FEMA awards $14.17M electric services contract to Eversource Energy, highlighting critical infrastructure resilience

Contract Overview

Contract Amount: $14,166 ($14.2K)

Contractor: Eversource Energy Service Company

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $39/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAYNARD MERS ELECTRIC SERVICES

Place of Performance

Location: MAYNARD, MIDDLESEX County, MASSACHUSETTS, 01754

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14,166 to EVERSOURCE ENERGY SERVICE COMPANY for work described as: MAYNARD MERS ELECTRIC SERVICES Key points: 1. Contract value appears reasonable given the critical nature of electric power distribution services for disaster response. 2. Sole-source award suggests potential lack of market competition or unique provider capabilities. 3. Performance period of one year with options for extension indicates flexibility in meeting evolving needs. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Massachusetts aligns with regional infrastructure needs. 6. The contract supports essential services for disaster preparedness and recovery operations.

Value Assessment

Rating: good

The contract value of $14.17 million for a one-year period for electric power distribution services is within a reasonable range for critical infrastructure support. Without specific details on the scope of services, it's difficult to benchmark precisely against similar contracts. However, given the essential nature of maintaining power distribution, especially in potential disaster zones, the investment is justifiable. The firm fixed-price structure suggests an effort to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one vendor, Eversource Energy Service Company, was considered capable of fulfilling the requirement. This could be due to specialized expertise, existing infrastructure integration, or unique geographic service areas. The lack of open competition means that price discovery through bidding was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from competitive pricing that could have been achieved through a broader solicitation. The justification for a sole-source award needs to be robust to ensure the government is receiving fair value.

Public Impact

The primary beneficiaries are residents and businesses within the service area in Massachusetts who rely on consistent power, especially during emergencies. The contract ensures the delivery of essential electric power distribution services, crucial for the operational continuity of FEMA and other federal agencies during disaster response. Geographic impact is concentrated in Massachusetts, supporting federal response efforts within the state. Workforce implications include the potential utilization of Eversource's existing skilled labor force for maintenance, repair, and emergency response related to the power grid.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics in the provided data makes assessing efficiency challenging.
Dependence on a single provider for critical infrastructure raises concerns about long-term reliability and contingency planning.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established utility company suggests a degree of reliability and existing infrastructure.
Contract duration allows for sustained support during critical periods.

Sector Analysis

The electric power distribution sector is a critical component of national infrastructure, essential for the functioning of government agencies, businesses, and households. Federal spending in this area often relates to maintaining operational continuity, supporting disaster relief efforts, and ensuring the resilience of critical facilities. This contract fits within the broader category of utility services, which are vital for supporting federal operations across various agencies, particularly during emergencies. Benchmarking spending requires detailed service level agreements and geographic scope, but investments in grid modernization and resilience are increasingly common.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award to a large utility provider, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available within the scope of this specific award. Further analysis would be needed to determine if Eversource has broader subcontracting plans that might include small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight is internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Disaster Relief Fund
Emergency Management and Response Operations
Critical Infrastructure Protection Programs
Federal Buildings and Facilities Maintenance

Risk Flags

Sole-source award may limit cost savings.
Potential for vendor lock-in.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14,166 to EVERSOURCE ENERGY SERVICE COMPANY. MAYNARD MERS ELECTRIC SERVICES

Who is the contractor on this award?

The obligated recipient is EVERSOURCE ENERGY SERVICE COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $14,166.

What is the period of performance?

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

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, specialized knowledge, or the absence of adequate competition. For electric power distribution, this could be due to Eversource Energy Service Company's existing infrastructure ownership and operational control within a specific geographic area (Massachusetts), making them the only feasible provider to ensure seamless service continuity. Other reasons might include proprietary technology or an urgent need that precludes a lengthy competitive process. A detailed justification document, usually required for sole-source procurements, would outline the specific rationale and market research conducted to confirm the lack of alternatives.

How does the $14.17 million contract value compare to typical spending on similar electric utility services for federal agencies?

Benchmarking this $14.17 million contract value requires a detailed understanding of the specific services rendered, the geographic scope, and the duration. For a one-year contract supporting critical infrastructure like electric power distribution for a federal agency, especially one involved in emergency management like FEMA, this amount appears within a reasonable range. Federal agencies often pay a premium for reliable, uninterrupted service, particularly in high-risk areas or during contingency operations. Comparing it to other utility contracts for federal facilities of similar size and criticality in comparable regions would provide a more precise valuation. Without such granular data, it's assessed as fair given the context.

What are the primary risks associated with a sole-source contract for critical infrastructure services?

The primary risks associated with a sole-source contract for critical infrastructure services include a lack of competitive pricing, potentially leading to higher costs for taxpayers. There's also a reduced incentive for the sole provider to innovate or improve efficiency, as they face no direct competition. Furthermore, over-reliance on a single vendor can create vulnerabilities; if the provider experiences operational issues, financial instability, or decides to discontinue services, the agency may face significant disruptions. Contingency planning and robust contract management are crucial to mitigate these risks.

What performance metrics or service level agreements (SLAs) are likely in place for this contract?

While not detailed in the provided data, contracts for critical electric power distribution services typically include stringent performance metrics and Service Level Agreements (SLAs). These often cover aspects such as power availability (uptime percentage), response times for outages and repairs, restoration times after disruptions, and adherence to safety and regulatory standards. Penalties may be associated with failing to meet these SLAs, while incentives could be offered for exceeding performance targets. Regular reporting and performance reviews would be part of the contract oversight.

What is Eversource Energy Service Company's track record with federal contracts, particularly with FEMA or DHS?

Eversource Energy Service Company, as a major utility provider, likely has a history of serving government entities, though specific details on their federal contract performance, especially with FEMA or the Department of Homeland Security (DHS), would require a deeper dive into federal procurement databases. Their track record would encompass on-time delivery, quality of service, adherence to contract terms, and past performance evaluations. Given their role as a primary utility provider in Massachusetts, they are a logical choice for supporting federal operations in that region, suggesting a baseline level of capability and reliability.

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

Address: 107 SELDEN ST, BERLIN, CT, 06037

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

Financial Breakdown

Contract Ceiling: $162,000

Exercised Options: $162,000

Current Obligation: $14,166

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P16BSD1211

IDV Type: IDC

Timeline