DoD's $20.7M Tornado Recovery Contract Awarded to Georgia Power Company for Electric Power Distribution

Contract Overview

Contract Amount: $20,760,904 ($20.8M)

Contractor: Georgia Power Company

Awarding Agency: Department of Defense

Start Date: 2017-02-16

End Date: 2023-09-25

Contract Duration: 2,412 days

Daily Burn Rate: $8.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MCLB ALBANY TORNADO RECOVERY REPAIRS

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31701

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to GEORGIA POWER COMPANY for work described as: IGF::OT::IGF MCLB ALBANY TORNADO RECOVERY REPAIRS Key points: 1. Contract awarded for tornado recovery repairs, indicating a response to a specific disaster event. 2. The contract duration of 2412 days (over 6 years) suggests a long-term recovery and restoration effort. 3. Awarded as a delivery order under an existing contract, the specific competition dynamics are not detailed. 4. The fixed-price contract type aims to control costs for the government. 5. The contract is geographically focused on Albany, Georgia, directly addressing local recovery needs. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of tornado damage and the prevailing market rates for emergency power restoration services in Georgia. The contract was awarded as a delivery order, implying it might be part of a larger, pre-negotiated agreement where pricing was previously established. However, the extended duration suggests a significant undertaking, and without comparative data on similar disaster recovery efforts or detailed cost breakdowns, assessing the true value-for-money is difficult. The fixed-price nature provides some cost certainty, but the overall efficiency and fairness of the price relative to the services rendered remain unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under a 'NOT AVAILABLE FOR COMPETITION' (NAF) designation, indicating it was not openly competed. This suggests that Georgia Power Company was likely the only entity capable of providing the necessary electric power distribution services for tornado recovery in the specified region, possibly due to existing infrastructure ownership or emergency response agreements. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: The lack of competition for this essential recovery service means taxpayers may have paid a premium, as there was no market pressure to drive down prices. This also limits transparency in how the final cost was determined.

Public Impact

Residents and businesses in Albany, Georgia, benefit from the restoration of essential electric power services following a tornado. The contract ensures the repair and maintenance of critical electric power distribution infrastructure. The geographic impact is concentrated in Albany, Georgia, addressing the immediate needs of the affected community. The contract supports the continuity of essential services, enabling economic and social recovery in the disaster-stricken area. Workforce implications include potential employment for utility workers and contractors involved in the repair and restoration efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The extended contract duration could indicate unforeseen complexities or potential for scope creep, impacting final costs.
Limited transparency in the award process makes it difficult to assess the fairness of the pricing and terms.

Positive Signals

Awarding the contract to an established utility provider like Georgia Power Company ensures access to necessary expertise and resources for critical infrastructure repair.
The fixed-price contract type offers some predictability in cost management for the government.
The contract directly addresses a critical need for disaster recovery, ensuring the restoration of essential services.

Sector Analysis

The electric power distribution sector is a critical component of national infrastructure, responsible for delivering electricity from generation sources to end-users. This contract falls within the broader utilities and infrastructure maintenance sector. Spending in this area often involves long-term maintenance, upgrades, and emergency response. Comparable spending benchmarks would typically involve analyzing costs for similar infrastructure repair projects, especially those related to disaster recovery, which can vary significantly based on the scale of damage and geographic location. The market is often characterized by regulated utilities and specialized contractors.

Small Business Impact

The contract data indicates that small business set-asides were not utilized (ss: false, sb: false). This suggests that the primary award was not specifically targeted to small businesses. Given the nature of electric power distribution and emergency recovery, it is possible that subcontracting opportunities may exist for smaller firms specializing in specific repair tasks or material supply. However, without explicit subcontracting plans or data, the direct impact on the small business ecosystem remains unclear, and it is likely that the prime contract was awarded to a large utility provider.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order under a potentially pre-existing contract, initial oversight may have been established during the parent contract's award. Specific oversight mechanisms for the execution of the tornado recovery repairs would involve monitoring progress, ensuring adherence to contract terms, and verifying the quality of work. Transparency is limited due to the sole-source nature of the award, but reporting requirements within the contract would dictate accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FEMA Disaster Relief Funds
Army Corps of Engineers Infrastructure Projects
Utility Infrastructure Modernization Programs
Department of Energy Grid Resilience Initiatives

Risk Flags

Sole-source award may lead to higher costs.
Extended contract duration requires careful monitoring for scope creep and efficiency.
Lack of detailed competition data limits value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to GEORGIA POWER COMPANY. IGF::OT::IGF MCLB ALBANY TORNADO RECOVERY REPAIRS

Who is the contractor on this award?

The obligated recipient is GEORGIA POWER COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2017-02-16. End: 2023-09-25.

What was the specific nature of the tornado damage in Albany, Georgia, that necessitated this contract?

The provided data does not detail the specific nature of the tornado damage. However, the contract's purpose is explicitly stated as 'TORNADO RECOVERY REPAIRS' for 'Electric Power Distribution.' This implies that the tornado caused significant damage to the electrical grid infrastructure, including power lines, substations, poles, and other related equipment, disrupting power supply to the region. The contract's duration of over six years suggests the damage was extensive and required a prolonged effort for full restoration and potentially hardening of the grid against future events. Further investigation into local news archives, emergency management reports, or specific Navy facility damage assessments from the period would be needed for granular details.

How does the $20.7 million cost compare to similar tornado recovery efforts for electric power distribution?

Directly comparing the $20.7 million cost to similar tornado recovery efforts is challenging without specific data on the scale of damage, geographic area affected, and the duration of recovery for other events. Emergency power restoration costs can vary widely. Factors influencing cost include the number of customers affected, the extent of infrastructure damage (e.g., number of poles downed, substation damage), labor rates in the affected region, and the availability of resources. Contracts awarded under 'not available for competition' can also obscure true market value. To benchmark effectively, one would need to identify comparable disaster events, analyze the scope of work for power restoration, and examine the contract values and durations awarded to utilities or specialized contractors in those instances.

What are the potential risks associated with a sole-source award for disaster recovery services?

The primary risk associated with a sole-source award for disaster recovery services is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government loses the opportunity to leverage market forces to secure the best possible price. This can lead to taxpayers paying more than necessary for the services rendered. Additionally, sole-source awards can sometimes mask inefficiencies or a lack of urgency if the awarded contractor faces no competitive pressure. Transparency is also reduced, making it harder to scrutinize the fairness of the pricing and terms. While sole-source awards are sometimes justified by urgency or unique capabilities, they warrant careful oversight to mitigate these inherent risks.

What is the track record of Georgia Power Company in handling large-scale disaster recovery operations?

Georgia Power Company, as a major utility provider in Georgia, has a long history and established track record of responding to and recovering from severe weather events, including hurricanes and tornadoes, that impact its service territory. They are responsible for maintaining and restoring power to millions of customers. Their experience typically involves mobilizing significant resources, including crews, equipment, and mutual aid from other utilities, to address widespread outages efficiently. While specific details of their performance on past disaster recovery operations are not in this data, their role as the incumbent utility provider suggests they possess the necessary infrastructure, personnel, and operational experience to manage such events within their domain. Publicly available reports and news archives often document their response efforts.

How does the contract duration of over six years impact the assessment of program effectiveness?

The contract duration of 2412 days (approximately 6.6 years) for tornado recovery repairs significantly influences the assessment of program effectiveness. A lengthy duration suggests that the recovery and repair process is not a short-term emergency response but a sustained effort involving extensive infrastructure rebuilding, potentially including upgrades or hardening measures. Effectiveness, in this context, would be measured not just by the speed of initial restoration but by the long-term reliability and resilience of the restored power distribution system. Assessing effectiveness would require tracking milestones, quality of repairs, adherence to project timelines (if phased), and ultimately, the reduction in future outages or restoration times attributable to the work performed under this contract.

Are there any specific performance metrics or deliverables outlined in the contract for Georgia Power Company?

The provided data does not specify the performance metrics or deliverables for this contract. However, as a delivery order likely under a larger contract, it would typically include terms related to the scope of work, quality standards, timelines for specific repair actions, and reporting requirements. For a disaster recovery contract of this nature, key performance indicators might include the speed of power restoration to critical facilities, the percentage of damaged infrastructure repaired, adherence to safety protocols, and the overall resilience of the repaired system. The fixed-price nature suggests deliverables are tied to completing the defined scope of repairs. Detailed contract documents would contain these specifics.

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: 241 RALPH MCGILL BLVD NE, ATLANTA, GA, 30308

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

Financial Breakdown

Contract Ceiling: $20,760,904

Exercised Options: $20,760,904

Current Obligation: $20,760,904

Actual Outlays: $615,177

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P15BSD1134

IDV Type: IDC

Timeline