NASA Awards $13.4M for KSC Electric Utility Service to Florida Power & Light
Contract Overview
Contract Amount: $13,409,218 ($13.4M)
Contractor: Florida Power & Light Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-07-01
End Date: 2027-06-30
Contract Duration: 729 days
Daily Burn Rate: $18.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: KSC ELECTRIC UTILITY SERVICE
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $13.4 million to FLORIDA POWER & LIGHT COMPANY for work described as: KSC ELECTRIC UTILITY SERVICE Key points: 1. Significant contract value for essential utility services. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns due to lack of competition. 4. Essential infrastructure support for NASA's Kennedy Space Center.
Value Assessment
Rating: fair
The contract is a firm fixed price award. Without competitive bidding, it's difficult to assess if the $13.4 million price is optimal compared to market rates for similar utility services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for this essential service.
Public Impact
Ensures continuous power supply for critical space operations at Kennedy Space Center. Supports ongoing NASA missions and research activities. Impacts local utility infrastructure and service reliability in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing benchmark
- Potential for price creep over contract duration
Positive Signals
- Essential service for critical infrastructure
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'Energy' sector, specifically for electric power distribution. Utility services are often sole-sourced due to the nature of infrastructure monopolies.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award for electric utility services.
Oversight & Accountability
The sole-source nature of this award warrants careful review by oversight bodies to ensure the price is fair and reasonable, despite the lack of competition.
Related Government Programs
- Electric Power Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Limited price competition
- Potential for above-market pricing
- Dependency on a single provider
Tags
electric-power-distribution, national-aeronautics-and-space-administr, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $13.4 million to FLORIDA POWER & LIGHT COMPANY. KSC ELECTRIC UTILITY SERVICE
Who is the contractor on this award?
The obligated recipient is FLORIDA POWER & LIGHT COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2025-07-01. End: 2027-06-30.
What is the justification for the sole-source award, and has a market research report been conducted to validate the necessity?
The justification for a sole-source award typically stems from unique capabilities or the absence of viable alternatives. For utility services, this often relates to existing infrastructure. A thorough market research report would be crucial to confirm that no other providers could meet NASA's needs or offer a more competitive price, even with potential infrastructure adaptation.
How will NASA ensure cost-effectiveness and prevent potential price gouging given the sole-source nature of this contract?
NASA can implement robust contract management practices, including regular price reviews based on industry benchmarks and utility cost indices. They might also negotiate specific price adjustment clauses tied to objective economic indicators rather than allowing unilateral price increases. Independent cost analysis could also be employed periodically.
What are the potential risks to NASA's mission if Florida Power & Light's service is interrupted or inadequate under this contract?
An interruption or inadequacy in electric utility service could have severe consequences for NASA's mission. This includes disruption of critical operations, damage to sensitive equipment, loss of research data, and potential delays in launch schedules. The reliance on a single provider for such a vital service heightens these risks.
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: 700 UNIVERSE BLVD, JUNO BEACH, FL, 33408
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,000,000
Exercised Options: $70,000,000
Current Obligation: $13,409,218
Actual Outlays: $4,888,642
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0425D0019
IDV Type: IDC
Timeline
Start Date: 2025-07-01
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2026-03-20
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