GSA's $164M electric services contract with Evergy Metro, Inc. awarded in 2006, highlights long-term utility needs

Contract Overview

Contract Amount: $16,400,290 ($16.4M)

Contractor: Evergy Metro, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-11-16

End Date: 2016-08-31

Contract Duration: 3,576 days

Daily Burn Rate: $4.6K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC SERVICES, 601 EAST 12TH STREET, KCMO

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64141

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $16.4 million to EVERGY METRO, INC. for work described as: ELECTRIC SERVICES, 601 EAST 12TH STREET, KCMO Key points: 1. The contract's duration of nearly 10 years suggests a stable, long-term need for essential utility services. 2. Awarded under a Firm Fixed Price structure, it aimed to provide cost certainty for electric services. 3. The single award indicates a potentially limited competition scenario for this specific utility provision. 4. The contract's value of $164M over its term points to significant operational costs for federal facilities. 5. Geographic concentration in Missouri suggests a focus on regional utility infrastructure support. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking electric utility contracts is complex due to varying service levels, geographic factors, and regulatory environments. The $164M total award over nearly 10 years averages approximately $16.4M annually. Without specific service details or market rates for the KCMO area during the contract period, a precise value-for-money assessment is challenging. However, the long duration and fixed-price nature suggest an attempt to secure predictable costs for essential services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition method used for this contract. It is listed with only one offeror, Evergy Metro, Inc. This could imply a sole-source situation, a limited competition where only one bid was received, or a scenario where the initial solicitation yielded only one viable proposal. Further investigation into the solicitation documents would be needed to determine the true level of competition.

Taxpayer Impact: A lack of robust competition can potentially lead to higher prices for taxpayers if the awarded vendor did not face significant pressure to offer the most competitive rates.

Public Impact

Federal facilities in Kansas City, Missouri, benefited from reliable electric services. The contract ensured the continuous operation of government buildings and infrastructure. The primary service delivered was the provision of electricity. The geographic impact is localized to the service area of Evergy Metro, Inc. in Missouri. The contract supported the workforce of Evergy Metro, Inc. in maintaining and delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for uncompetitive pricing due to limited disclosed competition.
Long contract duration may not have kept pace with evolving energy market innovations.
Lack of transparency on specific service metrics makes performance evaluation difficult.

Positive Signals

Provided essential, uninterrupted utility services to federal facilities.
Firm Fixed Price contract offered budget predictability.
Long-term award suggests a stable and reliable vendor relationship.

Sector Analysis

The electric utility sector is a critical infrastructure component, characterized by regulated monopolies or oligopolies in many regions. Federal agencies are significant consumers of electricity, often requiring large volumes of power for their facilities. Contracts in this sector typically focus on reliability, cost, and adherence to energy standards. This $164M contract for Evergy Metro, Inc. represents a substantial commitment to securing essential power for federal operations within its service territory, fitting within the broader landscape of government utility procurement.

Small Business Impact

The contract data indicates that this was not a small business set-aside. There is no information provided regarding subcontracting plans or actual performance with small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, unless Evergy Metro, Inc. voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service (PBS). Mechanisms would include contract administration, performance monitoring, and financial oversight to ensure compliance with the terms and conditions. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Federal Utility Contracts
General Services Administration Procurement
Public Buildings Service Operations
Energy Services Contracts
Firm Fixed Price Contracts

Risk Flags

Limited Competition Indication
Long-Term Fixed Price Risk
Lack of Detailed Performance Metrics
Potential for Price Volatility Over Duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.4 million to EVERGY METRO, INC.. ELECTRIC SERVICES, 601 EAST 12TH STREET, KCMO

Who is the contractor on this award?

The obligated recipient is EVERGY METRO, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2006-11-16. End: 2016-08-31.

What was the specific nature of the electric services provided under this contract?

The contract was for general electric services, implying the provision of electricity to federal facilities managed by the General Services Administration (GSA) in Kansas City, Missouri. This would encompass the supply of power necessary for lighting, HVAC systems, electronic equipment, and other operational needs within government buildings. The exact details of service levels, such as voltage, delivery points, and any associated infrastructure maintenance, would be outlined in the contract's statement of work, which is not publicly detailed in the provided data.

How does the $164M total award compare to similar long-term utility contracts?

Comparing the $164M total award for nearly 10 years of electric services requires context on the size and energy demands of the federal facilities served. Annualized, this contract represents roughly $16.4M per year. Utility costs can vary significantly based on location, energy consumption, and market rates. For large federal complexes or multiple facilities within a metropolitan area, this figure might be within a reasonable range. However, without knowing the specific energy usage and the number of facilities covered, a direct comparison to other utility contracts is difficult. It suggests a significant energy requirement for the GSA's Missouri operations during that period.

What were the potential risks associated with a Firm Fixed Price contract for electric services over this duration?

A primary risk of a Firm Fixed Price (FFP) contract, especially over a long duration like nearly 10 years, is that the fixed price may not accurately reflect fluctuating market conditions. For electric services, this could mean the price becomes uncompetitive if wholesale energy prices decrease significantly, or conversely, the vendor might face losses if prices surge unexpectedly beyond projections. The vendor bears the risk of cost overruns, but the government risks paying a premium if the initial price was set too high or if market conditions shift favorably after the award. Additionally, long-term FFP contracts can disincentivize innovation or efficiency improvements by the contractor, as their profit is locked in.

What does the single award indicate about the competition for this contract?

A single award, especially when listed with only one offeror, raises questions about the level of competition achieved. It could suggest that the solicitation was structured in a way that only one company could realistically meet the requirements, perhaps due to specific infrastructure, geographic exclusivity, or unique service capabilities. Alternatively, it might indicate a lack of interest from other potential bidders, or that only one bid was deemed acceptable. Without further details on the solicitation process and the number of proposals received, it's difficult to definitively assess the competitive landscape. This situation warrants scrutiny to ensure the government obtained fair market value.

How did this contract contribute to the General Services Administration's mission?

This contract was crucial for the GSA's mission of providing cost-effective, efficient, and sustainable workspace solutions for federal agencies. By ensuring a reliable supply of electricity, the contract supported the day-to-day operations of federal buildings and the services housed within them. Reliable power is fundamental to maintaining secure and functional government facilities. The GSA's role includes managing these essential utilities, and this contract represents a significant component of that responsibility in the Missouri region during the contract's performance period.

What is the historical spending context for electric services by the GSA in Missouri?

The provided data focuses on a single contract awarded in 2006. To understand the historical spending context for electric services by the GSA in Missouri, one would need to analyze spending patterns over a longer period, including contracts awarded before and after this one, and potentially across different GSA regions or service areas within Missouri. This $164M contract represents a substantial investment, but its significance in the broader historical context depends on the total volume of GSA's utility expenditures in the state over time and the evolution of energy costs and procurement strategies.

Contractor Details

Parent Company: Great Plains Energy Inc (UEI: 064739076)

Address: 1201 WALNUT STREET, KANSAS CITY, MO, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,400,290

Exercised Options: $16,400,290

Current Obligation: $16,400,290

Timeline