DoD Awards $75M Electric Services Contract to Alabama Power Company for Fort Rucker
Contract Overview
Contract Amount: $75,178,883 ($75.2M)
Contractor: Alabama Power Company
Awarding Agency: Department of Defense
Start Date: 2003-05-23
End Date: 2033-09-19
Contract Duration: 11,077 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: 200309!009606!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060003C8262 !A!N! !N! !20030523!20030523!006900120!006900120!006925341!N!ALABAMA POWER COMPANY !600 NORTH 18TH STREET !BIRMINGHAM !AL!35291!27640!031!01!FORT RUCKER !COFFEE !ALABAMA !+000001875912!N!Y!000087983040!S112!ELECTRIC SERVICES !S1 !SERVICES !4000!NOT DISCERNABLE OR CLASSIFIED !221122!E! !3!C!S! ! ! !99990909!B! ! !B! !A!N!K!2!002!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT NOVOSEL, DALE County, ALABAMA, 36362
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $75.2 million to ALABAMA POWER COMPANY for work described as: 200309!009606!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060003C8262 !A!N! !N! !20030523!20030523!006900120!006900120!006925341!N!ALABAMA POWER COMPANY !600 NORTH 18TH STREET !BIRMINGHAM !AL!35291!27640!031!01!FORT RUCKER !COFFE… Key points: 1. Contract awarded to Alabama Power Company for electric services at Fort Rucker. 2. The contract has a base value of $75,178,882.61 and a duration of over 30 years. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Energy, specifically electric power distribution.
Value Assessment
Rating: good
The contract value of $75.18 million over 30 years averages to approximately $2.5 million annually. This appears reasonable for large-scale utility services to a military installation, though specific benchmarks for military base electricity are not readily available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for essential energy services.
Public Impact
Ensures reliable electricity supply for Fort Rucker operations. Supports military readiness and personnel at the Alabama installation. Long-term contract provides stability for both the DoD and Alabama Power.
Waste & Efficiency Indicators
Waste Risk Score: 68 / 10
Warning Flags
- Long contract duration (over 30 years) could lead to price escalation concerns if not managed.
- Economic price adjustment clause requires monitoring to ensure fair pricing.
Positive Signals
- Full and open competition suggests a competitive award.
- Award to an established utility provider ensures service reliability.
- Significant contract value indicates a substantial need being met.
Sector Analysis
This contract falls within the Energy sector, specifically electric power distribution. Utility contracts for government facilities are common, and pricing is often influenced by regional energy market rates and long-term service agreements.
Small Business Impact
The data indicates this contract was awarded to Alabama Power Company, a large utility provider. There is no explicit indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Logistics Agency, suggesting established oversight mechanisms. The long duration and fixed-price with economic adjustment elements will require ongoing monitoring for compliance and cost control.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration
- Economic price adjustment clause
- Potential for price volatility in energy markets
- Reliance on a single large provider
Tags
electric-power-distribution, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.2 million to ALABAMA POWER COMPANY. 200309!009606!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060003C8262 !A!N! !N! !20030523!20030523!006900120!006900120!006925341!N!ALABAMA POWER COMPANY !600 NORTH 18TH STREET !BIRMINGHAM !AL!35291!27640!031!01!FORT RUCKER !COFFEE !ALABAMA !+000001875912!N!Y!000087983040!S112!ELECTRIC SERVICES !S1 !SERVICES !4000!NOT DISCERNABLE OR CLASSIFIED !221122!E! !3!C!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ALABAMA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $75.2 million.
What is the period of performance?
Start: 2003-05-23. End: 2033-09-19.
What is the historical pricing trend for electric services at similar military installations to assess value?
Assessing historical pricing trends for electric services at similar military installations is crucial for a comprehensive value analysis. Without specific comparative data, it's challenging to definitively benchmark this $75 million, 30-year contract. Factors like regional energy costs, demand fluctuations, and infrastructure requirements vary significantly, making direct comparisons difficult. Further analysis would require access to a database of comparable utility contracts awarded to government facilities.
How does the economic price adjustment clause mitigate or exacerbate risks associated with long-term energy contracts?
The economic price adjustment (EPA) clause in this contract is designed to account for fluctuations in the cost of electricity, such as fuel prices or inflation. It can mitigate risk by ensuring the contractor can cover rising operational costs, thus maintaining service reliability. However, it also introduces risk for the government, as it could lead to higher-than-anticipated costs if energy prices surge unexpectedly. Effective oversight is needed to ensure the EPA is applied fairly and transparently.
What are the key performance indicators (KPIs) used to measure the effectiveness of this electric services contract?
Key performance indicators for this electric services contract likely include reliability metrics such as uptime percentage and frequency/duration of outages, response times to service calls or emergencies, and adherence to power quality standards. Compliance with billing accuracy and timely delivery of services are also critical. The effectiveness will be measured by ensuring Fort Rucker receives consistent, high-quality electricity essential for its mission operations throughout the contract's extensive duration.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Southern CO Services Inc
Address: 600 NORTH 18TH STREET, BIRMINGHAM, AL, 35291
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $102,755,975
Exercised Options: $102,755,975
Current Obligation: $75,178,883
Actual Outlays: $7,106,657
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2003-05-23
Current End Date: 2033-09-19
Potential End Date: 2053-09-19 00:00:00
Last Modified: 2025-11-21
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