NASA's $17.3M electricity invoice tracking contract awarded to Constellation NewEnergy, Inc
Contract Overview
Contract Amount: $17,319,754 ($17.3M)
Contractor: Constellation Newenergy, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-02-22
End Date: 2008-01-31
Contract Duration: 343 days
Daily Burn Rate: $50.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AGREEMENT IS TO TRACK AND PAY ELECTRICITY INVOICES.
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77010
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $17.3 million to CONSTELLATION NEWENERGY, INC. for work described as: AGREEMENT IS TO TRACK AND PAY ELECTRICITY INVOICES. Key points: 1. Contract focuses on tracking and payment of electricity invoices, a critical but potentially low-value-add service. 2. Full and open competition was utilized, suggesting a competitive market for this service. 3. The contract duration of 343 days is relatively short, indicating potential for frequent re-competition. 4. Awarded by NASA, a high-profile agency, suggesting a need for reliable utility management. 5. The contract's primary function is administrative, with limited direct impact on core space exploration missions. 6. Fixed-price contract type helps manage cost certainty for the government.
Value Assessment
Rating: fair
The contract's value is primarily in administrative efficiency rather than direct service provision. Benchmarking is difficult as the core service is invoice tracking. However, the relatively low award amount for a federal agency suggests it may be cost-effective for managing utility payments. Compared to larger energy management contracts, this appears to be a focused, administrative task.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a healthy competitive landscape for electricity invoice tracking and payment services. The presence of multiple bidders typically leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs for essential administrative services.
Public Impact
Benefits NASA's administrative operations by ensuring accurate and timely payment of electricity bills. Services delivered include tracking and payment of electricity invoices. Geographic impact is primarily at NASA facilities where electricity is consumed. Workforce implications are minimal, likely involving a small administrative team within NASA or its support contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not re-competed regularly.
- Risk of over-reliance on a single vendor for critical utility payment processing.
- Limited scope may not capture broader energy efficiency opportunities.
Positive Signals
- Utilizes full and open competition, promoting market fairness.
- Firm fixed-price contract provides cost certainty.
- Short duration allows for periodic review and adjustment of services.
Sector Analysis
The energy sector, particularly utility management and billing services, is a mature market. Federal agencies, like NASA, often contract for specialized services to manage complex utility portfolios. While the dollar amount is modest, it represents a segment of the broader federal spending on energy and facility management, which can run into billions annually across all agencies.
Small Business Impact
There is no indication of a small business set-aside for this contract. Given the nature of the service (invoice tracking), it's possible that small businesses could compete, but the award went to a larger entity. Subcontracting opportunities are not explicitly detailed but are unlikely to be significant for this type of administrative service.
Oversight & Accountability
Oversight would typically be managed by NASA's contracting officers and program managers responsible for facility operations. Accountability is ensured through the firm fixed-price contract terms and the requirement for accurate invoice tracking and payment. Transparency is generally maintained through federal procurement databases, though specific performance metrics are not publicly detailed.
Related Government Programs
- Federal Energy Management Program
- Utility Energy Services Contracts
- NASA Facility Operations Contracts
Risk Flags
- Administrative Service Focus
- Potential for Limited Scope
- Reliance on Vendor Accuracy
Tags
nasa, constellation-newenergy-inc, firm-fixed-price, full-and-open-competition, invoice-tracking, electricity-payment, administrative-support, texas, energy-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $17.3 million to CONSTELLATION NEWENERGY, INC.. AGREEMENT IS TO TRACK AND PAY ELECTRICITY INVOICES.
Who is the contractor on this award?
The obligated recipient is CONSTELLATION NEWENERGY, INC..
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 $17.3 million.
What is the period of performance?
Start: 2007-02-22. End: 2008-01-31.
What is the track record of Constellation NewEnergy, Inc. with federal contracts, particularly for similar services?
Constellation NewEnergy, Inc. has a history of federal contracts, primarily related to energy supply and management. While specific data on their performance for invoice tracking services alone is not readily available in public databases, their broader experience in the energy sector suggests a capability to handle utility-related administrative tasks. Federal procurement records would show the volume and types of contracts awarded to them. A deeper dive into contract performance reports and past performance evaluations, if accessible, would provide more insight into their reliability and effectiveness in fulfilling government requirements.
How does the value of this contract compare to similar energy invoice tracking services for other federal agencies?
Direct comparisons for 'electricity invoice tracking' contracts are challenging due to the administrative nature of the service and the variability in how such functions are bundled with broader energy management or facility support contracts. The $17.3 million award over approximately one year for NASA is a significant sum for what appears to be a focused administrative task. However, without knowing the volume of invoices, the number of facilities managed, or the complexity of the utility rate structures involved, a precise value benchmark is difficult. Larger agencies with extensive real estate portfolios might have higher total spending, but the per-unit cost or efficiency of tracking could vary widely.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks include potential inaccuracies in invoice tracking leading to overpayment or underpayment of utility bills, vendor performance issues affecting timely payments, and a lack of comprehensive energy management insights beyond simple tracking. Mitigation strategies likely involve robust contract terms, performance monitoring by NASA contracting officers, clear reporting requirements, and the firm fixed-price structure which incentivizes the contractor to manage costs effectively. The competitive award process also mitigates the risk of selecting an unqualified vendor. However, the limited scope might mean that opportunities for energy savings or efficiency improvements are not being fully realized.
How effective is this contract in ensuring NASA receives accurate and cost-effective electricity?
The effectiveness of this contract hinges on the contractor's ability to accurately track and process electricity invoices. As a firm fixed-price contract awarded through full and open competition, it suggests an expectation of cost-effectiveness for the defined service. However, the contract's description focuses solely on 'tracking and pay[ing] electricity invoices.' This narrow scope implies it may not encompass broader energy management strategies, demand response programs, or negotiation of favorable utility rates, which are crucial for achieving true cost-effectiveness in energy consumption. Therefore, while it likely ensures accurate payment processing, its effectiveness in optimizing overall electricity costs for NASA is questionable without additional services.
What has been NASA's historical spending on electricity invoice tracking and management services?
Historical spending data for NASA specifically on 'electricity invoice tracking' services is not easily isolated from broader facility management or energy procurement contracts. Federal agencies often bundle such administrative functions within larger service agreements. NASA, managing numerous facilities nationwide, would have substantial expenditures related to utilities. Analyzing past contracts for facility operations, energy services, and administrative support over several years would be necessary to understand trends and the evolution of spending on invoice management. The $17.3M for this specific contract suggests a significant, albeit potentially focused, allocation for this function in the award year.
Industry Classification
NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelon Corporation (UEI: 001807150)
Address: 1221 LAMAR, HOUSTON, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,428,904
Exercised Options: $20,428,904
Current Obligation: $17,319,754
Timeline
Start Date: 2007-02-22
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2012-06-27
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