NASA's $27.6M electricity contract for Greenbelt, MD, awarded to Potomac Electric Power Co
Contract Overview
Contract Amount: $27,656,202 ($27.7M)
Contractor: Potomac Electric Power CO
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-07-01
End Date: 2017-06-30
Contract Duration: 730 days
Daily Burn Rate: $37.9K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO NASA/GSFC IN GREENBELT, MARYLAND.
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $27.7 million to POTOMAC ELECTRIC POWER CO for work described as: IGF::OT::IGF GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO NASA/GSFC IN GREENBELT, MARYLAND. Key points: 1. Contract value represents a significant investment in essential utility services for NASA's Goddard Space Flight Center. 2. The award was made under the Simplified Acquisition Procedures (SAP), suggesting a streamlined procurement process for a relatively smaller contract value. 3. The fixed-price nature of the contract provides cost certainty for the government, shifting performance risk to the contractor. 4. The contract duration of two years (730 days) indicates a standard term for utility service provision. 5. The contract was competed, suggesting an opportunity for market-based pricing and potential cost savings. 6. The absence of small business set-asides means the primary competition was likely among larger utility providers.
Value Assessment
Rating: good
The contract value of $27.6 million over two years for electricity supply to a NASA facility appears reasonable given the nature of utility services. Benchmarking against similar contracts for large federal facilities in the region would provide a more precise assessment, but the price seems aligned with market rates for electricity provision. The firm fixed-price structure offers predictability for NASA's budget.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source awards. While the specific number of bidders is not detailed, the use of SAP suggests that multiple qualified vendors had the opportunity to submit proposals. This level of competition, even under SAP, is generally beneficial for price discovery and ensuring fair market value.
Taxpayer Impact: The competitive nature of this award, even under SAP, likely resulted in a more favorable price for taxpayers compared to a sole-source procurement. It ensures that the government is not overpaying for essential electricity services.
Public Impact
The primary beneficiary is NASA, ensuring continuous and reliable electricity supply to its Goddard Space Flight Center in Greenbelt, Maryland. The services delivered are essential for the operation of research, development, and administrative functions at the facility. The geographic impact is localized to Greenbelt, Maryland, where the NASA facility is situated. The contract supports the workforce at NASA Goddard by ensuring the infrastructure necessary for their work is operational.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals if market conditions change significantly.
- Dependence on a single utility provider for a critical service introduces a risk of service disruption if the contractor faces operational issues.
Positive Signals
- The contract was competed, indicating a market-driven price and a selection process that likely favored value.
- The firm fixed-price contract provides budget certainty for NASA, mitigating risks associated with fluctuating energy costs.
- The award to a well-established utility provider suggests a high likelihood of reliable service delivery.
Sector Analysis
This contract falls within the Energy sector, specifically focusing on the generation, transmission, and distribution of electricity. The market for utility services is typically characterized by regulated monopolies or oligopolies in specific geographic regions. Federal agencies are significant consumers of electricity, and contracts like this are essential for maintaining operations. Comparable spending benchmarks would involve analyzing electricity costs for other large federal facilities in similar utility service areas.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a utility service likely provided by a large, established company, the focus was on securing reliable service rather than promoting small business participation. There are no explicit subcontracting requirements mentioned, suggesting that the primary contractor will handle the service delivery directly.
Oversight & Accountability
Oversight for this contract would primarily fall under the contracting officer and the relevant program officials within NASA's Goddard Space Flight Center. Standard contract administration processes, including performance monitoring and invoice review, would be in place. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA Goddard Space Flight Center Operations
- Federal Utility Contracts
- Electric Power Generation, Transmission, and Distribution
- Simplified Acquisition Procedures (SAP) Awards
Risk Flags
- Potential for service disruption if contractor faces operational issues.
- Dependence on a single provider for critical infrastructure.
Tags
energy, nasa, maryland, purchase-order, competed, firm-fixed-price, utility-services, electricity-generation, simplified-acquisition-procedures
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.7 million to POTOMAC ELECTRIC POWER CO. IGF::OT::IGF GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO NASA/GSFC IN GREENBELT, MARYLAND.
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 $27.7 million.
What is the period of performance?
Start: 2015-07-01. End: 2017-06-30.
What is the historical spending pattern for electricity at NASA Goddard Space Flight Center?
Historical spending data for electricity at NASA Goddard Space Flight Center prior to this contract (2015-2017) is not directly provided in the given data. However, the award of a $27.6 million contract over two years suggests an average annual expenditure of approximately $13.8 million for electricity. To understand the full historical pattern, one would need to examine previous contracts for electricity supply to this facility, looking at contract values, durations, and any significant price fluctuations over time. This would help determine if the current contract represents an increase, decrease, or stable level of spending for this essential service.
How does the awarded price compare to market rates for electricity in Maryland?
The awarded price of approximately $13.8 million annually for electricity to NASA Goddard Space Flight Center in Greenbelt, Maryland, needs to be benchmarked against prevailing market rates for commercial and industrial electricity consumers in that region. Factors such as the facility's peak demand, average consumption, and the specific rate structure negotiated with Potomac Electric Power Co. (PEPCO) are crucial. Without detailed consumption data and PEPCO's standard commercial/industrial tariffs, a precise comparison is difficult. However, given that PEPCO is a major utility provider in the area, the negotiated price is likely reflective of regulated rates or competitive bids within the utility sector, aiming for fair market value for a large consumer.
What are the potential risks associated with relying on a single utility provider for critical NASA operations?
Relying on a single utility provider, such as Potomac Electric Power Co. for electricity, presents several risks for critical NASA operations at Goddard Space Flight Center. The primary risk is service disruption due to unforeseen events like equipment failure, natural disasters impacting the grid, or cyberattacks on the utility's infrastructure. Such disruptions could halt research, data processing, and administrative functions, leading to significant operational delays and potential loss of valuable research. Additionally, future price increases upon contract renewal, if not managed through long-term agreements or alternative energy solutions, could impact NASA's budget. Contingency planning, including backup power generation, is essential to mitigate these risks.
What is the track record of Potomac Electric Power Co. in serving federal government facilities?
Potomac Electric Power Co. (PEPCO) is a major utility provider serving the Washington D.C. metropolitan area, including parts of Maryland. As such, it has a long-standing track record of supplying electricity to numerous federal government facilities within its service territory. While specific details of PEPCO's performance on past federal contracts are not provided here, its role as a primary utility provider implies extensive experience in meeting the demanding reliability and service requirements of government agencies. Federal agencies typically have stringent performance expectations and oversight mechanisms in place for such critical infrastructure contracts.
How does the Simplified Acquisition Procedure (SAP) impact competition and pricing for this contract?
The use of Simplified Acquisition Procedures (SAP) for this contract (under $150,000, though this contract is larger, suggesting potential use of specific SAP thresholds or policies) generally aims to streamline the procurement process for smaller value contracts, making it faster and less burdensome. For contracts within SAP thresholds, agencies often use methods like GSA Schedules, electronic RFQs, or other simplified competitive processes. While SAP is designed to encourage competition, the specific methods used can vary. In this case, it was 'competed under SAP,' suggesting that multiple offers were solicited and evaluated, leading to price discovery. The impact on pricing is generally positive, as competition, even simplified, tends to drive prices toward market levels, preventing overpayment.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelon Corporation (UEI: 001807150)
Address: 701 9TH ST NW, 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: $27,656,202
Exercised Options: $27,656,202
Current Obligation: $27,656,202
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2015-07-01
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2017-10-03
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