GSA's $16.15M contract for electrical transmission services in Brooklyn, NY, awarded to Consolidated Edison

Contract Overview

Contract Amount: $16,150,301 ($16.2M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-11-06

End Date: 2018-09-27

Contract Duration: 3,612 days

Daily Burn Rate: $4.5K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ELECTRICAL TRANSMISSION SERVICES TO USPO & CH, 271 CADMAN PLAZA EAST, 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 $16.2 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: PROVIDE ELECTRICAL TRANSMISSION SERVICES TO USPO & CH, 271 CADMAN PLAZA EAST, BROOKLYN, NEW YORK 11201 Key points: 1. The contract value of $16.15M over its duration suggests a significant need for reliable electrical power. 2. Awarded to a single, established utility provider, indicating potential limitations in competitive bidding for this specific service. 3. The long performance period (nearly 10 years) implies a stable, ongoing requirement for these essential services. 4. The contract's focus on a specific geographic location (Brooklyn, NY) highlights localized infrastructure needs. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service metrics or comparable utility contracts. However, the $16.15M over nearly 10 years averages to approximately $1.6M annually for electrical transmission services in a major metropolitan area. This appears to be within a reasonable range for such essential infrastructure, though a detailed cost-benefit analysis would require more granular data on the scope of services provided and the specific infrastructure supported.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action to Consolidated Edison Company of New York, Inc. This typically occurs when a single entity is the only responsible source capable of providing the required service, often due to the nature of utility infrastructure. The lack of competition means that price discovery through a bidding process was not utilized, potentially leading to higher costs than a competitive scenario.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from competitive pricing, which could result in a higher overall expenditure for these electrical transmission services.

Public Impact

Federal agencies located at 271 Cadman Plaza East, Brooklyn, NY, benefit from reliable electrical power. The contract ensures the continuous operation of critical federal facilities within the specified New York City location. The services support the daily functions of government operations, impacting federal employees and the public interacting with these facilities. Geographic impact is concentrated within Brooklyn, New York, specifically serving the needs of the U.S. Postal Service and other federal entities at the designated address.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Long contract duration may not reflect current market efficiencies or technological advancements.
No explicit small business subcontracting goals noted, potentially limiting opportunities for smaller firms.

Positive Signals

Award to a major utility provider ensures service reliability for critical federal operations.
The contract addresses a fundamental infrastructure need for federal facilities in a dense urban environment.
Long-term award provides stability and predictability for federal agency power supply.

Sector Analysis

The energy sector, particularly electric power distribution, is a critical component of national infrastructure. Contracts for electrical transmission services are essential for government operations, especially in urban areas where demand is high and infrastructure is complex. This contract fits within the broader category of utility services procured by federal agencies to maintain facilities. Comparable spending benchmarks for utility services vary widely based on location, demand, and the specific services rendered, but large-scale distribution contracts can run into millions of dollars annually.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of specific small business subcontracting requirements. As a sole-source award to a large utility company, the primary focus was likely on securing essential services rather than promoting small business participation. This means that opportunities for small businesses to engage in subcontracting related to this specific contract are likely limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures would be tied to the terms and conditions of the delivery order, ensuring Consolidated Edison meets its obligations for providing electrical transmission services. Transparency is generally limited for sole-source utility contracts, but GSA's procurement records and contract administration processes would provide a degree of oversight.

Related Government Programs

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

Risk Flags

Sole-source award may indicate limited competition.
Long contract duration could potentially lead to above-market rates if not managed.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.2 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. PROVIDE ELECTRICAL TRANSMISSION SERVICES TO USPO & CH, 271 CADMAN PLAZA EAST, 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 $16.2 million.

What is the period of performance?

Start: 2008-11-06. End: 2018-09-27.

What specific electrical transmission services are covered under this contract?

The data indicates the contract is for 'Electric Power Distribution' services. This typically encompasses the delivery of electricity from substations to federal facilities. Specific services would likely include maintaining the distribution network, ensuring power quality and reliability, and managing the flow of electricity to the designated address at 271 Cadman Plaza East, Brooklyn, NY. The exact scope would be detailed in the full contract documentation, but it fundamentally ensures that federal buildings receive the necessary electrical power to operate.

How does the $16.15M contract value compare to typical electrical transmission costs for federal facilities in New York City?

Comparing the $16.15M contract value over its nearly 10-year duration (approximately 2008-2018) requires context. This averages to about $1.6M annually. Electrical power costs in New York City are known to be among the highest in the nation due to infrastructure complexity, demand, and regulatory factors. For a large federal complex like the one at 271 Cadman Plaza East, this annual figure might be considered reasonable, especially given the sole-source nature which bypasses competitive bidding. However, without specific details on the load served and the exact services provided, a precise benchmark is difficult. It's plausible that a competitive bid might have yielded lower rates, but the necessity of reliable service from an established provider like Con Edison likely influenced the pricing.

What are the risks associated with a sole-source award for essential utility services?

The primary risk of a sole-source award for essential utility services is the lack of price competition. This can lead to the government paying a premium compared to what might be achieved through a competitive bidding process. Another risk is reduced incentive for the sole provider to innovate or improve efficiency, as they face no direct market pressure from competitors. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences service disruptions or faces financial instability. Transparency can also be a concern, as the justification for sole-source procurement may not always be fully scrutinized.

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. (Con Edison) is a major utility provider with a long history of serving the New York metropolitan area. As such, it is the primary, and often only, provider of electrical transmission services within its service territory. Its track record with federal agencies is likely extensive, given the significant federal presence in New York City. While specific performance metrics for this particular contract are not detailed here, Con Edison is generally responsible for maintaining a vast and complex electrical grid. Issues typically arise during major weather events or infrastructure failures, but the company is accustomed to meeting the demands of large institutional customers, including government entities.

How does this contract fit into the broader spending patterns for federal utility services?

This contract represents a specific instance of federal agencies procuring essential utility services, in this case, electrical power distribution. Federal spending on utilities is a consistent and significant category across various agencies and locations. Contracts like this, even when sole-source, are necessary to ensure the continuous operation of government functions. The total amount ($16.15M) over nearly a decade suggests a substantial, ongoing need. Broader federal spending patterns show a continuous requirement for electricity, water, and other utilities, often awarded through a mix of competitive and sole-source mechanisms depending on the market structure and service provider availability.

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, 10003

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,029,764

Exercised Options: $16,150,301

Current Obligation: $16,150,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00P07BSD0510

IDV Type: IDC

Timeline