DoD's Pacificorp Contract for Electric Power Distribution Exceeds $13.6M, Lacking Competition

Contract Overview

Contract Amount: $13,602,697 ($13.6M)

Contractor: Pacificorp

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2017-12-31

Contract Duration: 3,744 days

Daily Burn Rate: $3.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL SERVICE

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97232

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to PACIFICORP for work described as: ELECTRICAL SERVICE Key points: 1. Significant spending on essential utility services. 2. Lack of competition raises concerns about price efficiency. 3. Long contract duration (10 years) may limit market responsiveness. 4. Geographic concentration in Oregon for a critical service.

Value Assessment

Rating: questionable

The contract value of $13.6M over 10 years for electric power distribution is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar utility services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in the government paying a premium for this essential service, impacting taxpayer funds.

Public Impact

Ensures continuous power supply for Department of the Army operations in Oregon. Potential for higher utility costs impacting operational budgets. Reliance on a single provider for a critical infrastructure need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Sole-source award

Positive Signals

Essential service provision
Definitive contract type

Sector Analysis

This contract falls under utility services, specifically electric power distribution. Spending benchmarks for such services can vary widely based on location, demand, and infrastructure complexity. The $13.6M over a decade suggests a significant operational requirement.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to Pacificorp, a large utility provider, and was not competed.

Oversight & Accountability

The lack of competition suggests potential oversight gaps in ensuring the most cost-effective procurement for this essential service. Further review of the sole-source justification would be warranted.

Related Government Programs

Electric Power Distribution
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
Long-term reliance on a single provider
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to PACIFICORP. ELECTRICAL SERVICE

Who is the contractor on this award?

The obligated recipient is PACIFICORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2007-10-01. End: 2017-12-31.

What was the justification for not competing this contract, and was a market research conducted to confirm Pacificorp as the only viable option?

The provided data indicates the contract was 'NOT COMPETED'. Without further documentation, the specific justification is unknown. Typically, sole-source awards require extensive market research to demonstrate that only one responsible source can provide the required supplies or services. This process aims to ensure that even in non-competitive situations, the government explores all possibilities and negotiates the best possible price.

How does the per-unit cost of electricity under this contract compare to average commercial rates in Oregon during the contract period?

The data does not provide per-unit cost details, only the total contract value. To assess value, a detailed analysis of kilowatt-hour (kWh) pricing, demand charges, and any service fees would be needed. Comparing these to average commercial rates in Oregon during the 2007-2017 period would reveal if the government received a competitive price or paid a premium due to the lack of competition.

What mechanisms were in place to ensure service quality and reliability from Pacificorp throughout the 10-year contract duration?

While the contract type is 'DEFINITIVE CONTRACT' and 'FIRM FIXED PRICE', specific performance metrics and quality assurance surveillance plans (QASPs) are not detailed. Government contracts for essential services typically include clauses for performance standards, reliability, and remedies for failure to meet them. Oversight would involve monitoring service delivery against these contractual requirements.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)

Address: 825 NE MULTNOMAH ST STE 2000, PORTLAND, OR, 97232

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,602,697

Exercised Options: $13,602,697

Current Obligation: $13,602,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline