DoD's $30.6M Compressed Air Contract with Georgia Power Faces Limited Competition
Contract Overview
Contract Amount: $30,587,304 ($30.6M)
Contractor: Georgia Power Company
Awarding Agency: Department of Defense
Start Date: 2013-09-19
End Date: 2039-06-29
Contract Duration: 9,414 days
Daily Burn Rate: $3.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ANALYSIS (COMPRESSED AIR)
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to GEORGIA POWER COMPANY for work described as: IGF::OT::IGF ANALYSIS (COMPRESSED AIR) Key points: 1. Significant long-term contract value of $30.6 million. 2. Limited competition raises concerns about potential overpricing. 3. Extended contract duration (2013-2039) warrants close monitoring. 4. Sector: Energy/Utilities, with potential IT implications for infrastructure management.
Value Assessment
Rating: questionable
The contract's value of $30.6 million over 26 years suggests a high per-unit cost, especially given the limited competition. Without comparable contract data, it's difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a sole-source or limited-source award. This lack of competitive bidding likely results in less favorable pricing for the government.
Taxpayer Impact: The limited competition and extended duration may lead to taxpayers paying more than necessary for compressed air services.
Public Impact
Ensures critical compressed air services for Air Force operations. Potential for higher costs due to lack of competitive bidding. Long-term commitment may not reflect evolving technological needs or market prices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of clear performance metrics (implied)
Positive Signals
- Ensures essential service delivery
- Fixed price contract provides some cost certainty
Sector Analysis
This contract falls within the Energy/Utilities sector, specifically electric power distribution. Benchmarks for similar long-term utility contracts are often influenced by regional pricing, regulatory environments, and the specific infrastructure involved.
Small Business Impact
There is no indication of small business participation in this contract. The award to a large utility company suggests that small businesses were likely not considered or involved in this specific procurement.
Oversight & Accountability
Oversight is crucial given the limited competition and long duration. Regular reviews of pricing, service delivery, and market conditions are necessary to ensure continued value and accountability.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Long contract duration (26 years)
- Potential for price escalation
- Lack of transparency on justification for limited competition
Tags
electric-power-distribution, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to GEORGIA POWER COMPANY. IGF::OT::IGF ANALYSIS (COMPRESSED AIR)
Who is the contractor on this award?
The obligated recipient is GEORGIA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $30.6 million.
What is the period of performance?
Start: 2013-09-19. End: 2039-06-29.
What is the justification for limiting competition on this essential service contract?
The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities, existing infrastructure integration, or specific regulatory requirements. However, without explicit details, it raises questions about whether alternative, more competitive solutions were adequately explored.
How does the per-unit cost compare to industry benchmarks for similar compressed air services?
The provided data does not allow for a direct per-unit cost comparison. The total award value is spread over a very long period (2013-2039), making it difficult to isolate a meaningful per-unit cost without knowing the exact volume of services consumed annually. Industry benchmarks would require more granular data on usage and service levels.
What mechanisms are in place to ensure the Air Force receives effective and efficient service delivery over the contract's 26-year term?
The data does not specify the mechanisms for ensuring effective and efficient service delivery. A robust contract would include clear performance standards, service level agreements, regular performance reviews, and potential incentives or penalties. The long duration necessitates proactive management to adapt to changing needs and maintain service quality.
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: Southern CO Services Inc
Address: 241 RALPH MCGILL BLVD NE, ATLANTA, GA, 30308
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $51,101,764
Exercised Options: $51,101,764
Current Obligation: $30,587,304
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P06BSD0472
IDV Type: IDC
Timeline
Start Date: 2013-09-19
Current End Date: 2039-06-29
Potential End Date: 2039-06-29 00:00:00
Last Modified: 2025-12-19
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