Interior's $102K electrical service contract awarded to Jemez Mountains Electric Cooperative Inc. for one year

Contract Overview

Contract Amount: $102,475 ($102.5K)

Contractor: Jemez Mountains Electric Cooperative Inc

Awarding Agency: Department of the Interior

Start Date: 2025-03-05

End Date: 2026-03-04

Contract Duration: 364 days

Daily Burn Rate: $282/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL SERVICE, JEMEZ AND T'SIYA

Place of Performance

Location: SAN YSIDRO, SANDOVAL County, NEW MEXICO, 87053

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $102,474.56 to JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC for work described as: ELECTRICAL SERVICE, JEMEZ AND T'SIYA Key points: 1. Contract value appears reasonable for a one-year electrical distribution service agreement. 2. Full and open competition suggests a competitive bidding process. 3. No immediate risk indicators are apparent from the provided data. 4. Performance context is limited to electrical power distribution services. 5. This contract falls within the utility services sector for the Bureau of Indian Affairs. 6. The contract duration is one year, indicating a short-term need.

Value Assessment

Rating: good

The contract value of $102,474.56 for one year of electrical service appears to be within a reasonable range for a utility service contract of this nature. Benchmarking against similar contracts for electrical distribution in remote or tribal areas would provide a more precise assessment, but the amount does not immediately suggest overpricing. The firm fixed-price structure helps control costs for the government.

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 a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to yield a fair market price for the electrical services provided to the Bureau of Indian Affairs.

Public Impact

The primary beneficiaries are the Bureau of Indian Affairs and Bureau of Indian Education facilities and operations in the Jemez Mountains region. The service delivered is essential electrical power distribution, ensuring reliable power for government operations. The geographic impact is localized to New Mexico, specifically the areas served by Jemez Mountains Electric Cooperative. Workforce implications are likely minimal, as the contract is for service provision rather than large-scale construction or direct hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type helps manage cost certainty.
Contractor is a cooperative, potentially indicating a focus on community service.
Short duration (one year) allows for periodic re-evaluation of needs and performance.

Sector Analysis

This contract falls within the broader utility services sector, specifically focusing on electric power distribution. The market for such services can vary significantly based on geographic location, with rural and remote areas often having fewer providers. The contract's value is relatively small, suggesting it covers localized distribution needs rather than a large-scale infrastructure project. Comparable spending benchmarks would typically look at per-mile distribution costs or cost per customer served.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. There is no information provided regarding subcontracting plans. As the contractor is Jemez Mountains Electric Cooperative Inc., it is likely a member-owned entity, and its impact on the broader small business ecosystem would depend on its own procurement practices.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Bureau of Indian Affairs. Accountability is ensured through the firm fixed-price contract terms and the delivery order mechanism. Transparency is facilitated by the public availability of contract data, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Bureau of Indian Affairs Operations
Bureau of Indian Education Facilities Management
Federal Utility Services Contracts
New Mexico Federal Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $102,474.56 to JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC. ELECTRICAL SERVICE, JEMEZ AND T'SIYA

Who is the contractor on this award?

The obligated recipient is JEMEZ MOUNTAINS 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 $102,474.56.

What is the period of performance?

Start: 2025-03-05. End: 2026-03-04.

What is the historical spending pattern for electrical services by the Bureau of Indian Affairs in New Mexico?

Analyzing historical spending for electrical services by the Bureau of Indian Affairs (BIA) in New Mexico requires access to comprehensive federal procurement databases. Without direct access to such data, a precise historical pattern cannot be established. However, federal agencies like the BIA typically procure utility services through a mix of contract types, including full and open competition, sole-source awards to existing utility providers (especially in remote areas), and potentially small business set-asides where applicable. Spending can fluctuate based on infrastructure upgrades, changes in facility needs, and energy price volatility. The current contract's value of approximately $102,000 for one year suggests a recurring need for basic electrical distribution maintenance and service, rather than major capital investments. Longer-term trends might reveal increased spending due to aging infrastructure or expanded services, or decreased spending if facilities are consolidated or decommissioned.

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

Determining the precise market rate for electrical distribution services in rural New Mexico is challenging without specific local data. However, Jemez Mountains Electric Cooperative Inc. is a known entity serving that region. The contract's firm fixed-price nature suggests that the government sought cost certainty. Generally, utility cooperatives in rural areas may have different pricing structures compared to large investor-owned utilities, sometimes reflecting a mission to serve specific communities. The contract value of $102,474.56 for a year of service, covering a duration of 364 days, equates to roughly $281 per day. This daily rate needs to be assessed against the scope of services (e.g., maintenance, emergency response, specific distribution points) and the unique challenges of operating in the Jemez Mountains area, which could include terrain and accessibility. Without detailed service level agreements or comparative bids from other providers in the same specific geographic area, a definitive comparison to market rates is difficult, but the price does not appear excessively high for specialized utility services.

What are the potential risks associated with relying on a single cooperative for electrical distribution services?

Relying on a single cooperative, even one awarded through full and open competition, can present certain risks. The primary risk is a lack of ongoing competitive pressure, which could potentially lead to price increases in future contract renewals if the cooperative becomes the de facto sole provider due to market conditions or specialized knowledge. Another risk is service disruption; while cooperatives often have strong community ties, unforeseen events like natural disasters, equipment failure, or labor disputes could impact service reliability. Furthermore, the cooperative's financial health and operational efficiency are critical; any significant issues could directly affect the government's power supply. The government mitigates some of this risk through contract terms, performance standards, and the ability to re-compete the contract, but dependence on a single entity always warrants careful monitoring of performance and market dynamics.

What is the track record of Jemez Mountains Electric Cooperative Inc. in performing government contracts?

Information regarding Jemez Mountains Electric Cooperative Inc.'s specific track record with government contracts is not detailed in the provided data. However, as an established electric cooperative serving the Jemez Mountains region, it likely possesses significant experience in providing electrical distribution services. Federal agencies often contract with local utility providers, including cooperatives, for essential services. To fully assess their track record for government work, one would typically look at past performance evaluations (e.g., CPARS reports), any history of contract disputes or terminations, and their demonstrated ability to meet service level agreements and regulatory requirements. The fact that they were awarded this contract suggests they met the basic qualifications and were deemed capable of performing the required services under the terms of the solicitation.

How does this contract align with the Bureau of Indian Affairs' mission regarding infrastructure and services on tribal lands?

This contract directly aligns with the Bureau of Indian Affairs' (BIA) mission to enhance the quality of life and economic opportunity for American Indians and Alaska Natives. Providing reliable electrical power is a fundamental component of infrastructure necessary for the operation of BIA and Bureau of Indian Education facilities, as well as supporting the communities they serve. Ensuring consistent power supply is crucial for educational programs, administrative functions, and potentially for the well-being of residents in associated housing or facilities. By contracting for essential electrical distribution services, the BIA is fulfilling its responsibility to maintain and operate the infrastructure required to deliver its programs and services effectively on tribal lands in New Mexico.

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: 44001172

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19365 STATE RD 84-285, HERNANDEZ, NM, 87537

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

Financial Breakdown

Contract Ceiling: $102,475

Exercised Options: $102,475

Current Obligation: $102,475

Actual Outlays: $93,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0725D0012

IDV Type: IDC

Timeline