DOT Awards $3.19M for Volpe Center Steam Utility Services, Sole-Source Contract
Contract Overview
Contract Amount: $3,191,801 ($3.2M)
Contractor: Vicinity Energy Cambridge, LLC
Awarding Agency: Department of Transportation
Start Date: 2017-02-01
End Date: 2024-01-31
Contract Duration: 2,555 days
Daily Burn Rate: $1.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PROVIDE STEAM UTILITY SERVICES FOR VOLPE CENTER FROM 02/01/17 - 04/05/26
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142
Plain-Language Summary
Department of Transportation obligated $3.2 million to VICINITY ENERGY CAMBRIDGE, LLC for work described as: IGF::OT::IGF PROVIDE STEAM UTILITY SERVICES FOR VOLPE CENTER FROM 02/01/17 - 04/05/26 Key points: 1. Contract awarded to Vicinity Energy Cambridge, LLC for steam utility services. 2. Sole-source award raises questions about competition and potential cost savings. 3. The contract duration is 8 years, ending in January 2024. 4. Firm Fixed Price contract type provides cost certainty but limits flexibility.
Value Assessment
Rating: fair
The contract value of $3.19M over 8 years appears reasonable for utility services. However, without competitive bidding, it's difficult to benchmark against market rates or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: Without competitive bidding, taxpayers may be paying a premium for these essential utility services.
Public Impact
Ensures continuous operation of the Volpe Center, a critical research and development facility. Provides essential steam utility services, likely for heating and other operational needs. Supports a single vendor for a long-term utility service, impacting energy infrastructure reliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Long contract duration may not reflect current market pricing.
- Lack of competitive bidding makes price validation challenging.
Positive Signals
- Ensures essential utility services for a key government facility.
- Firm Fixed Price provides budget predictability.
Sector Analysis
This contract falls under utility services, specifically steam generation and supply. Government spending on utilities is generally stable, but competitive procurement is crucial for cost efficiency.
Small Business Impact
This contract was awarded to a large business (Vicinity Energy Cambridge, LLC) and does not appear to include provisions for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the pricing is fair and reasonable, and that future opportunities for competition are explored.
Related Government Programs
- Steam and Air-Conditioning Supply
- Department of Transportation Contracting
- Immediate Office of the Secretary of Transportation Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Long contract duration
Tags
steam-and-air-conditioning-supply, department-of-transportation, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $3.2 million to VICINITY ENERGY CAMBRIDGE, LLC. IGF::OT::IGF PROVIDE STEAM UTILITY SERVICES FOR VOLPE CENTER FROM 02/01/17 - 04/05/26
Who is the contractor on this award?
The obligated recipient is VICINITY ENERGY CAMBRIDGE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2017-02-01. End: 2024-01-31.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. For this contract, the specific reason for not seeking competition needs to be documented by the agency. Without this documentation, it's difficult to assess if alternative strategies, such as phased competition or market research to identify potential competitors, were adequately explored.
How does the per-unit cost of steam compare to industry benchmarks or other government utility contracts?
Benchmarking the per-unit cost of steam is challenging without specific usage data and detailed pricing breakdowns. However, given the sole-source nature, it's plausible that the cost is higher than it might be under a competitive scenario. Further analysis would require access to the contract's pricing structure and comparison with publicly available data for similar utility services.
What is the long-term strategy for ensuring cost-effective utility services at the Volpe Center beyond this contract's expiration?
The long-term strategy should involve exploring competitive procurement options for future utility needs. This could include market research to identify potential new vendors or service models, and potentially breaking down the requirement into smaller, more competitive segments. Proactive planning is essential to avoid recurring sole-source awards and ensure taxpayer value.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Steam and Air-Conditioning Supply
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: DTRT5716Q80085
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 FRANKLIN ST FL 2, BOSTON, MA, 02110
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,225,818
Exercised Options: $3,191,801
Current Obligation: $3,191,801
Actual Outlays: $1,998,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-02-01
Current End Date: 2024-01-31
Potential End Date: 2024-01-31 00:00:00
Last Modified: 2026-03-26
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