Transportation awards $5.1M for utility energy services at Palmdale, CA facility

Contract Overview

Contract Amount: $5,133,309 ($5.1M)

Contractor: Southern California Edison Company

Awarding Agency: Department of Transportation

Start Date: 2014-10-24

End Date: 2029-09-01

Contract Duration: 5,426 days

Daily Burn Rate: $946/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF IMPLEMENTATION OF UTILITY ENERGY SERVICES CONTRACT (UESC) AT PALMDALE, CA (ZLA)

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $5.1 million to SOUTHERN CALIFORNIA EDISON COMPANY for work described as: IGF::OT::IGF IMPLEMENTATION OF UTILITY ENERGY SERVICES CONTRACT (UESC) AT PALMDALE, CA (ZLA) Key points: 1. Contract awarded to Southern California Edison Company for electric power distribution. 2. This is a delivery order under a larger contract. 3. The contract has a long performance period extending to September 2029. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The award was not competed, raising questions about potential value. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $5.1 million for utility energy services appears to be a standard award for such projects. Without specific details on the scope of work or energy savings expected, a direct comparison to similar contracts is difficult. However, given the long duration and the nature of utility services, the pricing structure will be critical to assess long-term value. The firm fixed price nature provides cost certainty, but it's essential to ensure the initial price reflects a competitive market rate, which is not evident due to the sole-source nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. Southern California Edison Company is the sole provider of these services for the specified location. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to higher costs for the government compared to a competed contract. The rationale for this sole-source award would need further investigation to understand if it was due to unique capabilities or other specific circumstances.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This could result in a higher overall expenditure for the services provided.

Public Impact

The Federal Aviation Administration (FAA) facility in Palmdale, California, will benefit from improved energy infrastructure. Services include electric power distribution, likely aimed at enhancing energy efficiency and reliability. The geographic impact is localized to the Palmdale, CA facility. The contract supports the operational needs of the federal government at this location.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Long contract duration could lead to price escalation if not managed effectively.
Sole-source award requires strong justification to ensure necessity and fairness.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a known utility provider suggests established service delivery.
Long performance period allows for sustained energy management and upgrades.

Sector Analysis

This contract falls within the Energy sector, specifically focusing on utility energy services. Utility energy services contracts (UESCs) are common government vehicles used to improve energy efficiency and reduce utility costs at federal facilities. These contracts often involve upgrades to lighting, HVAC, and other energy-consuming systems. The market for utility services is typically dominated by established utility companies and specialized energy service providers. The value of this contract is modest within the broader context of federal energy spending, but significant for the specific facility it serves.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is no information provided regarding subcontracting opportunities for small businesses. The award to a large utility company suggests that direct subcontracting opportunities may be limited, though the prime contractor might engage small businesses for specific tasks not core to their primary utility operations.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration (FAA), the contracting agency. As a delivery order under a larger contract, the original contract likely has established oversight mechanisms. Transparency is moderate, as the award details are public, but the specific performance metrics and cost justifications for a sole-source award would require deeper investigation. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Utility Energy Services Contracts (UESCs)
Federal Energy Management Program (FEMP)
Department of Transportation Contracts
Federal Aviation Administration Procurement

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.1 million to SOUTHERN CALIFORNIA EDISON COMPANY. IGF::OT::IGF IMPLEMENTATION OF UTILITY ENERGY SERVICES CONTRACT (UESC) AT PALMDALE, CA (ZLA)

Who is the contractor on this award?

The obligated recipient is SOUTHERN CALIFORNIA EDISON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2014-10-24. End: 2029-09-01.

What is the specific scope of work for this utility energy services contract?

The provided data indicates the contract is for 'Electric Power Distribution' and falls under 'IGF IMPLEMENTATION OF UTILITY ENERGY SERVICES CONTRACT (UESC) AT PALMDALE, CA (ZLA)'. While the exact scope is not detailed, UESCs typically involve a comprehensive energy audit followed by the implementation of energy conservation measures. This can include upgrades to lighting systems, HVAC, building controls, water conservation measures, and renewable energy installations. The goal is usually to reduce energy consumption, lower utility costs, and improve the facility's environmental performance. The specific services for this contract would be detailed in the Statement of Work (SOW) within the original contract documentation.

How does the $5.1 million award compare to similar utility energy services contracts?

Comparing this $5.1 million award requires context on the size and scope of the facility it serves and the specific energy conservation measures to be implemented. Utility Energy Services Contracts (UESCs) can range widely in value, from tens of thousands to tens of millions of dollars, depending on the facility's energy footprint and the complexity of the upgrades. For a single federal facility, $5.1 million over a period of approximately five years (from award date to end date) is a moderate investment. Without knowing the baseline energy costs or the projected savings, it's difficult to benchmark the value-for-money. However, UESCs are often structured so that cost savings generated by the improvements pay for the contract over time.

What are the risks associated with a sole-source award for utility services?

The primary risk of a sole-source award for utility services is the potential for inflated pricing due to the lack of competition. When a contract is not competed, the government loses the opportunity to leverage market forces to secure the best possible price and terms. Other risks include a potential lack of innovation if the sole provider is not incentivized to offer cutting-edge solutions, and a reduced level of accountability if there are no alternative providers to turn to. To mitigate these risks, the government must ensure that the sole-source justification is robust, that the pricing is fair and reasonable based on market research, and that strong performance standards are included in the contract.

What is the track record of Southern California Edison Company in performing federal contracts?

Southern California Edison Company (SCE) is a major utility provider in California and has a long history of serving residential, commercial, and industrial customers, including government facilities. While specific details on their performance across all federal contracts are not provided here, large utility companies like SCE typically have established processes for managing large-scale projects and government contracts. Their experience would likely include managing infrastructure, energy efficiency programs, and regulatory compliance. Federal agencies often contract with established utilities for energy services due to their existing infrastructure and expertise in the service territory.

What are the historical spending patterns for utility energy services at this FAA facility?

Historical spending data for utility energy services at the Palmdale, CA FAA facility is not provided in the given data. To assess historical patterns, one would need to examine past contracts for energy services, utility bills, and any energy efficiency projects undertaken at the site. Understanding past expenditures would allow for a baseline comparison to evaluate the potential cost savings and return on investment of this new $5.1 million contract. Analyzing trends in energy consumption and costs over several years would provide valuable context for the current award.

How does the contract duration of over 5 years impact the overall value and risk?

The contract duration of approximately 5 years (from Oct 2014 to Sep 2029) for this $5.1 million award has implications for both value and risk. A longer duration allows for the amortization of upfront costs associated with energy efficiency upgrades, potentially leading to greater long-term savings. It also provides stability for the contractor to implement and manage complex energy projects. However, a longer term also increases the risk of price escalation if not properly managed, especially with fluctuating energy markets or inflation. Furthermore, technological advancements in energy efficiency could make the implemented solutions outdated before the contract ends. The firm fixed price nature helps mitigate some of this risk by locking in costs, but careful monitoring of performance and market conditions is still crucial.

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: Edison International

Address: 8631 RUSH, ROSEMEAD, CA, 91770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,135,603

Exercised Options: $5,133,309

Current Obligation: $5,133,309

Actual Outlays: $3,265,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P09BSD0666

IDV Type: IDC

Timeline