NASA awards $30.6M for electricity services, with TXU Energy Retail Company LLC securing the contract
Contract Overview
Contract Amount: $30,632,196 ($30.6M)
Contractor: TXU Energy Retail Company LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-02-04
End Date: 2011-01-31
Contract Duration: 726 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRICITY SERVICE PROCUREMENT FOR JSC CENTER SUPPORT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $30.6 million to TXU ENERGY RETAIL COMPANY LLC for work described as: ELECTRICITY SERVICE PROCUREMENT FOR JSC CENTER SUPPORT Key points: 1. The contract value of $30.6 million over approximately two years represents a significant investment in essential utility services for a NASA center. 2. The procurement was conducted under full and open competition, suggesting a robust market for electricity providers. 3. The firm-fixed-price contract type indicates that the price is set and unlikely to change, providing cost certainty for the agency. 4. The duration of the contract (726 days) suggests a need for stable, long-term energy supply. 5. The contract's focus on electricity services highlights the critical infrastructure requirements for NASA's operational facilities.
Value Assessment
Rating: good
The contract value of $30.6 million for approximately two years of electricity services appears reasonable given the scale of NASA's operational needs. Benchmarking against similar large-scale electricity procurements for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a comprehensive value assessment challenging without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of at least one bidder (TXU Energy Retail Company LLC) suggests a competitive market for these services. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition and its potential impact on pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.
Public Impact
The primary beneficiaries are NASA's operational facilities, ensuring a consistent and reliable supply of electricity for critical functions. The services delivered are essential electricity provision, powering research, development, and administrative activities. The geographic impact is localized to the specific NASA center receiving the electricity service in Texas. Workforce implications are minimal, as this contract primarily procures a utility service rather than direct labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of service beyond basic delivery.
- The specific NASA center supported by this contract is not identified, limiting the understanding of its operational context and potential risks.
Positive Signals
- Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
- Firm-fixed-price contract type provides cost certainty for the agency, mitigating budget risks associated with fluctuating energy prices.
Sector Analysis
The procurement of electricity services falls under the broader energy sector, specifically focusing on utility provision. Federal agencies are significant consumers of electricity, and contracts like this are crucial for maintaining operations. The market for electricity retail is often competitive, especially in deregulated states like Texas, where TXU Energy operates. The contract value of $30.6 million is substantial, reflecting the energy demands of a major federal facility.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities, which are not detailed here. The primary awardee, TXU Energy Retail Company LLC, is a large energy provider, suggesting the contract was not specifically aimed at fostering small business growth.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant NASA program office responsible for facility operations. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver services at the agreed-upon price. Transparency is partially addressed by the public nature of federal contract awards, but detailed performance reports or audits are not publicly available in this summary.
Related Government Programs
- Federal Utility Services
- NASA Facility Operations
- Energy Procurement Contracts
- Electric Power Generation and Distribution
Risk Flags
- Potential for price volatility if market rates change significantly over the contract duration.
- Lack of detailed performance metrics makes it difficult to fully assess service quality.
- Contract duration may not align with potential future changes in energy technology or agency needs.
Tags
energy, nasa, texas, firm-fixed-price, large-contract, full-and-open-competition, utility-services, electricity-procurement, federal-agency, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $30.6 million to TXU ENERGY RETAIL COMPANY LLC. ELECTRICITY SERVICE PROCUREMENT FOR JSC CENTER SUPPORT
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 $30.6 million.
What is the period of performance?
Start: 2009-02-04. End: 2011-01-31.
What is the historical spending pattern for electricity services at this specific NASA center?
Without identifying the specific NASA center, it is impossible to provide historical spending patterns for electricity services. However, federal agencies generally have consistent needs for utility services. Analyzing past contracts for similar facilities or the same center over several years would reveal trends in energy consumption, pricing fluctuations, and the evolution of procurement strategies. This contract, valued at approximately $30.6 million over two years, suggests a significant but potentially stable energy demand. Understanding if this value represents an increase or decrease compared to previous periods would offer insight into efficiency gains, changes in operational scope, or market price shifts.
How does the awarded price compare to market rates for similar electricity services in Texas during the contract period?
The contract was awarded to TXU Energy Retail Company LLC for electricity services in Texas. To assess the price against market rates, one would need to compare the per-kilowatt-hour (kWh) cost or the total contract value adjusted for estimated consumption against prevailing commercial and industrial electricity rates in Texas between February 2009 and January 2011. Given that this is a firm-fixed-price contract, the rate was likely negotiated based on projected usage and market conditions at the time of award. Without the specific consumption data or the negotiated rate per unit, a direct comparison is difficult. However, TXU Energy is a major retail provider, and competition under full and open bidding suggests the price should be reasonably aligned with market offerings for large-scale consumers.
What are the key performance indicators (KPIs) associated with this electricity service contract?
The provided data does not specify the key performance indicators (KPIs) for this electricity service contract. Typically, for utility services, KPIs might include reliability metrics such as power outage frequency and duration, response times to service interruptions, power quality (e.g., voltage stability), and adherence to billing accuracy. For a firm-fixed-price contract, the primary performance expectation is the consistent and reliable delivery of electricity as per the agreed-upon terms. NASA's contracting officer and facility managers would monitor these aspects, though the specific metrics and their targets are not detailed in this summary.
What is TXU Energy Retail Company LLC's track record with federal government contracts, particularly for utility services?
TXU Energy Retail Company LLC, as a major energy provider in Texas, likely has a history of serving large commercial and industrial clients, which often includes government entities. While specific details of their federal contract history are not provided here, their ability to win a significant contract like this from NASA suggests they possess the necessary qualifications, capacity, and competitive pricing. A deeper analysis would involve reviewing their past performance on similar federal contracts, including any awards, penalties, or significant issues reported by agencies. Their established presence in the Texas market indicates experience in navigating regulatory environments and managing large-scale energy supply.
What are the potential risks associated with a long-term fixed-price electricity contract for a federal agency?
A primary risk with a long-term fixed-price electricity contract is potential price escalation if market energy prices rise significantly above the contracted rate. While the agency benefits from cost certainty, the contractor assumes the risk of price volatility. Conversely, if market prices fall substantially, the agency might be overpaying relative to current market conditions. Another risk could be related to service quality; if the fixed price incentivizes cost-cutting by the provider, it could potentially impact reliability or response times, although this is mitigated by performance expectations and potential penalties. Ensuring the contract includes clear service level agreements and remedies for non-performance is crucial to manage these risks.
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: 1
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: $31,687,206
Exercised Options: $31,687,206
Current Obligation: $30,632,196
Contract Characteristics
Multi-Year Contract: Yes
Parent Contract
Parent Award PIID: SP060009D8010
IDV Type: IDC
Timeline
Start Date: 2009-02-04
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2012-08-08
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