Commerce awards Duke Energy $13.3M for electric utility services at Jeffersonville, Indiana, through 2026
Contract Overview
Contract Amount: $13,333,908 ($13.3M)
Contractor: Duke Energy Progress, LLC
Awarding Agency: Department of Commerce
Start Date: 2014-12-01
End Date: 2026-12-31
Contract Duration: 4,413 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ELECTRIC UTILITY SERVICES AT JEFFERSONVILLE, INDIANA.
Place of Performance
Location: JEFFERSONVILLE, CLARK County, INDIANA, 47130
State: Indiana Government Spending
Plain-Language Summary
Department of Commerce obligated $13.3 million to DUKE ENERGY PROGRESS, LLC for work described as: IGF::OT::IGF ELECTRIC UTILITY SERVICES AT JEFFERSONVILLE, INDIANA. Key points: 1. Spending of $13.3M over 12 years for electric utility services. 2. Sole-source award to Duke Energy Progress, LLC. 3. Risk of inflated pricing due to lack of competition. 4. Sector: Energy (Electric Utilities).
Value Assessment
Rating: questionable
The contract's duration and firm fixed price suggest potential for overpayment if market rates fluctuate significantly. Benchmarking against similar utility contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for electric utility services over the contract's lifespan.
Public Impact
Taxpayers may be overpaying for essential utility services due to a lack of competitive bidding. The long-term nature of the contract locks in pricing, potentially missing out on future market savings. Government reliance on a single provider for critical infrastructure raises concerns about service continuity and pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of price benchmarking data
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the Energy sector, specifically electric utility services. Utility contracts can vary widely in price depending on location, service scope, and duration. Benchmarking is challenging without comparable sole-source awards.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often limit opportunities for small businesses.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and adequate service delivery. The duration of this contract necessitates ongoing monitoring by the Department of Commerce.
Related Government Programs
- Electric Power Distribution
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration (12 years) increases risk of unfavorable pricing over time.
- Lack of detailed service scope makes precise value assessment difficult.
- No clear justification for sole-source status provided.
Tags
electric-power-distribution, department-of-commerce, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $13.3 million to DUKE ENERGY PROGRESS, LLC. IGF::OT::IGF ELECTRIC UTILITY SERVICES AT JEFFERSONVILLE, INDIANA.
Who is the contractor on this award?
The obligated recipient is DUKE ENERGY PROGRESS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2014-12-01. End: 2026-12-31.
What is the justification for this contract being sole-source, and what steps were taken to ensure fair pricing?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can fulfill the requirement. However, without this justification, it's difficult to assess if fair pricing was achieved through negotiation or if taxpayers are potentially overpaying due to the absence of competition.
How does the $13.3M price compare to market rates for similar electric utility services over a 12-year period?
Direct comparison is challenging due to the contract's long duration and sole-source nature. Market rates for electric utilities fluctuate based on energy prices, infrastructure needs, and regulatory environments. Without access to comparable contracts or detailed service breakdowns, it's difficult to definitively state if $13.3M represents fair market value over 12 years.
What are the risks associated with a 12-year firm fixed-price contract for electric utility services?
A significant risk is price escalation if market energy costs decrease over the 12 years, meaning the government pays more than necessary. Conversely, if costs rise dramatically, the fixed price could become advantageous. Another risk is vendor lock-in, potentially hindering the adoption of newer, more efficient technologies or services.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
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
Parent Company: Duke Energy Corporation
Address: 410 S WILMINGTON ST, RALEIGH, NC, 27601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,333,908
Exercised Options: $13,333,908
Current Obligation: $13,333,908
Actual Outlays: $12,144,906
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P14BSD1055
IDV Type: IDC
Timeline
Start Date: 2014-12-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-03-25
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