NASA GSFC's $44M Electricity Contract with Potomac Electric Power Co. Awarded under SAP
Contract Overview
Contract Amount: $44,095,863 ($44.1M)
Contractor: Potomac Electric Power CO
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2012-05-18
End Date: 2015-06-30
Contract Duration: 1,138 days
Daily Burn Rate: $38.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF OTHER FUNCTIONS GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION/GODDARD SPACE FLIGHT CENTER (NASA/GSFC) IN GREENBELT, MD
Place of Performance
Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20771, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $44.1 million to POTOMAC ELECTRIC POWER CO for work described as: IGF::OT::IGF OTHER FUNCTIONS GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION/GODDARD SPACE FLIGHT CENTER (NASA/GSFC) IN GREENBELT, MD Key points: 1. The contract is for electricity generation, transmission, and distribution. 2. Potomac Electric Power Co. is the sole provider in this instance. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. The total value is approximately $44.1 million over its duration. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The $44.1 million price for electricity over approximately 3 years seems reasonable for a large federal facility. Benchmarking against commercial rates in Maryland would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Competed under SAP suggests a streamlined process, potentially limiting broader competition. The specific circumstances of SAP usage and the market for electricity distribution in the Greenbelt, MD area would determine the extent of price discovery.
Taxpayer Impact: Taxpayers are likely paying market rates for essential utility services, but the limited competition under SAP may have precluded achieving the absolute lowest possible price.
Public Impact
Ensures continuous power supply for critical NASA/GSFC operations. Supports scientific research and space exploration missions. Impacts the local economy through utility service provision. Reliable electricity is fundamental to the functioning of the space center.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP
- Potential for price increases over contract duration
Positive Signals
- Essential service for critical agency operations
- Firm Fixed Price contract provides cost certainty
Sector Analysis
This contract falls within the Utilities sector, specifically electric power distribution. Federal spending on utilities is a significant and ongoing cost for agency operations, often subject to regional market dynamics and regulatory frameworks.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to Potomac Electric Power Co. and competed under SAP, which may not always facilitate small business participation.
Oversight & Accountability
Oversight would involve monitoring service delivery, adherence to contract terms, and ensuring the price remains competitive relative to market conditions. NASA's internal procurement and financial oversight mechanisms would be applied.
Related Government Programs
- Electric Power Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for price escalation not fully captured by FFP
- Dependence on a single utility provider
- Limited transparency due to SAP competition
- Risk of service disruption impacting NASA operations
Tags
electric-power-distribution, national-aeronautics-and-space-administr, md, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $44.1 million to POTOMAC ELECTRIC POWER CO. IGF::OT::IGF OTHER FUNCTIONS GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION/GODDARD SPACE FLIGHT CENTER (NASA/GSFC) IN GREENBELT, MD
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER CO.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $44.1 million.
What is the period of performance?
Start: 2012-05-18. End: 2015-06-30.
What was the specific justification for using Simplified Acquisition Procedures (SAP) for a contract of this value?
The use of SAP for a contract valued at $44 million, while typically reserved for smaller procurements, might be justified by specific circumstances such as pre-existing utility infrastructure, limited vendor options in the immediate geographic area, or urgent operational needs. A detailed review of the procurement file would be necessary to ascertain the precise rationale and ensure it aligned with federal acquisition regulations.
How does the per-unit cost of electricity compare to similar federal or commercial contracts in the region?
Without specific usage data (kWh consumed) and a breakdown of the contract's pricing structure, a direct per-unit cost comparison is difficult. However, a benchmark analysis against average commercial electricity rates in Maryland and other federal facilities in the vicinity would be crucial to assess if NASA/GSFC is receiving a competitive price for its energy consumption over the contract period.
What are the contingency plans if Potomac Electric Power Co. fails to provide reliable electricity transmission and distribution?
Federal agencies like NASA typically have robust contingency plans for critical infrastructure failures, including essential utilities. These plans often involve backup power generation systems (generators), redundant power sources where feasible, and established protocols for emergency response and communication with utility providers to restore service as quickly as possible.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pepco Holdings LLC (UEI: 105895010)
Address: 701 9TH ST NW STE 3, WASHINGTON, DC, 20001
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,929,123
Exercised Options: $44,929,123
Current Obligation: $44,095,863
Timeline
Start Date: 2012-05-18
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2015-09-17
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