DoD's $18.3M Utility Contract Awarded to San Diego Gas & Electric Company for 727 Days
Contract Overview
Contract Amount: $18,305,954 ($18.3M)
Contractor: SAN Diego GAS & Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-12-01
End Date: 2026-11-28
Contract Duration: 727 days
Daily Burn Rate: $25.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FULLY FINANCED
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145
Plain-Language Summary
Department of Defense obligated $18.3 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: FULLY FINANCED Key points: 1. Contract value of $18.3 million for utility services. 2. Limited competition due to the nature of utility provision. 3. Potential risk of overpayment if pricing is not benchmarked against similar utility contracts. 4. Spending falls within the broad 'Utilities' sector.
Value Assessment
Rating: fair
The contract is for utility services, which often have regulated pricing structures. Without specific benchmarks for similar utility contracts in California, it's difficult to definitively assess value. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, likely due to the nature of utility service provision where a single provider serves a geographic area. This limits price discovery and negotiation opportunities.
Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to the lack of competitive bidding, though regulated utility rates can mitigate this.
Public Impact
Ensures essential utility services for Department of Defense operations in California. Supports critical infrastructure for naval facilities. Provides stable, long-term service delivery for a significant period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for above-market pricing in a regulated utility environment
Positive Signals
- Firm fixed-price contract
- Long-term service agreement
Sector Analysis
This contract falls under the utilities sector, specifically for electric, gas, and communications. Spending benchmarks for utility services can vary significantly by region and the specific services provided. Government contracts for utilities are common but often awarded through limited competition.
Small Business Impact
The contract was awarded to San Diego Gas & Electric Company, a large utility provider. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would focus on ensuring service delivery meets contractual requirements and that pricing remains aligned with regulated utility rates. The firm fixed-price nature simplifies some aspects of financial oversight.
Related Government Programs
- Regulation and Administration of Communications, Electric, Gas, and Other Utilities
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for above-market pricing
- Reliance on regulated utility rates
- Long contract duration
Tags
regulation-and-administration-of-communi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to SAN DIEGO GAS & ELECTRIC COMPANY. FULLY FINANCED
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 $18.3 million.
What is the period of performance?
Start: 2024-12-01. End: 2026-11-28.
What is the typical pricing structure for regulated utilities in California, and how does this contract's pricing compare?
Regulated utilities in California operate under tariffs approved by the California Public Utilities Commission (CPUC). These tariffs establish rates for different service types. To assess value, one would need to compare the contract's rates against the applicable CPUC-approved tariffs for the specific services (electric, gas, communications) and usage levels. Without this detailed comparison, it's challenging to determine if the pricing is optimal.
What are the risks associated with awarding utility contracts without full and open competition?
The primary risk is the potential for paying above-market rates due to the absence of competitive pressure. While regulated utilities have established pricing, the lack of competition can reduce incentives for efficiency or favorable negotiation. This could lead to higher costs for taxpayers over the contract's duration, especially if the regulated rates are not the most cost-effective available.
How effective is a firm fixed-price contract for utility services in ensuring predictable costs for the government?
A firm fixed-price contract is generally effective in ensuring predictable costs for the government, as the price is set upfront and does not change unless contract modifications occur. For utility services, this provides a clear budget baseline. However, the actual consumption of utilities can vary, impacting the total expenditure, and the fixed price is based on anticipated usage and regulated rates.
Industry Classification
NAICS: Public Administration › Administration of Economic Programs › Regulation and Administration of Communications, Electric, Gas, and Other Utilities
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
Address: 8330 CENTURY PARK COURT, 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: $18,855,914
Exercised Options: $18,855,914
Current Obligation: $18,305,954
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247321G4402
IDV Type: BOA
Timeline
Start Date: 2024-12-01
Current End Date: 2026-11-28
Potential End Date: 2026-11-28 00:00:00
Last Modified: 2026-04-09
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