GSA's $14.3M Contract for ATF Building Electricity Service Awarded to Potomac Electric Power Co

Contract Overview

Contract Amount: $14,292,190 ($14.3M)

Contractor: Potomac Electric Power CO

Awarding Agency: General Services Administration

Start Date: 2007-11-09

End Date: 2017-07-31

Contract Duration: 3,552 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: PROVIDE ELECTRIC SERVICE TO ATF BUILDING AT 99 NEW YORK AVENUE, NE WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $14.3 million to POTOMAC ELECTRIC POWER CO for work described as: PROVIDE ELECTRIC SERVICE TO ATF BUILDING AT 99 NEW YORK AVENUE, NE WASHINGTON, DC Key points: 1. The contract value of $14.3 million over 10 years indicates a significant, long-term need for electricity. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract's duration and fixed-price nature present potential risks if energy prices fluctuate significantly. 4. This falls under the 'Energy' sector, a critical utility service for government facilities.

Value Assessment

Rating: fair

The contract value of $14.3 million over nearly 10 years averages approximately $1.43 million annually. Benchmarking this against commercial electricity rates for large facilities in Washington D.C. would be necessary for a precise assessment, but it appears to be within a reasonable range for a government building of significant size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method is generally expected to yield competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for essential services.

Public Impact

Ensures continuous operation of the ATF building, a critical law enforcement facility. Provides a stable and predictable cost for a fundamental utility service. Supports the operational needs of federal agencies through reliable infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 10 years) could expose the government to price volatility if market rates change significantly.
Lack of specific performance metrics or service level agreements mentioned could impact service quality assurance.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract provides budget certainty for the government.

Sector Analysis

This contract falls within the Energy sector, specifically focusing on the distribution of electric power. Government facilities require reliable and consistent energy supply, making this a critical expenditure. Benchmarks for similar large-scale utility contracts would typically consider factors like facility size, energy consumption patterns, and regional energy market prices.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). The primary contractor, Potomac Electric Power Co., is a large utility provider, suggesting that the nature of this service requires a large, established entity.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for managing federal real estate. Oversight would involve monitoring contract performance, ensuring adherence to terms, and managing any potential disputes or changes over the contract's lifespan.

Related Government Programs

Electric Power Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration may not reflect current market prices.
Potential for overpayment if energy prices decrease significantly.
Lack of explicit performance standards in summary data.
Dependence on a single utility provider for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.3 million to POTOMAC ELECTRIC POWER CO. PROVIDE ELECTRIC SERVICE TO ATF BUILDING AT 99 NEW YORK AVENUE, NE 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 $14.3 million.

What is the period of performance?

Start: 2007-11-09. End: 2017-07-31.

What was the basis for the estimated annual cost of $1.43 million, and how does it compare to similar government facilities in the DC area?

The annual cost of approximately $1.43 million is derived from the total award value of $14.3 million spread over the contract duration of 3552 days (approx. 9.7 years). A precise comparison requires detailed energy consumption data for the ATF building and benchmark data for comparable federal facilities in Washington D.C., considering factors like square footage, occupancy, and specific energy needs.

What mechanisms are in place to mitigate the risk of significant electricity price increases over the nearly 10-year contract term?

As a firm fixed-price contract, the government is largely protected from direct price increases by the utility provider. However, the risk of paying above market rates if energy prices fall significantly exists. The initial competitive bidding process is the primary mechanism to secure a favorable price, but the long duration inherently carries some market risk.

How is the reliability and quality of the electric service being monitored and enforced under this contract?

The provided data does not detail specific performance metrics or service level agreements (SLAs). Typically, government contracts include clauses for service reliability, outage response times, and power quality standards. Oversight by the GSA's Public Buildings Service would involve monitoring these aspects, potentially through facility management reports and direct observation of service delivery.

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: $14,292,190

Exercised Options: $14,292,190

Current Obligation: $14,292,190

Parent Contract

Parent Award PIID: GS00P90BSD0027

IDV Type: IDC

Timeline