GSA awards $30.4M for steam service at 26 Federal Plaza, New York, over 5 years

Contract Overview

Contract Amount: $30,351,675 ($30.4M)

Contractor: Consolidated Edison Company of NEW York, Inc.

Awarding Agency: General Services Administration

Start Date: 2011-10-26

End Date: 2016-10-13

Contract Duration: 1,814 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE STEAM SERVICE AT 26 FEDERAL PLAZA, NEW YORK, N.Y. 5 YRS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $30.4 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. for work described as: PROVIDE STEAM SERVICE AT 26 FEDERAL PLAZA, NEW YORK, N.Y. 5 YRS Key points: 1. The contract awarded to Consolidated Edison Company of New York, Inc. represents a significant expenditure for essential utility services. 2. Limited competition is noted, raising questions about potential price discovery and value for taxpayer dollars. 3. The firm fixed-price contract structure aims to control costs, but the lack of competition could inflate the price. 4. This spending falls within the broader context of federal facility operations and maintenance, a critical but often costly sector.

Value Assessment

Rating: fair

The contract value of $30.4 million over five years for steam service is substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if this pricing is optimal or if it represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition scenario. This lack of competitive bidding limits the government's ability to ensure the best possible price and service through market forces.

Taxpayer Impact: The absence of robust competition may lead to higher costs for taxpayers than could be achieved through a more open bidding process.

Public Impact

Ensures continuous operation of essential federal facilities in New York City. Supports the infrastructure necessary for government functions and public services. Highlights the reliance on established utility providers for critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to limited bidding

Positive Signals

Ensures essential utility service delivery
Firm fixed-price contract limits cost uncertainty

Sector Analysis

This contract falls under facility operations and maintenance, specifically utility services. Federal spending in this area is consistent and necessary for maintaining government infrastructure, but often lacks competitive pressure, leading to potentially higher costs.

Small Business Impact

This contract was awarded to Consolidated Edison Company of New York, Inc., a large utility provider. There is no indication that small businesses were involved in this specific award, nor is it typical for such large-scale utility services.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for managing federal real estate. Oversight would involve ensuring service delivery and contract compliance, though the limited competition aspect warrants scrutiny.

Related Government Programs

Electric Power Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Limited competition
Potential for non-competitive pricing
Lack of transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.4 million to CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.. PROVIDE STEAM SERVICE AT 26 FEDERAL PLAZA, NEW YORK, N.Y. 5 YRS

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 $30.4 million.

What is the period of performance?

Start: 2011-10-26. End: 2016-10-13.

What was the justification for limiting competition for this essential steam service contract?

The justification for limiting competition is not provided in the data. Typically, such limitations occur due to the unique nature of the service, existing infrastructure dependencies, or specific regulatory requirements. Further investigation would be needed to understand the specific reasons and assess if they were valid.

How does the per-unit cost of this steam service compare to similar federal contracts in other major metropolitan areas?

Without specific per-unit cost data and comparable contract benchmarks, a direct comparison is not possible. The total contract value of $30.4 million over five years for steam service in New York City is substantial, but its efficiency relative to other locations cannot be determined from the available information.

What mechanisms are in place to ensure the effectiveness and reliability of the steam service provided under this contract?

Effectiveness and reliability are typically ensured through performance standards outlined in the contract, regular inspections, and service level agreements. The GSA's Public Buildings Service would be responsible for monitoring these aspects and holding Consolidated Edison accountable for meeting the contract's requirements.

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

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, 10003

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,351,675

Exercised Options: $30,351,675

Current Obligation: $30,351,675

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P07BSD0510

IDV Type: IDC

Timeline