NASA's $24.7M electric service contract for White Sands awarded to El Paso Electric Company
Contract Overview
Contract Amount: $24,695,704 ($24.7M)
Contractor: EL Paso Electric Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-04-15
End Date: 2014-09-30
Contract Duration: 4,916 days
Daily Burn Rate: $5.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELECTRIC SERVICE TO WHITE SENDS COMPLEX
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79901
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $24.7 million to EL PASO ELECTRIC COMPANY for work described as: ELECTRIC SERVICE TO WHITE SENDS COMPLEX Key points: 1. Contract value represents a significant investment in essential utility services for a key federal facility. 2. The firm fixed-price structure provides cost certainty for the agency. 3. Long contract duration suggests a stable, long-term need for reliable power. 4. Awarded as a competitive delivery order, indicating a structured procurement process. 5. The contract's focus on hydroelectric power generation aligns with potential renewable energy goals. 6. Geographic concentration in Texas highlights regional economic implications.
Value Assessment
Rating: good
The total contract value of $24.7 million over approximately 13 years suggests a reasonable annual expenditure for essential electric services to a large federal complex. Benchmarking this against similar utility contracts for federal facilities of comparable size and operational needs would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract helps manage cost fluctuations and provides predictability for NASA's budget.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, implying that multiple vendors had the opportunity to bid. The fact that it was competed suggests that NASA sought to leverage market forces to secure favorable pricing and terms. The specific number of bidders is not provided, but a competitive process generally leads to better price discovery and a wider selection of qualified providers.
Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically drives down costs through market competition, ensuring federal funds are used more efficiently for essential services.
Public Impact
The primary beneficiary is the National Aeronautics and Space Administration (NASA), ensuring continuous and reliable electric service for its White Sands facilities. The contract supports the operation of critical infrastructure and research activities at the White Sands complex. The geographic impact is concentrated in Texas, where El Paso Electric Company operates, potentially supporting local jobs and the regional economy. The contract ensures the operational workforce at White Sands has the necessary utilities to perform their duties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration could limit opportunities for newer, potentially more innovative energy providers to enter the market.
- Reliance on a single provider for such a critical service introduces a degree of supply chain risk.
Positive Signals
- The competitive award process suggests a thorough evaluation of potential providers, likely ensuring a qualified and reliable supplier.
- Firm fixed-price contract provides budget certainty and protects against unexpected cost increases.
- The contract's focus on hydroelectric power generation may align with agency sustainability initiatives.
Sector Analysis
The energy sector, specifically utility services, is a critical component of federal operations. This contract falls within the broader category of infrastructure support services. Federal agencies are significant consumers of electricity, and contracts like this ensure the reliable operation of facilities essential for national security, research, and public services. The market for utility services is typically characterized by regional monopolies or oligopolies due to infrastructure requirements, making competitive bidding on delivery orders crucial for price discovery.
Small Business Impact
Information regarding small business set-asides or subcontracting plans for this specific contract is not available in the provided data. Typically, large utility contracts may not have specific small business set-aside requirements unless components or related services are being procured. Further investigation into the contract's specific clauses would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
The contract's oversight would fall under NASA's contracting officer and program management. As a delivery order under a larger contract vehicle, it likely adheres to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA Facilities Operations Contracts
- Federal Utility Service Contracts
- Department of Energy Electric Service Contracts
- Department of Defense Base Operations Support
Risk Flags
- Long contract duration may indicate a lack of market dynamism or potential for innovation.
- Reliance on a single provider for critical infrastructure poses a risk.
Tags
nasa, white-sands, electric-service, hydroelectric-power, firm-fixed-price, competitive-delivery-order, texas, infrastructure-support, long-term-contract, utility-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $24.7 million to EL PASO ELECTRIC COMPANY. ELECTRIC SERVICE TO WHITE SENDS COMPLEX
Who is the contractor on this award?
The obligated recipient is EL PASO ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2001-04-15. End: 2014-09-30.
What was the specific competitive process used for this delivery order, and how many bids were received?
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed among multiple potential offerors. While the exact number of bids received is not detailed in the provided data, the 'full-and-open' competition type suggests that NASA solicited proposals from a wide range of qualified sources. This approach is designed to foster robust competition, which typically leads to better pricing and terms for the government. The specific solicitation details and bid counts would be available through official government procurement records, such as those maintained by the Federal Procurement Data System (FPDS).
How does the annual cost of this contract compare to similar electric service contracts for federal facilities of comparable size and operational complexity?
The total contract value of $24,695,704.41 spans from April 15, 2001, to September 30, 2014, a period of approximately 13 years and 5 months. This equates to an average annual cost of roughly $1.9 million. To benchmark this effectively, one would need to compare it with contracts for similar-sized federal installations (e.g., research centers, large operational bases) in comparable geographic regions, considering factors like energy demand, grid infrastructure, and local utility rates. Without access to a database of comparable federal utility contracts, a precise comparison is difficult, but the annual figure appears within a plausible range for supporting a significant federal complex.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this electric service contract?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for essential services like electricity, typical SLAs would focus on reliability metrics such as uptime percentage, maximum allowable outage duration, response times for service interruptions, and power quality standards (e.g., voltage and frequency stability). NASA would likely have established specific requirements to ensure uninterrupted operations of its White Sands facilities, with potential penalties or incentives tied to meeting these performance targets.
What is the historical spending trend for electric services at NASA's White Sands facilities prior to and during this contract period?
The provided data only details this specific contract award from 2001 to 2014. To understand historical spending trends, one would need to examine NASA's procurement data for electric services at White Sands for periods preceding and potentially following this contract. Analyzing prior contracts would reveal if spending has increased, decreased, or remained stable, and whether this $24.7 million award represents a continuation, escalation, or reduction in investment. Examining post-2014 contracts would show current spending patterns and potential shifts in energy sourcing or provider.
Does the contract specify any requirements for renewable energy sourcing or energy efficiency measures?
The data indicates the contract is for 'Hydroelectric Power Generation' (ND: 'Hydroelectric Power Generation'). This suggests a focus on a renewable energy source, which aligns with potential federal mandates or agency goals for sustainability. While it specifies the source, it doesn't explicitly detail additional requirements for energy efficiency measures or further diversification into other renewable sources beyond hydroelectric power. Further review of the contract's statement of work would clarify the extent of renewable energy commitments and any associated efficiency mandates.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Hydroelectric Power Generation
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 201 N WATER ST, LAS CRUCES, NM, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,695,704
Exercised Options: $24,695,704
Current Obligation: $24,695,704
Parent Contract
Parent Award PIID: GS00F98BSD
IDV Type: FSS
Timeline
Start Date: 2001-04-15
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-09-11
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