Air Force awards $7M contract for electric utility services in New York
Contract Overview
Contract Amount: $6,992,945 ($7.0M)
Contractor: Griffiss Utility Services Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2027-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $3.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AFRL/DFAS PURCHASED ELECTRIC UTILITY
Place of Performance
Location: ROME, ONEIDA County, NEW YORK, 13441
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $7.0 million to GRIFFISS UTILITY SERVICES CORPORATION for work described as: AFRL/DFAS PURCHASED ELECTRIC UTILITY Key points: 1. Contract awarded to GRIFFISS UTILITY SERVICES CORPORATION for electric power distribution. 2. Long-term contract duration of 1827 days suggests a need for stable utility provision. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Awarded by the Department of the Air Force, indicating a defense-related need. 5. Geographic location of service is New York. 6. No indication of small business set-aside or subcontracting opportunities. 7. The contract value is approximately $7 million over its duration.
Value Assessment
Rating: fair
The contract value of approximately $7 million for electric utility services over nearly five years appears reasonable for a facility of significant size. Benchmarking against similar utility contracts is challenging without more specific details on the scope of services and the exact location within New York. However, the firm-fixed-price structure provides cost certainty for the government, though it may not capture potential savings from market fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in situations where competition is deemed impractical or not in the government's best interest. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government relied on the contractor's proposed pricing without the leverage of alternative offers.
Public Impact
The primary beneficiary is the Department of the Air Force, ensuring reliable electric power for its facilities in New York. Services delivered include the distribution of electric power, essential for base operations. The geographic impact is localized to the specific Air Force installation in New York. Workforce implications are likely limited to the contractor's personnel managing the utility services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential savings for taxpayers.
- Lack of competition may reduce incentives for the contractor to offer innovative or cost-saving solutions.
- Firm-fixed-price contract could lead to higher initial costs if market prices decrease significantly during the contract term.
Positive Signals
- Firm-fixed-price contract provides budget certainty for the Air Force.
- Long contract duration (nearly 5 years) ensures stable and uninterrupted utility services.
- Contract awarded to GRIFFISS UTILITY SERVICES CORPORATION, suggesting established capability in utility provision.
Sector Analysis
This contract falls within the Utilities and Energy sector, specifically focusing on electric power distribution. The market for utility services is often characterized by natural monopolies or highly regulated environments, which can explain the sole-source nature of this award. Federal agencies are significant consumers of utility services, with spending often tied to the operational needs of military bases and government facilities. Comparable spending benchmarks would depend on the specific facility's energy consumption and the local utility rates.
Small Business Impact
This contract does not appear to have been set aside for small businesses, nor is there any indication of subcontracting requirements. The sole-source nature of the award further suggests that opportunities for small businesses to participate in this specific contract are unlikely, unless they are direct subcontractors to GRIFFISS UTILITY SERVICES CORPORATION.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is limited due to the sole-source nature and the lack of public reporting on performance metrics. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Utility Services Contracts
- Department of Defense Energy Procurement
- Electric Power Distribution Contracts
- Air Force Base Operations Support
Risk Flags
- Sole-source award may limit cost savings.
- Lack of competition could reduce contractor incentive for efficiency.
- No small business participation noted.
Tags
defense, department-of-defense, department-of-the-air-force, electric-utility, new-york, firm-fixed-price, definitive-contract, sole-source, infrastructure, energy-distribution
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.0 million to GRIFFISS UTILITY SERVICES CORPORATION. AFRL/DFAS PURCHASED ELECTRIC UTILITY
Who is the contractor on this award?
The obligated recipient is GRIFFISS UTILITY SERVICES CORPORATION.
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 $7.0 million.
What is the period of performance?
Start: 2022-09-29. End: 2027-09-30.
What is the specific Air Force installation in New York receiving these electric utility services?
The provided data does not specify the exact Air Force installation in New York receiving these electric utility services. The contract is awarded to GRIFFISS UTILITY SERVICES CORPORATION, which is associated with Griffiss International Airport in Rome, New York. It is highly probable that the services are being provided to facilities at or near this location. Further investigation into the contract details or the agency's procurement records would be necessary to confirm the precise installation and its operational requirements.
What is the historical spending pattern for electric utility services at this Air Force installation?
Historical spending data for electric utility services at this specific Air Force installation is not available in the provided data. To assess historical patterns, one would need to access past contract awards for utility services to the same or similar installations within the Department of the Air Force in New York. Analyzing these past contracts would reveal trends in contract value, duration, contractor, and pricing mechanisms, allowing for a comparison with the current $7 million award over approximately five years. This would help determine if the current contract represents an increase or decrease in spending and if it aligns with previous investment levels.
What are the specific performance metrics and service level agreements (SLAs) associated with this contract?
The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this electric utility services contract. Typically, such contracts would include clauses outlining expected reliability, response times for outages, power quality standards, and reporting requirements. The firm-fixed-price nature suggests that the contractor is responsible for meeting these standards to receive full payment. Without access to the full contract document, it is impossible to ascertain the precise performance expectations and the penalties or incentives tied to them.
What is the rationale behind the sole-source award for these electric utility services?
The rationale behind the sole-source award for these electric utility services is not explicitly stated in the provided data. However, sole-source awards are generally justified when only one responsible source can satisfy the agency's needs. For utility services, this often occurs in situations where a specific provider has existing infrastructure, is the designated utility provider for a geographic area (like a military base), or if there are unique technical requirements that only one contractor can meet. The Department of the Air Force would have had to document the justification for not seeking competitive proposals, likely citing reasons such as the necessity of uninterrupted service or the unique capabilities of GRIFFISS UTILITY SERVICES CORPORATION.
How does the per-unit cost of electricity under this contract compare to market rates in New York?
A direct comparison of the per-unit cost of electricity under this contract to prevailing market rates in New York is not feasible with the given data. The contract value of $7 million over approximately 1827 days (nearly 5 years) does not break down the cost per kilowatt-hour (kWh) or provide an estimated total consumption. To perform such a comparison, one would need to know the total expected energy consumption over the contract period and the contract's pricing structure (e.g., fixed rate per kWh, tiered pricing). Additionally, market rates vary significantly by region within New York and by customer type (e.g., residential, commercial, industrial, government).
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
Solicitation ID: FA875122R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 410 PHOENIX DR, ROME, NY, 13441
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,901,320
Exercised Options: $10,744,973
Current Obligation: $6,992,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-29
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-15
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