Washington Gas Light Company awarded $20.3M for energy conservation, with limited competition

Contract Overview

Contract Amount: $20,346,293 ($20.3M)

Contractor: Washington GAS Light Company

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-16

End Date: 2021-09-30

Contract Duration: 5,190 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ENERGY CONSERVATION MEASUREMENTS

Place of Performance

Location: LAUREL, PRINCE GEORGES County, MARYLAND, 20708

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.3 million to WASHINGTON GAS LIGHT COMPANY for work described as: ENERGY CONSERVATION MEASUREMENTS Key points: 1. Contract value of $20.3M for energy conservation measures. 2. Limited competition due to contract type. 3. Long contract duration of over 14 years. 4. Firm Fixed Price contract type indicates price certainty. 5. Contract awarded to a single entity, Washington Gas Light Company. 6. Geographic focus on Maryland.

Value Assessment

Rating: fair

The contract value of $20.3 million for energy conservation measures over a 14-year period appears reasonable given the scope. However, without specific details on the conservation measures implemented or benchmarks for similar projects, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost predictability for the government. Comparing this to other large-scale energy conservation contracts within the federal government would offer better context for pricing and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or non-competitive basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one vendor, Washington Gas Light Company, was considered for this award. The lack of competition limits the government's ability to explore alternative solutions or secure potentially lower pricing through a bidding process. The rationale for this sole-source award is not provided in the data.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the opportunity for other businesses to secure government contracts.

Public Impact

The primary beneficiary is the Food and Drug Administration (FDA) through improved energy efficiency at its facilities. Services delivered include energy conservation measurements and potentially implementation of related measures. The geographic impact is focused on Maryland, where Washington Gas Light Company operates. Workforce implications are likely related to the operations and maintenance of energy conservation systems, potentially involving specialized technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs.
Long contract duration could lead to vendor lock-in or outdated technology if not managed proactively.
Limited transparency on the specific conservation measures and their effectiveness.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Focus on energy conservation aligns with federal sustainability goals.
Award to an established utility company may ensure reliable service delivery.

Sector Analysis

The energy sector encompasses a wide range of activities, from utility provision to renewable energy development. This contract falls within the utility services segment, specifically focusing on energy conservation for a government agency. Federal spending in energy conservation aims to reduce operational costs and environmental impact. Comparable spending benchmarks would involve analyzing other utility service contracts or large-scale energy efficiency retrofits across federal agencies.

Small Business Impact

There is no indication that this contract involved small business set-asides. The award was made to Washington Gas Light Company, a large utility provider. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award based on the provided data. The focus is on a direct service agreement with a major utility.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Food and Drug Administration, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the firm fixed-price structure, which holds the contractor responsible for delivering the agreed-upon services within the fixed price. Transparency is limited by the lack of detailed public information on the specific conservation measures and their outcomes.

Related Government Programs

Federal Energy Management Program
Energy Efficiency and Conservation Block Grant Program
Utility Energy Services Contracts

Risk Flags

Sole-source award limits competition.
Long contract duration may pose risks.
Lack of detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.3 million to WASHINGTON GAS LIGHT COMPANY. ENERGY CONSERVATION MEASUREMENTS

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2007-07-16. End: 2021-09-30.

What specific energy conservation measures were implemented under this contract?

The provided data indicates the contract is for 'ENERGY CONSERVATION MEASUREMENTS' but does not detail the specific measures implemented. These could range from energy audits and retro-commissioning to the installation of energy-efficient lighting, HVAC upgrades, or building envelope improvements. A comprehensive understanding of the contract's impact requires further information on the scope of work and the technologies or practices employed by Washington Gas Light Company to achieve energy savings for the FDA facilities in Maryland.

How does the $20.3 million contract value compare to similar energy conservation projects for federal agencies?

Benchmarking the $20.3 million contract value against similar federal energy conservation projects is challenging without more specific data on the scope, duration, and type of measures. However, given the 14-year duration, the average annual expenditure is approximately $1.45 million. This figure needs to be contextualized by the size and complexity of the facilities being served by the FDA in Maryland. Larger, more complex energy conservation initiatives or retrofits in major federal buildings can often run into tens or even hundreds of millions of dollars. The value here appears moderate for a long-term utility service agreement focused on conservation.

What are the potential risks associated with a sole-source award for energy conservation services?

The primary risk of a sole-source award for energy conservation services is the potential for inflated pricing due to the absence of competitive bidding. Taxpayers may end up paying more than necessary if alternative vendors could have offered similar services at a lower cost. Additionally, a sole-source contract can limit innovation, as the government is reliant on the single contractor's proposed solutions without exploring a broader market of potential technologies or approaches. There's also a risk of complacency from the contractor, as there is no immediate competitive threat driving continuous improvement or cost efficiency.

What is the track record of Washington Gas Light Company in delivering energy conservation services to government entities?

Washington Gas Light Company is a major utility provider serving the Washington D.C. metropolitan area, including Maryland. While their primary business is natural gas distribution, they often engage in energy efficiency programs and services for their customers, which can include government facilities. Information regarding their specific track record with federal energy conservation contracts is not detailed in the provided data. However, as an established utility, they possess significant infrastructure and expertise in managing energy-related services within their service territory. Further investigation into their past performance on similar government contracts would be beneficial.

How effective are energy conservation measurements in achieving significant cost savings for federal agencies?

Energy conservation measurements, when followed by appropriate implementation of identified measures, can be highly effective in achieving significant cost savings for federal agencies. These measurements typically involve detailed energy audits that identify inefficiencies in building systems, operational practices, and equipment. By addressing these inefficiencies, agencies can reduce their overall energy consumption, leading to lower utility bills and a smaller environmental footprint. The success of these measurements is contingent on the thoroughness of the audit, the feasibility and cost-effectiveness of the recommended actions, and the commitment of the agency to implement the proposed changes. Long-term contracts like this one suggest an ongoing commitment to energy management.

What is the historical spending pattern for energy conservation measures by the Food and Drug Administration?

The provided data only includes a single contract award to Washington Gas Light Company for energy conservation measurements totaling $20.3 million, spanning from 2007 to 2021. This single data point does not provide sufficient information to establish a historical spending pattern for the Food and Drug Administration (FDA) in this area. To understand historical spending, one would need to analyze multiple contracts over several fiscal years, looking at the total amount spent on energy conservation, the types of services procured, and the contractors involved. Without this broader context, it's impossible to determine if this $20.3 million represents a significant increase, decrease, or consistent level of investment.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas 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: Altagas Ltd

Address: 101 CONSTITUTION AVE NW, WASHINGTON, DC, 20080

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

Financial Breakdown

Contract Ceiling: $20,346,293

Exercised Options: $20,346,293

Current Obligation: $20,346,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00P06BSD0393

IDV Type: IDC

Timeline