GSA's $11.3M Electric Services Contract with Potomac Electric Power Co. Lacked Competition for a Decade

Contract Overview

Contract Amount: $11,288,678 ($11.3M)

Contractor: Potomac Electric Power CO

Awarding Agency: General Services Administration

Start Date: 2007-09-21

End Date: 2017-09-30

Contract Duration: 3,662 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ELECTRIC SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $11.3 million to POTOMAC ELECTRIC POWER CO for work described as: ELECTRIC SERVICES Key points: 1. Significant contract value of $11.3 million over its 10-year duration. 2. Sole-source award indicates a lack of competitive bidding, potentially impacting price. 3. Long contract duration (2007-2017) raises questions about market responsiveness and potential for cost savings. 4. The sector is essential utilities, often subject to regulation and unique market dynamics.

Value Assessment

Rating: questionable

The contract was awarded on a firm fixed price basis. Without competitive benchmarks or detailed pricing breakdowns, it's difficult to definitively assess value. However, the lack of competition over a decade suggests potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as 'NOT AVAILABLE FOR COMPETITION'. This sole-source approach bypasses the competitive bidding process, which is crucial for ensuring fair market prices and achieving best value for taxpayers.

Taxpayer Impact: The absence of competition over a 10-year period likely resulted in higher costs for taxpayers than could have been achieved through a competitive procurement.

Public Impact

Taxpayers may have paid a premium for electricity services due to the lack of competitive pressure. Government agencies relying on these services might have faced less predictable or potentially higher utility costs. The long duration of the sole-source contract limits opportunities for innovation and cost-saving adjustments.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Lack of Competition
Long Contract Duration
Sole-Source Award

Positive Signals

Firm Fixed Price contract type provides cost certainty

Sector Analysis

This contract falls under essential utility services, specifically electric power. Government spending in this sector is typically driven by operational needs for federal facilities. Benchmarks are often dictated by regulated utility rates, but competitive procurements can still yield savings.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this sole-source contract. The primary awardee is a large utility provider.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for bypassing competitive processes. Oversight should ensure such decisions are well-documented and truly necessary.

Related Government Programs

General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of competitive bidding
Extended sole-source duration
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.3 million to POTOMAC ELECTRIC POWER CO. ELECTRIC SERVICES

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER CO.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2007-09-21. End: 2017-09-30.

What was the specific justification provided for awarding this contract on a sole-source basis for such an extended period?

The provided data states 'NOT AVAILABLE FOR COMPETITION' without further elaboration. A thorough review would require accessing the contract file to understand the agency's rationale. This could range from unique service requirements to market limitations, but without documentation, it raises concerns about potential circumvention of competitive principles.

How did the pricing compare to market rates for similar electric services during the contract's 10-year lifespan?

Without access to the contract's specific pricing details and comparable market data from 2007-2017, a direct comparison is impossible. However, the absence of competition over a decade strongly suggests that the government may not have secured the most cost-effective rates available in the market during that period.

Were there any performance reviews or cost-benefit analyses conducted during the contract's duration to ensure continued value?

The provided data does not contain information regarding performance reviews or cost-benefit analyses. Given the long, sole-source nature of the contract, it is crucial that such assessments were performed to ensure the government continued to receive fair value and that the service remained necessary and appropriately priced.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pepco Holdings LLC (UEI: 105895010)

Address: 701 9TH STREET, N.W., WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,288,678

Exercised Options: $11,288,678

Current Obligation: $11,288,678

Parent Contract

Parent Award PIID: GS00P00BSD0138

IDV Type: IDC

Timeline