DoD's $43.5M Electric Power Contract with Duke Energy Faces Limited Competition
Contract Overview
Contract Amount: $43,499,096 ($43.5M)
Contractor: Duke Energy Progress, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-08
End Date: 2025-09-30
Contract Duration: 1,636 days
Daily Burn Rate: $26.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: UESC AT FLEET READINESS CENTER
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $43.5 million to DUKE ENERGY PROGRESS, LLC for work described as: UESC AT FLEET READINESS CENTER Key points: 1. Significant contract value of $43.5 million. 2. Limited competition identified for this essential service. 3. Potential risk associated with sole-source or limited competition procurement. 4. Sector: Energy - Electric Power Distribution.
Value Assessment
Rating: fair
The contract's pricing is difficult to assess without a benchmark due to the 'NOT AVAILABLE FOR COMPETITION' status. The firm fixed price structure provides some cost certainty, but the lack of competitive bidding raises questions about optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or potentially sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition could lead to higher expenditures than necessary, impacting taxpayer funds allocated for defense readiness.
Public Impact
Ensures continuous power supply for Fleet Readiness Center operations. Supports critical military infrastructure and readiness. Potential for increased costs due to limited competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of benchmark data for pricing assessment
Positive Signals
- Firm fixed price contract
- Ensures essential utility service
Sector Analysis
This contract falls within the Energy sector, specifically electric power distribution. Utility contracts for government facilities often involve complex infrastructure and long-term service agreements, with competition varying based on location and service type.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to Duke Energy Progress, LLC, a large utility provider. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The limited competition aspect warrants oversight to ensure fair pricing and prevent potential cost overruns. Accountability lies with the Department of the Navy to justify the procurement method and monitor contract performance.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Lack of transparency in pricing
- Potential for higher costs
- Dependence on a single provider
Tags
electric-power-distribution, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.5 million to DUKE ENERGY PROGRESS, LLC. UESC AT FLEET READINESS CENTER
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 $43.5 million.
What is the period of performance?
Start: 2021-04-08. End: 2025-09-30.
What is the justification for the limited competition award, and how was the price determined to be fair and reasonable?
The justification for limited competition is crucial for understanding the procurement strategy. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), to support non-competitive awards. This documentation should outline why full and open competition was not feasible. Price reasonableness is often determined through market research, historical pricing, or comparison to similar contracts, even if direct competition was absent.
What are the potential risks to mission readiness if Duke Energy Progress, LLC fails to meet contractual obligations?
Failure to meet obligations could lead to significant disruptions in power supply, directly impacting the operational readiness of the Fleet Readiness Center. This could halt critical maintenance, repair, and logistical activities, potentially delaying deployment schedules and increasing overall costs to rectify the situation. Contingency plans and alternative power sources would be essential mitigation strategies.
How does the firm fixed price structure protect taxpayer interests in this limited competition scenario?
The firm fixed price (FFP) structure shifts the risk of cost overruns to the contractor, Duke Energy Progress, LLC. This means the government pays the agreed-upon price regardless of the contractor's actual costs. While this protects taxpayers from unexpected cost increases, it does not guarantee the initial price was the most competitive achievable without full and open competition.
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: $43,499,096
Exercised Options: $43,499,096
Current Obligation: $43,499,096
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: 2021-04-08
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-04
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