GSA Awards $39.2M ARRA Contract for DC Utility System to Washington Gas Light Company

Contract Overview

Contract Amount: $39,247,371 ($39.2M)

Contractor: Washington GAS Light Company

Awarding Agency: General Services Administration

Start Date: 2010-09-10

End Date: 2014-05-16

Contract Duration: 1,344 days

Daily Burn Rate: $29.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ARRA FUNDED: TASK ORDER NO. 2 FOR THE DESIGN AND CONSTRUCTION OF THE PHASE I UTILITY/ELECTRICAL DISTRIBUTION SYSTEM AT THE ST. ELIZABETH WEST CAMPUS IN WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $39.2 million to WASHINGTON GAS LIGHT COMPANY for work described as: ARRA FUNDED: TASK ORDER NO. 2 FOR THE DESIGN AND CONSTRUCTION OF THE PHASE I UTILITY/ELECTRICAL DISTRIBUTION SYSTEM AT THE ST. ELIZABETH WEST CAMPUS IN WASHINGTON, D.C. Key points: 1. Contract awarded under ARRA stimulus funding for critical infrastructure. 2. Washington Gas Light Company is the sole provider of natural gas distribution in the area. 3. Risk of cost overruns due to fixed-price contract and long duration. 4. Sector: Energy/Utilities, specifically natural gas distribution infrastructure.

Value Assessment

Rating: fair

The contract is a firm-fixed-price award for a significant sum. Without comparable contracts or detailed cost breakdowns, assessing value is difficult. The fixed-price nature aims to control costs, but the long duration presents potential for unforeseen expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, likely due to Washington Gas Light Company's exclusive service territory for natural gas distribution. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may bear a higher cost due to the sole-source nature of this award, as competitive bidding was not utilized to ensure the best possible price.

Public Impact

Project aims to upgrade essential utility infrastructure in Washington D.C. ARRA funding signifies a focus on economic stimulus and job creation. Long-term impact on the reliability of the St. Elizabeth West Campus's energy supply.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Long contract duration (1344 days) increases risk of cost escalation.
Fixed-price contract may not account for unforeseen site conditions or material cost increases.

Positive Signals

ARRA funding supports economic stimulus goals.
Addresses critical utility infrastructure needs.
Firm-fixed-price contract provides cost certainty if managed effectively.

Sector Analysis

This contract falls within the Energy and Utilities sector, specifically focusing on natural gas distribution infrastructure. Spending in this area is often driven by infrastructure replacement, upgrades, and new development needs, with costs influenced by material prices and labor rates.

Small Business Impact

The data indicates that neither small business participation nor set-asides were applicable to this contract. This suggests the prime contractor, Washington Gas Light Company, is a large entity, and opportunities for small businesses were not explicitly included in this specific award.

Oversight & Accountability

Oversight of this contract would primarily fall under the General Services Administration (GSA), Public Buildings Service. Given the ARRA funding, there may be additional reporting requirements and oversight mechanisms in place to ensure accountability and proper use of stimulus funds.

Related Government Programs

Natural Gas Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Sole-source award limits price competition.
Long contract duration increases risk of cost overruns.
Fixed-price contract may not adequately cover unforeseen expenses.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.2 million to WASHINGTON GAS LIGHT COMPANY. ARRA FUNDED: TASK ORDER NO. 2 FOR THE DESIGN AND CONSTRUCTION OF THE PHASE I UTILITY/ELECTRICAL DISTRIBUTION SYSTEM AT THE ST. ELIZABETH WEST CAMPUS IN WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2010-09-10. End: 2014-05-16.

What was the justification for the sole-source award, and were any alternatives explored to ensure fair pricing?

The sole-source nature of this award suggests Washington Gas Light Company holds a monopoly on natural gas distribution in the specified area. While alternatives might not exist for the core service, the agency should have explored competitive options for related services or materials if feasible. The lack of competition inherently limits price discovery, potentially leading to a higher cost for taxpayers than a competitive bid might have achieved.

How were potential risks associated with the long duration and fixed-price nature of the contract mitigated?

Mitigation strategies for a long-duration, fixed-price contract typically involve detailed scope definition, robust contingency planning, and regular performance reviews. The agency likely relied on the contractor's expertise and historical cost data. However, unforeseen economic shifts or site conditions could still impact the project's ultimate cost-effectiveness, potentially requiring contract modifications or leading to disputes.

What is the expected long-term impact of this utility system upgrade on the St. Elizabeth West Campus's operational efficiency and resilience?

The upgrade to the Phase I Utility/Electrical Distribution System is expected to enhance the operational efficiency and resilience of the St. Elizabeth West Campus by providing a more reliable and potentially modernized energy infrastructure. This can lead to reduced downtime, lower maintenance costs, and improved energy security for the facility, contributing to its long-term sustainability and functionality.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: WGL Holdings Inc. (UEI: 153776278)

Address: 101 CONSTITUTION AVE NW, WASHINGTON, DC, 98

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,247,371

Exercised Options: $39,247,371

Current Obligation: $39,247,371

Parent Contract

Parent Award PIID: GS00P06BSD0393

IDV Type: IDC

Timeline