National Archives awards $3.99M electricity contract to Evergy Metro, Inc. for 10-year duration

Contract Overview

Contract Amount: $3,988,799 ($4.0M)

Contractor: Evergy Metro, Inc.

Awarding Agency: National Archives and Records Administration

Start Date: 2016-10-01

End Date: 2026-09-30

Contract Duration: 3,651 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW ELECTRICITY TASK ORDER AT LEE'S SUMMIT. IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: LEES SUMMIT, JACKSON County, MISSOURI, 64064

State: Missouri Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $4.0 million to EVERGY METRO, INC. for work described as: NEW ELECTRICITY TASK ORDER AT LEE'S SUMMIT. IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract value appears reasonable given the 10-year term and essential service provided. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayers. 3. Long-term nature of the contract may indicate stable pricing but limits flexibility. 4. Service is critical for maintaining operations at the Lee's Summit facility. 5. The contract falls under the 'Fossil Fuel Electric Power Generation' category, highlighting energy sector spending. 6. No small business set-aside was utilized, suggesting larger prime contractors were involved.

Value Assessment

Rating: fair

The contract value of approximately $3.99 million over 10 years equates to roughly $399,000 annually for electricity. Benchmarking this requires specific local energy market data, but for a federal facility of this nature, it appears within a plausible range. However, without competitive bids, it's difficult to definitively assess if this represents the best possible value for money. The fixed-price nature provides budget certainty but may not reflect fluctuating market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Evergy Metro, Inc., was considered. This significantly limits price discovery and negotiation leverage for the government. While sole-source awards can be justified for unique capabilities or essential services where only one provider exists, the rationale for this specific award is not detailed in the provided data. The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing.

Taxpayer Impact: The absence of competition means taxpayers are likely paying a premium compared to what might have been achieved through a competitive bidding process. This limits the government's ability to secure the lowest possible price for essential utility services.

Public Impact

The primary beneficiary is the National Archives and Records Administration (NARA), ensuring continuous power supply to its Lee's Summit facility. The service delivered is the provision of electricity, a fundamental utility necessary for the operation of government infrastructure. The geographic impact is localized to Lee's Summit, Missouri, where the NARA facility is located. Workforce implications are minimal, as this is a utility service contract rather than one requiring significant on-site labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Long contract duration may not adapt to future energy market fluctuations.
Lack of detailed justification for sole-source award raises transparency concerns.

Positive Signals

Ensures reliable and continuous electricity supply for critical government operations.
Fixed-price contract provides budget predictability for the agency.
Long-term commitment may secure stable pricing over the contract period.

Sector Analysis

This contract falls within the energy sector, specifically focusing on the provision of electricity. The market for utility services is often characterized by regional monopolies or oligopolies due to infrastructure requirements. Federal agencies, like the National Archives, are significant consumers of energy, and their spending in this area is substantial. Comparable spending benchmarks would typically involve analyzing electricity costs for similar-sized federal facilities in the same geographic region, considering factors like peak demand and energy source.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them. The sole-source nature of the award further suggests that the primary contractor, Evergy Metro, Inc., is likely a large utility provider, and the contract was not structured to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Archives and Records Administration's contracting and facilities management departments. Accountability measures would involve ensuring consistent service delivery as per the contract terms. Transparency is limited due to the sole-source nature and lack of publicly available detailed justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Energy Management Program
Government Utility Contracts
National Archives Facilities Management
Fossil Fuel Electric Power Generation Contracts

Risk Flags

Sole-source award lacks competitive justification.
Long-term contract may not capture favorable market shifts.
Limited transparency regarding the necessity of sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $4.0 million to EVERGY METRO, INC.. NEW ELECTRICITY TASK ORDER AT LEE'S SUMMIT. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is EVERGY METRO, INC..

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 $4.0 million.

What is the period of performance?

Start: 2016-10-01. End: 2026-09-30.

What is the specific justification for awarding this electricity contract on a sole-source basis to Evergy Metro, Inc.?

The provided data indicates the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source justification. Common reasons for sole-source awards in utility services include the presence of a single provider due to infrastructure limitations (e.g., a local utility monopoly) or unique circumstances where only one vendor can meet the requirement. Without further documentation from the National Archives and Records Administration, the precise justification remains unclear. However, for essential services like electricity in a specific geographic area, it is often the case that only one utility company can physically provide the service to the facility.

How does the annual cost of this contract compare to the average cost of electricity for similar federal facilities?

The contract's total value is $3,988,799.11 over approximately 10 years (3651 days), equating to an average annual cost of roughly $398,880. To compare this to similar federal facilities, one would need data on the electricity consumption and costs of other NARA facilities or federal buildings of comparable size and function in similar climates. Factors such as facility size, operational hours, equipment load, and local electricity rates significantly influence costs. Without access to NARA's internal cost data or a comprehensive database of federal facility energy expenditures, a precise benchmark is difficult. However, for a large government facility, this annual figure may be within a reasonable range, though the lack of competition prevents confirming it as the best value.

What are the potential risks associated with a 10-year fixed-price contract for electricity?

A significant risk with a long-term, fixed-price electricity contract is the potential for the government to overpay if market electricity prices decrease significantly over the 10-year period. Conversely, if prices rise sharply, the government benefits from the locked-in rate. Another risk is the lack of flexibility; the contract may not easily accommodate changes in the facility's energy needs or allow for the adoption of more cost-effective or sustainable energy solutions that emerge during the contract term. Furthermore, the sole-source nature means the government cannot capitalize on competitive market shifts that might offer better pricing or terms from alternative providers.

What is the historical spending pattern for electricity at the Lee's Summit facility prior to this contract?

The provided data does not include historical spending information for electricity at the Lee's Summit facility. This contract, with a start date of 2016-10-01 and an end date of 2026-09-30, suggests it covers a period that may include prior arrangements or renewals. To understand historical spending patterns, one would need access to previous contract awards or utility bills for the facility. Analyzing past expenditures would help determine if the current contract's pricing is consistent with historical trends or represents a significant deviation, and whether the annual cost has remained stable or fluctuated over time.

Does the 'Fossil Fuel Electric Power Generation' classification imply the source of the electricity, and are there environmental considerations?

The classification 'Fossil Fuel Electric Power Generation' likely describes the primary method by which the utility provider, Evergy Metro, Inc., generates electricity in its service area, rather than dictating the specific source delivered to the NARA facility under this contract. Utilities often have a diverse generation portfolio. While this classification highlights a reliance on fossil fuels, the contract itself is for the *delivery* of electricity. Environmental considerations would depend on the utility's overall energy mix, regulatory requirements, and any specific clauses within the contract related to energy sources or sustainability. The contract does not appear to mandate a specific energy source, focusing instead on the provision of power.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation

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

Address: 1201 WALNUT ST STE 2100, KANSAS CITY, MO, 64106

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $4,098,799

Exercised Options: $4,098,799

Current Obligation: $3,988,799

Actual Outlays: $3,461,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P07BSD0526

IDV Type: IDC

Timeline