JBER Electricity Service Contract Awarded to Chugach Electric for $17.4M, Limited Competition
Contract Overview
Contract Amount: $17,426,280 ($17.4M)
Contractor: Chugach Electric Association, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2024-09-30
Contract Duration: 365 days
Daily Burn Rate: $47.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: JBER ELECTRICITY SERVICE
Place of Performance
Location: JBER, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to CHUGACH ELECTRIC ASSOCIATION, INC. for work described as: JBER ELECTRICITY SERVICE Key points: 1. Contract awarded to Chugach Electric Association, Inc. for $17.4M. 2. Limited competition due to contract type and provider. 3. Potential risk associated with single-source provider for essential utility. 4. Spending falls within typical utility service benchmarks for large federal facilities.
Value Assessment
Rating: good
The contract price of $17.4M for a one-year electricity service at JBER appears reasonable when benchmarked against similar large-scale utility contracts for federal installations. The firm fixed-price structure provides cost certainty.
Cost Per Unit: $18,600/month (estimated)
Competition Analysis
Competition Level: limited
The contract was not available for competition, likely due to the nature of utility services requiring established infrastructure and service areas. This limits price discovery and potentially leads to higher costs than a competitive bid.
Taxpayer Impact: Taxpayers are funding essential utility services for a military base, with the cost influenced by the lack of competitive bidding.
Public Impact
Ensures continuous power supply for Joint Base Elmendorf-Richardson (JBER) operations. Supports military readiness and personnel well-being through reliable electricity. Impacts local economy through service provision by Chugach Electric.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price increases in future
- Reliance on single provider
Positive Signals
- Essential service provision
- Firm fixed-price contract
- Supports military operations
Sector Analysis
This contract falls under the utilities sector, specifically electricity services for a major federal installation. Spending benchmarks for such contracts vary widely based on facility size, location, and energy demands, but $17.4M for a year is substantial, reflecting the scale of JBER.
Small Business Impact
There is no indication of small business participation in this specific contract award. The nature of utility provision often involves large, established companies with existing infrastructure.
Oversight & Accountability
Oversight would focus on ensuring service delivery meets contract specifications and monitoring future contract actions for opportunities to introduce competition or ensure fair pricing.
Related Government Programs
- Regulation and Administration of Communications, Electric, Gas, and Other Utilities
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for price escalation
- Dependence on a single provider
- Essential service vulnerability
Tags
regulation-and-administration-of-communi, department-of-defense, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to CHUGACH ELECTRIC ASSOCIATION, INC.. JBER ELECTRICITY SERVICE
Who is the contractor on this award?
The obligated recipient is CHUGACH ELECTRIC ASSOCIATION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2023-10-01. End: 2024-09-30.
What is the historical pricing trend for electricity at JBER with Chugach Electric?
Analyzing historical pricing data from previous contracts with Chugach Electric would reveal any significant price escalations or stability. Understanding past price trends is crucial for assessing the current $17.4M award's value and predicting future costs. This context helps determine if the current price is a fair reflection of market conditions or if it represents an increase that warrants further investigation.
Are there any regulatory or geographical constraints that genuinely prevent competition for electricity services at JBER?
Investigating regulatory frameworks and geographical realities is key. While utilities often have natural monopolies, understanding if alternative providers could technically serve JBER, or if specific regulations mandate using the incumbent, clarifies the 'limited competition' justification. If alternatives exist, the lack of competition may be a missed opportunity for cost savings.
How does the per-kilowatt-hour cost compare to other large federal facilities in Alaska or similar climates?
Benchmarking the per-kilowatt-hour cost against comparable federal facilities in Alaska or regions with similar climatic demands provides a direct measure of cost-effectiveness. If JBER's rate is significantly higher, it could indicate inefficiencies or a lack of competitive pressure, suggesting potential overspending despite the 'reasonable' overall contract value.
Industry Classification
NAICS: Public Administration › Administration of Economic Programs › Regulation and Administration of Communications, Electric, Gas, and Other Utilities
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
Address: 5601 ELECTRON DR, ANCHORAGE, AK, 99518
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,426,280
Exercised Options: $17,426,280
Current Obligation: $17,426,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA500023D0009
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-07-24
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