Interior's Bureau of Indian Affairs awards $272K contract for electric utility services at Pine Ridge Agency

Contract Overview

Contract Amount: $272,226 ($272.2K)

Contractor: Nebraska Public Power District

Awarding Agency: Department of the Interior

Start Date: 2024-09-23

End Date: 2025-09-30

Contract Duration: 372 days

Daily Burn Rate: $732/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), PINE RIDGE AGENCY IN PINE RIDGE, SD.

Place of Performance

Location: COLUMBUS, PLATTE County, NEBRASKA, 68601

State: Nebraska Government Spending

Plain-Language Summary

Department of the Interior obligated $272,225.56 to NEBRASKA PUBLIC POWER DISTRICT for work described as: ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), PINE RIDGE AGENCY IN PINE RIDGE, SD. Key points: 1. Contract awarded to Nebraska Public Power District for essential electric utility services. 2. Services are critical for the operational continuity of the BIA Pine Ridge Agency. 3. The contract duration is approximately one year, aligning with annual operational needs. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. The award was not competitively procured, raising questions about potential cost savings. 6. Geographic focus on Pine Ridge, South Dakota, highlights specific regional support.

Value Assessment

Rating: fair

The contract value of $272,225.56 for one year of electric utility services appears reasonable for a remote agency location. Benchmarking against similar contracts for utility provision to federal facilities in rural areas is challenging without more specific service details. However, the absence of competition suggests a potential lack of price discovery, which could impact overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential providers. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, geographic necessity, or existing infrastructure. The lack of competition limits the government's ability to solicit multiple bids and negotiate the best possible price.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding. Without exploring alternative providers, there's a risk that the price paid is higher than what could have been achieved through a competitive process.

Public Impact

The primary beneficiaries are the Bureau of Indian Affairs (BIA) and the residents served by the Pine Ridge Agency. Essential electric power distribution services will be maintained, ensuring the operation of agency facilities. The geographic impact is concentrated in Pine Ridge, South Dakota. The contract supports the reliable functioning of federal services within this specific community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for small businesses to compete for this service.
Dependence on a single provider could create risks if service is interrupted.

Positive Signals

Ensures continuity of essential electric services for a critical federal agency.
Firm Fixed Price contract provides cost certainty for the awarded period.
Supports operations in a specific, potentially underserved, geographic region.

Sector Analysis

Electric utility services are a fundamental component of infrastructure, supporting the operations of government agencies and communities. The market for utility provision is often localized, with established providers like Nebraska Public Power District serving specific regions. This contract fits within the broader category of essential services procurement, ensuring the reliable delivery of power, which is critical for all federal operations, especially in remote locations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. As a sole-source award to a large utility provider, it offers limited direct opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is minimal for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Indian Affairs' contracting and financial management divisions. As a purchase order, it is subject to standard procurement regulations and internal agency review. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on broader audit plans for the Department of the Interior.

Related Government Programs

Bureau of Indian Affairs Operations
Federal Agency Utility Contracts
Rural Electric Infrastructure Support
Department of the Interior Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $272,225.56 to NEBRASKA PUBLIC POWER DISTRICT. ELECTRIC UTILITY SERVICES FOR THE BUREAU OF INDIAN AFFAIRS (BIA), PINE RIDGE AGENCY IN PINE RIDGE, SD.

Who is the contractor on this award?

The obligated recipient is NEBRASKA PUBLIC POWER DISTRICT.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $272,225.56.

What is the period of performance?

Start: 2024-09-23. End: 2025-09-30.

What is the historical spending pattern for electric utility services at the BIA Pine Ridge Agency?

Historical spending data for electric utility services specifically at the BIA Pine Ridge Agency is not readily available in the provided data. However, the current award of $272,225.56 for a 372-day period suggests an average monthly cost of approximately $73,179. This figure can serve as a baseline for future comparisons. To understand historical patterns, one would need to access past contract awards or utility bills for this specific agency location over several fiscal years. Analyzing trends in energy consumption and pricing would provide context for the current award's value and identify any significant fluctuations or increases.

How does the per-unit cost of this contract compare to similar federal utility contracts?

A direct per-unit cost comparison is difficult without knowing the exact kilowatt-hours or other specific units of electric service provided under this contract. The total award of $272,225.56 for approximately one year of service to the Pine Ridge Agency serves as the primary financial metric. Benchmarking against other federal facilities, especially those in rural or remote areas with similar energy demands, would be necessary. However, the sole-source nature of this award limits the ability to definitively state if the price is competitive. Without competitive bids, it's challenging to establish a precise market rate or benchmark for this specific service in this location.

What are the potential risks associated with a sole-source award for essential utility services?

The primary risk associated with a sole-source award for essential utility services is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may not achieve the most favorable pricing. Additionally, there's a risk of complacency from the sole provider, potentially impacting service quality or responsiveness over time. Dependence on a single entity also creates vulnerability; any disruption in service from Nebraska Public Power District could have significant operational consequences for the BIA Pine Ridge Agency, as alternative providers are not readily available or contracted for.

What is the track record of Nebraska Public Power District in serving federal agencies?

Nebraska Public Power District (NPPD) is a major public power utility in Nebraska, serving a wide range of customers, including commercial, industrial, and residential users. While specific details of their past contracts with federal agencies are not provided in this data, NPPD has a long history of providing reliable electric services across its service territory. Their experience likely includes managing large-scale power distribution and ensuring consistent supply. Federal agencies often contract with established, regional utility providers like NPPD for essential services, relying on their infrastructure and expertise. Further investigation into NPPD's federal contracting history would reveal the extent and nature of their past performance with government entities.

What are the implications of the firm fixed price contract type for this utility service?

A Firm Fixed Price (FFP) contract type means that the price is set and will not be adjusted regardless of the contractor's actual costs. For the Bureau of Indian Affairs, this offers cost certainty and predictability for the duration of the contract (approximately one year). The risk of cost overruns is borne entirely by Nebraska Public Power District. This is generally advantageous for the government when the scope of work is well-defined and risks are manageable, as is typical for standard utility services. It simplifies financial planning and budgeting for the agency.

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

Solicitation ID: 140A0124P0064

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1414 15TH ST, COLUMBUS, NE, 68601

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $272,226

Exercised Options: $272,226

Current Obligation: $272,226

Actual Outlays: $272,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline