Interior Department awards $2.8M electric services contract to Navajo Tribal Utility Authority for Arizona operations

Contract Overview

Contract Amount: $283,387 ($283.4K)

Contractor: Navajo Tribal Utility Authority

Awarding Agency: Department of the Interior

Start Date: 2022-10-20

End Date: 2026-12-31

Contract Duration: 1,533 days

Daily Burn Rate: $185/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NMNS/ELECTRIC SERVICES FOR TO'HAALI

Place of Performance

Location: FORT DEFIANCE, APACHE County, ARIZONA, 86504

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $283,387.49 to NAVAJO TRIBAL UTILITY AUTHORITY for work described as: NMNS/ELECTRIC SERVICES FOR TO'HAALI Key points: 1. Contract provides essential electric services, supporting critical infrastructure for the Bureau of Indian Affairs and Education. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure helps manage cost certainty for the government. 4. The contract duration spans over four years, indicating a long-term need for these services. 5. The geographic focus on Arizona highlights support for tribal communities within the state. 6. The contractor, Navajo Tribal Utility Authority, is a key provider of utility services to tribal lands.

Value Assessment

Rating: good

The contract value of $2.8 million over approximately four years appears reasonable for essential electric services in a remote or service-limited area. Benchmarking against similar utility contracts is challenging without more specific service details (e.g., voltage, capacity, service points). However, the firm-fixed-price nature suggests that the government has negotiated a set price, which is generally favorable for cost control. The absence of extensive modifications or change orders, if that holds true, would further indicate good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive prices down and encourage innovative solutions from potential contractors. The government's ability to select the best value offering is enhanced through this approach.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential bidders and is most likely to result in the lowest possible price for the services rendered.

Public Impact

The primary beneficiaries are students and staff at Bureau of Indian Affairs and Bureau of Indian Education facilities in Arizona, who will receive reliable electric service. Essential services such as lighting, heating, cooling, and power for educational technology will be maintained. The contract directly impacts the operational continuity of federal facilities serving Native American communities in Arizona. It supports the local workforce employed by the Navajo Tribal Utility Authority for the provision and maintenance of electric services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if market conditions change significantly.
Dependence on a single provider for critical infrastructure could pose a risk if service disruptions occur.
Ensuring consistent service quality and responsiveness to outages requires robust performance monitoring.

Positive Signals

Award to a tribal utility authority demonstrates commitment to supporting Native American economic development and self-sufficiency.
Long-term contract provides stability for both the government agency and the utility provider.
Firm-fixed-price contract offers budget predictability for the Bureau of Indian Affairs and Education.

Sector Analysis

This contract falls within the Utilities and Energy Services sector, specifically focusing on electric power distribution and maintenance. The market for utility services, especially in remote or geographically challenging areas like those often inhabited by tribal nations, can be specialized. The Navajo Tribal Utility Authority's role as a provider in this region is significant, potentially making them a key player for government contracts in the area. Comparable spending benchmarks would depend heavily on the specific infrastructure and service levels required.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to the Navajo Tribal Utility Authority, a larger entity, suggests that the primary focus was on securing reliable utility services. Further analysis would be needed to determine if any subcontracting opportunities for small businesses exist within the execution of this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Indian Affairs and Bureau of Indian Education, the contracting agencies. Performance monitoring, adherence to service level agreements, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Bureau of Indian Affairs Facility Operations
Bureau of Indian Education School Maintenance
Tribal Energy Infrastructure Projects
Federal Utility Services Contracts

Risk Flags

Potential for service disruption
Reliance on single provider
Geographic remoteness impacting service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $283,387.49 to NAVAJO TRIBAL UTILITY AUTHORITY. NMNS/ELECTRIC SERVICES FOR TO'HAALI

Who is the contractor on this award?

The obligated recipient is NAVAJO TRIBAL UTILITY AUTHORITY.

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 $283,387.49.

What is the period of performance?

Start: 2022-10-20. End: 2026-12-31.

What is the track record of the Navajo Tribal Utility Authority in managing similar federal contracts?

The Navajo Tribal Utility Authority (NTUA) has a long history of providing essential utility services, including electricity, water, and natural gas, to the Navajo Nation and surrounding areas. While specific details on their track record with federal contracts beyond this award are not provided in the data, NTUA is a significant utility provider in its service region. Their experience likely encompasses managing large-scale infrastructure, responding to service demands, and adhering to regulatory requirements. Federal agencies often partner with tribal entities like NTUA to ensure reliable services on tribal lands, suggesting a level of trust and established working relationships. Further investigation into NTUA's past performance reports and contract history with various government agencies would provide a more comprehensive understanding of their capabilities and reliability.

How does the pricing of this contract compare to market rates for similar electric services in Arizona?

Benchmarking the pricing of this $2.8 million electric services contract against general market rates in Arizona is complex without specific details on the service provided (e.g., capacity, voltage, reliability standards, geographic remoteness). Utility rates can vary significantly based on these factors. However, given that the contract was awarded under full and open competition and is a firm-fixed-price agreement, it suggests that the price was deemed competitive at the time of award. The Navajo Tribal Utility Authority operates within a specific service territory, and its pricing structure may reflect the unique costs associated with serving that area, which can include infrastructure maintenance in challenging terrains. A more precise comparison would require analyzing the specific service level agreements and comparing them to rates charged by other utilities in comparable service areas, potentially including other tribal utility providers or rural electric cooperatives.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential service disruptions due to weather, equipment failure, or unforeseen maintenance issues, which could impact critical federal facilities. Another risk is the potential for cost overruns if the firm-fixed-price contract does not adequately account for all eventualities, although this structure is designed to limit such risks. Dependence on a single provider for essential services also presents a risk. Mitigation strategies likely involve robust performance monitoring by the Bureau of Indian Affairs and Education, clear service level agreements (SLAs) defining uptime and response times for outages, and contingency planning by the Navajo Tribal Utility Authority. The long-term nature of the contract also allows for relationship building and proactive issue resolution. Regular inspections and performance reviews would be key oversight activities.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of performance are relatively low or can be reasonably estimated. For electric services, where the need is ongoing and the scope is largely about maintaining existing infrastructure and providing power, FFP is a suitable choice. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. This provides budget certainty for the government, as the price is fixed regardless of the contractor's actual costs. The value for money is realized if the contractor can deliver the required services reliably at the agreed-upon price. The success of FFP in this context depends on the accuracy of the initial cost estimation and the contractor's ability to perform within that budget while meeting quality standards.

What is the historical spending pattern for electric services by the Department of the Interior in Arizona?

Analyzing the historical spending patterns for electric services by the Department of the Interior (DOI) in Arizona requires access to comprehensive federal procurement data over multiple fiscal years. This specific contract award of $2.8 million to the Navajo Tribal Utility Authority is for a duration of over four years, ending in late 2026. Without historical data, it's difficult to establish a trend. However, it's reasonable to assume that the DOI, through its various bureaus like the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE), has consistently required electric services for its facilities located on or near tribal lands in Arizona. Spending would likely fluctuate based on infrastructure needs, facility expansions or closures, and the competitive landscape for utility providers in different regions of Arizona. This current award suggests a sustained need and potentially a stable or increasing requirement for such services in the region.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HWY 12 N, FORT DEFIANCE, AZ, 86504

Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $283,387

Exercised Options: $283,387

Current Obligation: $283,387

Actual Outlays: $229,734

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P14BSD1060

IDV Type: IDC

Timeline