Interior Dept. awards $1.3M for hydroelectric power generation to Raft River Rural Electric Cooperative Inc

Contract Overview

Contract Amount: $130,781 ($130.8K)

Contractor: Raft River Rural Electric Cooperative Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-05-01

End Date: 2027-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $90/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: RAFT RIVER RURAL ELECTRIC

Place of Performance

Location: MALTA, CASSIA County, IDAHO, 83342

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $130,781.04 to RAFT RIVER RURAL ELECTRIC COOPERATIVE INC. for work described as: RAFT RIVER RURAL ELECTRIC Key points: 1. Contract awarded for hydroelectric power generation services. 2. Long-term contract duration of 1460 days. 3. Firm Fixed Price contract type suggests predictable costs. 4. Awarded to a single electric cooperative. 5. Services to be delivered in Idaho. 6. No indication of small business participation.

Value Assessment

Rating: fair

The contract value of $1.3 million over approximately four years for hydroelectric power generation is difficult to benchmark without specific service details. The firm fixed-price structure provides cost certainty for the government. However, the lack of competitive bidding raises questions about whether the government secured the best possible price. Without comparable contracts or market data for similar hydroelectric generation services in the region, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded sole-source to Raft River Rural Electric Cooperative Inc. The reason for the sole-source award is not detailed in the provided data. Sole-source awards can limit price discovery and potentially lead to higher costs for the government compared to a competitive process. The absence of multiple bidders means there was no direct comparison of offerings or pricing.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the lack of competition. The government did not benefit from the potential for lower prices that a competitive bidding process could have generated.

Public Impact

The Bureau of Indian Affairs and Bureau of Indian Education will benefit from reliable hydroelectric power generation. Services ensure the continued operation of essential infrastructure. Geographic impact is concentrated in Idaho. The contract supports the operational needs of federal agencies serving Native American communities. Workforce implications are likely internal to the awarded cooperative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited transparency into the justification for sole-source award.
No clear mechanism for small business subcontracting opportunities.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long-term award ensures service continuity.
Awardee is a specialized electric cooperative.

Sector Analysis

The contract falls within the Energy sector, specifically focusing on hydroelectric power generation. This is a critical component of the nation's energy infrastructure, often involving specialized utilities and cooperatives. The market for such services is typically localized and can be dominated by established providers due to the nature of infrastructure and regulatory requirements. Benchmarking this contract against broader energy service contracts would be misleading; it requires comparison with similar utility-scale power generation agreements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor is there any information suggesting subcontracting opportunities for small businesses. This means that the primary awardee is not a small business, and there are no explicit requirements for them to engage small businesses for this particular contract. Consequently, the impact on the small business ecosystem for this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Indian Affairs and Bureau of Indian Education within the Department of the Interior. Accountability measures would be tied to the performance standards outlined in the firm fixed-price purchase order. Transparency is limited by the sole-source nature of the award and the lack of detailed justification in the public data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Hydroelectric Power Generation Contracts
Bureau of Indian Affairs Energy Services
Bureau of Indian Education Infrastructure Support
Department of the Interior Utility Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on contractor selection criteria.
No clear small business subcontracting plan.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $130,781.04 to RAFT RIVER RURAL ELECTRIC COOPERATIVE INC.. RAFT RIVER RURAL ELECTRIC

Who is the contractor on this award?

The obligated recipient is RAFT RIVER RURAL ELECTRIC COOPERATIVE INC..

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 $130,781.04.

What is the period of performance?

Start: 2023-05-01. End: 2027-04-30.

What is the specific justification for the sole-source award to Raft River Rural Electric Cooperative Inc.?

The provided data does not contain the specific justification for the sole-source award. Typically, sole-source awards are granted when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, proprietary technology, or specific geographic service areas that only one entity can fulfill. For hydroelectric power generation, it might relate to the cooperative's ownership or operational control of the specific generation facility or distribution network required by the Bureau of Indian Affairs and Bureau of Indian Education. Further investigation into the contract file or agency justifications would be necessary to ascertain the precise reasons.

How does the $1.3 million contract value compare to similar hydroelectric power generation contracts awarded by the federal government?

Direct comparison of the $1.3 million contract value for hydroelectric power generation is challenging without more specific details about the services rendered, the capacity of the generation, and the duration. Federal contracts for hydroelectric power can vary significantly based on these factors. For instance, large-scale power purchase agreements for major dams can run into hundreds of millions of dollars, while smaller contracts for localized generation or maintenance could be in the hundreds of thousands. Given this contract is for approximately four years and totals $1.3 million, it suggests a moderate-sized or specialized service, but without benchmarks for comparable sole-source awards or specific service scopes, a precise value comparison is difficult.

What are the potential risks associated with a sole-source award for essential services like hydroelectric power generation?

The primary risk associated with a sole-source award for essential services like hydroelectric power generation is the potential for inflated pricing and reduced innovation. Without competition, the awarded contractor may not feel the same pressure to offer the most competitive rates or to seek cost-saving efficiencies. This can lead to the government paying more than necessary. Additionally, sole-source awards can limit the government's access to a broader range of potential solutions or technological advancements that might be offered by other qualified providers. There's also a risk of vendor lock-in, making it difficult to switch providers in the future if performance issues arise or better options become available.

What is the track record of Raft River Rural Electric Cooperative Inc. in performing federal contracts?

The provided data does not include information on Raft River Rural Electric Cooperative Inc.'s track record with federal contracts. To assess their performance history, one would typically need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., CPARS reports), and any history of disputes or terminations. As an electric cooperative, their primary mission is likely serving their member-owners, and their experience with federal government contracts would need separate verification to understand their reliability and past performance in this specific context.

How does the firm fixed-price contract type mitigate or introduce risks for this hydroelectric power generation service?

A Firm Fixed Price (FFP) contract type generally mitigates cost uncertainty for the government. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means the government knows its maximum liability upfront. For the contractor, it introduces the risk of absorbing cost overruns if their expenses exceed what was anticipated. In the context of hydroelectric power generation, an FFP contract can be beneficial if the scope of work is well-defined and predictable. However, if unforeseen technical issues or significant operational changes arise that are outside the contractor's control, the FFP structure could lead to disputes or performance issues if the contractor is unable to absorb the unexpected costs.

What is the historical spending pattern for hydroelectric power generation services by the Bureau of Indian Affairs and Bureau of Indian Education?

The provided data does not offer historical spending patterns for hydroelectric power generation services by the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE). To analyze this, one would need to access historical federal procurement data, filtering by the relevant agencies (DOI, BIA, BIE), the specific Product Service Code (PSC) related to power generation, and potentially keywords. This would reveal the frequency, value, and types of contracts awarded over time. Understanding historical spending could indicate whether this $1.3 million award represents a typical investment, an increase, or a decrease in federal support for such services within these agencies.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Hydroelectric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 0040618246

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 N MAIN ST, MALTA, ID, 83342

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $164,281

Exercised Options: $130,781

Current Obligation: $130,781

Actual Outlays: $83,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline