GSA's $11.3M electric services contract with Evergy Metro, Inc. awarded in 2007, expired in 2017

Contract Overview

Contract Amount: $11,315,707 ($11.3M)

Contractor: Evergy Metro, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-09-11

End Date: 2017-08-31

Contract Duration: 3,642 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC SERVICES, 8930 WARD PARKWAY, KANSAS CITY, MO

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $11.3 million to EVERGY METRO, INC. for work described as: ELECTRIC SERVICES, 8930 WARD PARKWAY, KANSAS CITY, MO Key points: 1. Contract awarded for electric services, indicating a need for utility provision. 2. Long contract duration of over 10 years suggests a stable, long-term requirement. 3. Awarded by the General Services Administration (GSA), a common agency for utility contracts. 4. The contract was not competitively procured, raising questions about price discovery. 5. The North American Industry Classification System (NAICS) code 221112 points to fossil fuel electric power generation, which may not align with modern energy needs. 6. The contract expired in 2017, suggesting it is no longer active. 7. The base contract value was $3,107, indicating potential for significant modifications or task orders over its life. 8. The contract was awarded as Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $11.3 million awarded value represents good value for money. The contract's long duration and expired status make direct comparison to current market rates challenging. The lack of competition suggests potential for overpayment compared to what could have been achieved through a competitive process. The base value of $3,107 is extremely low relative to the total award, implying significant modifications or task orders that were not detailed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach limits the opportunity for multiple vendors to bid, potentially leading to higher prices and reduced innovation. The specific justification for the sole-source award is not provided, but it typically implies a unique capability or urgent need that cannot be met through competition.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for goods or services, as the government does not benefit from the price pressures of a competitive marketplace.

Public Impact

The primary beneficiary of this contract was the General Services Administration (GSA), which procured electric services. The services delivered were essential for the operation of federal facilities, ensuring continuous power supply. The geographic impact was localized to Kansas City, Missouri, where the services were provided. The contract supported the workforce of Evergy Metro, Inc., contributing to local employment in the utility sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated costs for taxpayers.
The NAICS code suggests a focus on fossil fuel generation, which may be outdated and environmentally concerning.
The significant difference between the base award and total award suggests a lack of transparency in the contract's evolution.
The contract expired in 2017, raising questions about the continuity of services and potential gaps.

Positive Signals

The Firm Fixed Price contract type provided cost certainty for the government.
The long duration indicates a stable and reliable provider for essential utility services.
The contract was managed by the General Services Administration, a reputable agency for federal procurement.

Sector Analysis

This contract falls within the Utilities sector, specifically electric power generation and distribution. The market for electric services is typically dominated by regional utility providers. While the NAICS code points to fossil fuel generation, the broader energy market is increasingly shifting towards renewable sources. Benchmarking this contract's value is difficult without knowing the specific service level agreements and the competitive landscape at the time of award, especially given its sole-source nature.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a likely large utility provider, the direct impact on the small business ecosystem is presumed to be minimal. Further analysis would be needed to determine if any small businesses were indirectly involved as suppliers or service providers to the prime contractor.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the General Services Administration (GSA). As a sole-source award, the oversight would focus on ensuring the contractor met the terms of the agreement and delivered services as specified. Transparency is limited due to the lack of competitive bidding. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Contracts
General Services Administration Procurement
Energy Services
Electric Power Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
Outdated NAICS code
Expired contract

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.3 million to EVERGY METRO, INC.. ELECTRIC SERVICES, 8930 WARD PARKWAY, KANSAS CITY, MO

Who is the contractor on this award?

The obligated recipient is EVERGY METRO, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2007-09-11. End: 2017-08-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without this documentation, it's impossible to fully assess the necessity of bypassing the competitive bidding process. This lack of transparency is a concern, as it prevents a thorough evaluation of whether the government received the best possible value and if competition was genuinely not feasible.

How did the total award amount of $11.3 million compare to the initial base contract value of $3,107?

The total award amount of $11,315,706.82 is vastly larger than the initial base contract value of $3,107. This indicates that the contract likely underwent significant modifications, task orders, or extensions throughout its duration from 2007 to 2017. The substantial increase suggests that the initial contract was perhaps a placeholder or a small initial commitment, with the bulk of the spending occurring through subsequent amendments or orders. Understanding the nature and necessity of these modifications is crucial for assessing the true cost and value of the services provided over the contract's life.

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

Sole-source contracts for essential services like electricity carry several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive process, meaning taxpayers could be overpaying. It also reduces the incentive for the sole provider to innovate or improve efficiency, as they face no direct market pressure. Furthermore, it can create vendor lock-in, making it difficult and potentially costly to switch providers in the future. Transparency is also often lower, making it harder to scrutinize the value received. For essential services, a sole-source award might be justified by urgency, but it necessitates rigorous oversight to mitigate these inherent risks.

Does the NAICS code 'Fossil Fuel Electric Power Generation' align with current federal energy procurement goals?

The NAICS code 'Fossil Fuel Electric Power Generation' (221112) is increasingly misaligned with current federal energy procurement goals, which emphasize sustainability, renewable energy, and greenhouse gas reduction. While fossil fuels have historically been a primary source of electricity, federal policy and agency mandates are pushing towards cleaner energy alternatives. A contract solely focused on fossil fuel generation, especially one awarded in 2007 and expiring in 2017, may not reflect the evolving energy landscape or the government's commitment to environmental stewardship. Future procurements in this area would likely prioritize renewable energy sources or energy efficiency solutions.

What is the significance of the contract expiring in August 2017?

The expiration date of August 31, 2017, signifies that this specific contract is no longer active and the government is not currently obligated under its terms. This means that the General Services Administration (GSA) would have had to procure electric services through a different contract vehicle after this date. The expiration itself doesn't inherently indicate a problem, but it prompts questions about the transition to a new provider or contract, the continuity of services, and whether the subsequent procurement was competitive and offered better value.

Industry Classification

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

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: Great Plains Energy Inc (UEI: 064739076)

Address: 1201 WALNUT ST STE 2100, KANSAS CITY, MO, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,315,707

Exercised Options: $11,315,707

Current Obligation: $11,315,707

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: GS00P07BSD0526

IDV Type: IDC

Timeline