VA Awards $23.5M Utility Energy Service Contract to National Grid USA for Northport Medical Center

Contract Overview

Contract Amount: $23,466,864 ($23.5M)

Contractor: National Grid USA Service Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-14

End Date: 2025-08-01

Contract Duration: 3,305 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF OTHER FUNCTIONS - UTILITY ENERGY SERVICE CONTRACT (UESC) FOR VISN 2 VA MEDICAL CENTER NORTHPORT, NY.

Place of Performance

Location: RONKONKOMA, SUFFOLK County, NEW YORK, 11779

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.5 million to NATIONAL GRID USA SERVICE COMPANY, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS - UTILITY ENERGY SERVICE CONTRACT (UESC) FOR VISN 2 VA MEDICAL CENTER NORTHPORT, NY. Key points: 1. The contract is a Delivery Order under an existing UESC, indicating a specific need for energy services. 2. National Grid USA Service Company, Inc. is the sole awardee, raising questions about competition. 3. The contract spans nearly 9 years, suggesting a long-term commitment to energy efficiency upgrades. 4. The primary sector is energy services, crucial for maintaining facility operations and reducing energy costs.

Value Assessment

Rating: fair

The contract value of $23.5M over approximately 9 years is substantial. Without specific benchmarks for UESC contracts of this scope and duration, a precise pricing assessment is difficult. However, the firm fixed price structure offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is a Delivery Order, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests it may be a sole-source or limited competition award, potentially impacting price discovery and value for money.

Taxpayer Impact: The firm fixed price structure aims to control costs, but the lack of competition could lead to higher prices than if it were fully competed, impacting taxpayer funds.

Public Impact

Veterans at the Northport VA Medical Center will benefit from improved energy efficiency and potentially more reliable facility operations. The contract supports energy infrastructure upgrades, contributing to the government's broader energy efficiency goals. Taxpayers are funding a significant investment in energy services, with the expectation of long-term cost savings and operational improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration

Positive Signals

Firm fixed price
Focus on energy efficiency

Sector Analysis

This contract falls within the Energy sector, specifically focusing on utility energy services for a government facility. UESC contracts are common for federal agencies seeking to improve energy efficiency and reduce operational costs through private sector investment.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The awardee, National Grid USA Service Company, Inc., is a large utility provider, suggesting limited direct opportunities for small businesses through this specific award.

Oversight & Accountability

As a Delivery Order under an existing UESC, oversight would likely be managed by the Department of Veterans Affairs contracting officers. The long duration necessitates ongoing monitoring to ensure performance and cost-effectiveness.

Related Government Programs

Fossil Fuel Electric Power Generation
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition may lead to inflated pricing.
Long contract duration increases risk of technological obsolescence or changing energy needs.
Performance verification for energy savings over nearly 9 years requires diligent oversight.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.5 million to NATIONAL GRID USA SERVICE COMPANY, INC.. IGF::OT::IGF OTHER FUNCTIONS - UTILITY ENERGY SERVICE CONTRACT (UESC) FOR VISN 2 VA MEDICAL CENTER NORTHPORT, NY.

Who is the contractor on this award?

The obligated recipient is NATIONAL GRID USA SERVICE COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2016-07-14. End: 2025-08-01.

What specific energy efficiency upgrades are included in this UESC, and what are the projected energy and cost savings?

The specific energy conservation measures (ECMs) are not detailed in the provided data. However, UESC contracts typically include a range of upgrades such as HVAC improvements, lighting retrofits, building envelope enhancements, and renewable energy installations. The projected savings are usually calculated based on these measures and are critical for justifying the contract's value and ensuring a positive return on investment for the government.

Given the 'NOT AVAILABLE FOR COMPETITION' status, what was the justification for limiting competition, and how was the price determined to be fair and reasonable?

The justification for limiting competition is not provided. Typically, such limitations require a formal justification, such as the existence of a unique capability or a pre-existing contract vehicle (like an Indefinite Delivery/Indefinite Quantity) where this awardee was previously selected. The price is usually determined fair and reasonable through comparison with historical pricing, market research, or cost analysis, though the lack of open competition makes this assessment more challenging.

How will the VA ensure that the long-term performance of the energy services meets or exceeds the contract's objectives and delivers sustained value?

The VA will likely employ a robust contract management strategy, including regular performance reviews, monitoring of energy usage data, and verification of savings. Key performance indicators (KPIs) tied to energy reduction and operational efficiency will be tracked. The firm fixed price nature provides some incentive for the contractor to maintain performance, but active oversight is crucial to ensure long-term value realization and accountability.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 40 SYLVAN RD, WALTHAM, MA, 02451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $23,469,886

Exercised Options: $23,469,886

Current Obligation: $23,466,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P12BSD0879

IDV Type: IDC

Timeline