DoD's $47.3M Hydroelectric Power Contract with City of Tacoma Faces Scrutiny for Competition and Value

Contract Overview

Contract Amount: $47,302,016 ($47.3M)

Contractor: City of Tacoma

Awarding Agency: Department of Defense

Start Date: 2002-03-01

End Date: 2019-09-30

Contract Duration: 6,422 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: 200206!000112!5700!QA14 !62 CONS/LGC !F4560373C0009 !A!N! !N!E00001 !20020301!20020331!612696138!612696138!073135535!Y!CITYOF TACOMA, DEPT OF PUBLIC!3628 SOUTH 35TH STREET !TACOMA !WA!98409!41155!053!53!MCCHORD AFB !PIERCE !WASHINGTON!+000000245347!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221111!E! !3! ! !C! ! !99990909!B! ! ! ! !B! ! ! !000! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: MCCHORD AFB, PIERCE County, WASHINGTON, 98438

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $47.3 million to CITY OF TACOMA for work described as: 200206!000112!5700!QA14 !62 CONS/LGC !F4560373C0009 !A!N! !N!E00001 !20020301!20020331!612696138!612696138!073135535!Y!CITYOF TACOMA, DEPT OF PUBLIC!3628 SOUTH 35TH STREET !TACOMA !WA!98409!41155!053!53!MCCHORD AFB !PIERC… Key points: 1. The contract awarded to the City of Tacoma for hydroelectric power generation represents a significant expenditure. 2. Limited competition is a major concern, with the contract type noted as 'NOT AVAILABLE FOR COMPETITION'. 3. The lack of clear competition raises questions about price discovery and potential taxpayer impact. 4. The sector is Energy, specifically hydroelectric power generation, which can have varying cost structures.

Value Assessment

Rating: questionable

The contract value of $47.3M over its extended period needs careful benchmarking against similar energy service contracts. Without competitive bids, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source award. This significantly impacts the government's ability to ensure the best possible price through market forces.

Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers than if the contract had been competitively bid.

Public Impact

Taxpayers may be overpaying for hydroelectric power due to the absence of competitive bidding. The long duration of the contract (from 2002 to 2019) means potential overpayments have accumulated over many years. The Department of Defense's reliance on non-competitive contracts for essential services like power warrants further investigation into procurement practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential Overpricing
Long Contract Duration

Positive Signals

Essential Service Provided
Established Provider (City of Tacoma)

Sector Analysis

This contract falls within the Energy sector, specifically for hydroelectric power generation. Benchmarking costs for such services can be complex due to regional variations and infrastructure ownership, but competitive processes are crucial for ensuring value.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a municipal entity.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status suggests potential weaknesses in oversight or justification for foregoing a competitive process. Further review of the procurement file is needed to assess accountability.

Related Government Programs

Hydroelectric Power Generation
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Competition
Potential for Overpricing
Extended Contract Duration
Limited Transparency on Justification
Difficulty in Benchmarking Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.3 million to CITY OF TACOMA. 200206!000112!5700!QA14 !62 CONS/LGC !F4560373C0009 !A!N! !N!E00001 !20020301!20020331!612696138!612696138!073135535!Y!CITYOF TACOMA, DEPT OF PUBLIC!3628 SOUTH 35TH STREET !TACOMA !WA!98409!41155!053!53!MCCHORD AFB !PIERCE !WASHINGTON!+000000245347!N!N!000000000000!S112!ELECTRIC SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221111!E! !3! ! !C! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is CITY OF TACOMA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.3 million.

What is the period of performance?

Start: 2002-03-01. End: 2019-09-30.

What was the specific justification for deeming this hydroelectric power contract unavailable for competition?

The provided data does not specify the justification for deeming the contract unavailable for competition. Typically, such justifications might include unique capabilities, existing infrastructure, or urgent needs. However, without explicit documentation, it's impossible to confirm the rationale, raising concerns about whether a competitive process was truly infeasible or simply bypassed.

How does the unit cost of this hydroelectric power compare to market rates for similar services in Washington state during the contract period?

Comparing the unit cost is challenging without a clear per-unit price and market data for the specific period. The total contract value of $47.3M spread over many years for 'ELECTRIC SERVICES' makes direct unit cost calculation difficult. Market rates for hydroelectric power vary significantly based on generation source, transmission costs, and regulatory environments, necessitating a detailed analysis of historical energy market data.

What steps has the Department of Defense taken to ensure cost-effectiveness and value for money in non-competitive energy contracts?

The data does not detail specific steps taken by the Department of Defense for cost-effectiveness in this non-competitive contract. Generally, agencies should conduct thorough market research, negotiate aggressively, and seek independent cost estimates when competition is not feasible. The lack of competition here suggests a potential gap in ensuring optimal value, warranting a review of the agency's procurement policies for sole-source energy acquisitions.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Hydroelectric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

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: City of Tacoma Washington (UEI: 073135535)

Address: 3628 S 35TH ST, TACOMA, WA, 98409

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline