GSA's $15.7M Electrical Delivery Contract for Emmett J. Bean Federal Center Lacked Competition
Contract Overview
Contract Amount: $15,721,622 ($15.7M)
Contractor: Indianapolis Power & Light CO
Awarding Agency: General Services Administration
Start Date: 2006-10-01
End Date: 2016-09-30
Contract Duration: 3,652 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRICAL DELIVERY SERVICE AT THE MAJOR EMMETT J. BEAN FEDERAL CENTER, 8899 E. 56TH STREET, INDIANAPOLIS, INDIANA.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46201
State: Indiana Government Spending
Plain-Language Summary
General Services Administration obligated $15.7 million to INDIANAPOLIS POWER & LIGHT CO for work described as: ELECTRICAL DELIVERY SERVICE AT THE MAJOR EMMETT J. BEAN FEDERAL CENTER, 8899 E. 56TH STREET, INDIANAPOLIS, INDIANA. Key points: 1. The contract awarded to Indianapolis Power & Light Co. for electrical delivery services spanned 10 years. 2. The lack of competition raises concerns about potential overpayment and missed opportunities for better pricing. 3. The General Services Administration (GSA) managed this contract through its Public Buildings Service. 4. The total award amount was over $15.7 million for bulk power transmission and control.
Value Assessment
Rating: questionable
The contract's 10-year duration and fixed price without clear competitive benchmarks make a direct pricing assessment difficult. Without comparable contracts or competitive bids, it's hard to determine if the $15.7M was a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in higher costs than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Federal facilities rely on consistent and reliable electrical services for operations. Long-term contracts without competition can set precedents for future energy procurement. Taxpayers may have overpaid due to the absence of competitive bidding. The duration of the contract (10 years) suggests a need for stable, long-term energy solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Long Contract Duration
- Potential Overpricing
Positive Signals
- Consistent Service Delivery
- Established Utility Provider
Sector Analysis
This contract falls under the utility services sector, specifically electrical power. Federal agencies often rely on established utility providers for essential services like electricity, but competitive procurement is crucial to ensure value.
Small Business Impact
This contract does not appear to have involved small businesses, as it was awarded to a major utility provider. There is no indication of set-asides or subcontracting opportunities for small businesses.
Oversight & Accountability
The General Services Administration (GSA) is responsible for managing federal real estate and procurement. Oversight is critical to ensure fair pricing and competition, even in utility contracts.
Related Government Programs
- Electric Bulk Power Transmission and Control
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Lack of competitive bidding
- Extended contract duration (10 years)
- Potential for inflated pricing
- Limited transparency on justification for non-competition
Tags
electric-bulk-power-transmission-and-con, general-services-administration, in, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $15.7 million to INDIANAPOLIS POWER & LIGHT CO. ELECTRICAL DELIVERY SERVICE AT THE MAJOR EMMETT J. BEAN FEDERAL CENTER, 8899 E. 56TH STREET, INDIANAPOLIS, INDIANA.
Who is the contractor on this award?
The obligated recipient is INDIANAPOLIS POWER & LIGHT CO.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $15.7 million.
What is the period of performance?
Start: 2006-10-01. End: 2016-09-30.
What was the justification for limiting competition on this electrical delivery contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This implies a sole-source or limited competition justification was likely used, possibly due to the nature of utility infrastructure and service provision in the specific geographic area. However, the exact reason and supporting documentation are not detailed here.
How can the government ensure fair pricing when dealing with essential utility services that may have limited competition?
Governments can employ several strategies, including negotiating long-term contracts with price adjustment clauses tied to market indices, conducting thorough market research to understand pricing benchmarks, exploring alternative energy sources or providers where feasible, and ensuring robust oversight and auditing of utility expenditures to identify potential inefficiencies or overcharges.
What is the typical duration for federal contracts for essential utility services like electricity?
Federal contracts for essential utility services can vary, but 10-year terms, like the one in this case, are not uncommon for services requiring significant infrastructure investment and long-term planning. However, shorter terms or options for renewal are often preferred to allow for re-competition and adaptation to market changes.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Bulk Power Transmission and Control
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: GS-05P-06-SC-C-3030
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE AES Corporation (UEI: 043857812)
Address: 1 MONUMENT CIRCLE, INDIANAPOLIS, IN, 46204
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,721,622
Exercised Options: $15,721,622
Current Obligation: $15,721,622
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2017-03-01
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