San Diego Gas & Electric Company awarded $6.5M for utility energy services at TRACON facility

Contract Overview

Contract Amount: $6,496,058 ($6.5M)

Contractor: SAN Diego GAS & Electric Company

Awarding Agency: Department of Transportation

Start Date: 2014-08-06

End Date: 2030-01-10

Contract Duration: 5,636 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IMPLEMENTATION OF A UTILITY ENGERY SERVICES CONTRACT (UESC) TRACON FACILITY SAN DEIGO, CA. IGF::OT::IGF

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $6.5 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: IMPLEMENTATION OF A UTILITY ENGERY SERVICES CONTRACT (UESC) TRACON FACILITY SAN DEIGO, CA. IGF::OT::IGF Key points: 1. Contract awarded for a long duration, extending over 15 years. 2. The contract is a delivery order under an existing agreement. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. The contract is for electric power distribution services. 5. The contract is not competitively procured, raising questions about value. 6. The contract has a significant duration, suggesting long-term infrastructure needs.

Value Assessment

Rating: fair

The contract value of $6.5 million over approximately 15 years suggests an average annual expenditure of around $433,000. Without specific details on the scope of work or comparable UESC contracts for similar facilities, a precise value-for-money assessment is challenging. However, the long duration may indicate a strategic investment in energy efficiency and infrastructure upgrades. The firm fixed price nature provides budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competitively procured, being awarded as a sole-source delivery order. This approach limits the opportunity for price discovery through market competition. While sole-source awards can be justified for specific circumstances, such as leveraging existing infrastructure or specialized services, it means taxpayers may not be receiving the most competitive pricing available.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium compared to what could have been achieved through a competitive bidding process.

Public Impact

The Federal Aviation Administration (FAA) facility in San Diego, CA, will benefit from improved energy infrastructure. Services include the implementation of a Utility Energy Services Contract (UESC). The geographic impact is localized to the TRACON facility in San Diego, California. The contract supports the operational efficiency and potentially the sustainability of a critical aviation facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Long contract duration of over 15 years may lock the government into specific services or pricing.
The contract is a delivery order, implying it's part of a larger framework agreement whose terms are not fully detailed here.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
UESC contracts are designed to improve energy efficiency and reduce operational costs.
The contract supports critical infrastructure for the Federal Aviation Administration.

Sector Analysis

Utility Energy Services Contracts (UESCs) are a common mechanism for federal agencies to improve energy efficiency and reduce utility costs. These contracts often involve upgrades to lighting, HVAC, and other energy-consuming systems. The market for UESCs is diverse, with many utility companies and energy service providers offering such solutions. This contract with San Diego Gas & Electric Company fits within the broader trend of federal agencies seeking to modernize their facilities and reduce their environmental footprint.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a large utility provider, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor engages small businesses for specific components of the work.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. Given the long duration, regular performance reviews and audits would be expected to ensure compliance with the UESC agreement and to verify cost savings and energy efficiency improvements. The Inspector General for the Department of Transportation may also have jurisdiction for audits and investigations.

Related Government Programs

Utility Energy Services Contracts (UESC)
Federal Aviation Administration Facilities Management
Energy Efficiency and Conservation Block Grant Program
Department of Transportation Infrastructure Projects

Risk Flags

Sole-source award limits competitive pricing.
Long contract duration may not keep pace with technological advancements.
Lack of detailed scope of work in provided data hinders full analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.5 million to SAN DIEGO GAS & ELECTRIC COMPANY. IMPLEMENTATION OF A UTILITY ENGERY SERVICES CONTRACT (UESC) TRACON FACILITY SAN DEIGO, CA. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SAN DIEGO GAS & ELECTRIC COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2014-08-06. End: 2030-01-10.

What specific energy efficiency measures are included in this UESC contract, and what are the projected energy savings?

The provided data does not detail the specific energy efficiency measures to be implemented under this Utility Energy Services Contract (UESC). UESCs typically encompass a range of upgrades such as LED lighting retrofits, HVAC system modernizations, building envelope improvements, and renewable energy installations. The projected energy savings are also not specified in the available information. Typically, UESC proposals include a detailed energy savings analysis, often guaranteed by the contractor, which forms the basis for the contract's financial structure. Without this information, it is difficult to assess the full scope and potential return on investment for this contract.

How does the $6.5 million contract value compare to similar UESC contracts for aviation facilities of comparable size?

Benchmarking this $6.5 million contract value against similar Utility Energy Services Contracts (UESCs) for aviation facilities is challenging without more specific data. Factors influencing UESC costs include the size and age of the facility, the scope of planned upgrades (e.g., lighting, HVAC, building controls, renewable energy), and the duration of the contract. A 15-year contract duration for $6.5 million suggests an average annual expenditure of approximately $433,000. To provide a meaningful comparison, data on the square footage of the TRACON facility, its current energy consumption, and the specific technologies being implemented would be necessary. Additionally, comparing the price per square foot or price per projected energy savings against a portfolio of similar federal UESC contracts would offer better insights into its relative value.

What is the track record of San Diego Gas & Electric Company in performing federal UESC contracts?

Information regarding San Diego Gas & Electric Company's specific track record in performing federal Utility Energy Services Contracts (UESCs) is not detailed in the provided data. As a major utility provider, it is likely they have experience with energy efficiency projects for commercial and industrial clients, which may include government facilities. However, a comprehensive assessment would require reviewing their past performance on similar federal contracts, including client satisfaction, adherence to schedules and budgets, and the achievement of guaranteed energy savings. Federal procurement databases and past performance reviews would typically contain this information.

Given the sole-source nature, what mechanisms are in place to ensure fair pricing and prevent cost overruns?

The sole-source nature of this contract necessitates robust oversight to ensure fair pricing and prevent cost overruns. While the contract is Firm Fixed Price, which caps the government's liability, the initial pricing must be justified. Mechanisms typically include detailed technical reviews of the contractor's proposal, independent cost estimates, and potentially the use of established pricing benchmarks for energy conservation measures. The contract likely includes specific performance metrics and reporting requirements that the Federal Aviation Administration will monitor closely. Regular audits by the agency or the Department of Transportation's Inspector General could also be employed to verify costs and ensure the value proposition remains sound throughout the contract's long duration.

What are the potential risks associated with a sole-source UESC contract lasting over 15 years?

A significant risk associated with a sole-source UESC contract of over 15 years is the potential for the government to be locked into suboptimal pricing or technology. Without competition, there's less pressure on the contractor to offer the most cost-effective solutions throughout the contract life. Furthermore, technology evolves rapidly; a 15-year-old contract might not incorporate the latest, most efficient technologies available later in its term. There's also a risk of scope creep or unforeseen cost increases if the contract terms are not meticulously defined and managed. The sole-source nature means the government relies heavily on the integrity and performance of the single awarded contractor.

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

Parent Company: Sempra Energy

Address: 8326 CENTURY PARK CT, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $9,762,428

Exercised Options: $6,496,058

Current Obligation: $6,496,058

Actual Outlays: $4,300,890

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P10BSD0801

IDV Type: IDC

Timeline