Interior Department awards $100K for electric services in New Mexico, highlighting regional infrastructure needs

Contract Overview

Contract Amount: $100,003 ($100.0K)

Contractor: Continental Divide Electric Cooperative, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $137/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC SERVICES @ DIBE'YAZHI HABITIIN

Place of Performance

Location: GRANTS, CIBOLA County, NEW MEXICO, 87020

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $100,003.24 to CONTINENTAL DIVIDE ELECTRIC COOPERATIVE, INC. for work described as: ELECTRIC SERVICES @ DIBE'YAZHI HABITIIN Key points: 1. Contract value appears modest, suggesting a focus on specific localized needs rather than large-scale infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract duration of approximately two years suggests ongoing service requirements. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. Geographic focus on New Mexico points to specific regional utility requirements. 6. The award to a cooperative suggests a potential focus on community-based service providers.

Value Assessment

Rating: good

The contract value of $100,003.24 for electric services over two years is relatively small, making direct comparison to larger infrastructure projects difficult. However, for localized distribution services, the pricing appears reasonable, especially given the fixed-price structure which caps government expenditure. Benchmarking against similar regional utility contracts would provide further insight, but the amount suggests a focus on maintaining existing infrastructure or providing essential services to a specific community rather than a major capital investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally preferred as it maximizes the pool of potential offerors and promotes competitive pricing. The number of bidders is not specified, but the use of this procurement method implies a deliberate effort to ensure fair market value was sought.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services through market forces.

Public Impact

Residents and businesses in the Dibe'Yazhi Habitiin area of New Mexico will benefit from reliable electric services. The contract ensures the continued operation and maintenance of electric power distribution infrastructure. The geographic impact is concentrated within New Mexico, specifically serving the Dibe'Yazhi Habitiin community. The contract supports the workforce of Continental Divide Electric Cooperative, Inc., likely including skilled electricians and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if the service area is highly specialized or remote.
Dependence on a single cooperative could pose risks if their capacity is strained.
The relatively small contract value might not attract the largest, most innovative utility providers.

Positive Signals

Award to an electric cooperative suggests a commitment to serving rural or underserved communities.
Full and open competition indicates an effort to achieve best value.
Fixed-price contract provides budget certainty for the agency.

Sector Analysis

This contract falls within the Utilities and Energy sector, specifically focusing on electric power distribution. The market for such services is often localized, with regional cooperatives and utility companies playing a significant role. While the dollar amount is modest, it represents essential service provision, similar to contracts awarded for maintaining power grids in other federal installations or tribal lands. The overall market for electric utility services is vast, but this specific award targets a niche requirement.

Small Business Impact

The contract does not indicate a small business set-aside. Given the award to a cooperative, it's possible that the cooperative itself works with small businesses for subcontracting, or that the nature of the service delivery is not typically broken down into smaller, competitive packages. Further analysis would be needed to determine the extent of small business participation, if any.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education, as they are the contracting agencies. Standard contract management procedures, performance reviews, and financial audits would be employed. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here.

Related Government Programs

Bureau of Indian Affairs Electric Services
Bureau of Indian Education Infrastructure Support
Federal Electric Utility Contracts
Rural Electrification Programs

Risk Flags

Potential for service disruption due to reliance on a single regional provider.
Limited scope may not attract a wide range of competitive bids.
Geographic isolation could impact response times for emergencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $100,003.24 to CONTINENTAL DIVIDE ELECTRIC COOPERATIVE, INC.. ELECTRIC SERVICES @ DIBE'YAZHI HABITIIN

Who is the contractor on this award?

The obligated recipient is CONTINENTAL DIVIDE 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 $100,003.24.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the historical spending pattern for electric services in the Dibe'Yazhi Habitiin area by the Department of the Interior?

Historical spending data for electric services specifically in the Dibe'Yazhi Habitiin area by the Department of the Interior is not readily available in this summary. However, the current award of $100,003.24 over two years suggests a consistent, albeit modest, need for these services. To understand historical patterns, one would need to access detailed procurement databases and filter by the specific geographic location, agency sub-division (Bureau of Indian Affairs/Education), and service type (electric power distribution). This would reveal if similar contracts have been awarded previously, their values, durations, and the incumbent contractors, providing context for the current award's scale and necessity.

How does the awarded price compare to market rates for similar electric distribution services in New Mexico?

Benchmarking this $100,003.24 contract against market rates for similar electric distribution services in New Mexico requires detailed cost data that is not provided. However, the award to Continental Divide Electric Cooperative, Inc., a known regional provider, suggests the price is likely aligned with established rates for cooperative members or service territories. Full and open competition theoretically drives prices towards market efficiency. Without specific per-kilowatt-hour costs, infrastructure maintenance rates, or service level agreements for comparison, a precise market rate assessment is challenging. Generally, cooperative pricing aims to cover operational costs and necessary investments, often reflecting a balance between affordability and service reliability for its service area.

What are the specific risks associated with relying on Continental Divide Electric Cooperative, Inc. for these services?

The primary risks associated with relying on Continental Divide Electric Cooperative, Inc. (CDEC) stem from its nature as a cooperative and its geographic focus. Potential risks include CDEC's capacity limitations if demand surges unexpectedly or if they face internal operational challenges. As a cooperative, their primary mission is service to members, which could theoretically lead to prioritization decisions that might not always align perfectly with federal agency needs, although this is less likely in a fixed-price contract scenario. Furthermore, if CDEC is the sole or primary provider in this specific remote region, disruptions due to weather, equipment failure, or workforce issues could have a significant impact, and alternative immediate support might be limited. The relatively small contract value also suggests it might not be a high priority for larger, more diversified utility providers, potentially limiting options if CDEC were unable to perform.

What is the expected impact of this contract on the local workforce in Dibe'Yazhi Habitiin?

This contract is expected to have a positive impact on the local workforce by ensuring continued employment for the personnel at Continental Divide Electric Cooperative, Inc. (CDEC) who are responsible for electric power distribution in the Dibe'Yazhi Habitiin area. This likely includes skilled electricians, line workers, technicians, and support staff. The contract's duration of two years provides a degree of job stability for these individuals. Furthermore, the reliable provision of electricity is crucial for local businesses and community services, indirectly supporting employment by enabling economic activity and maintaining essential public services within the region.

How does this contract align with the Department of the Interior's broader mission regarding tribal lands and infrastructure?

This contract directly aligns with the Department of the Interior's (DOI) mission, particularly its stewardship responsibilities over tribal lands and its role in supporting infrastructure development and maintenance for Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) entities. Ensuring reliable electric services is fundamental to the operation of schools, housing, and community facilities on or near tribal lands. By awarding this contract, the DOI is fulfilling its commitment to provide essential services that support the well-being and economic development of Native American communities, recognizing that robust infrastructure is a prerequisite for educational success and quality of life.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 0044000301

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E HIGH ST, GRANTS, NM, 87020

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

Financial Breakdown

Contract Ceiling: $280,003

Exercised Options: $100,003

Current Obligation: $100,003

Actual Outlays: $42,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0723D0018

IDV Type: IDC

Timeline