San Diego Gas & Electric awarded $3.6M for electrical utility services at border facilities

Contract Overview

Contract Amount: $3,611,016 ($3.6M)

Contractor: SAN Diego GAS & Electric Company

Awarding Agency: Department of State

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $9.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ELECTRICAL UTILITY SERVICE AT THE SBIWTP AND PUMP STATIONS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of State obligated $3.6 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: PROVIDE ELECTRICAL UTILITY SERVICE AT THE SBIWTP AND PUMP STATIONS. Key points: 1. Contract provides essential electrical services for critical border infrastructure. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Fixed-price contract type offers cost certainty but may limit flexibility. 4. Performance period spans two years, aligning with operational needs. 5. Geographic focus on California border facilities. 6. No small business set-aside noted, impacting small business participation.

Value Assessment

Rating: fair

The contract value of $3.6 million for electrical utility services over two years appears reasonable for the specified location and services. However, without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature provides budget predictability. Benchmarking against similar utility contracts in the region would be beneficial for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required service, often due to unique capabilities, existing infrastructure, or regulatory requirements. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government relies on the contractor's proposed pricing without market validation.

Public Impact

The primary beneficiaries are the U.S. and Mexican International Boundary and Water Commission facilities, ensuring continuous operation. Services include the provision of electrical power distribution. The geographic impact is localized to the San Diego/Tijuana border region in California. Workforce implications are likely minimal, as the service is provided by the utility company's existing staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in pricing due to no competitive bidding process.
Potential for overpayment without market benchmarks for sole-source utility services.

Positive Signals

Ensures reliable electrical utility service for critical border infrastructure.
Fixed-price contract provides cost certainty for the government.
Contract duration aligns with operational needs for the specified facilities.

Sector Analysis

The energy utility sector is characterized by regulated monopolies and significant infrastructure investments. Contracts for electrical power distribution are common across all government agencies. This specific contract falls under the broader category of utility services, which are essential for the operation of any government facility. Benchmarking would typically involve comparing rates with other utility providers in similar service areas, though sole-source awards complicate direct comparisons.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of utility services provided by a large utility company, subcontracting opportunities for small businesses are unlikely to be significant. The absence of a set-aside means that the primary contract is not directly contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the International Boundary and Water Commission: U.S.-Mexico, and potentially the Department of State. Accountability measures would involve monitoring service delivery and adherence to the contract terms. Transparency is limited due to the sole-source nature of the award, with public access to detailed pricing information being restricted.

Related Government Programs

Electrical Power Services
Utility Services
Border Infrastructure Support

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.6 million to SAN DIEGO GAS & ELECTRIC COMPANY. PROVIDE ELECTRICAL UTILITY SERVICE AT THE SBIWTP AND PUMP STATIONS.

Who is the contractor on this award?

The obligated recipient is SAN DIEGO GAS & ELECTRIC COMPANY.

Which agency awarded this contract?

Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for electrical utility services at these specific border facilities?

Historical spending data for electrical utility services at the SBIWTP and associated pump stations is not readily available in the provided data. However, the current contract value of $3.6 million over two years suggests an average annual expenditure of approximately $1.8 million. To understand historical patterns, one would need to access previous contract awards for these facilities, analyze their values, durations, and any changes in service scope or pricing. Without this historical context, it is difficult to determine if the current award represents an increase, decrease, or stable spending trend for these essential services.

How does the pricing of this contract compare to similar utility contracts awarded by the government?

Direct comparison of pricing is challenging due to the sole-source nature of this award and the lack of specific cost breakdowns. San Diego Gas & Electric is a regulated utility, meaning its rates are subject to oversight by the California Public Utilities Commission. However, the specific terms and pricing within this government contract may differ from standard residential or commercial rates. To benchmark effectively, one would need to identify comparable sole-source utility contracts for similar government facilities in California or other border states, analyzing the price per kilowatt-hour or other relevant metrics. Without such data, assessing whether this contract offers optimal value is difficult.

What are the specific risks associated with a sole-source award for essential utility services?

The primary risk associated with a sole-source award for essential utility services is the potential for inflated costs due to the absence of competitive pressure. The government cannot leverage market competition to secure the best possible price. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility or negotiation power. While San Diego Gas & Electric is a known entity, the lack of competition means the government must rely heavily on the contractor's proposed pricing and terms without independent market validation, increasing the risk of not achieving cost efficiencies.

What is the expected performance standard for San Diego Gas & Electric under this contract?

The contract specifies 'PROVIDE ELECTRICAL UTILITY SERVICE AT THE SBIWTP AND PUMP STATIONS.' While the exact performance standards are not detailed in the provided summary, typical expectations for such a contract would include reliable and continuous power delivery, adherence to safety regulations, timely response to outages or service disruptions, and accurate billing. The contract is for Electric Power Distribution, implying the maintenance and provision of the electrical grid infrastructure necessary for the facilities' operation. Performance would likely be monitored by the contracting officer's representative (COR) to ensure consistent service delivery throughout the contract period.

Are there any provisions for energy efficiency or renewable energy integration within this contract?

The provided data does not contain specific details regarding provisions for energy efficiency or renewable energy integration within this contract. The description focuses on the core service of 'ELECTRICAL UTILITY SERVICE.' While San Diego Gas & Electric, as a utility provider, may have broader initiatives in these areas, their inclusion within this specific government contract would depend on explicit contract clauses, performance work statements, or delivery order requirements. Without such details, it is assumed the contract primarily covers standard electrical power distribution.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FY26R3321004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sempra Energy

Address: 8326 CENTURY PARK CT, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $7,222,032

Exercised Options: $7,222,032

Current Obligation: $3,611,016

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0421D0019

IDV Type: IDC

Timeline