HHS awards $1.18M contract for electric power distribution in Massachusetts

Contract Overview

Contract Amount: $118,000 ($118.0K)

Contractor: Nstar Electric Company

Awarding Agency: Department of Health and Human Services

Start Date: 2022-10-21

End Date: 2026-09-30

Contract Duration: 1,440 days

Daily Burn Rate: $82/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE MASHPEE ELECTRIC UTILITIES

Place of Performance

Location: MASHPEE, BARNSTABLE County, MASSACHUSETTS, 02649

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $118,000 to NSTAR ELECTRIC COMPANY for work described as: BASE MASHPEE ELECTRIC UTILITIES Key points: 1. Contract awarded to NSTAR ELECTRIC COMPANY for electric power distribution services. 2. The contract has a base value of $1.18 million. 3. Services are to be performed in Mashpee, Massachusetts. 4. The contract duration is 1440 days, spanning from October 2022 to September 2026. 5. This is a firm-fixed-price purchase order. 6. The contract was not competed. 7. No small business set-aside was utilized.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The firm-fixed-price structure suggests predictable costs for the government, but the absence of competition makes it difficult to assess if the pricing is optimal. The base value of $1.18 million for a four-year electric utility service contract in Massachusetts appears within a reasonable range for such services, but a detailed cost analysis would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one vendor can provide the required services, or for specific circumstances like emergency needs or follow-on work to a previous contract. The lack of competition limits the government's ability to solicit multiple bids and potentially secure a lower price through a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiary of this contract is the Indian Health Service, which will receive reliable electric power distribution services. The services ensure the continuous operation of facilities managed by the IHS in Mashpee, Massachusetts. This contract supports the operational infrastructure necessary for healthcare delivery within the specified geographic area. The contract ensures the availability of essential utilities for IHS staff and patients.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
Limited transparency in the procurement process due to sole-source award.
Absence of small business participation could limit opportunities for smaller enterprises in this sector.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration ensures stable utility services for the duration of the agreement.
Award to an established utility provider likely ensures reliable service delivery.

Sector Analysis

The electric power distribution sector involves the delivery of electricity from generation sources to end-users. This contract falls under utility services, a critical component of infrastructure supporting government operations. Comparable spending benchmarks for utility services can vary significantly based on geographic location, demand, and the specific services required. The market for electric power distribution is often characterized by regulated monopolies or oligopolies in specific service territories, which can influence competition dynamics.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to NSTAR ELECTRIC COMPANY, a large utility provider. There is no indication of subcontracting opportunities for small businesses within this specific award, which could limit their participation in government contracting for essential utility services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and its Indian Health Service division. Accountability measures are inherent in the firm-fixed-price purchase order, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Utility Services Contracts
Electric Power Contracts
Indian Health Service Procurement
Massachusetts Federal Contracts

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $118,000 to NSTAR ELECTRIC COMPANY. BASE MASHPEE ELECTRIC UTILITIES

Who is the contractor on this award?

The obligated recipient is NSTAR ELECTRIC COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $118,000.

What is the period of performance?

Start: 2022-10-21. End: 2026-09-30.

What is the historical spending pattern for electric power distribution services by the Indian Health Service in Massachusetts?

Analyzing historical spending for electric power distribution by the Indian Health Service in Massachusetts requires access to detailed federal procurement databases. Without specific historical data for this agency and location, it's difficult to provide a precise spending pattern. However, federal agencies typically procure utility services through various contract types, including purchase orders and longer-term contracts, often awarded on a sole-source or limited competition basis due to the nature of utility monopolies. Spending can fluctuate based on facility needs, energy price changes, and infrastructure upgrades. A review of past contracts for similar services would reveal trends in contract values, durations, and award types.

How does the per-unit cost of electricity under this contract compare to market rates in Mashpee, MA?

Determining the per-unit cost of electricity under this contract and comparing it to market rates in Mashpee, MA, is challenging without the specific energy consumption metrics and pricing breakdowns within the contract. Utility rates are often regulated and can vary based on the class of service (e.g., commercial, industrial). NSTAR ELECTRIC COMPANY operates within a regulated service territory, meaning their rates are subject to oversight by state utility commissions. To perform a precise comparison, one would need to know the exact kilowatt-hour (kWh) rate, demand charges, and any associated fees stipulated in the contract, and then benchmark these against NSTAR's publicly available or regulated commercial rates for the Mashpee area.

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 lack of competitive bidding. Without competing offers, the government may not achieve the best possible price. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility in service terms or future contract negotiations. Furthermore, sole-source awards can reduce transparency and make it harder to ensure optimal value for taxpayer money. However, for services like electricity distribution, where a single utility provider often holds a monopoly in a service territory, a sole-source award may be the only practical or legally permissible option.

What is NSTAR ELECTRIC COMPANY's track record with federal contracts, particularly with the Department of Health and Human Services?

NSTAR ELECTRIC COMPANY, now part of Eversource Energy, has a history of providing utility services. Assessing their specific track record with federal contracts, especially with the Department of Health and Human Services (HHS) and its sub-agencies like the Indian Health Service (IHS), would require a detailed search of federal procurement databases (e.g., FPDS, SAM.gov). Generally, large utility companies are frequent contractors for federal facilities requiring power and other utility services. Their performance history would typically be evaluated based on past contract delivery, adherence to terms, and any reported issues or disputes. Without specific contract data, it's presumed they are a capable provider given the award.

How does the duration of this contract (1440 days) impact the overall value and risk for the government?

The 1440-day duration (approximately 4 years) for this electric power distribution contract offers several implications for the government. On the positive side, it provides long-term service stability and predictability, reducing the administrative burden of frequent re-procurement. It can also allow for better budgeting and planning. From a value perspective, a longer-term contract might secure more favorable pricing compared to short-term agreements, especially if energy prices are expected to rise. However, a longer duration also increases the risk of price escalation if not adequately managed within the contract terms, and it ties the government to a single provider for an extended period, potentially missing out on better market opportunities that may arise.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eversource Energy Service Company

Address: 800 BOYLSTON ST, BOSTON, MA, 02199

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

Financial Breakdown

Contract Ceiling: $118,000

Exercised Options: $118,000

Current Obligation: $118,000

Actual Outlays: $99,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline