National Archives Spends $20M on Electricity from Potomac Electric Power Co. for 5 Years

Contract Overview

Contract Amount: $20,050,877 ($20.1M)

Contractor: Potomac Electric Power CO

Awarding Agency: National Archives and Records Administration

Start Date: 2005-10-01

End Date: 2010-10-07

Contract Duration: 1,832 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Energy

Official Description: ELECTRICITY SERVICE FOR NATIONAL ARCHIVES (AII).

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGE'S County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $20.1 million to POTOMAC ELECTRIC POWER CO for work described as: ELECTRICITY SERVICE FOR NATIONAL ARCHIVES (AII). Key points: 1. The contract awarded to Potomac Electric Power Co. represents a significant expenditure for electricity services. 2. Competition was not available for this contract, raising questions about price discovery. 3. The contract duration is over five years, indicating a long-term reliance on this provider. 4. The sector is energy, specifically electricity supply, which is critical infrastructure.

Value Assessment

Rating: questionable

The contract was awarded on a time and materials basis, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $20 million price tag represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition scenario. This lack of competition likely resulted in higher prices than could have been achieved through a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition, as the government did not leverage market forces to secure the best possible price.

Public Impact

Essential government operations rely on a stable electricity supply, impacting the National Archives' ability to preserve and provide access to historical records. The significant contract value highlights the ongoing cost of essential utilities for federal agencies. Lack of competition in utility contracts can set a precedent for other agencies, potentially leading to less cost-effective procurement across the board.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Time and materials pricing
Long contract duration

Positive Signals

Essential service provision
Established provider

Sector Analysis

The energy sector, particularly electricity, is a fundamental component of government operations. Spending benchmarks for electricity services vary widely based on location, usage, and contract type, but a $20 million, 5-year contract for a single agency is substantial.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as the prime contractor or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract's award without competition warrants oversight to ensure the pricing was reasonable and that future opportunities for competition are explored. Accountability for the procurement decision rests with the National Archives and Records Administration.

Related Government Programs

Electric Bulk Power Transmission and Control
National Archives and Records Administration Contracting
National Archives and Records Administration Programs

Risk Flags

Lack of competition
Potential for cost overruns (Time and Materials)
Long contract duration
Absence of clear pricing benchmarks

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $20.1 million to POTOMAC ELECTRIC POWER CO. ELECTRICITY SERVICE FOR NATIONAL ARCHIVES (AII).

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER CO.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2005-10-01. End: 2010-10-07.

Was the 'NOT AVAILABLE FOR COMPETITION' status justified, and were all reasonable efforts made to explore competitive options?

The justification for 'NOT AVAILABLE FOR COMPETITION' needs thorough review. Agencies must demonstrate that no other responsible sources could satisfy the agency's needs. Without this evidence, taxpayers may have been overcharged due to the lack of market-driven price discovery and potential for inflated costs under a time and materials contract.

What is the per-kilowatt-hour cost compared to market rates, and how does the time and materials structure impact cost control?

Without specific usage data and market rate comparisons, a precise per-kilowatt-hour cost assessment is difficult. However, time and materials contracts inherently carry a higher risk of cost escalation compared to fixed-price contracts. Robust monitoring and management are crucial to control spending and ensure value for money.

How effectively did the National Archives manage the time and materials contract to ensure efficient service delivery and prevent cost overruns?

Effective management of a time and materials contract requires diligent oversight, clear performance metrics, and regular audits. The agency must ensure that the hours billed and materials used are reasonable, necessary, and directly related to the contract's scope. Without this oversight, the risk of inflated costs and inefficient service delivery increases significantly.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pepco Holdings LLC (UEI: 105895010)

Address: 701 9TH STREET, N.W., WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,050,877

Exercised Options: $20,050,877

Current Obligation: $20,050,877

Parent Contract

Parent Award PIID: GS00P00BSD0138

IDV Type: IDC

Timeline