DoD's $13M Electricity Contract for Yongsan Area Awarded to Korea Electric Power Corp
Contract Overview
Contract Amount: $13,031,230 ($13.0M)
Contractor: Korea Electric Power Corp
Awarding Agency: Department of Defense
Start Date: 2008-10-22
End Date: 2009-09-30
Contract Duration: 343 days
Daily Burn Rate: $38.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRICITY POWER SUPPLY FOR AREA II(YONGSAN AREA)
Plain-Language Summary
Department of Defense obligated $13.0 million to KOREA ELECTRIC POWER CORP for work described as: ELECTRICITY POWER SUPPLY FOR AREA II(YONGSAN AREA) Key points: 1. High contract value of $13M for essential utility services. 2. Sole-source award to Korea Electric Power Corp. limits competitive pricing. 3. Risk of price escalation due to lack of competition. 4. Sector: Energy (Utilities).
Value Assessment
Rating: questionable
The contract value is $13,031,230.03. Without available benchmarks or pricing details for similar electricity supply contracts, it's difficult to definitively assess if this price is competitive. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis to Korea Electric Power Corp. This method bypasses competitive bidding, potentially leading to higher prices and reduced value for taxpayers as there's no market pressure to offer the best possible rate.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective electricity supply, as competition was not leveraged to drive down prices.
Public Impact
Ensures critical electricity supply for U.S. Forces in Yongsan Area. Potential for higher costs due to lack of competitive bidding. Dependence on a single provider for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price gouging
Positive Signals
- Ensures essential service delivery
- Fixed price contract
Sector Analysis
This contract falls within the Energy sector, specifically focusing on utility services. Utility contracts, especially for essential services like electricity, can be complex due to regulated pricing and infrastructure monopolies. Benchmarks are often difficult to establish due to unique service areas and provider agreements.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded solely to Korea Electric Power Corp. This represents a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the price paid was fair and reasonable, given the absence of competitive market forces. Accountability for the procurement decision is crucial.
Related Government Programs
- Electric Bulk Power Transmission and Control
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of alternatives.
- No clear indication of small business participation.
- Limited transparency on pricing justification.
- Dependence on a single provider for critical infrastructure.
Tags
electric-bulk-power-transmission-and-con, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to KOREA ELECTRIC POWER CORP. ELECTRICITY POWER SUPPLY FOR AREA II(YONGSAN AREA)
Who is the contractor on this award?
The obligated recipient is KOREA ELECTRIC POWER CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2008-10-22. End: 2009-09-30.
What was the justification for awarding this electricity contract on a sole-source basis, and were alternative competitive options explored?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can fulfill the requirement. For this electricity contract, the rationale might stem from the existing infrastructure and service territory of Korea Electric Power Corp. However, without detailed documentation, it's unclear if alternative competitive strategies were thoroughly explored or deemed infeasible.
How does the per-unit cost of electricity under this contract compare to similar contracts or market rates in the region?
Determining the per-unit cost comparison is challenging without specific usage data and regional market rate information. As this was a sole-source award, direct price comparisons with competitive contracts are not feasible. A thorough review would require access to the contract's pricing structure and independent market analysis for the Yongsan Area.
What measures are in place to ensure the reliability and quality of electricity supply from Korea Electric Power Corp. under this contract?
Reliability and quality are typically ensured through contract performance standards, service level agreements (SLAs), and monitoring mechanisms. The Department of Defense likely has established protocols for overseeing utility providers, including requirements for uptime, power quality, and response times to outages. Contractual penalties may also exist for non-performance.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Bulk Power Transmission and Control
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
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: 87 SAMSUNG DONG GANGNAM G, SEOUL
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,031,230
Exercised Options: $13,031,230
Current Obligation: $13,031,230
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAJB0370D6017
IDV Type: IDC
Timeline
Start Date: 2008-10-22
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2015-11-17
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