DoD's $51.4M Electric Power Distribution Contract with San Diego Gas & Electric Faces No Competition
Contract Overview
Contract Amount: $51,406,075 ($51.4M)
Contractor: SAN Diego GAS & Electric Company
Awarding Agency: Department of Defense
Start Date: 2014-02-24
End Date: 2024-09-30
Contract Duration: 3,871 days
Daily Burn Rate: $13.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: UTILITY AND GAS SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132
Plain-Language Summary
Department of Defense obligated $51.4 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: UTILITY AND GAS SERVICES Key points: 1. Significant contract value of $51.4 million over its duration. 2. Sole-source award indicates a lack of competitive bidding. 3. Long contract duration (2014-2024) may limit opportunities for re-evaluation. 4. Electric power distribution is a critical utility service for military operations.
Value Assessment
Rating: questionable
Pricing is not explicitly detailed, but the lack of competition raises concerns about whether the government is receiving the best possible price. Without benchmarks or competitive bids, it's difficult to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for essential utility services.
Public Impact
Ensures continuous power supply for critical Navy operations in California. Potential for higher costs due to lack of competitive bidding. Limited transparency on pricing mechanisms for a large utility contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of pricing transparency
Positive Signals
- Ensures critical utility service
- Established provider
Sector Analysis
This contract falls within the Energy sector, specifically focusing on utility services. Utility contracts, especially for critical infrastructure like military bases, often have unique procurement challenges due to the nature of service delivery and existing infrastructure.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, which is common for utility services provided by large, established companies.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny to ensure the Department of the Navy obtained fair pricing and that competition was genuinely not feasible. Future contract actions should explore competitive options if possible.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited oversight on price justification
- Long contract duration may reduce flexibility
Tags
electric-power-distribution, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.4 million to SAN DIEGO GAS & ELECTRIC COMPANY. UTILITY AND GAS SERVICES
Who is the contractor on this award?
The obligated recipient is SAN DIEGO GAS & ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $51.4 million.
What is the period of performance?
Start: 2014-02-24. End: 2024-09-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supply or service. For utility services, this might be due to geographic monopolies or existing infrastructure dependencies. However, a thorough review should confirm that no competitive avenues, even for specific components or future renewals, were overlooked.
How does the pricing compare to similar utility contracts awarded competitively?
Without access to comparable contract data or specific pricing breakdowns for this contract, a direct comparison is impossible. The lack of competition inherently makes it difficult to benchmark pricing effectively. A review of historical pricing trends and industry averages for electric power distribution in California could offer some insight, but a true competitive benchmark is absent.
What is the long-term risk associated with a sole-source utility contract of this duration?
The primary long-term risk is the potential for sustained above-market pricing due to the absence of competitive pressure. Additionally, a long duration can lead to vendor complacency and a lack of incentive to innovate or offer cost efficiencies. It also ties the government to a single provider, limiting flexibility if service quality or pricing becomes unsatisfactory.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sempra Energy
Address: 8326 CENTURY PARK CT, SAN DIEGO, CA, 92123
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,210,427
Exercised Options: $57,210,427
Current Obligation: $51,406,075
Actual Outlays: $463,262
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-24
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-09-10
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