GSA's $14M electrical services contract for DC building awarded to Potomac Electric Power Co. over 10 years

Contract Overview

Contract Amount: $14,000,000 ($14.0M)

Contractor: Potomac Electric Power CO

Awarding Agency: General Services Administration

Start Date: 2005-11-10

End Date: 2015-10-31

Contract Duration: 3,642 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL SERVICES, 12TH & CONSTITUTION AVENUE, WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $14.0 million to POTOMAC ELECTRIC POWER CO for work described as: ELECTRICAL SERVICES, 12TH & CONSTITUTION AVENUE, WASHINGTON, DC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long-term award (10 years) may indicate a need for stable, ongoing services. 3. Firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. Awarded to a single contractor, Potomac Electric Power Co., for specialized electrical distribution. 5. The contract value of $14 million over a decade suggests significant infrastructure investment. 6. No small business set-aside noted, implying the primary competition was not targeted at small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable projects. The $14 million total award over approximately 10 years averages to $1.4 million annually. This figure needs to be assessed against the scale and complexity of electrical distribution services required for a federal building at 12th & Constitution Avenue. Without data on the specific infrastructure maintained or upgraded, it's difficult to definitively assess value for money. However, the duration and fixed-price nature suggest a degree of cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a public solicitation process where multiple companies can compete. The number of bidders is not specified, but the designation suggests a robust competitive environment was intended. The outcome of such a competition is generally expected to yield a fair market price.

Taxpayer Impact: A full and open competition aims to ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

Federal employees and visitors benefit from reliable electrical power within the General Services Administration facility. Ensures the continuous operation of critical electrical infrastructure for a significant federal building. The services directly impact the District of Columbia's federal infrastructure. Supports the operational needs of the Public Buildings Service within GSA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to vendor lock-in and reduced flexibility for future technological changes.
Lack of specific performance metrics or quality assurance details in the provided data makes assessing contractor performance difficult.
Potential for cost overruns if unforeseen infrastructure issues arise, despite the fixed-price nature, depending on contract clauses.
Reliance on a single incumbent contractor for a decade may stifle innovation from potential new entrants.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive process likely yielded a reasonable price.
The long duration indicates a stable, long-term need for essential electrical services.
Contractor is a major utility provider (Potomac Electric Power Co.), suggesting established expertise and reliability.

Sector Analysis

This contract falls within the Utilities and Energy sector, specifically focusing on electric power distribution for federal facilities. The market for such services is typically dominated by established utility companies and specialized electrical contractors. Federal spending in this area is crucial for maintaining the operational integrity of government buildings and infrastructure. Comparable spending benchmarks would involve analyzing annual utility costs and infrastructure maintenance budgets for similar-sized federal buildings in urban environments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely aimed at larger, established companies with the capacity to handle the scope and duration of the electrical services required. There is no information provided regarding subcontracting plans or opportunities for small businesses to participate in this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms would include contract administration, performance reviews, and financial oversight to ensure compliance with the firm-fixed-price terms. Transparency is generally maintained through federal procurement databases, though specific performance details may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Utility Services Contracts
Electrical Infrastructure Upgrades
GSA Public Buildings Service Operations
District of Columbia Federal Facilities

Risk Flags

Long-term contract duration
Lack of specific performance metrics
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.0 million to POTOMAC ELECTRIC POWER CO. ELECTRICAL SERVICES, 12TH & CONSTITUTION AVENUE, WASHINGTON, DC

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 $14.0 million.

What is the period of performance?

Start: 2005-11-10. End: 2015-10-31.

What is the historical spending pattern for electrical services at 12th & Constitution Avenue prior to this contract?

The provided data does not include historical spending patterns for electrical services at this specific location before the November 10, 2005 award. To assess historical trends, one would need to access GSA's procurement records or facility management archives for the period preceding 2005. Analyzing prior contracts, their values, durations, and awarded vendors would reveal if this $14 million, 10-year contract represents a significant increase or decrease in spending, or if it signifies a shift in service providers or contract structure. Understanding past expenditures is crucial for evaluating the long-term cost-effectiveness and necessity of the current contract.

How does the annual cost of this contract compare to similar federal buildings in Washington D.C.?

Comparing the annual cost of this contract ($1.4 million average) to similar federal buildings in Washington D.C. requires access to a database of federal building utility and electrical maintenance expenditures. Without such a benchmark, it's difficult to definitively state if this represents a high, low, or average cost. Factors influencing cost include building size, age, specific electrical system complexity, and the scope of services (e.g., routine maintenance vs. major upgrades). The General Services Administration (GSA) manages a vast portfolio, and internal benchmarks likely exist, but public data for direct comparison is limited. However, $1.4 million annually for a major federal building's electrical infrastructure in a high-cost area like D.C. may be within a reasonable range, assuming comprehensive services are included.

What specific electrical services are included under this $14 million contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 221122, which corresponds to 'Electric Power Distribution.' This suggests the contract primarily covers the operation, maintenance, and potentially upgrades of the electrical distribution systems serving the facility at 12th & Constitution Avenue. Specific services could include managing substations, power lines, transformers, circuit breakers, and ensuring reliable power delivery. It might also encompass routine inspections, preventative maintenance, emergency repairs, and potentially modernization efforts to ensure the system meets current safety and operational standards. The firm-fixed-price nature implies a defined scope of work for the $14 million total value over the contract's duration.

What is Potomac Electric Power Co.'s track record with GSA and other federal agencies?

Potomac Electric Power Company (PEPCO) is a major utility provider serving the Washington D.C. metropolitan area. As such, it is highly likely to have a long-standing relationship with GSA and other federal agencies located within its service territory, providing standard utility services. This specific contract, however, is for 'Electric Power Distribution' (NAICS 221122), which could encompass more than just standard utility provision, potentially including infrastructure management within federal property. A comprehensive review of PEPCO's federal contracting history, including past performance evaluations, contract awards, and any disputes or terminations, would be necessary to fully assess their track record specifically with GSA and for services beyond basic electricity supply.

What are the potential risks associated with a 10-year fixed-price contract for electrical distribution?

A significant risk with a 10-year fixed-price contract for electrical distribution is the potential for unforeseen technological advancements or infrastructure degradation that could make the contracted services or pricing obsolete or insufficient. While the fixed price offers cost certainty, it places the burden of managing rising material costs, labor expenses, and unexpected repair needs entirely on the contractor (Potomac Electric Power Co.). If the scope of work doesn't adequately account for future needs or if the initial pricing was too aggressive, the contractor might face financial strain, potentially impacting service quality or leading to contract disputes. Conversely, if the initial pricing was too high, the government might overpay over the contract's life. The long duration also limits the government's flexibility to adopt newer, potentially more efficient technologies or service models.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: P O BOX 37605, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,000,000

Exercised Options: $14,000,000

Current Obligation: $14,000,000

Parent Contract

Parent Award PIID: GS00P90BSD0027

IDV Type: IDC

Timeline