NIH Awards $168M for Cogen Facility O&M, Extending Contract to 2024
Contract Overview
Contract Amount: $168,075,610 ($168.1M)
Contractor: Potomac Electric Power CO
Awarding Agency: Department of Health and Human Services
Start Date: 2014-06-26
End Date: 2024-04-10
Contract Duration: 3,576 days
Daily Burn Rate: $47.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF::C101336 - OPERATION AND MAINTENANCE SERVICES FOR COGEN FACILITY AT BUILDING 11 - NIH BETHESDA CAMPUS.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $168.1 million to POTOMAC ELECTRIC POWER CO for work described as: IGF::OT::IGF::C101336 - OPERATION AND MAINTENANCE SERVICES FOR COGEN FACILITY AT BUILDING 11 - NIH BETHESDA CAMPUS. Key points: 1. Significant contract value of $168M for essential facility operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the long duration and fixed-price nature. 4. Sector is primarily facility operations and maintenance within healthcare research.
Value Assessment
Rating: good
The contract is a firm fixed price delivery order, which typically provides cost certainty. Benchmarking against similar long-term facility O&M contracts would be needed for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process for soliciting bids and selecting a vendor. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The full and open competition process aims to secure the most cost-effective solution for taxpayers over the contract's lifespan.
Public Impact
Ensures continuous operation of critical co-generation facilities at NIH Bethesda. Supports ongoing research and healthcare activities by maintaining essential infrastructure. Long-term contract provides stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may introduce price escalation risks.
- Reliance on a single delivery order for a large sum.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Full and open competition suggests competitive pricing was sought.
Sector Analysis
This contract falls within the facilities maintenance and operations sector, specifically supporting critical infrastructure for a major research institution. Spending benchmarks for similar long-term O&M contracts at federal facilities would provide further context.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Analysis of subcontracting opportunities for small businesses would be necessary to assess their participation.
Oversight & Accountability
The contract is a delivery order under a larger framework, suggesting it has undergone initial review. Ongoing oversight would focus on performance, adherence to terms, and cost management throughout the contract's extended period.
Related Government Programs
- Electric Power Distribution
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration
- Firm Fixed Price
- Potential for cost escalation over time
- Lack of specific small business participation noted
Tags
electric-power-distribution, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $168.1 million to POTOMAC ELECTRIC POWER CO. IGF::OT::IGF::C101336 - OPERATION AND MAINTENANCE SERVICES FOR COGEN FACILITY AT BUILDING 11 - NIH BETHESDA CAMPUS.
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER CO.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $168.1 million.
What is the period of performance?
Start: 2014-06-26. End: 2024-04-10.
What is the historical performance of Potomac Electric Power Co. on similar federal contracts?
Assessing Potomac Electric Power Co.'s past performance on comparable federal contracts is crucial for understanding their reliability and efficiency in delivering operation and maintenance services. Reviewing past contract awards, performance evaluations, and any dispute resolutions can provide insights into their track record and suitability for this long-term commitment.
How does the annual cost compare to industry benchmarks for co-generation facility O&M?
Comparing the annual cost of this contract to industry benchmarks for co-generation facility operation and maintenance is essential for evaluating value. Factors like facility size, complexity, energy output, and geographic location influence costs. A detailed analysis against peer facilities can reveal if the $16.8M annual average is competitive or if there are potential cost efficiencies to explore.
What are the specific risks associated with a 10-year fixed-price contract for facility O&M?
A 10-year fixed-price contract for facility O&M carries risks such as potential underestimation of future operating costs, inflation, and unforeseen technological obsolescence. The contractor might face reduced profit margins if costs escalate significantly, while the government risks paying above market rates if prices fall. Renegotiation clauses or price adjustment mechanisms are important considerations.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 701 9TH ST NW, WASHINGTON, DC, 20068
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $182,377,418
Exercised Options: $168,075,610
Current Obligation: $168,075,610
Actual Outlays: $18,233,732
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P10BSD0725
IDV Type: IDC
Timeline
Start Date: 2014-06-26
Current End Date: 2024-04-10
Potential End Date: 2024-07-10 00:00:00
Last Modified: 2025-06-11
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