DOD's $114.6M Georgia Power Contract: Long-Term Energy Supply with Limited Competition
Contract Overview
Contract Amount: $114,601,788 ($114.6M)
Contractor: Georgia Power Company
Awarding Agency: Department of Defense
Start Date: 2000-07-10
End Date: 2012-09-30
Contract Duration: 4,465 days
Daily Burn Rate: $25.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31314
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $114.6 million to GEORGIA POWER COMPANY for work described as: Key points: 1. Significant long-term contract value of $114.6 million. 2. Limited competition raises questions about price discovery. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces potential cost volatility. 4. Energy sector spending for military base operations.
Value Assessment
Rating: fair
The contract value is substantial, but without a clear benchmark or competitive bidding details, assessing its value for money is difficult. The FPEPA clause can lead to price increases over the contract's long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source justification. This lack of competition likely resulted in higher prices than could have been achieved through an open bidding process.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, especially given the long duration and economic price adjustment clause.
Public Impact
Ensures reliable energy for Department of the Army operations in Georgia. Long contract duration (over 12 years) provides stability but limits flexibility. Potential for increased costs to taxpayers due to economic price adjustments. Lack of transparency in the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Economic price adjustment
- Lack of specific product/service details
Positive Signals
- Ensures essential service delivery
- Long-term price stability (despite adjustments)
Sector Analysis
This contract falls within the energy sector, specifically providing electricity services to a military installation. Benchmarking energy contracts can be complex due to varying service levels, geographic locations, and regulatory environments.
Small Business Impact
No information is available regarding the involvement of small businesses in this contract. The primary contractor, Georgia Power Company, is a large utility provider.
Oversight & Accountability
The limited competition and FPEPA clause warrant scrutiny. Further review of the justification for 'not available for competition' and the specific economic adjustment mechanisms would be beneficial for oversight.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Economic price adjustment clause
- Long contract duration
- Lack of transparency in procurement justification
- Potential for cost overruns
Tags
department-of-defense, ga, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.6 million to GEORGIA POWER COMPANY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GEORGIA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $114.6 million.
What is the period of performance?
Start: 2000-07-10. End: 2012-09-30.
What was the specific justification for limiting competition on this significant energy contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require accessing the contract file to understand the specific justification, which could range from unique capabilities of the provider to urgent operational needs that precluded a competitive solicitation process.
How did the economic price adjustment clause impact the final cost to the government?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specified economic factors, such as fuel costs or labor rates. Without the actual price history and the specific EPA indices used, it's impossible to quantify the exact impact, but it likely led to price increases over the contract's 12+ year term.
What is the benchmarked cost for similar long-term energy supply contracts for military bases?
Benchmarking this contract is challenging without more specific details on the energy consumed, service level agreements, and geographic location. However, contracts with limited competition and EPA clauses often trend higher than competitively procured, fixed-price contracts. A detailed analysis would require comparing it to similar DoD energy contracts in the region.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: Southern CO Services Inc (UEI: 006925341)
Address: 241 RALPH MCGILL BLVD NE, ATLANTA, GA, 90
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: 2000-07-10
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2013-06-18
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