GSA's $17.8M electricity contract for Brooklyn courthouse awarded to Consolidated Edison, spanning nearly a decade

Contract Overview

Contract Amount: $17,832,984 ($17.8M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-06-01

End Date: 2016-05-31

Contract Duration: 3,287 days

Daily Burn Rate: $5.4K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY OF ELECTRICITY TO THE OLD AND NEW U. S. COURTHOUSE, 225 CADMAN PLAZA, BROOKLYN, NEW YORK 11201.

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $17.8 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: DELIVERY OF ELECTRICITY TO THE OLD AND NEW U. S. COURTHOUSE, 225 CADMAN PLAZA, BROOKLYN, NEW YORK 11201. Key points: 1. The contract provided essential electricity services for a federal facility over an extended period. 2. The fixed-price nature of the contract offered budget certainty for the agency. 3. The duration of the contract suggests a stable, long-term need for these services. 4. The sole provider for electricity in this geographic area likely limited competitive options. 5. Performance was likely measured by consistent and reliable power delivery. 6. This contract falls within the broader category of utility services for federal buildings.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific energy consumption data or comparable utility rates for the period. However, the total award of $17.8 million over approximately nine years indicates an average annual expenditure of roughly $2 million. This figure needs to be assessed against the size and energy demands of the U.S. Courthouse in Brooklyn. Given that electricity is a regulated utility in many areas, the pricing is likely influenced by established tariffs rather than direct market negotiation, which can limit the scope for achieving significant cost savings through competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was likely awarded on a sole-source basis due to the nature of electricity as a regulated utility. In most geographic areas, there is only one provider of electricity distribution services. Consolidated Edison is the sole provider for the service area encompassing the U.S. Courthouse in Brooklyn. Therefore, competitive bidding as typically understood for goods and services was not feasible for this essential utility.

Taxpayer Impact: Taxpayers are protected through regulated utility rates rather than competitive pricing. The cost is determined by established tariffs approved by regulatory bodies, ensuring a degree of fairness, though not necessarily the lowest possible price achievable in a truly competitive market.

Public Impact

Federal court operations in Brooklyn were supported by reliable electricity. Judicial proceedings and public access to the courthouse were enabled. The contract ensured the continuous functioning of essential government infrastructure. The workforce within the courthouse, including judges, staff, and the public, benefited from uninterrupted power.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to lack of competition in a sole-source utility market.
Dependence on a single provider for a critical service.

Positive Signals

Ensured reliable and continuous delivery of essential electricity.
Provided budget certainty through a firm fixed-price contract.
Supported the long-term operational needs of a federal facility.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on electric power distribution. The market for electricity is typically characterized by natural monopolies in distribution, meaning competition is often limited or non-existent at the local level. Federal agencies procure electricity services through various means, including competitive solicitations where feasible, or through regulated utility rates when operating in areas with a single provider. The spending on electricity for federal buildings is a significant component of overall facilities management costs.

Small Business Impact

This contract was awarded to Consolidated Edison Company of New York, Inc., a large utility provider, and does not appear to have involved small business set-asides. As a sole-source utility contract, the focus is on securing essential services from the designated provider rather than fostering small business participation through set-asides or subcontracting opportunities.

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. Accountability is ensured through the terms of the firm fixed-price contract and the regulated nature of utility services. Transparency is maintained through public contract databases, although the specific operational details of electricity delivery are governed by utility regulations.

Related Government Programs

Federal Building Operations
Utility Services Procurement
General Services Administration Contracts
Public Buildings Service Contracts

Risk Flags

Sole-source procurement for essential utility
Potential for above-market pricing due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.8 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. DELIVERY OF ELECTRICITY TO THE OLD AND NEW U. S. COURTHOUSE, 225 CADMAN PLAZA, BROOKLYN, NEW YORK 11201.

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 $17.8 million.

What is the period of performance?

Start: 2007-06-01. End: 2016-05-31.

What was the historical spending pattern for electricity at the U.S. Courthouse in Brooklyn prior to this contract?

Detailed historical spending data prior to this specific contract (2007-2016) is not directly available within the provided data. However, the award amount of $17.8 million over the contract's duration suggests an average annual expenditure of approximately $2 million. To understand historical patterns, one would need to access GSA's historical financial records or previous utility bills for the facility. Factors influencing past spending would include energy consumption, electricity rates set by the Public Service Commission of New York, and any energy efficiency initiatives implemented at the courthouse.

How does the per-kilowatt-hour cost compare to market rates for electricity in New York City during the contract period?

Determining the precise per-kilowatt-hour (kWh) cost and comparing it to market rates is complex without access to the contract's detailed billing information and specific energy consumption data. Consolidated Edison operates under tariffs approved by the New York Public Service Commission, which dictate rates for different customer classes. While these tariffs aim for fairness, they may not always reflect the lowest possible price achievable in a deregulated market. A comprehensive analysis would require obtaining the actual kWh usage and billed amounts from GSA and comparing these to the prevailing commercial or governmental rates published by Con Edison and potentially other energy service providers during the 2007-2016 period.

What were the key performance indicators (KPIs) used to evaluate Consolidated Edison's service delivery under this contract?

While specific KPIs are not detailed in the provided contract abstract, typical performance indicators for electricity delivery contracts focus on reliability and continuity of service. This would likely include metrics such as the number and duration of power outages, adherence to voltage and frequency standards, and response times to any service disruptions. For a sole-source utility provider, the primary measure of success is the consistent and uninterrupted delivery of power meeting established service level agreements and regulatory requirements. GSA would monitor these aspects through facility management reports and direct communication with the utility.

Were there any significant service disruptions or performance issues reported by the GSA during the contract's term?

The provided contract data does not include information on specific service disruptions or performance issues encountered during the 2007-2016 period. Generally, for essential utility services like electricity from a regulated provider, major disruptions are infrequent and often related to broader grid issues rather than contractor performance failures. If significant issues did arise, they would typically be documented in GSA's internal performance reviews or facility management logs. Without access to these records, it's not possible to definitively assess the presence or absence of performance problems.

What is the current status of electricity provision for the U.S. Courthouse in Brooklyn, and has there been a new contract awarded?

This contract concluded on May 31, 2016. The current status of electricity provision for the U.S. Courthouse at 225 Cadman Plaza, Brooklyn, would be managed under a subsequent contract or ongoing utility arrangement. To determine the current provider and contract details, one would need to search federal procurement databases (like FPDS or SAM.gov) for awards made after May 2016 for electricity services at that specific facility. It is highly probable that a new contract was awarded, potentially also on a sole-source basis to Consolidated Edison, given the nature of utility services in the area.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

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: $17,832,984

Exercised Options: $17,832,984

Current Obligation: $17,832,984

Parent Contract

Parent Award PIID: GS00P07BSD0510

IDV Type: IDC

Timeline