DoD's $101M Electric Power Contract for Camp Lejeune Faces Limited Competition
Contract Overview
Contract Amount: $101,010,002 ($101.0M)
Contractor: Duke Energy Progress, LLC
Awarding Agency: Department of Defense
Start Date: 2019-07-31
End Date: 2025-09-29
Contract Duration: 2,252 days
Daily Burn Rate: $44.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CAMP LEJEUNE UESC TO 3
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542
Plain-Language Summary
Department of Defense obligated $101.0 million to DUKE ENERGY PROGRESS, LLC for work described as: CAMP LEJEUNE UESC TO 3 Key points: 1. Significant contract value of $101 million for electric power distribution. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. Contract duration extends to September 2025, impacting long-term cost-effectiveness. 4. Focus on a critical infrastructure need for military operations.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without comparable benchmarks due to the limited competition. The firm fixed-price structure offers some cost certainty, but the lack of competitive bidding may have led to a higher price than achievable in an open market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, suggesting a sole-source or limited-source award. This significantly restricts price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures reliable electricity for Camp Lejeune's critical military infrastructure. Potential for higher energy costs impacting the base's operational budget. Limited visibility into the fairness of the awarded price.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of price benchmarks
Positive Signals
- Essential service provision
- Firm fixed-price contract
Sector Analysis
This contract falls within the Utilities and Power Generation sector, specifically focusing on electric power distribution for a military installation. Spending benchmarks for similar utility contracts can vary widely based on location, demand, and infrastructure complexity.
Small Business Impact
There is no indication that small businesses were involved in this contract. The nature of large-scale utility provision often favors established, larger corporations.
Oversight & Accountability
Oversight is crucial to ensure the contractor meets performance standards and that the pricing remains reasonable throughout the contract term, especially given the limited competition.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Lack of clear justification for limited competition
- Long contract duration without clear performance review triggers
- Absence of small business participation
Tags
electric-power-distribution, department-of-defense, nc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.0 million to DUKE ENERGY PROGRESS, LLC. CAMP LEJEUNE UESC TO 3
Who is the contractor on this award?
The obligated recipient is DUKE ENERGY PROGRESS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $101.0 million.
What is the period of performance?
Start: 2019-07-31. End: 2025-09-29.
What was the justification for limiting competition on this essential utility contract?
The justification for limiting competition is not provided in the data. Typically, such limitations might stem from unique infrastructure requirements, existing vendor relationships, or specific security considerations. However, without explicit documentation, it's difficult to ascertain the precise rationale, raising questions about whether a more competitive approach was feasible.
What are the potential risks associated with a long-term, limited-competition utility contract?
The primary risks include inflated pricing due to a lack of competitive pressure, potential for complacency in service quality, and difficulty in adapting to technological advancements or market shifts. The extended duration means taxpayers are committed to these terms for an extended period, potentially missing out on cost savings or better service options that could emerge.
How can the effectiveness of this contract be measured beyond just service delivery?
Effectiveness can be measured by comparing the actual cost per unit of electricity against regional benchmarks, assessing reliability metrics (e.g., uptime, outage frequency/duration), and evaluating the contractor's responsiveness to service requests or emergencies. Additionally, periodic reviews of the contract's value proposition, even with limited competition, are essential.
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: Duke Energy Corporation
Address: 410 S WILMINGTON ST, RALEIGH, NC, 27601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $101,010,002
Exercised Options: $101,010,002
Current Obligation: $101,010,002
Actual Outlays: $1,655,065
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P14BSD1055
IDV Type: IDC
Timeline
Start Date: 2019-07-31
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-09-26
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