DHS Coast Guard Awards $8.35M for Energy Management Services to Virginia Electric and Power Company

Contract Overview

Contract Amount: $8,354,853 ($8.4M)

Contractor: Virginia Electric and Power Company

Awarding Agency: Department of Homeland Security

Start Date: 2015-11-13

End Date: 2032-12-15

Contract Duration: 6,242 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF AUTHORIZATION FOR ENERGY MANAGEMENT SERVICES

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.4 million to VIRGINIA ELECTRIC AND POWER COMPANY for work described as: IGF::OT::IGF AUTHORIZATION FOR ENERGY MANAGEMENT SERVICES Key points: 1. Contract awarded for electric power distribution services. 2. Significant contract duration of over 17 years. 3. No small business participation noted. 4. Fixed price contract type aims to control costs.

Value Assessment

Rating: fair

The contract's total value is $8.35 million over a long period. Benchmarking is difficult without specific service details and comparable contracts for energy management services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is not available for competition, suggesting a limited source. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The long duration and lack of competition may result in suboptimal pricing for taxpayers over the contract's life.

Public Impact

Long-term energy service contract impacts operational costs for the U.S. Coast Guard. Potential for energy efficiency improvements or reliance on a single provider. Taxpayer funds are committed for over 17 years for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
No small business participation

Positive Signals

Firm fixed price contract

Sector Analysis

This contract falls under the Energy sector, specifically electric power distribution. Government spending on energy management services is crucial for operational efficiency and cost savings, with benchmarks varying widely based on service scope and duration.

Small Business Impact

The contract does not indicate any participation from small businesses. This represents a missed opportunity to support small business growth within the federal contracting landscape.

Oversight & Accountability

Oversight is needed to ensure the U.S. Coast Guard is receiving value for money throughout the contract's extensive duration, especially given the limited competition.

Related Government Programs

Electric Power Distribution
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition may lead to higher costs.
Long contract duration increases risk of price escalation and obsolescence.
Lack of small business involvement.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.4 million to VIRGINIA ELECTRIC AND POWER COMPANY. IGF::OT::IGF AUTHORIZATION FOR ENERGY MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is VIRGINIA ELECTRIC AND POWER COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2015-11-13. End: 2032-12-15.

What specific energy management services are being provided, and how do they contribute to the Coast Guard's mission effectiveness?

The provided data lacks specifics on the energy management services. Understanding the scope, such as energy efficiency upgrades, grid management, or renewable energy integration, is crucial to assess their contribution to the Coast Guard's operational effectiveness and justify the long-term expenditure.

Given the limited competition, what measures are in place to ensure fair pricing and prevent cost overruns over the 17-year contract term?

With a sole-source or limited competition award, robust oversight mechanisms are essential. This includes regular performance reviews, market price analysis, and potential renegotiation clauses to ensure the government is not overpaying, especially as energy markets and technologies evolve over the contract's long lifespan.

How does this long-term energy contract align with broader federal sustainability and energy independence goals?

The alignment depends on the specific services rendered. If the contract focuses on renewable energy adoption, energy efficiency improvements, or smart grid technologies, it could significantly contribute to federal sustainability goals. However, without detailed service information, it's difficult to ascertain the extent of this alignment.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dominion Energy, Inc.

Address: 120 TREDEGAR ST, RICHMOND, VA, 23219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,751,740

Exercised Options: $8,354,853

Current Obligation: $8,354,853

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P08BSD0560

IDV Type: IDC

Timeline