Interior's $52.3M Water Utility Contract Awarded Sole-Source to Albuquerque Bernalillo County Water Utility Authority

Contract Overview

Contract Amount: $52,309 ($52.3K)

Contractor: Albuquerque Bernalillo County Water Utility Authority

Awarding Agency: Department of the Interior

Start Date: 2015-09-11

End Date: 2025-12-31

Contract Duration: 3,764 days

Daily Burn Rate: $14/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF WATER/SEWER UTILITY AND REFUSE SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $52,308.52 to ALBUQUERQUE BERNALILLO COUNTY WATER UTILITY AUTHORITY for work described as: IGF::CT::IGF WATER/SEWER UTILITY AND REFUSE SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Long-term contract duration (over 10 years) may not reflect current market conditions. 3. Fixed-price contract type offers cost certainty but limits flexibility for scope changes. 4. No small business set-aside noted, potentially impacting small business participation. 5. Contract focuses on essential water, sewer, and refuse services, indicating critical infrastructure support. 6. Geographic concentration in New Mexico for service delivery.

Value Assessment

Rating: fair

The contract value of $52.3 million over its lifespan appears substantial for utility services. However, without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature provides budget predictability. Benchmarking against similar municipal utility contracts in the region would be necessary for a more robust evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or authorized by statute. The lack of competition means that the pricing and terms were negotiated directly with the Albuquerque Bernalillo County Water Utility Authority, potentially leading to higher costs than if multiple bidders had vied for the contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced in a sole-source scenario.

Public Impact

Provides essential water, sewer, and refuse services to facilities managed by the Bureau of Indian Affairs and Bureau of Indian Education. Benefits federal operations and potentially the surrounding communities reliant on these shared utility infrastructures. Services are geographically concentrated in New Mexico, supporting federal presence in the state. Ensures operational continuity for critical federal functions dependent on reliable utility provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration may not align with evolving utility technologies or needs.
Lack of small business participation noted.

Positive Signals

Contract provides essential, non-discretionary utility services.
Fixed-price contract offers cost predictability for the government.
Established utility provider likely ensures reliable service delivery.

Sector Analysis

This contract falls within the Utilities and Waste Management sector, specifically focusing on essential services like water, sewer, and refuse. The market for such services is often localized and can involve a mix of public utilities, private contractors, and specialized providers. Given the sole-source nature, it suggests a unique or established relationship with the provider, potentially serving federal installations where direct municipal services are the most practical or only option. Comparable spending benchmarks are difficult without knowing the specific service levels and volume, but utility contracts are a consistent expenditure across federal agencies.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large utility authority, there are likely no subcontracting opportunities for small businesses directly related to this primary contract. This means the direct economic benefit to the small business ecosystem from this specific award is minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Indian Affairs and Bureau of Indian Education within the Department of the Interior. Standard contract administration processes, performance reviews, and financial audits would be the key accountability measures. Transparency is limited due to the sole-source nature, but reporting requirements for federal contracts should still apply. The Inspector General of the Department of the Interior would have jurisdiction for investigations into fraud, waste, or abuse.

Related Government Programs

Federal Utility Services
Bureau of Indian Affairs Operations
Bureau of Indian Education Facilities Management
New Mexico Federal Infrastructure Support

Risk Flags

Sole-source award may limit price competition.
Long contract duration could lead to outdated service terms or pricing.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $52,308.52 to ALBUQUERQUE BERNALILLO COUNTY WATER UTILITY AUTHORITY. IGF::CT::IGF WATER/SEWER UTILITY AND REFUSE SERVICES

Who is the contractor on this award?

The obligated recipient is ALBUQUERQUE BERNALILLO COUNTY WATER UTILITY AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $52,308.52.

What is the period of performance?

Start: 2015-09-11. End: 2025-12-31.

What is the historical spending pattern for IGF WATER/SEWER UTILITY AND REFUSE SERVICES under the Bureau of Indian Affairs?

Historical spending data for this specific contract (IGF::CT::IGF WATER/SEWER UTILITY AND REFUSE SERVICES) prior to the current definitive contract is not readily available in the provided data snippet. The current definitive contract has an award amount of $52,308.52, but this likely represents a portion of the total value over its extended period or a specific task order. To understand historical spending patterns, one would need to access contract databases like FPDS or USASpending and search for previous contracts with the Albuquerque Bernalillo County Water Utility Authority for similar services provided to the Bureau of Indian Affairs or Bureau of Indian Education. Analyzing past contract values, durations, and any modifications would reveal trends in expenditure for these essential utility services.

How does the pricing of this sole-source contract compare to market rates for similar utility services in New Mexico?

A direct comparison of pricing for this sole-source contract to market rates is challenging without specific service details and volume metrics. Sole-source awards inherently bypass the competitive process that typically drives prices down to market levels. To benchmark, one would need to identify comparable municipal utility contracts in the Albuquerque/Bernalillo County area or similar regions in New Mexico, looking at per-gallon water rates, sewer service fees, and refuse collection charges. Additionally, researching rates charged by other utility providers to commercial or industrial clients in the vicinity could offer a proxy. However, the unique nature of serving federal facilities and the negotiated terms of a sole-source agreement mean that direct market parity is not guaranteed and may not be the primary objective if a specific, trusted provider is deemed essential.

What are the primary risks associated with a sole-source award for essential utility services?

The primary risks associated with a sole-source award for essential utility services include potential overpayment due to the lack of competitive bidding, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if service needs change significantly over the contract's long duration. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, if the sole-source justification is weak or circumstances change, it could raise concerns about fairness and compliance with procurement regulations. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What is the expected performance standard for water, sewer, and refuse services under this contract?

The expected performance standards for water, sewer, and refuse services under this contract are not detailed in the provided data. However, as a definitive contract with a fixed-price structure, performance expectations would typically be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents usually specify requirements related to water quality and pressure, sewer system maintenance and response times for blockages, and refuse collection schedules and disposal methods. Compliance with federal, state, and local environmental and health regulations would also be a key performance indicator. The Bureau of Indian Affairs and Bureau of Indian Education would be responsible for monitoring the contractor's adherence to these standards throughout the contract period.

What is the significance of the contract being a 'FIRM FIXED PRICE' type?

A 'FIRM FIXED PRICE' (FFP) contract type signifies that the contractor, Albuquerque Bernalillo County Water Utility Authority, bears the primary responsibility for all costs incurred to perform the work. The agreed-upon price is fixed and will not be adjusted except in cases of significant scope changes initiated by the government. This provides the Department of the Interior with maximum cost certainty and predictability for budgeting purposes. For the contractor, it offers the potential for higher profit margins if they can manage their costs efficiently, but also carries the risk of losses if costs exceed the fixed price. This contract type is generally preferred for well-defined requirements where cost and performance risks can be reasonably assessed upfront.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: A15PS01286

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 CIVIC PLZ NW FL 10, ALBUQUERQUE, NM, 87102

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,309

Exercised Options: $52,309

Current Obligation: $52,309

Actual Outlays: $33,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline