Army's $511M Electric Services Contract Awarded to Dept. of Energy in 1997

Contract Overview

Contract Amount: $51,116,058 ($51.1M)

Contractor: Energy, Department of

Awarding Agency: Department of Defense

Start Date: 1997-07-31

End Date: 2021-10-29

Contract Duration: 8,856 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: 199711!2100!0188!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997SW348 !A!*!970731 !19970731!19970731!094024593!161906078!161906193!Y!0E3V5!UNITED STATES DEPT ENERGY !1 W 3RD ST STE 1600 !TULSA !OK!74103!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !0001!+000000145067!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !4911!3!*!*!*!B!*!*!B !*!*!0!000!*!* !*!*!*!* !* !*!*!*!*!*!*!*!*!*!* !*!*!*!*!*!*!*!*!*!*!

Place of Performance

Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to ENERGY, DEPARTMENT OF for work described as: 199711!2100!0188!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997SW348 !A!*!970731 !19970731!19970731!094024593!161906078!161906193!Y!0E3V5!UNITED STATES DEPT ENERGY !1 W 3RD ST STE 1600 !TULSA !OK!74103!27300!031!40!FORT SILL !COMANC… Key points: 1. The contract, awarded in 1997, has a long duration of 8856 days, extending to 2021. 2. The total value is substantial at $511,160,582.24. 3. Competition was not available for this contract. 4. The sector is Energy, with a focus on electric services. 5. The contract was awarded to the Department of Energy, an unusual inter-agency award.

Value Assessment

Rating: questionable

The contract value is high, but without comparable contracts or detailed cost breakdowns, assessing its value for money is difficult. The long duration and firm fixed-price nature suggest potential for price escalation or overpayment if needs changed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition raises concerns about whether the best possible price was achieved for the government.

Taxpayer Impact: The substantial value of this contract means taxpayers could have potentially overpaid due to the absence of competitive bidding.

Public Impact

Long-term reliance on a single provider for essential services can stifle innovation and lead to complacency. Inter-agency contracts, while sometimes necessary, can obscure true costs and accountability compared to market-based procurements. The extended duration of the contract suggests a need for regular review to ensure continued relevance and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Inter-agency award

Positive Signals

Consistent service delivery over many years

Sector Analysis

This contract falls within the Energy sector, specifically for electric services. The benchmark for such services can vary widely based on location, demand, and contract structure. The significant value suggests a large-scale, long-term requirement.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a federal department suggests a focus on inter-agency collaboration rather than small business utilization.

Oversight & Accountability

The lack of competition and the long duration of the contract warrant closer oversight to ensure the government received fair pricing and that the services remained necessary and cost-effective throughout its term.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Extended contract duration
Potential for overpayment
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to ENERGY, DEPARTMENT OF. 199711!2100!0188!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997SW348 !A!*!970731 !19970731!19970731!094024593!161906078!161906193!Y!0E3V5!UNITED STATES DEPT ENERGY !1 W 3RD ST STE 1600 !TULSA !OK!74103!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !0001!+000000145067!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !4911!3!*!*!*!B!*!*!B !*!*!0!0

Who is the contractor on this award?

The obligated recipient is ENERGY, DEPARTMENT OF.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 1997-07-31. End: 2021-10-29.

What was the justification for awarding this contract without competition, and were alternative sources ever considered?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Without further documentation, the specific justification remains unclear. Typically, this designation implies a sole-source situation due to unique capabilities, urgent need, or specific government mandates. A thorough review would be needed to understand if these conditions truly applied or if competition was forgone for other reasons.

How did the pricing of this contract compare to market rates for similar electric services over its extended lifespan?

Assessing the pricing fairness is challenging without market data from the period 1997-2021. Given the lack of competition, it's plausible that the price was not optimized. A retrospective analysis comparing the contract's unit costs to prevailing market rates for comparable electric services during its term would be necessary to determine if taxpayers received good value.

What mechanisms were in place to ensure the continued effectiveness and necessity of these electric services throughout the contract's 20+ year duration?

The long duration (8856 days) raises questions about how the contract's effectiveness and necessity were monitored. Standard oversight would involve periodic reviews, performance evaluations, and potential renegotiations. The firm fixed-price structure might have incentivized the provider but could also lead to overpayment if service needs diminished or technology advanced, making the contracted services less critical.

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: Government of the United States (UEI: 161906193)

Address: 1 W 3RD ST STE 1600, TULSA, OK, 74103

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,083,926

Exercised Options: $16,083,926

Current Obligation: $51,116,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline