DoD's $7.3M contract for electric power distribution at Goodfellow AFB awarded to AEP Texas Inc

Contract Overview

Contract Amount: $7,337,214 ($7.3M)

Contractor: AEP Texas Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2059-11-30

Contract Duration: 18,688 days

Daily Burn Rate: $393/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTILITY SERVICES FOR ELECTRIC DISTRIBUTION SYSTEM AT GOODFELLOW AFB

Place of Performance

Location: GOODFELLOW AFB, TOM GREEN County, TEXAS, 76908

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to AEP TEXAS INC. for work described as: UTILITY SERVICES FOR ELECTRIC DISTRIBUTION SYSTEM AT GOODFELLOW AFB Key points: 1. Contract awarded for electric power distribution services, indicating a critical infrastructure need. 2. Long duration of the contract (over 11 years) suggests a need for sustained service delivery. 3. Firm Fixed Price contract type aims to provide cost certainty for the government. 4. The contract was awarded through full and open competition, suggesting a robust bidding process. 5. The awardee, AEP Texas Inc., is a significant utility provider, implying relevant experience. 6. The contract value of $7.3M over its term needs to be assessed against market rates for similar services.

Value Assessment

Rating: fair

The contract value of $7.3M over its extended period of performance (over 11 years) averages to approximately $667,000 annually. Benchmarking this against typical utility service contracts for military installations of similar size and scope would be necessary for a precise value-for-money assessment. Without specific comparable contract data or detailed service breakdowns, it's difficult to definitively state if this represents excellent or questionable value. However, the firm fixed-price nature suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes competitive pricing and allows the government to select the best value offer. The open competition suggests a healthy market for these services and likely resulted in a more favorable price than a sole-source award.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to drive down costs and ensure the government receives fair market value for essential utility services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the infrastructure at Goodfellow Air Force Base, ensuring reliable electric power. Services delivered include the maintenance and operation of the electric distribution system, crucial for base operations. The geographic impact is localized to Goodfellow AFB in Texas. Workforce implications may include the utilization of AEP Texas Inc.'s skilled technicians and support staff for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to price escalation if market conditions change significantly.
Dependence on a single contractor for a critical utility service poses a risk if performance issues arise.

Positive Signals

Award through full and open competition suggests a competitive pricing environment.
Firm Fixed Price contract type provides cost predictability.
Award to an established utility provider like AEP Texas Inc. implies a level of expertise and reliability.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on electric power distribution. The market for utility services, especially for large government installations, is typically dominated by established regional providers. The size of this contract, approximately $7.3 million over more than 11 years, is moderate within the context of federal utility spending, which can range from smaller localized contracts to massive energy infrastructure projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on securing the best overall value through full and open competition. While AEP Texas Inc. may utilize small businesses as subcontractors, there is no explicit requirement or indication of a small business subcontracting plan within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Logistics Agency (DLA) or the relevant Air Force contracting office at Goodfellow AFB. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Contracts
Utility Privatization Programs
Energy Resilience and Conservation Investment Program (ERCIP)
Federal Energy Management Program (FEMP)

Risk Flags

Long contract duration
Potential for price escalation over time
Dependence on single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to AEP TEXAS INC.. UTILITY SERVICES FOR ELECTRIC DISTRIBUTION SYSTEM AT GOODFELLOW AFB

Who is the contractor on this award?

The obligated recipient is AEP TEXAS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2008-09-30. End: 2059-11-30.

What is the historical spending pattern for electric power distribution at Goodfellow AFB?

Analyzing historical spending for electric power distribution at Goodfellow AFB prior to this contract would provide valuable context. If previous contracts were significantly lower or higher, it could indicate changes in service scope, market prices, or inflation. Without access to historical data specific to this installation, it's difficult to establish a trend. However, the current contract's long duration suggests a strategic decision to secure long-term, stable pricing for this essential service, potentially consolidating previous arrangements or addressing identified needs for system upgrades or sustained maintenance.

How does the annual cost of this contract compare to commercial utility rates in the San Angelo, Texas area?

To assess the value for money, the annual cost of this contract, approximately $667,000 ($7.3M / 11 years), should be benchmarked against commercial utility rates for comparable electricity consumption and distribution services in the San Angelo, Texas region. Factors such as demand charges, energy usage patterns, and any specific service level agreements (SLAs) required by the base would need to be considered. If the base has unique requirements (e.g., guaranteed uptime, specific power quality), these could justify a premium. A detailed comparison would require access to AEP Texas's commercial rate schedules and an understanding of the base's energy profile.

What specific performance metrics or service level agreements (SLAs) are included in the contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, for utility services, SLAs would focus on reliability (e.g., maximum allowable downtime), response times for outages or issues, power quality standards (voltage, frequency stability), and maintenance schedules. The effectiveness of the contract in delivering value is heavily dependent on these performance standards and the government's ability to monitor and enforce them. Without this information, assessing the contractor's performance risk is limited.

What is AEP Texas Inc.'s track record with similar government contracts, particularly for military installations?

AEP Texas Inc. is a major utility provider, and its track record with government contracts, especially for military installations, would be a key indicator of performance risk and value. Information on past performance, including any history of contract disputes, timely delivery, or cost overruns on similar projects, would be crucial. While the award suggests they met initial qualification criteria, a deeper dive into their performance history with the DoD or other federal agencies would provide a more robust assessment of their reliability and capability in fulfilling this long-term contract.

Are there any provisions for contract modifications or adjustments over the 11-year period?

The data indicates a 'DEFINITIVE CONTRACT' with a long duration, suggesting that provisions for modifications or adjustments are likely included, as is common for such long-term agreements. These could pertain to changes in scope, economic price adjustments (EPAs) for labor or materials, or modifications due to evolving base requirements. The nature and frequency of these potential modifications are critical for assessing long-term cost certainty and potential risks of scope creep or unforeseen cost increases for the government.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

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

Address: 1 RIVERSIDE PLZ FL 11, COLUMBUS, OH, 43215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,675,895

Exercised Options: $22,675,895

Current Obligation: $7,337,214

Actual Outlays: $561,837

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline