DOE awards $11.9M contract to Monongahela Power for electric utility services in West Virginia
Contract Overview
Contract Amount: $11,888,944 ($11.9M)
Contractor: Monongahela Power Company
Awarding Agency: Department of Energy
Start Date: 2016-08-12
End Date: 2026-08-11
Contract Duration: 3,651 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRIC UTILITY SERVICE MORGANTOWN, WEST VIRGINIA. IGF::OT::IGF
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $11.9 million to MONONGAHELA POWER COMPANY for work described as: ELECTRIC UTILITY SERVICE MORGANTOWN, WEST VIRGINIA. IGF::OT::IGF Key points: 1. The contract is for electric utility services, a critical infrastructure component. 2. Monongahela Power Company is the sole provider for this specific service in the Morgantown area. 3. The contract duration is 10 years, indicating a long-term need. 4. The award is a delivery order under an unspecified contract, raising questions about initial competition.
Value Assessment
Rating: fair
The contract is a firm fixed price delivery order. Without knowing the base contract or comparable services, it's difficult to assess if the $11.9 million price is competitive. The long duration suggests potential for price escalation or savings over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors were bidding, impacting taxpayer value.
Public Impact
Ensures reliable electricity for a federal facility in Morgantown, WV. Supports the Department of Energy's operational needs. Potential for higher costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of detailed pricing justification
Positive Signals
- Ensures essential utility service
- Firm fixed price contract type
Sector Analysis
Electric utility services are essential for government operations. Spending benchmarks vary widely based on location, demand, and contract structure. This contract appears to be for a specific facility's needs within the energy sector.
Small Business Impact
There is no indication of small business participation in this contract award. The focus appears to be on a large utility provider for essential services.
Oversight & Accountability
The limited competition and lack of detailed justification for the award warrant further oversight to ensure fair pricing and taxpayer value. The long duration also necessitates monitoring for performance and cost-effectiveness.
Related Government Programs
- Fossil Fuel Electric Power Generation
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition
- Lack of transparency in award justification
- Potential for overpayment due to lack of competition
- Long contract duration without clear performance benchmarks
Tags
fossil-fuel-electric-power-generation, department-of-energy, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $11.9 million to MONONGAHELA POWER COMPANY. ELECTRIC UTILITY SERVICE MORGANTOWN, WEST VIRGINIA. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is MONONGAHELA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $11.9 million.
What is the period of performance?
Start: 2016-08-12. End: 2026-08-11.
What was the justification for limiting competition for this essential electric utility service?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification should exist within the Department of Energy's procurement records explaining why only Monongahela Power Company could fulfill this requirement. This could be due to geographic exclusivity, existing infrastructure, or specific service needs that only they can meet.
How does the $11.9 million price compare to similar electric utility contracts in the region?
Without access to a broader market analysis or data on comparable contracts for similar facilities in West Virginia, it is difficult to definitively assess the price. The firm fixed price nature provides cost certainty but doesn't inherently guarantee value. A benchmark analysis would be needed to determine if this price is competitive.
What mechanisms are in place to ensure the effectiveness and efficiency of Monongahela Power Company's service over the 10-year contract term?
The contract is a delivery order under an unspecified base contract. Effectiveness and efficiency are typically managed through performance standards, service level agreements, and regular performance reviews outlined in the base contract. The Department of Energy should have processes to monitor service quality and address any deficiencies.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel 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: 1310 FAIRMONT AVE, FAIRMONT, WV, 26554
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,888,944
Exercised Options: $11,888,944
Current Obligation: $11,888,944
Actual Outlays: $6,986,418
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P07BSD0527
IDV Type: IDC
Timeline
Start Date: 2016-08-12
Current End Date: 2026-08-11
Potential End Date: 2026-08-11 00:00:00
Last Modified: 2025-12-19
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