DOJ's $1.1M Electric Utility Contract Awarded to Potomac Electric Power Co. for National Laboratory Center
Contract Overview
Contract Amount: $1,114,956 ($1.1M)
Contractor: Potomac Electric Power CO
Awarding Agency: Department of Justice
Start Date: 2025-03-01
End Date: 2027-02-28
Contract Duration: 729 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: ELECTRIC UTILITY SERVICES LOCATED AT: 1. NATIONAL LABORATORY CENTER (NLC), 6000 AMMENDALE ROAD, BELTSVILLE, MD 20705.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Justice obligated $1.1 million to POTOMAC ELECTRIC POWER CO for work described as: ELECTRIC UTILITY SERVICES LOCATED AT: 1. NATIONAL LABORATORY CENTER (NLC), 6000 AMMENDALE ROAD, BELTSVILLE, MD 20705. Key points: 1. Contract awarded to a single, established provider for essential utility services. 2. Fixed-price contract with economic price adjustment may expose taxpayers to fluctuating energy costs. 3. Limited competition raises questions about optimal price discovery and potential for cost savings. 4. Essential service for a critical federal facility, ensuring operational continuity.
Value Assessment
Rating: fair
The contract value of $1.11M over two years for electric utility services appears reasonable for a large federal facility. However, without specific usage data or benchmarks for similar facilities, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario. This limits the government's ability to solicit competitive bids and potentially secure lower prices through market forces.
Taxpayer Impact: The lack of full and open competition may result in higher costs for taxpayers compared to a competitive bidding process.
Public Impact
Ensures continuous power supply for the National Laboratory Center, vital for its operations. Potential for increased costs due to economic price adjustments, impacting the federal budget. Highlights the reliance on established utility providers for critical infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause
- Limited competition
Positive Signals
- Essential service provision
- Established provider
Sector Analysis
This contract falls under the Energy sector, specifically electric utility services. Federal spending on utilities is a recurring necessity, with costs varying significantly based on location, consumption, and contract terms.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it appears to be awarded to a large, established utility provider.
Oversight & Accountability
The contract is managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. Oversight would focus on ensuring service delivery and managing the economic price adjustment.
Related Government Programs
- Electric Bulk Power Transmission and Control
- Department of Justice Contracting
- Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division Programs
Risk Flags
- Economic price adjustment may increase costs
- Limited competition restricts price discovery
- Potential for higher-than-market pricing
- Lack of small business participation
Tags
electric-bulk-power-transmission-and-con, department-of-justice, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $1.1 million to POTOMAC ELECTRIC POWER CO. ELECTRIC UTILITY SERVICES LOCATED AT: 1. NATIONAL LABORATORY CENTER (NLC), 6000 AMMENDALE ROAD, BELTSVILLE, MD 20705.
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER CO.
Which agency awarded this contract?
Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).
What is the total obligated amount?
The obligated amount is $1.1 million.
What is the period of performance?
Start: 2025-03-01. End: 2027-02-28.
What is the historical price trend for Potomac Electric Power Co. in this region, and how might the economic price adjustment clause impact the final cost over the contract term?
Analyzing historical price trends for Potomac Electric Power Co. in the District of Columbia region would provide insight into the potential volatility of energy costs. The economic price adjustment clause allows for modifications to the contract price based on changes in specific economic indicators, such as fuel costs or inflation. This could lead to a final cost significantly higher or lower than the initial estimate, depending on market fluctuations.
Given the limited competition, what steps were taken to ensure the government received a fair price for these essential electric utility services?
When competition is limited, agencies typically rely on market research, historical pricing data, and negotiation with the sole or limited provider to ensure a fair price. They may also consult independent cost estimates or industry benchmarks. However, without a competitive bidding process, the inherent pressure to offer the lowest price is reduced, potentially leading to a less favorable outcome for the government.
How does the fixed-price with economic price adjustment structure compare to other contract types for utility services in terms of long-term cost-effectiveness and risk for the government?
Fixed-price contracts with economic price adjustments offer some cost certainty while allowing for adjustments due to external economic factors. Compared to a firm fixed-price contract, this structure shifts some of the price fluctuation risk to the government. However, it can be more predictable than cost-reimbursement contracts. For essential services like utilities, it aims to balance provider incentive with market realities, though the government bears the risk of price increases.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Bulk Power Transmission and Control
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 15A00025R00000031
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 701 9TH ST NW, WASHINGTON, DC, 20001
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,768,829
Exercised Options: $1,690,785
Current Obligation: $1,114,956
Actual Outlays: $599,552
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-01
Current End Date: 2027-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2026-04-01
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