Travis AFB Electric System Privatization Contract Exceeds $107M, Awarded to City Light & Power
Contract Overview
Contract Amount: $107,252,758 ($107.3M)
Contractor: City Light & Power, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-21
End Date: 2062-02-18
Contract Duration: 18,413 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Energy
Official Description: UTILITY PRIVATIZATION OF THE ELECTRIC DISTRIBUTION SYSTEM AT TRAVIS AFB, CA
Place of Performance
Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535
Plain-Language Summary
Department of Defense obligated $107.3 million to CITY LIGHT & POWER, INC. for work described as: UTILITY PRIVATIZATION OF THE ELECTRIC DISTRIBUTION SYSTEM AT TRAVIS AFB, CA Key points: 1. The contract value is substantial at over $107 million. 2. City Light & Power, Inc. is the sole awardee. 3. The contract duration is exceptionally long, spanning over 150 years. 4. This represents a significant long-term commitment for electric power distribution.
Value Assessment
Rating: questionable
The contract value is $107,252,757.85. Without specific benchmarks for utility privatization contracts of this scale and duration, it is difficult to definitively assess its pricing against similar agreements. The fixed price redetermination structure suggests potential for cost adjustments over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the extremely long duration of the contract may have limited the number of bidders willing or able to participate, potentially impacting the price discovery process.
Taxpayer Impact: The long-term nature of this contract means taxpayers will be committed to this pricing structure for over 150 years, necessitating careful monitoring of performance and costs.
Public Impact
Long-term energy infrastructure investment for a military base. Potential for stable, long-term utility services. Taxpayer funds committed for an extended period. Impact on local energy market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extreme contract duration (over 150 years)
- Lack of small business participation
- Fixed Price Redetermination pricing structure
Positive Signals
- Awarded under full and open competition
- Long-term utility service provision
Sector Analysis
This contract falls within the utility and infrastructure sector, specifically focusing on electric power distribution. Privatizing utility systems is a common strategy for government facilities to leverage private sector expertise and investment, though long-term contracts require careful oversight.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss=false, sb=false). This suggests that the scale and nature of the utility privatization project may not have been conducive to small business participation, or specific outreach efforts were not undertaken.
Oversight & Accountability
The long duration of this contract necessitates robust oversight mechanisms to ensure the contractor meets performance standards and that pricing remains fair over its extensive term. Accountability will be crucial throughout the contract's lifecycle.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Extreme contract duration
- Lack of small business participation
- Potential for cost escalation via redetermination
- Limited government flexibility for future technology adoption
- Long-term commitment of taxpayer funds
Tags
electric-power-distribution, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.3 million to CITY LIGHT & POWER, INC.. UTILITY PRIVATIZATION OF THE ELECTRIC DISTRIBUTION SYSTEM AT TRAVIS AFB, CA
Who is the contractor on this award?
The obligated recipient is CITY LIGHT & POWER, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $107.3 million.
What is the period of performance?
Start: 2011-09-21. End: 2062-02-18.
What is the expected return on investment for City Light & Power, Inc. given the contract's long duration and fixed price redetermination structure?
The return on investment is difficult to precisely calculate without detailed financial projections from the contractor and a clear understanding of the redetermination factors. However, a contract spanning over 150 years suggests an expectation of significant, long-term profitability. The fixed price redetermination allows for adjustments, potentially protecting the contractor's margins against inflation and unforeseen costs, while the government aims for a fair price over time.
What are the primary risks associated with a utility privatization contract lasting over 150 years?
The primary risks include technological obsolescence of the distribution system, significant changes in energy markets and regulations, contractor financial instability over such a long period, and potential for escalating costs through redetermination clauses. There's also a risk of diminished government oversight effectiveness over generations, potentially leading to suboptimal service or pricing.
How does the long-term nature of this contract impact the government's flexibility in adopting future energy technologies or policies?
The extreme duration significantly limits the government's flexibility. It locks in the current privatization model and technology for over a century, making it challenging and potentially costly to adopt newer, more efficient, or sustainable energy technologies or to implement evolving energy policies. Renegotiating or terminating such a long-term contract would likely involve substantial penalties.
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: 2
Pricing Type: FIXED PRICE REDETERMINATION (A)
Evaluated Preference: NONE
Contractor Details
Parent Company: Amber Infrastructure LLC
Address: 6312 SOUTH FIDDLERS GREEN CIR STE 200-E, GREENWOOD VILLAGE, CO, 80111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $330,308,585
Exercised Options: $330,308,585
Current Obligation: $107,252,758
Actual Outlays: $7,207,147
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-21
Current End Date: 2062-02-18
Potential End Date: 2062-02-18 00:00:00
Last Modified: 2026-04-07
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