NASA's $62M KSC Electric Service Contract with FPL Faces Scrutiny for Limited Competition
Contract Overview
Contract Amount: $62,195,458 ($62.2M)
Contractor: Florida Power & Light Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2014-05-01
End Date: 2019-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $34.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Energy
Official Description: IGF::OT::IGF KENNEDY SPACE CENTER ELECTRIC SERVICE.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $62.2 million to FLORIDA POWER & LIGHT COMPANY for work described as: IGF::OT::IGF KENNEDY SPACE CENTER ELECTRIC SERVICE. Key points: 1. Significant contract value of $62.2 million over five years. 2. Sole provider, Florida Power & Light Company, raises competition concerns. 3. Electric power distribution is a critical utility for KSC operations. 4. Fixed Price Level of Effort contract type offers some cost predictability.
Value Assessment
Rating: fair
The contract's fixed price level of effort structure provides a baseline cost. However, without competitive bidding, it's difficult to ascertain if the pricing is truly optimal compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited-source situation, likely due to the nature of utility services. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competitive scenario for essential electric services.
Public Impact
Reliable electricity is essential for the critical operations at Kennedy Space Center, impacting space launches and research. The long-term nature of the contract suggests a sustained need for these services. Taxpayers are funding a significant utility contract that lacks competitive pricing pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source nature
Positive Signals
- Essential service provision
- Fixed Price contract type
Sector Analysis
This contract falls under the Utilities and Power Generation sector, specifically electric power distribution. Utility contracts often have limited competition due to infrastructure requirements and regulatory frameworks, but the scale here warrants attention.
Small Business Impact
There is no indication of small business participation in this contract, which is common for large utility service agreements where specialized infrastructure is required.
Oversight & Accountability
The contract's limited competition and significant value suggest a need for robust oversight to ensure fair pricing and efficient service delivery. Audits of cost components would be beneficial.
Related Government Programs
- Electric Power Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Long-term commitment without demonstrated best value
- Critical infrastructure reliance on a single provider
Tags
electric-power-distribution, national-aeronautics-and-space-administr, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $62.2 million to FLORIDA POWER & LIGHT COMPANY. IGF::OT::IGF KENNEDY SPACE CENTER ELECTRIC SERVICE.
Who is the contractor on this award?
The obligated recipient is FLORIDA POWER & LIGHT COMPANY.
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 $62.2 million.
What is the period of performance?
Start: 2014-05-01. End: 2019-04-30.
What is the justification for the limited competition for this electric service contract at KSC?
The justification for limited competition likely stems from the nature of utility services, where existing infrastructure and geographic monopolies often dictate the provider. Florida Power & Light Company is the incumbent provider, and establishing new electrical infrastructure for a government facility can be prohibitively expensive and time-consuming, making a sole-source or limited-source award the most practical, albeit less competitive, option.
How does the fixed price level of effort contract structure mitigate risk for the government?
The Fixed Price Level of Effort (FPLE) structure provides a degree of cost certainty by establishing a set price for a defined scope of work or effort. This mitigates the risk of cost overruns for the government, as the contractor is obligated to perform the specified effort at the agreed-upon price. However, it does not guarantee the best value if the initial price was not competitively determined.
What is the potential taxpayer impact of awarding this contract without full and open competition?
Awarding this contract without full and open competition carries a potential negative taxpayer impact. In a sole-source or limited-source scenario, the government may pay a premium for the service because the provider faces less pressure to offer the most competitive price. This could lead to higher overall expenditures for taxpayers over the contract's duration compared to what might have been achieved through a competitive bidding process.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 700 UNIVERSE BLVD, WEST PALM BEACH, FL, 33408
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $65,742,663
Exercised Options: $65,742,663
Current Obligation: $62,195,458
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P05BSD0347
IDV Type: IDC
Timeline
Start Date: 2014-05-01
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2020-05-14
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