Interior's Bureau of Indian Affairs Awards $7.6M Electric Utility Service Contract to Yakama Power

Contract Overview

Contract Amount: $7,610,682 ($7.6M)

Contractor: Yakama Power

Awarding Agency: Department of the Interior

Start Date: 2022-03-04

End Date: 2027-03-03

Contract Duration: 1,825 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ELECTRIC UTILITY SERVICE, WIP

Place of Performance

Location: TOPPENISH, YAKIMA County, WASHINGTON, 98948

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $7.6 million to YAKAMA POWER for work described as: ELECTRIC UTILITY SERVICE, WIP Key points: 1. Contract awarded to Yakama Power for electric utility services. 2. The contract has a duration of 5 years, ending March 3, 2027. 3. The contract type is Firm Fixed Price, indicating stable costs. 4. This award represents a significant investment in essential utility infrastructure for the region.

Value Assessment

Rating: fair

The contract value of $7.6 million over five years is substantial for electric utility services. Without specific benchmarks for this type of service in Washington, it's difficult to definitively assess if the pricing is competitive. Further analysis would require comparison with similar contracts in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process. The rationale for limited competition needs further investigation.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid. This could mean less efficient use of public funds.

Public Impact

Ensures reliable electricity supply for Bureau of Indian Affairs and Bureau of Indian Education facilities. Supports essential services for tribal communities and educational institutions. Potential economic benefit to Yakama Power and associated local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about potential overpricing.
  • Lack of transparency in the award process.
  • Dependence on a single provider for critical infrastructure.

Positive Signals

  • Ensures continuity of essential electric utility services.
  • Supports a specific tribal enterprise.
  • Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the Energy sector, specifically electric power distribution. Utility services are critical infrastructure, and their procurement often involves long-term agreements. Benchmarking would require data on similar utility contracts awarded by federal agencies in Washington state.

Small Business Impact

The contract was awarded to Yakama Power, which is a tribal utility. There is no indication of specific provisions or set-asides for small businesses within this award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Bureau of Indian Affairs and Bureau of Indian Education are responsible for oversight. The 'NOT AVAILABLE FOR COMPETITION' status warrants closer examination by oversight bodies to ensure the justification is sound and taxpayer interests are protected.

Related Government Programs

  • Electric Power Distribution
  • Department of the Interior Contracting
  • Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

  • Limited competition
  • Lack of price benchmark data
  • Potential for cost overruns
  • Dependence on a single provider

Tags

electric-power-distribution, department-of-the-interior, wa, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $7.6 million to YAKAMA POWER. ELECTRIC UTILITY SERVICE, WIP

Who is the contractor on this award?

The obligated recipient is YAKAMA POWER.

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 $7.6 million.

What is the period of performance?

Start: 2022-03-04. End: 2027-03-03.

What is the specific justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?

The justification for limited competition is not provided in the data. Typically, such awards are made when only one responsible source is available or when a compelling urgency exists. Without this information, it's impossible to assess the fairness of the pricing or the necessity of the limited competition. Further investigation into agency records would be required.

How does the per-unit cost of this electric utility service compare to market rates or similar federal contracts in the region?

A direct per-unit cost comparison is not feasible with the provided data. The contract value is a total amount over five years. To benchmark, one would need to know the specific services rendered (e.g., kilowatt-hours consumed, distribution infrastructure maintenance) and compare those rates against publicly available utility tariffs or other federal contracts for similar services in Washington state.

What are the potential risks associated with relying on a single provider for essential electric utility services, especially given the limited competition?

The primary risks include potential price escalation in future contract renewals, reduced incentive for the provider to innovate or improve service quality due to lack of competitive pressure, and vulnerability to service disruptions if the sole provider faces operational issues. The limited competition aspect exacerbates these risks by reducing leverage for the government.

Industry Classification

NAICS: UtilitiesElectric Power Generation, Transmission and DistributionElectric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

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: 61220 US HIGHWAY 97, TOPPENISH, WA, 98948

Business Categories: Category Business, Government, Native American Tribal Government, Minority Owned Business, Not Designated a Small Business, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $9,610,682

Exercised Options: $9,610,682

Current Obligation: $7,610,682

Actual Outlays: $5,099,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2022-03-04

Current End Date: 2027-03-03

Potential End Date: 2027-03-03 00:00:00

Last Modified: 2026-03-31

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