. Utility contracts can vary widely in price depending on the scope, duration, and competitive landscape.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation suggests that standard competitive oversight processes may have been bypassed, necessitating a review of the justification for this approach.
Related Government Programs
- Electric Bulk Power Transmission and Control
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Long contract duration may not reflect current market prices
- High total contract value
- Potential for cost overruns if not managed effectively
Tags
electric-bulk-power-transmission-and-con, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.4 million to EVERGY KANSAS CENTRAL INC. 200311!000921!2100!BJ41 !ACA, FORT RILEY !DABJ4103C0001 !A!N! !N! !20030724!20030731!006943781!006943781!006943781!N!WESTERN RESOURCES, INC !818 KANSAS AVE !TOPEKA !KS!66612!23965!161!20!FORT RILEY !RILEY !KANSAS !+000000663988!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !221121!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is EVERGY KANSAS CENTRAL INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $59.4 million.
What is the period of performance?
Start: 2003-07-24. End: 2013-06-30.
What was the specific justification for awarding this contract on a non-competitive basis?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would be needed to understand the specific reasons cited by the Department of the Army, such as unique capabilities, urgent requirements, or the absence of other responsible sources. This justification is crucial for assessing the necessity of foregoing a competitive process.
How does the per-unit cost of electricity under this contract compare to market rates during the contract period?
Without specific per-unit pricing data and market rate benchmarks for the relevant years (2003-2013), a direct comparison is difficult. However, the total value of $59.5 million over approximately 10 years for electric services at Fort Riley suggests a substantial expenditure. Analyzing historical energy market data for Kansas during that period would be necessary to assess cost-effectiveness.
What mechanisms were in place to ensure cost control and value for money given the limited competition?
Given the limited competition, oversight mechanisms would be critical. This could include regular performance reviews, audits of billing, and potentially clauses for price adjustments based on external energy indices. The effectiveness of these mechanisms in ensuring value for money would depend on the specific contract terms and the diligence of the contracting officers.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Bulk Power Transmission and Control
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 818 KANSAS AVE, TOPEKA, KS, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-24
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2012-09-11
More Contracts from Evergy Kansas Central Inc
- Hinu Electrical Utilities — $3.5M (Department of the Interior)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)