FEMA awards $16.8M for electrical services to Alabama Power Company over 10 years
Contract Overview
Contract Amount: $16,860,915 ($16.9M)
Contractor: Alabama Power Company
Awarding Agency: Department of Homeland Security
Start Date: 2013-09-01
End Date: 2023-08-31
Contract Duration: 3,651 days
Daily Burn Rate: $4.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ELECTRICAL SERVICES FOR THE CDP
Place of Performance
Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35203
State: Alabama Government Spending
Plain-Language Summary
Department of Homeland Security obligated $16.9 million to ALABAMA POWER COMPANY for work described as: IGF::OT::IGF ELECTRICAL SERVICES FOR THE CDP Key points: 1. Significant long-term contract value of $16.8 million. 2. Sole-source award to Alabama Power Company raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Electrical services sector is critical for infrastructure resilience.
Value Assessment
Rating: questionable
The contract value of $16.8 million over 10 years averages $1.68 million annually. Without competitive data, it's difficult to assess if this pricing is optimal. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these essential electrical services.
Public Impact
Ensures continued operation of critical facilities managed by FEMA. Supports disaster preparedness and response infrastructure. Long-term commitment provides stability for service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration may not reflect current market rates.
- Lack of detailed cost breakdown.
Positive Signals
- Ensures essential service continuity.
- Firm fixed-price contract provides budget predictability.
Sector Analysis
This contract falls within the utility services sector, specifically focusing on electrical power distribution. Spending in this area is crucial for maintaining government facility operations, especially during emergencies.
Small Business Impact
The data indicates no specific set-aside for small businesses. As a sole-source award to a large utility provider, small businesses likely had no opportunity to participate in this contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not seeking competitive bids. Oversight should focus on performance and adherence to contract terms.
Related Government Programs
- Electric Power Distribution
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition.
- Potential for overpayment.
- Long contract duration.
- Limited transparency on justification.
Tags
electric-power-distribution, department-of-homeland-security, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $16.9 million to ALABAMA POWER COMPANY. IGF::OT::IGF ELECTRICAL SERVICES FOR THE CDP
Who is the contractor on this award?
The obligated recipient is ALABAMA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2013-09-01. End: 2023-08-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without further documentation, it's impossible to determine the specific rationale. However, such awards require rigorous justification to ensure taxpayer funds are used efficiently and competitively where possible.
How does the annual cost compare to similar sole-source electrical service contracts?
Benchmarking this contract's annual cost of approximately $1.68 million against similar sole-source contracts is challenging without access to a comprehensive database of such agreements. Factors like geographic location, specific service requirements, and the incumbent provider's market position heavily influence pricing. A detailed analysis would require comparing specific service level agreements and regional utility rates.
What mechanisms are in place to ensure the quality and necessity of services provided under this long-term sole-source contract?
Oversight mechanisms should include regular performance reviews, clear deliverables, and a process for validating the necessity of services rendered. FEMA should maintain detailed records of service requests and outcomes. Periodic re-evaluation of the contract's continued necessity and pricing, even if sole-source, is advisable to ensure ongoing value for money.
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: Southern CO Services Inc
Address: 600 18TH ST N, BIRMINGHAM, AL, 35203
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,698,832
Exercised Options: $20,698,832
Current Obligation: $16,860,915
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P06BSD0471
IDV Type: IDC
Timeline
Start Date: 2013-09-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-04-29
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