DoD's $15.5M Electric Power Distribution Contract with Southern California Edison Faces Limited Competition
Contract Overview
Contract Amount: $15,500,000 ($15.5M)
Contractor: Southern California Edison Company
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2010-09-30
Contract Duration: 365 days
Daily Burn Rate: $42.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: INSTALLATION UTILITY BILL SCE
Place of Performance
Location: ROSEMEAD, LOS ANGELES County, CALIFORNIA, 91770
Plain-Language Summary
Department of Defense obligated $15.5 million to SOUTHERN CALIFORNIA EDISON COMPANY for work described as: INSTALLATION UTILITY BILL SCE Key points: 1. The contract awarded to Southern California Edison Company for electric power distribution represents a significant expenditure. 2. Limited competition is a key characteristic, raising questions about potential price efficiencies. 3. The firm fixed-price contract type aims to manage cost certainty. 4. The sector is utilities, specifically electric power distribution, which is critical infrastructure.
Value Assessment
Rating: questionable
The contract's value of $15.5 million for a one-year duration is substantial. Without comparable contract data or a clear benchmark, assessing its value for money is difficult, especially given the limited competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source approach. This lack of competitive bidding may have prevented the government from securing the best possible price through market forces.
Taxpayer Impact: The absence of robust competition could lead to taxpayers potentially overpaying for essential utility services.
Public Impact
Essential utility services are being provided to the Department of the Army. The contract ensures operational continuity for military installations in California. Dependence on a single provider for critical infrastructure can pose risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Dependence on sole provider
Positive Signals
- Firm fixed-price contract
- Ensures service continuity
Sector Analysis
The electric power distribution sector is characterized by significant infrastructure investment and often involves regulated monopolies or limited service providers, especially for large-scale government installations. Benchmarks are difficult without specific regional data.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The nature of utility provision often favors large, established companies.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the pricing remains fair and reasonable. Accountability for service delivery and cost management is crucial.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Lack of price benchmark
- Potential for cost inefficiency
- Sole-source provider dependency
Tags
electric-power-distribution, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to SOUTHERN CALIFORNIA EDISON COMPANY. INSTALLATION UTILITY BILL SCE
Who is the contractor on this award?
The obligated recipient is SOUTHERN CALIFORNIA EDISON 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 $15.5 million.
What is the period of performance?
Start: 2009-09-30. End: 2010-09-30.
What is the justification for limiting competition for this essential utility service?
The justification for limiting competition is not provided in the data. Typically, such limitations might stem from the unique infrastructure requirements of a specific installation, existing grid interconnections, or regulatory constraints that favor incumbent utility providers. Further investigation would be needed to understand the specific reasons behind this decision and whether alternative competitive strategies were considered.
How does the $15.5 million price compare to similar utility contracts for military bases of comparable size and location?
Without access to a database of comparable utility contracts for military bases, a direct price comparison is not possible. Factors such as regional electricity rates, grid infrastructure costs, and the specific services included (e.g., capacity, peak demand management) significantly influence pricing. A detailed analysis would require benchmarking against similar installations in California or other regions with comparable energy markets.
What are the potential risks associated with relying on Southern California Edison for this contract, given the limited competition?
The primary risk is the potential for inflated costs due to the lack of competitive pressure, leading to inefficient use of taxpayer funds. Additionally, over-reliance on a single provider can create vulnerabilities in service reliability if the provider faces operational issues. There's also a risk of reduced innovation or responsiveness to the government's evolving needs if the provider faces no competitive incentive to improve.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8631 RUSH, ROSEMEAD, CA, 91770
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,500,000
Exercised Options: $15,500,000
Current Obligation: $15,500,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00P09BSD0666
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2021-07-06
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