GSA's $10M+ contract for electricity services to FDA's York College facility awarded to Consolidated Edison

Contract Overview

Contract Amount: $10,057,631 ($10.1M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: General Services Administration

Start Date: 2004-05-12

End Date: 2016-04-30

Contract Duration: 4,371 days

Daily Burn Rate: $2.3K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ELECTRIC SERVICES TO FDA, YORK COLLEGE, 158-15 LIBERTY AVENUE, JAMAICA, NEW YORK 11433-1034.

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11433

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $10.1 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: PROVIDE ELECTRIC SERVICES TO FDA, YORK COLLEGE, 158-15 LIBERTY AVENUE, JAMAICA, NEW YORK 11433-1034. Key points: 1. The contract value of over $10 million over its period of performance suggests a significant, long-term need for essential utility services. 2. Awarded to a single, established utility provider, the contract's structure may limit opportunities for competitive pricing adjustments. 3. The duration of the contract (over 12 years) indicates a stable but potentially less agile service arrangement. 4. The fixed-price contract type provides cost certainty for the government but may not fully capture market fluctuations. 5. The geographic location in Jamaica, New York, points to a localized service requirement within a major metropolitan area. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

This contract for electricity services represents a substantial expenditure over its extended duration. Benchmarking the exact value is challenging without specific kilowatt-hour usage data and prevailing market rates for the entire period. However, given the scale and the nature of utility services, the price appears to be in line with what might be expected for a large federal facility in a high-cost urban area. The fixed-price nature offers predictability, but the lack of competitive bidding for subsequent periods could mean foregoing potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded to Consolidated Edison Company of New York, Inc., a sole-source provider for electricity services in the specified geographic region. This indicates that the government likely relied on the incumbent utility provider due to the nature of the service, which typically requires a single provider for a given area. The lack of competition means there was no opportunity to solicit bids from other providers, potentially impacting price discovery and the government's ability to secure the most favorable terms.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from a competitive bidding process that could have driven down costs. The government accepted the price offered by the sole provider without alternative options.

Public Impact

The primary beneficiary is the Food and Drug Administration (FDA) facility at York College, ensuring continuous operation of its essential functions. The service delivered is the provision of electricity, a critical utility necessary for lighting, climate control, and powering equipment. The geographic impact is localized to Jamaica, New York, specifically serving the federal facility located at 158-15 Liberty Avenue. Workforce implications are minimal for this specific contract, as it primarily involves the provision of a utility service rather than direct labor for federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs than a competed contract.
Long contract duration (over 12 years) may not adapt well to market price fluctuations or technological advancements.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess service quality.

Positive Signals

Ensures reliable and continuous provision of essential electricity services to a critical federal facility.
Award to a major, established utility provider suggests a high likelihood of consistent service delivery.
Fixed-price contract offers budget certainty for the agency over the contract term.

Sector Analysis

This contract falls within the Utilities and Energy sector, specifically focusing on the provision of electricity. The market for electricity is typically characterized by regulated monopolies or oligopolies in specific geographic regions, making sole-source or limited competition awards common for utility services. Comparable spending benchmarks would involve analyzing electricity costs for similar-sized federal facilities in the New York metropolitan area, considering factors like energy consumption patterns and utility rate structures.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large utility provider, there are likely no subcontracting opportunities for small businesses directly related to the primary service delivery. The focus is on the core utility provision by Consolidated Edison.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service, which manages federal real estate and associated services. Accountability is maintained through the contract terms and conditions, including payment schedules and service expectations. Transparency is limited due to the sole-source nature and the lack of detailed public performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Services
General Services Administration Contracts
Energy Procurement
Public Buildings Service Contracts
FDA Facilities Management

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.1 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. PROVIDE ELECTRIC SERVICES TO FDA, YORK COLLEGE, 158-15 LIBERTY AVENUE, JAMAICA, NEW YORK 11433-1034.

Who is the contractor on this award?

The obligated recipient is CONSOLIDATED EDISON COMPANY OF NEW YORK, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2004-05-12. End: 2016-04-30.

What is the historical spending pattern for electricity services at the York College facility prior to this contract?

The provided data only details one contract awarded on May 12, 2004, with an end date of April 30, 2016, for a total value of $10,057,630.56. This suggests a consistent, long-term need for electricity services at this facility. Without access to prior contract vehicles or historical utility bills managed directly by the government, a comprehensive historical spending pattern cannot be fully detailed. However, the duration and value of this single contract imply that electricity is a significant and ongoing operational cost for the FDA facility at York College, likely requiring a substantial budget allocation each fiscal year.

How does the per-unit cost of electricity under this contract compare to market rates for similar federal facilities in New York?

Determining the precise per-unit cost (e.g., cost per kilowatt-hour) is not possible with the provided data, as it lacks specific usage volumes and detailed pricing breakdowns. The contract is a firm fixed price for the overall service. To compare with market rates, one would need to know the total kilowatt-hours consumed over the contract period and divide the total contract value by this amount. Additionally, market rates vary significantly based on the specific utility provider, time-of-use pricing, demand charges, and negotiated rates with other large commercial or federal entities in the New York area. Given that Consolidated Edison is the sole provider in much of New York City, direct comparison might be limited to historical GSA utility rate data or benchmarks for similar large facilities.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this electricity service contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, utility service contracts would include metrics related to reliability (e.g., uptime, frequency/duration of outages), power quality (e.g., voltage stability), and potentially response times for service issues. The absence of this information in the summary data makes it difficult to quantitatively assess the quality of service provided by Consolidated Edison under this contract. Oversight would rely on general contract compliance and the absence of major service disruptions.

What is the track record of Consolidated Edison Company of New York, Inc. in providing services to federal agencies?

Consolidated Edison Company of New York, Inc. is a major utility provider serving millions of customers in New York City and Westchester County. As the primary electricity provider for a significant portion of this region, they have extensive experience in delivering essential power services. Their track record with federal agencies would likely involve numerous contracts, similar to this one with GSA for the FDA facility, to power federal buildings, military installations, and other government operations within their service territory. While specific performance details for past federal contracts are not provided here, their long-standing presence and operational scale suggest a capacity to meet the demands of large utility consumers, including government entities.

What risks are associated with a sole-source contract for essential services like electricity?

The primary risk associated with a sole-source contract for essential services like electricity is the lack of competitive pressure, which can lead to higher prices than might be achieved through a competitive bidding process. Taxpayers may end up paying a premium for the service. Another risk is potential complacency from the provider, as there is no immediate threat of losing the contract to a competitor. This could potentially impact service innovation or responsiveness, although for regulated utilities, service standards are often mandated by public utility commissions. Furthermore, the government has limited leverage to negotiate better terms or pricing outside of the established contract, especially if the provider is the only option in the region.

How does the contract duration of over 12 years impact the government's flexibility and potential cost savings?

A contract duration of over 12 years provides significant stability and predictability for the government, ensuring a continuous supply of electricity without the need for frequent re-procurement processes. This long-term commitment can sometimes lead to better negotiated rates, as the contractor can plan infrastructure investments accordingly. However, it also reduces the government's flexibility. If market electricity prices were to decrease significantly or if alternative energy solutions became more viable and cost-effective during the contract term, the government would be locked into the existing price structure. This long duration might also mean missing out on potential savings that could arise from periodic competitive bidding cycles.

Contractor Details

Parent Company: Consolidated Edison, Inc. (UEI: 002944531)

Address: 4 IRVING PL, NEW YORK, NY, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,057,631

Exercised Options: $10,057,631

Current Obligation: $10,057,631

Parent Contract

Parent Award PIID: GS00P95BSD0003

IDV Type: IDC

Timeline