GSA awards $23.7M for NYC electric service to Consolidated Edison, facing limited competition

Contract Overview

Contract Amount: $23,744,498 ($23.7M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-11-23

End Date: 2020-04-30

Contract Duration: 3,446 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ELECTRIC GENERATION AND DISTRIBUTION SERVICE FOR 290 BROADWAY, NY, NY.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $23.7 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: ELECTRIC GENERATION AND DISTRIBUTION SERVICE FOR 290 BROADWAY, NY, NY. Key points: 1. Significant expenditure for essential utility services in a major metropolitan area. 2. Sole provider in the region limits competitive pricing opportunities. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector: Energy/Utilities, critical infrastructure.

Value Assessment

Rating: questionable

The contract value of $23.7M over approximately 9.5 years suggests a substantial commitment. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates for similar services in other high-cost urban areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, likely due to Consolidated Edison's status as the sole provider of electric distribution in New York City. This lack of competition limits price discovery and negotiation leverage.

Taxpayer Impact: Taxpayers may be bearing a premium due to the absence of competitive bidding, as the government relies on a single, non-competitive source for essential services.

Public Impact

Ensures continuous power supply to a federal building in a densely populated area. Highlights reliance on incumbent utility providers for critical infrastructure. Potential for higher costs impacting federal budget allocations for facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for price escalation
Reliance on sole provider

Positive Signals

Ensures essential service delivery
Long-term contract provides stability

Sector Analysis

This contract falls within the Energy/Utilities sector, specifically electric power distribution. Spending benchmarks for such services are highly localized and dependent on infrastructure monopolies. The $23.7M over nearly a decade reflects the high cost of operating in a major urban center like New York City.

Small Business Impact

The data indicates no specific provisions or set-asides for small businesses in this contract. Given the nature of utility provision, it's unlikely small businesses would be primary contractors for such a large-scale service.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal real estate and procurement. Oversight would focus on ensuring the service meets federal standards and that pricing, while non-competitive, is justified by the provider's regulated rates.

Related Government Programs

Electric Power Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Sole-source provider
Lack of competitive bidding
Potential for above-market pricing
High contract value

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.7 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. ELECTRIC GENERATION AND DISTRIBUTION SERVICE FOR 290 BROADWAY, NY, NY.

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 $23.7 million.

What is the period of performance?

Start: 2010-11-23. End: 2020-04-30.

What is the justification for the 'NOT AVAILABLE FOR COMPETITION' status, and were alternative procurement strategies considered?

The 'NOT AVAILABLE FOR COMPETITION' status typically arises when only one source can provide the required goods or services. For electric distribution in New York City, this is almost certainly due to Consolidated Edison's regulated monopoly status. Alternative strategies might involve exploring energy efficiency measures or microgrids, but these are long-term solutions and may not address immediate needs.

How does the per-unit cost compare to similar federal contracts in other major metropolitan areas, considering the lack of competition?

Direct per-unit cost comparison is challenging without detailed service metrics and specific contract terms. However, the absence of competition inherently raises concerns about potential overpayment. A thorough analysis would require benchmarking against regulated utility rates in comparable cities and assessing if the contract price reflects fair and reasonable pricing under monopoly conditions.

What is the long-term risk associated with relying on a single provider for such a critical service, especially concerning price increases?

The primary long-term risk is the potential for escalating costs without competitive pressure. Consolidated Edison, as a regulated monopoly, has its rates subject to oversight, but market dynamics and infrastructure investments can still lead to price increases. The government's dependence on this single provider limits its ability to seek more cost-effective alternatives if prices become uncompetitive.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $23,744,498

Exercised Options: $23,744,498

Current Obligation: $23,744,498

Parent Contract

Parent Award PIID: GS00P07BSD0510

IDV Type: IDC

Timeline