NASA's $16.8M contract for electrical services awarded to TXU Energy Retail Company LLC
Contract Overview
Contract Amount: $16,811,321 ($16.8M)
Contractor: TXU Energy Retail Company LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-01-31
End Date: 2009-01-30
Contract Duration: 365 days
Daily Burn Rate: $46.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TO TRACK AND PAY ELECTRICAL INVOICES.
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75201
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $16.8 million to TXU ENERGY RETAIL COMPANY LLC for work described as: TO TRACK AND PAY ELECTRICAL INVOICES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $16.8 million for a one-year duration indicates a significant investment in energy services. 3. The award to TXU Energy Retail Company LLC, a known energy provider, suggests reliance on established market players. 4. The fixed-price contract type offers cost certainty for the agency, mitigating budget risks. 5. The contract's focus on tracking and paying electrical invoices highlights essential operational support. 6. The geographic location in Texas (SN: TEXAS) may influence energy market dynamics and pricing.
Value Assessment
Rating: good
The contract value of $16.8 million for a 365-day duration for electrical services appears reasonable given the scale of operations for an agency like NASA. Benchmarking against similar utility contracts is challenging without more specific service details, but the fixed-price nature suggests a predictable cost structure. The award was made through full and open competition, which typically drives competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of two bidders (NO: 2) suggests a moderate level of competition for this specific contract. While not a large number of bidders, open competition generally allows for price discovery and selection of the most advantageous offer.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value for the government.
Public Impact
NASA benefits from reliable electrical services, ensuring the continuity of its operations and research. The contract supports the tracking and payment of electrical invoices, a critical administrative function. The services are likely delivered within NASA's facilities in Texas, impacting the local energy market. The contract supports the energy sector by engaging a major utility provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only two bidders could potentially lead to higher prices than if more firms had participated.
- The fixed-price contract, while offering cost certainty, could lead to the contractor retaining significant profit if costs are lower than anticipated.
Positive Signals
- Awarded through full and open competition, ensuring a fair process.
- Fixed-price contract type provides budget predictability for NASA.
- Contract awarded to a known energy provider, suggesting reliability.
Sector Analysis
The energy sector, particularly electric power generation and distribution, is a critical component of federal operations. This contract falls under the Fossil Fuel Electric Power Generation category (ND: Fossil Fuel Electric Power Generation), though the service is for tracking and paying invoices rather than direct generation. Federal agencies are significant consumers of electricity, and contracts for energy services are common across various sectors. The market for energy retail and management is competitive, with numerous providers vying for government contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, TXU Energy Retail Company LLC, is a large energy provider, and the contract's nature does not inherently create opportunities for small business participation unless they are part of TXU's supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the National Aeronautics and Space Administration (NASA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Energy Management Program
- Utility Services Contracts
- Electric Power Generation and Distribution
Risk Flags
- Limited Competition
- Potential for Price Volatility (depending on contract specifics)
Tags
energy, utility-services, nasa, national-aeronautics-and-space-administration, firm-fixed-price, full-and-open-competition, texas, fossil-fuel-electric-power-generation, operational-support, invoice-processing
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $16.8 million to TXU ENERGY RETAIL COMPANY LLC. TO TRACK AND PAY ELECTRICAL INVOICES.
Who is the contractor on this award?
The obligated recipient is TXU ENERGY RETAIL COMPANY LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2008-01-31. End: 2009-01-30.
What is the historical spending pattern for electrical services by NASA?
Analyzing NASA's historical spending on electrical services requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies like NASA incur significant costs for electricity to power their facilities, laboratories, and administrative buildings. Spending can fluctuate based on energy market prices, facility expansions or consolidations, and the efficiency of energy management programs. Contracts for electricity can range from simple utility service agreements to complex energy savings performance contracts. Without specific historical data for NASA's electrical invoice tracking and payment services, it's difficult to provide precise figures. However, given the agency's extensive infrastructure, annual spending on electricity and related services is likely in the tens to hundreds of millions of dollars, varying year by year.
How does the price per unit for this contract compare to market rates for similar services?
Determining a precise 'price per unit' for a contract focused on tracking and paying electrical invoices is challenging without a clearly defined unit of service. The contract value of $16.8 million over 365 days suggests an average monthly expenditure of approximately $1.4 million for electrical services. This figure encompasses the cost of electricity consumed and potentially administrative fees for managing payments. To benchmark this against market rates, one would need to compare the kilowatt-hour (kWh) cost or the total energy expenditure relative to facility size or operational output. Given that TXU Energy Retail Company LLC is a major energy provider in Texas, their pricing is likely competitive within that regional market. However, a direct comparison to other federal contracts or private sector benchmarks would require more granular data on energy consumption and service fees.
What is TXU Energy Retail Company LLC's track record with federal contracts?
TXU Energy Retail Company LLC, as a significant energy provider, likely has a history of engaging with government entities, including federal agencies. Federal procurement databases would provide specific details on their past performance, including contract values, agencies served, and contract types. A review of these records would reveal their experience in fulfilling similar energy supply and management contracts. Factors to consider would include on-time delivery, adherence to contract terms, and any past performance issues or disputes. Generally, established utility providers are accustomed to the regulatory and contractual requirements of government work, suggesting a baseline level of competence.
What are the potential risks associated with this contract?
Potential risks associated with this contract include fluctuations in energy market prices, which could impact the actual cost of electricity if the contract has variable components or if future renewals are subject to market rates. Another risk is the reliability of the energy supply, although this is generally managed through service level agreements and redundancy in the power grid. For a contract focused on invoice tracking and payment, risks might include administrative errors, delays in payment processing, or potential overcharges if not meticulously monitored. The limited number of bidders (two) could also be seen as a risk, potentially indicating less competitive pricing than might be achieved with broader competition.
How does this contract contribute to NASA's overall mission objectives?
This contract directly supports NASA's mission objectives by ensuring the reliable and cost-effective supply of electricity to its facilities. Uninterrupted power is essential for the operation of laboratories, mission control centers, research equipment, and administrative functions. By outsourcing the tracking and payment of electrical invoices to a specialized provider like TXU Energy, NASA can ensure accurate billing and timely payments, avoiding potential service disruptions or penalties. This allows NASA personnel to focus on core scientific and exploratory activities rather than managing utility administration, thereby contributing indirectly but critically to the agency's success.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Texas Energy Future Holdings Limited Partnership (UEI: 808084607)
Address: 1601 BRYAN ST, DALLAS, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,844,931
Exercised Options: $17,844,931
Current Obligation: $16,811,321
Timeline
Start Date: 2008-01-31
Current End Date: 2009-01-30
Potential End Date: 2009-01-30 00:00:00
Last Modified: 2012-03-21
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