FBI Obligates $28.4M for Electric Power from Dominion Energy Virginia
Contract Overview
Contract Amount: $28,389,942 ($28.4M)
Contractor: Virginia Electric and Power Company
Awarding Agency: Department of Justice
Start Date: 2015-12-23
End Date: 2023-12-31
Contract Duration: 2,930 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ACTIONS REQUIRED ARE TO REVIEW CONTRACT OBLIGATION WITH VIRGINIA DOMINION POWER UNDER A GS4 CUSTOMER RATE BASE FOR FY 16. ELECTRICAL POWER WILL CONTINUE TO BE PROVIDED AS HISTORICALLY DONE VIA THE EXISTING SERVICE AND EXISTING METERED LINE. THIS EL
Place of Performance
Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23261
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $28.4 million to VIRGINIA ELECTRIC AND POWER COMPANY for work described as: IGF::OT::IGF ACTIONS REQUIRED ARE TO REVIEW CONTRACT OBLIGATION WITH VIRGINIA DOMINION POWER UNDER A GS4 CUSTOMER RATE BASE FOR FY 16. ELECTRICAL POWER WILL CONTINUE TO BE PROVIDED AS HISTORICALLY DONE VIA THE EXISTING SERVICE AND EXISTING METERED LINE. THIS EL Key points: 1. Dominion Energy Virginia is the sole provider for this essential service. 2. The contract is a firm fixed price, offering cost predictability. 3. Long duration (2015-2023) suggests a stable, ongoing need. 4. No small business participation is indicated.
Value Assessment
Rating: fair
The contract is a firm fixed price for electric power. Benchmarking is difficult without specific usage data, but the per-unit cost is likely tied to regulated utility rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract is sole-source due to the nature of utility services, where a single provider typically serves a geographic area. Price discovery is limited to regulated rate structures.
Taxpayer Impact: Taxpayers are paying for essential electricity services, with costs influenced by regulated utility rates rather than competitive bidding.
Public Impact
Ensures continuous FBI operations by providing essential electricity. Supports a critical federal agency's infrastructure needs. Long-term commitment provides stability for energy provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing opportunities.
- Lack of small business involvement.
Positive Signals
- Provides essential, uninterrupted utility service.
- Firm fixed price contract offers budget certainty.
Sector Analysis
This contract falls under the Energy sector, specifically for electric power. Federal agencies rely on utility providers, often through sole-source arrangements due to geographic monopolies.
Small Business Impact
There is no indication of small business participation in this contract. The nature of utility provision often excludes smaller entities.
Oversight & Accountability
The contract is a purchase order, suggesting a standard procurement process. Oversight would focus on service delivery and adherence to the fixed price.
Related Government Programs
- Electric Bulk Power Transmission and Control
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Sole-source procurement
- Long contract duration
- No small business participation
Tags
electric-bulk-power-transmission-and-con, department-of-justice, va, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $28.4 million to VIRGINIA ELECTRIC AND POWER COMPANY. IGF::OT::IGF ACTIONS REQUIRED ARE TO REVIEW CONTRACT OBLIGATION WITH VIRGINIA DOMINION POWER UNDER A GS4 CUSTOMER RATE BASE FOR FY 16. ELECTRICAL POWER WILL CONTINUE TO BE PROVIDED AS HISTORICALLY DONE VIA THE EXISTING SERVICE AND EXISTING METERED LINE. THIS EL
Who is the contractor on this award?
The obligated recipient is VIRGINIA ELECTRIC AND POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2015-12-23. End: 2023-12-31.
What is the historical cost per kilowatt-hour for this service to assess value?
Without specific usage data or historical kilowatt-hour pricing, a precise value assessment is challenging. However, as a regulated utility, Dominion Energy Virginia's rates are subject to state oversight, providing some level of price control compared to unregulated markets. The firm fixed price offers budget certainty for the FBI.
What are the risks associated with a sole-source contract for essential services like electricity?
The primary risk of a sole-source contract is the lack of competitive pressure, potentially leading to higher prices than might be achieved through bidding. Additionally, reliance on a single provider can create vulnerability if that provider experiences service disruptions or faces financial instability.
How effective is the firm fixed price in managing costs for long-term utility services?
A firm fixed price is effective in providing budget certainty for predictable services like electricity. It shields the government from price fluctuations. However, if usage significantly deviates from projections, the fixed price might not perfectly align with actual consumption value over the contract's long duration.
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
Parent Company: Dominion Energy, Inc.
Address: 120 TREDEGAR ST, RICHMOND, VA, 23219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,602,857
Exercised Options: $28,389,942
Current Obligation: $28,389,942
Actual Outlays: $9,890,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2015-12-23
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-09-06
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