EPA awards $46.3M for electric utilities to Duke Energy Progress, LLC for 10 years

Contract Overview

Contract Amount: $46,267,116 ($46.3M)

Contractor: Duke Energy Progress, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2015-03-01

End Date: 2025-04-15

Contract Duration: 3,698 days

Daily Burn Rate: $12.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: IGF::OT::IGF ELECTRIC UTILITIES FOR THE EPA AND NIEHS MAIN CAMPUS IN RTP, NC

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $46.3 million to DUKE ENERGY PROGRESS, LLC for work described as: IGF::OT::IGF ELECTRIC UTILITIES FOR THE EPA AND NIEHS MAIN CAMPUS IN RTP, NC Key points: 1. Significant 10-year contract for essential utility services. 2. Sole-source award limits competitive pricing opportunities. 3. Potential for price escalation due to economic price adjustment clause. 4. Focus on EPA's main campus in North Carolina.

Value Assessment

Rating: fair

The contract value of $46.3M over 10 years averages $4.63M annually. Benchmarking is difficult without specific service details, but this appears to be a standard rate for utility services in a major metropolitan area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competition. This method may lead to higher prices as there was no market pressure to drive down costs.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding for essential utility services.

Public Impact

Ensures continuous power supply for critical EPA research and operations. Potential for increased costs over the decade due to economic price adjustments. Lack of competition raises questions about cost-effectiveness for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Economic price adjustment clause
Long contract duration

Positive Signals

Ensures reliable utility services
Supports critical EPA operations

Sector Analysis

Electric utilities are essential infrastructure services. Spending benchmarks vary widely by region and consumption. This contract represents a significant, long-term commitment for a federal agency's operational needs.

Small Business Impact

This contract was awarded to Duke Energy Progress, LLC, a large utility provider. There is no indication that small businesses were involved in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the pricing remains reasonable throughout the contract term, especially with the economic price adjustment.

Related Government Programs

Electric Power Distribution
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
Economic price adjustment clause introduces cost uncertainty over a long term.
Long contract duration (10 years) may not be optimal for evolving utility needs.
Lack of transparency regarding the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $46.3 million to DUKE ENERGY PROGRESS, LLC. IGF::OT::IGF ELECTRIC UTILITIES FOR THE EPA AND NIEHS MAIN CAMPUS IN RTP, NC

Who is the contractor on this award?

The obligated recipient is DUKE ENERGY PROGRESS, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $46.3 million.

What is the period of performance?

Start: 2015-03-01. End: 2025-04-15.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. For utility services, this might be due to geographic monopoly. However, the agency should have explored if any competitive options, even for portions of the service or alternative providers, were feasible before resorting to a sole-source determination.

How will the economic price adjustment clause impact the total cost over the 10-year period?

The economic price adjustment (EPA) clause allows for changes in price based on fluctuations in economic factors, such as inflation or specific commodity indices. Over a 10-year period, these adjustments can significantly increase the total contract cost beyond the initial estimated value. Without knowing the specific index or cap on adjustments, it's difficult to quantify the exact impact, but it introduces considerable cost uncertainty for the agency and taxpayers.

Are there mechanisms in place to periodically review the necessity and cost-effectiveness of this sole-source utility contract?

The provided data does not specify oversight mechanisms for this contract. Given its long duration and sole-source nature, periodic reviews by the EPA contracting office are crucial. These reviews should assess if the services are still needed at the current scope, if the pricing remains fair and reasonable compared to market rates (even with adjustments), and if the sole-source justification still holds true.

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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $59,903,587

Exercised Options: $59,903,587

Current Obligation: $46,267,116

Actual Outlays: $15,913,365

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