Interior's $15.6M Electric Service Contract for San Carlos Irrigation Project Lacked Competition
Contract Overview
Contract Amount: $15,581,300 ($15.6M)
Contractor: Western Area Power Administration
Awarding Agency: Department of the Interior
Start Date: 2004-11-08
End Date: 2010-09-30
Contract Duration: 2,152 days
Daily Burn Rate: $7.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: FIRM ELECTRIC SERVICE TO SAN CARLOS IRRIGATION PROJECT, COOLIDGE, ARIZONA
Place of Performance
Location: DENVER, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $15.6 million to WESTERN AREA POWER ADMINISTRATION for work described as: FIRM ELECTRIC SERVICE TO SAN CARLOS IRRIGATION PROJECT, COOLIDGE, ARIZONA Key points: 1. The contract awarded to Western Area Power Administration for electric service represents a significant expenditure. 2. Lack of competition is a major concern, potentially leading to inflated costs. 3. The duration of the contract (2004-2010) suggests a long-term need for this service. 4. The sector is energy transmission, crucial for infrastructure projects like irrigation.
Value Assessment
Rating: questionable
The contract value of $15.6 million over approximately 6 years needs benchmarking against similar firm electric service contracts. Without competitive bidding, it's difficult to ascertain if the price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly reduces the opportunity for price discovery and potentially results in higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely means taxpayers paid more than they would have in a fully competed scenario.
Public Impact
Farmers and communities relying on the San Carlos Irrigation Project may face higher operational costs due to potentially non-competitive pricing. The Department of the Interior's procurement practices are under scrutiny for potentially not maximizing taxpayer value. Reliable electric service is critical for agricultural output and water management in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration without re-evaluation
- Potential for overpayment
Positive Signals
- Essential service for critical infrastructure
Sector Analysis
This contract falls within the Energy sector, specifically electric bulk power transmission. Spending in this area is vital for national infrastructure, but competitive procurement is key to efficiency.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a government agency suggests a lack of opportunity for small business participation.
Oversight & Accountability
The non-competed nature of this award warrants oversight to ensure the government obtained the best possible value. Accountability for the procurement decision is necessary.
Related Government Programs
- Electric Bulk Power Transmission and Control
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- Long-term commitment without re-evaluation
Tags
electric-bulk-power-transmission-and-con, department-of-the-interior, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $15.6 million to WESTERN AREA POWER ADMINISTRATION. FIRM ELECTRIC SERVICE TO SAN CARLOS IRRIGATION PROJECT, COOLIDGE, ARIZONA
Who is the contractor on this award?
The obligated recipient is WESTERN AREA POWER ADMINISTRATION.
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 $15.6 million.
What is the period of performance?
Start: 2004-11-08. End: 2010-09-30.
What was the justification for not competing this contract, and did it align with federal procurement regulations for sole-source awards?
The provided data states the contract was 'NOT COMPETED'. A thorough review would be needed to determine the specific justification, such as the availability of only one responsible source or an emergency. Without this justification, it's impossible to assess compliance with regulations like FAR Part 6.
How does the per-unit cost of this electric service compare to market rates for similar services in Arizona during the contract period?
Benchmarking the cost against similar firm electric service contracts in Arizona between 2004 and 2010 is crucial. Given the lack of competition, it's probable that the price was higher than market rates, representing a potential loss of taxpayer funds.
What was the impact of this non-competed contract on the long-term operational costs and efficiency of the San Carlos Irrigation Project?
The long duration and lack of competition suggest a sustained higher cost for electricity. This could have negatively impacted the project's budget, potentially diverting funds from other essential maintenance or operational needs, thereby affecting overall efficiency.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Bulk Power Transmission and Control
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of the United States (UEI: 161906193)
Address: 12155 W ALAMEDA PKWY, LAKEWOOD, CO, 07
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,581,300
Exercised Options: $15,581,300
Current Obligation: $15,581,300
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-11-08
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-03-13
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)