Commerce Dept. Spends $15.2M on Electricity in FY2008, Awarded to Pepco Energy Services
Contract Overview
Contract Amount: $15,202,586 ($15.2M)
Contractor: Pepco Energy Services, Inc.
Awarding Agency: Department of Commerce
Start Date: 2007-12-26
End Date: 2008-12-31
Contract Duration: 371 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF ELECTRIC FOR FY2008
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $15.2 million to PEPCO ENERGY SERVICES, INC. for work described as: PURCHASE OF ELECTRIC FOR FY2008 Key points: 1. Spending focused on electricity procurement for NIST. 2. Awarded via full and open competition, suggesting market-based pricing. 3. Potential risk related to fixed-price contracts in volatile energy markets. 4. Sector context is essential services procurement, a recurring government need.
Value Assessment
Rating: fair
The contract value of $15.2M for a year of electricity is substantial. Benchmarking against similar government electricity contracts would be necessary to assess if this price was competitive, especially given the fixed-price nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the effectiveness of price discovery depends on the number and competitiveness of bids received.
Taxpayer Impact: Taxpayers funded the electricity needs of the National Institute of Standards and Technology. The competitive award process aims to ensure efficient use of funds.
Public Impact
Ensures operational continuity for NIST facilities. Supports essential government functions through reliable power. Represents a significant expenditure on a basic utility service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Energy price volatility risk
- Fixed-price contract inflexibility
Positive Signals
- Full and open competition
- Awarded to established provider
Sector Analysis
This contract falls within the essential services sector, specifically utility procurement. Government spending on electricity is a consistent need across agencies, with pricing influenced by market conditions and contract terms.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award process through full and open competition suggests adherence to procurement regulations. Oversight would focus on contract performance and adherence to the firm fixed-price terms.
Related Government Programs
- Other Electric Power Generation
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Potential for overpayment due to energy price volatility
- Lack of small business participation data
- Fixed-price contract may not reflect actual usage efficiently
- Limited insight into bid competitiveness
Tags
other-electric-power-generation, department-of-commerce, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $15.2 million to PEPCO ENERGY SERVICES, INC.. PURCHASE OF ELECTRIC FOR FY2008
Who is the contractor on this award?
The obligated recipient is PEPCO ENERGY SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2007-12-26. End: 2008-12-31.
What was the average per-unit cost of electricity under this contract compared to market rates at the time?
Determining the average per-unit cost requires access to detailed usage data and prevailing market electricity prices for Maryland in 2008. Without this granular data, a precise comparison is difficult. However, the firm fixed-price nature suggests the government locked in a rate, which could be advantageous or disadvantageous depending on market fluctuations.
What were the specific risks associated with a firm fixed-price contract for electricity in 2008?
The primary risk of a firm fixed-price contract for electricity in 2008 was price volatility. If market energy prices increased significantly after the contract was awarded, the government would be obligated to pay the higher fixed price, potentially exceeding what it might have paid under a different contract type or if purchased on the spot market.
How effectively did the full and open competition process ensure value for taxpayer money?
Full and open competition generally enhances value by encouraging multiple bids and driving down prices. The effectiveness in this specific case depends on the number of bids received and the competitiveness among them. A robust competition likely led to a fair market price, but without bid data, the degree of value maximization remains uncertain.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pepco Holdings LLC (UEI: 105895010)
Address: 1300 NORTH 17TH STREET, ARLINGTON, VA, 22209
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,202,586
Exercised Options: $15,202,586
Current Obligation: $15,202,586
Parent Contract
Parent Award PIID: SP060005G8029
IDV Type: IDC
Timeline
Start Date: 2007-12-26
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2017-04-12
More Contracts from Pepco Energy Services, Inc.
- Direct Supply Natural GAS to Various Department of Defense and Federal Civilian Agencies Located in the Northeast Region of the United States. Specifically, Uscg Curtis BAY, US Naval Academy, Annapolis, MD, Maryland Procurement Office, MD, Johns Hopkins Applied Physics LAB, MD, Fort Meade, MD and Aberdeen Proving Ground, MD — $44.3M (Department of Defense)
- Electric Service — $17.5M (General Services Administration)
- Natural GAS — $16.3M (General Services Administration)
- Electric Power — $12.8M (Department of Commerce)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)