NIH Awards $6.1M for Energy Conservation Project to Washington Gas Light Company

Contract Overview

Contract Amount: $6,143,728 ($6.1M)

Contractor: Washington GAS Light Company

Awarding Agency: Department of Health and Human Services

Start Date: 2018-10-23

End Date: 2029-12-31

Contract Duration: 4,087 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ENERGY CONSERVATION PROJECT FOR BUILDINGS 1, 4, 5, 6, 10 (ACRF), 12 (A,B,C), 13, 21, 30, 21 (A,B,C), 35, 38, 38A, 45, 49 AND MLP-7.COR: GREG LEIFER

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.1 million to WASHINGTON GAS LIGHT COMPANY for work described as: ENERGY CONSERVATION PROJECT FOR BUILDINGS 1, 4, 5, 6, 10 (ACRF), 12 (A,B,C), 13, 21, 30, 21 (A,B,C), 35, 38, 38A, 45, 49 AND MLP-7.COR: GREG LEIFER Key points: 1. The contract focuses on energy conservation for multiple buildings within NIH facilities. 2. Washington Gas Light Company is the sole awardee, raising questions about competition. 3. The long duration (ending 2029) and firm fixed price suggest potential for cost overruns if scope changes. 4. This project falls within the broader energy sector, aiming for efficiency improvements.

Value Assessment

Rating: fair

The contract value of $6.1M over approximately 11 years is difficult to benchmark without specific project details. However, the long duration suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may result in a higher cost to taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competition.

Public Impact

Improved energy efficiency in federal buildings can lead to long-term cost savings and reduced environmental impact. The project's success relies on effective implementation and monitoring by the National Institutes of Health. Taxpayers are funding infrastructure improvements that aim to conserve energy resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration (ending 2029) may not reflect current market conditions.
Lack of detailed project scope makes cost-effectiveness difficult to assess.

Positive Signals

Focus on energy conservation aligns with federal sustainability goals.
Potential for long-term operational cost savings for NIH facilities.

Sector Analysis

This contract is within the energy sector, specifically focusing on natural gas distribution and energy conservation measures for federal buildings. Benchmarks for similar large-scale building retrofits vary widely based on scope and location.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting limited opportunities for small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the energy conservation project meets its objectives and remains within budget, especially given the sole-source nature and long duration.

Related Government Programs

Natural Gas Distribution
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Long contract duration
Lack of detailed scope
Potential for cost overruns
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.1 million to WASHINGTON GAS LIGHT COMPANY. ENERGY CONSERVATION PROJECT FOR BUILDINGS 1, 4, 5, 6, 10 (ACRF), 12 (A,B,C), 13, 21, 30, 21 (A,B,C), 35, 38, 38A, 45, 49 AND MLP-7.COR: GREG LEIFER

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $6.1 million.

What is the period of performance?

Start: 2018-10-23. End: 2029-12-31.

What specific energy conservation measures are included in this project, and how were they cost-estimated?

The provided data does not detail the specific energy conservation measures. A thorough cost-benefit analysis would be required to justify the $6.1M award, especially under a sole-source justification. Understanding the projected energy savings against the total contract cost is essential for evaluating value.

What is the justification for awarding this contract on a sole-source basis, and what risks does this pose?

The justification for a sole-source award is not provided. This significantly increases the risk of paying a premium price, as there was no competitive pressure to drive down costs. It also raises concerns about whether the government received the most advantageous offer available.

How will the effectiveness of this long-term energy conservation project be measured and ensured?

Effectiveness measurement should involve clear performance metrics and regular reporting by Washington Gas Light Company, overseen by NIH. Key indicators could include actual energy savings achieved, system performance, and compliance with environmental standards. The long duration necessitates robust monitoring to ensure sustained benefits.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas 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: Altagas Ltd

Address: 1000 MAINE AVE SW, WASHINGTON, DC, 20024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,192,359

Exercised Options: $6,143,728

Current Obligation: $6,143,728

Actual Outlays: $4,829,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P16BSD1206

IDV Type: IDC

Timeline