Fort Benning's electric power distribution contract awarded to Georgia Power Company for over $22.5 million
Contract Overview
Contract Amount: $22,547,644 ($22.5M)
Contractor: Georgia Power Company
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2016-08-25
Contract Duration: 695 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELECTRIC POWER DISTRIBUTION FOR FORT BENNING, GA (GS-00P-06-BSD-0472) FOR THE PERIOD 1 SEP 13 THROUGH 30 SEP 14. CAR IS ISSUED FOR REPORTING PURPOSES ONLY.
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to GEORGIA POWER COMPANY for work described as: ELECTRIC POWER DISTRIBUTION FOR FORT BENNING, GA (GS-00P-06-BSD-0472) FOR THE PERIOD 1 SEP 13 THROUGH 30 SEP 14. CAR IS ISSUED FOR REPORTING PURPOSES ONLY. Key points: 1. The contract represents a significant investment in essential utility services for a major military installation. 2. Analysis of value for money requires benchmarking against similar utility contracts for military bases. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Performance context is limited as this is a purchase order for a single year of service. 5. The electric power distribution sector is a mature market with established providers. 6. Risk indicators include potential for price fluctuations in energy markets over the contract term.
Value Assessment
Rating: fair
The contract value of approximately $22.5 million for one year of electric power distribution at Fort Benning appears substantial. Benchmarking against similar contracts for utility services at other large military installations would be necessary to determine if this represents good value. Without comparative data on per-kilowatt-hour costs or demand charges, a precise value-for-money assessment is challenging. The fixed-price nature of the award provides some cost certainty, but market volatility in energy prices could impact the overall cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought proposals from multiple potential providers, aiming to secure the most advantageous terms for the government.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is designed to yield the lowest possible prices through market forces.
Public Impact
The primary beneficiary is the Department of the Army, ensuring reliable electric power for Fort Benning operations. Services delivered include the distribution of electricity to support training, housing, and administrative functions. The geographic impact is localized to Fort Benning, Georgia. Workforce implications are minimal for this specific contract, as it primarily procures a utility service rather than direct labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract periods if energy market conditions change.
- Dependence on a single provider for a critical utility service.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Fixed-price contract provides cost predictability for the current period.
Sector Analysis
The electric power distribution sector is a mature and essential utility service industry. Contracts for military bases typically involve significant energy consumption, making them substantial opportunities for utility providers. Market competition can vary depending on the geographic location and the presence of multiple utility companies capable of serving large federal facilities. This contract fits within the broader category of government utility procurement, which is a consistent area of federal spending.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on securing the most competitive offer from any qualified source. There are no explicit subcontracting implications for small businesses mentioned in this data, suggesting that the prime contractor, Georgia Power Company, will likely handle the service delivery directly or through its own resources.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and facility management offices at Fort Benning. Accountability measures are inherent in the purchase order terms and conditions, requiring the contractor to meet service level agreements. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.
Related Government Programs
- Military Base Operations Support Contracts
- Utility Services Procurement
- Federal Energy Management
Risk Flags
- Potential for price volatility in energy markets
- Dependence on a single utility provider for critical infrastructure
Tags
electric-power-distribution, department-of-defense, department-of-the-army, fort-benning, georgia, purchase-order, firm-fixed-price, full-and-open-competition, utility-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to GEORGIA POWER COMPANY. ELECTRIC POWER DISTRIBUTION FOR FORT BENNING, GA (GS-00P-06-BSD-0472) FOR THE PERIOD 1 SEP 13 THROUGH 30 SEP 14. CAR IS ISSUED FOR REPORTING PURPOSES ONLY.
Who is the contractor on this award?
The obligated recipient is GEORGIA POWER COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2014-09-30. End: 2016-08-25.
What is the historical spending pattern for electric power distribution at Fort Benning?
Historical spending data for electric power distribution at Fort Benning prior to this specific purchase order (GS-00P-06-BSD-0472) is not provided in the current dataset. To establish a historical spending pattern, one would need to examine previous contracts or purchase orders for utility services at this installation over multiple fiscal years. This would involve searching federal procurement databases for similar contract vehicles awarded to Georgia Power Company or other utility providers serving Fort Benning. Analyzing trends in annual spending, energy consumption volumes, and average costs per unit would reveal patterns and potential fluctuations influenced by factors such as base population, operational tempo, and energy market prices.
How does the awarded price compare to market rates for similar services?
A direct comparison of the awarded price to market rates for similar services is challenging without specific data points such as the kilowatt-hour (kWh) rate, demand charges, and total energy consumed. The total award of $22,547,643.74 covers the period from September 1, 2013, through September 30, 2014 (approximately 13 months). To benchmark, one would need to calculate the average monthly or annual cost and then attempt to find comparable utility rates for large commercial or industrial customers, particularly other military installations in the same region or with similar load profiles. Factors like transmission and distribution charges, fixed monthly fees, and potential surcharges would need to be considered. Without these granular details, the provided total contract value serves as a high-level indicator rather than a precise market benchmark.
What are the key performance indicators (KPIs) for this contract?
The provided data for this purchase order does not explicitly list the Key Performance Indicators (KPIs) that Georgia Power Company is required to meet. Typically, for electric power distribution contracts, KPIs would focus on reliability metrics such as the number and duration of power outages (System Average Interruption Duration Index - SAIDI, System Average Interruption Frequency Index - SAIFI), response times to outages, power quality (voltage stability, frequency), and adherence to safety standards. The contract terms and conditions, which are not detailed here, would outline these specific performance expectations and any associated penalties or incentives for meeting or failing to meet them. The agency's quality assurance personnel would be responsible for monitoring these KPIs.
What is the track record of Georgia Power Company in serving federal government contracts?
Georgia Power Company, as a major utility provider in Georgia, has a long-standing history of serving residential, commercial, and industrial customers, which often includes federal government facilities within its service territory. While specific details on their track record with federal contracts are not provided in this dataset, it is common for large utility companies to hold numerous contracts with government entities, including military bases, for the provision of electricity. Their established infrastructure, operational experience, and regulatory compliance suggest a capacity to meet the demands of such contracts. A comprehensive assessment would involve reviewing past performance evaluations and contract history specifically related to government clients.
What are the potential risks associated with this contract?
Potential risks associated with this electric power distribution contract include fluctuations in energy market prices, which could lead to higher-than-anticipated costs if the contract were not fixed-price or if future renewals are subject to market rates. Service disruptions due to unforeseen events like severe weather, equipment failure, or natural disasters could impact base operations, although utility providers typically have robust contingency plans. Regulatory changes affecting energy production or distribution could also pose a risk. Furthermore, dependence on a single provider for a critical utility creates a vulnerability if the provider experiences significant operational issues.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Southern CO Services Inc
Address: 241 RALPH MCGILL BLVD NE, ATLANTA, GA, 30308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,547,644
Exercised Options: $22,547,644
Current Obligation: $22,547,644
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2014-09-30
Current End Date: 2016-08-25
Potential End Date: 2016-08-25 00:00:00
Last Modified: 2022-06-22
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