GSA awards $21.9M for continued electric utility services to Southern California Edison, spanning a decade

Contract Overview

Contract Amount: $21,977,000 ($22.0M)

Contractor: Southern California Edison Company

Awarding Agency: General Services Administration

Start Date: 2014-01-01

End Date: 2024-12-31

Contract Duration: 4,017 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: CONTINUE UTILITY SERVICE WITH SOUTHERN CALIFORNIA EDISON COMPANY IGF::OT::IGF

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94102

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $22.0 million to SOUTHERN CALIFORNIA EDISON COMPANY for work described as: CONTINUE UTILITY SERVICE WITH SOUTHERN CALIFORNIA EDISON COMPANY IGF::OT::IGF Key points: 1. Contract duration of 10 years suggests a long-term need for essential utility services. 2. The firm-fixed-price contract type provides cost certainty for the government. 3. Sole-source award indicates potential lack of competition or unique service provider. 4. Services are critical for the operation of federal facilities in California. 5. The contract value is spread over a significant period, averaging over $2 million annually. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $21.9 million over 10 years averages $2.19 million annually. Benchmarking this against similar utility contracts is challenging without specific service details and geographic scope. However, the long duration and sole-source nature warrant scrutiny to ensure competitive pricing was considered or justified. The firm-fixed-price structure offers predictability, but the overall value proposition depends on the prevailing market rates for electricity distribution in the specified region.

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 typically occurs when a single provider is the only responsible source capable of providing the required services, often due to geographic exclusivity or unique infrastructure. The lack of competition means the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: A sole-source award means taxpayers may not have received the best possible price, as there was no competitive pressure to drive down costs. This approach bypasses the standard procurement process designed to ensure maximum value for public funds.

Public Impact

Federal facilities in California benefit from uninterrupted electricity supply, ensuring continued operations. The contract supports the essential infrastructure required for government functions within the service area. Employees working in federal buildings are assured of reliable power for their daily tasks. The local economy may see indirect benefits through the continued operation of federal agencies reliant on this service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration (10 years) may not adapt to future market changes or technological advancements.
Lack of transparency on the justification for sole-source procurement.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Ensures continuity of essential utility services for federal operations.
Long-term award indicates a stable and predictable relationship for critical infrastructure.

Sector Analysis

The energy sector, particularly electric power distribution, is a critical component of national infrastructure. Federal agencies are significant consumers of utility services, requiring reliable and continuous power. Contracts in this space often involve long-term agreements due to the nature of infrastructure and service provision. While specific market size for federal utility contracts is not readily available, the overall U.S. electric utility industry is valued in the hundreds of billions of dollars annually. This contract represents a small portion of that, focused on serving federal needs within a specific geographic region.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there any indication of subcontracting requirements for small businesses. This means opportunities for small businesses to participate in providing these essential utility services were not actively pursued through this specific award mechanism. The focus appears to be on securing the service from the incumbent or sole provider, potentially overlooking the benefits of engaging the small business sector.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Public Buildings Service. The firm-fixed-price nature provides some level of financial oversight by limiting cost overruns. However, the sole-source award necessitates careful review of the justification and pricing to ensure fairness and value. Transparency regarding the specific metrics for service delivery and performance would be crucial for ongoing accountability.

Related Government Programs

Federal Energy Management Program
General Services Administration Public Buildings Service Contracts
Utility Services Contracts

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may not reflect current market conditions.
Lack of detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.0 million to SOUTHERN CALIFORNIA EDISON COMPANY. CONTINUE UTILITY SERVICE WITH SOUTHERN CALIFORNIA EDISON COMPANY IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SOUTHERN CALIFORNIA EDISON COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2014-01-01. End: 2024-12-31.

What is the specific justification for awarding this contract on a sole-source basis to Southern California Edison?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available to meet the government's needs. This could be due to factors such as exclusive rights, unique capabilities, geographic necessity, or a critical need for continuity of service where transitioning to a new provider would be detrimental. Without further documentation from the General Services Administration (GSA), the precise rationale remains unknown, but it implies that a competitive process was deemed impractical or impossible for this particular requirement.

How does the annual cost of this contract compare to average commercial electricity distribution costs in Southern California?

Directly comparing the annual cost of $2.19 million (calculated from $21.9M over 10 years) to average commercial electricity distribution costs in Southern California is complex without detailed service parameters. Commercial rates are influenced by factors like energy consumption volume, peak demand charges, time-of-use pricing, and specific service level agreements. Southern California Edison's tariffs for commercial customers are publicly available, but a precise match requires knowing the exact load profiles and service requirements of the federal facilities. However, government contracts sometimes include administrative fees or specific service level requirements that might differ from standard commercial offerings. The sole-source nature also raises questions about whether the price reflects competitive market rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For utility services, common KPIs and SLAs often include metrics related to reliability (e.g., outage frequency and duration), power quality (e.g., voltage stability, frequency), response times for service calls or emergencies, and adherence to billing accuracy. The firm-fixed-price structure suggests that the core service delivery is expected to be met consistently. However, the absence of explicit performance metrics in the summary data makes it difficult to assess the contractor's performance beyond basic service provision and to evaluate the value received by the government.

What is the historical spending pattern for electric utility services provided by Southern California Edison to the GSA?

The provided data covers a single contract from January 1, 2014, to December 31, 2024, with a total value of $21.9 million. This represents an average annual expenditure of approximately $2.19 million. To assess historical spending patterns, one would need to examine prior contracts between GSA and Southern California Edison for similar services. If this contract represents a continuation of services previously provided, analyzing the value and duration of those earlier contracts would reveal trends in spending, potential price escalations, and the duration of the relationship. Without access to historical contract data, it's impossible to establish a spending pattern beyond this single, long-term award.

Are there any provisions in the contract for energy efficiency improvements or renewable energy integration?

The provided data summary does not contain information regarding provisions for energy efficiency improvements or renewable energy integration within this contract. While the contract ensures the delivery of electric power, it does not specify whether Southern California Edison is obligated or incentivized to implement efficiency measures at federal facilities or to supply power derived from renewable sources. Federal agencies often have mandates to improve energy efficiency and increase the use of renewable energy. The terms of this specific contract would need to be reviewed to determine if such initiatives are included or if they are managed separately.

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

Address: 8631 RUSH, ROSEMEAD, CA, 91770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,977,000

Exercised Options: $21,977,000

Current Obligation: $21,977,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P09BSD0666

IDV Type: IDC

Timeline