VA awards $83.9M contract for electric power distribution in New York

Contract Overview

Contract Amount: $83,946,300 ($83.9M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-03-02

End Date: 2025-10-31

Contract Duration: 1,704 days

Daily Burn Rate: $49.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NYH UESC

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $83.9 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: NYH UESC Key points: 1. Contract awarded to Consolidated Edison Company of New York, Inc. 2. Focuses on electric power distribution services. 3. Contract duration is 1704 days. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract value is substantial at $83.9 million. Benchmarking is difficult without specific service details and comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition approach. This could impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayers may be impacted by potentially non-competitive pricing on this significant contract.

Public Impact

Ensures reliable electric power for VA facilities in New York. Supports critical infrastructure operations for veterans' healthcare. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of small business participation

Positive Signals

Essential service provision
Long-term contract

Sector Analysis

This contract falls within the utility services sector, specifically electric power distribution. Spending in this sector is often driven by essential infrastructure needs and can be subject to regulatory oversight.

Small Business Impact

There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses and potentially increase competition.

Oversight & Accountability

Oversight will be crucial to ensure Consolidated Edison provides services at a fair price, given the limited competition. The VA should monitor performance and costs closely.

Related Government Programs

Electric Power Distribution
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business involvement.
Potential for price increases over the contract duration.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $83.9 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. NYH UESC

Who is the contractor on this award?

The obligated recipient is CONSOLIDATED EDISON COMPANY OF NEW YORK, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $83.9 million.

What is the period of performance?

Start: 2021-03-02. End: 2025-10-31.

What specific services are included in this electric power distribution contract, and how do they align with VA's operational needs?

The contract specifies electric power distribution, which is essential for powering VA facilities. This includes the reliable delivery of electricity to ensure uninterrupted operations, particularly for healthcare services. The exact scope of distribution services, such as maintenance, upgrades, or specific load management, would need further clarification to fully assess alignment with VA's unique operational requirements.

What is the justification for limiting competition on this contract, and what steps are being taken to mitigate potential cost overruns?

The justification for limited competition is not provided in the data. However, for utility services, it's often due to the nature of existing infrastructure or sole-provider agreements. To mitigate cost overruns, the VA should conduct thorough price analysis, negotiate favorable terms, and implement robust performance monitoring to ensure value for money.

How does the $83.9 million award compare to industry benchmarks for similar electric power distribution services in the New York region?

Benchmarking this contract is challenging without detailed service specifications and contract terms. However, $83.9 million over approximately 4.6 years represents a significant investment. A thorough analysis would require comparing unit costs for energy delivery, infrastructure maintenance, and related services against publicly available data or similar government contracts in the region.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Consolidated Edison, Inc.

Address: 4 IRVING PL, NEW YORK, NY, 10003

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

Financial Breakdown

Contract Ceiling: $199,767,288

Exercised Options: $199,767,288

Current Obligation: $83,946,300

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P14BSD1058

IDV Type: IDC

Timeline