DLA awards $6.1M electric distribution services contract to Canoochee EMC for over 10 years

Contract Overview

Contract Amount: $6,107,857 ($6.1M)

Contractor: Canoochee Electric Membership Corp

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2054-02-23

Contract Duration: 10,378 days

Daily Burn Rate: $589/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Other

Official Description: ELECTRIC DISTRIBUTION SERVICES.

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $6.1 million to CANOOCHEE ELECTRIC MEMBERSHIP CORP for work described as: ELECTRIC DISTRIBUTION SERVICES. Key points: 1. Contract provides essential electric power distribution services, crucial for military base operations. 2. Long duration suggests a need for stable, long-term infrastructure support. 3. Fixed Price Redetermination pricing structure may require close monitoring to ensure cost control. 4. Awarded via full and open competition, indicating a broad market search. 5. Geographic concentration in Georgia suggests a localized service requirement. 6. No small business set-aside noted, potentially limiting direct participation for smaller firms.

Value Assessment

Rating: fair

The contract value of $6.1 million over a potential 10-year period averages approximately $610,000 annually. Benchmarking electric distribution services is challenging due to highly localized infrastructure and service agreements. However, the duration and fixed-price nature suggest a need for predictable costs. Without specific performance metrics or comparable bids, assessing the value-for-money is difficult, but the long-term commitment implies a recognized need for reliable service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach is generally preferred as it fosters price discovery and encourages competitive pricing. The number of bidders is not specified, but the open competition indicates that the Defense Logistics Agency sought the best possible offer from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of potential solutions, maximizing the use of public funds.

Public Impact

Military installations in Georgia will receive reliable electric power distribution. Ensures continuous operational capability for defense logistics and support functions. Supports the local workforce employed by Canoochee Electric Membership Corp. Contributes to the economic stability of the region where the services are provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Fixed Price Redetermination if underlying costs increase significantly.
Long contract duration may reduce flexibility to adopt newer, more efficient technologies.
Dependence on a single provider for critical infrastructure could pose a risk if service is interrupted.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract provides stability and predictability for essential services.
Focus on electric power distribution indicates a critical need for base operations.

Sector Analysis

Electric power distribution is a critical utility sector, essential for the functioning of all organizations, including government and military. This contract falls within the broader utilities and infrastructure services market. The Defense Logistics Agency's need for reliable power at military installations highlights the sector's importance to national security. Comparable spending benchmarks are difficult to establish due to the localized nature of distribution networks and specific service level agreements.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This means that while Canoochee Electric Membership Corp. may engage small businesses as subcontractors, it is not a requirement mandated by the contract terms. The primary awardee is an electric membership corporation, which may have different operational structures than traditional for-profit businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Logistics Agency's contract management and oversight protocols. The contract's duration and fixed-price redetermination clause suggest a need for ongoing monitoring of costs and performance. Transparency is facilitated by the contract award notice, but detailed performance reports and cost audits would be internal to the agency and potentially subject to Inspector General review if issues arise.

Related Government Programs

Defense Logistics Agency Utility Contracts
Military Base Infrastructure Support
Electric Power Services for Government Facilities

Risk Flags

Long contract duration may limit flexibility.
Fixed Price Redetermination pricing requires careful monitoring.
Lack of specified small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.1 million to CANOOCHEE ELECTRIC MEMBERSHIP CORP. ELECTRIC DISTRIBUTION SERVICES.

Who is the contractor on this award?

The obligated recipient is CANOOCHEE ELECTRIC MEMBERSHIP CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.1 million.

What is the period of performance?

Start: 2025-09-25. End: 2054-02-23.

What is the historical spending pattern for electric distribution services by the Defense Logistics Agency?

Analyzing historical spending patterns for electric distribution services by the Defense Logistics Agency (DLA) requires access to detailed contract databases. Generally, the DLA procures such services through a mix of contract types, including fixed-price and cost-reimbursement, often awarded through full and open competition or set-asides for specific entities like electric cooperatives. Spending can fluctuate based on the number of active installations, infrastructure upgrades, and energy market volatility. Long-term contracts, like the one awarded to Canoochee EMC, are common for ensuring stable utility provision. Without specific historical data for this particular service or region, it's difficult to provide precise figures, but the DLA consistently invests significant sums in maintaining essential utilities across its global footprint to support military readiness.

How does the pricing structure (Fixed Price Redetermination) compare to other contract types for similar services?

The Fixed Price Redetermination (FPR) pricing structure is less common than standard Fixed Price or Cost Plus contracts for utility services. In an FPR contract, the price is initially set but can be adjusted later based on predetermined conditions or actual costs incurred, often subject to negotiation or specific formulas. This contrasts with a standard Fixed Price contract where the price is firm unless modified by a change order. Compared to Cost Plus contracts, FPR aims to provide more cost certainty for the buyer while still allowing for adjustments if unforeseen cost drivers emerge. For electric distribution, FPR might be used when initial cost estimates are uncertain due to factors like infrastructure complexity or fluctuating material costs, but the agency wants to avoid the open-endedness of Cost Plus contracts. It offers a middle ground, balancing risk between the contractor and the government.

What are the potential risks associated with a 10+ year contract for electric distribution services?

A contract duration exceeding 10 years for electric distribution services presents several potential risks. Firstly, technological advancements in grid management, energy storage, and distribution efficiency could render the contracted infrastructure or methods outdated before the contract ends, leading to suboptimal performance or the need for costly upgrades. Secondly, market conditions for energy and related materials can change significantly over such a long period, potentially making the initial pricing structure disadvantageous for either the government or the contractor, leading to disputes or requests for renegotiation. Thirdly, the long-term reliance on a single provider could reduce the incentive for continuous innovation and service improvement. Finally, unforeseen geopolitical events, natural disasters, or changes in regulatory environments could impact the contractor's ability to deliver services reliably over the extended term.

What is the track record of Canoochee Electric Membership Corp. in serving government contracts?

Information regarding Canoochee Electric Membership Corp.'s specific track record with government contracts, particularly large-scale federal awards, is not readily available in public databases. As an electric membership corporation (EMC), its primary focus is typically on serving its member-owners within a defined geographic area. While EMCs often have extensive experience in utility operations and infrastructure management, their history with federal procurement, especially competitive bidding for services like this, may be limited compared to larger, national utility providers or defense contractors. Further investigation into federal contract databases (like SAM.gov or FPDS) for past awards to Canoochee EMC would be necessary to establish a detailed performance history with the government.

How does the geographic concentration in Georgia impact the assessment of this contract?

The geographic concentration of this contract in Georgia means the services are tied to a specific regional infrastructure and regulatory environment. This limits the direct comparability to contracts awarded in different states or regions with varying utility landscapes, labor costs, and environmental regulations. For the Defense Logistics Agency, it implies a need for localized expertise and established relationships within Georgia's utility sector. For Canoochee Electric Membership Corp., it leverages their existing service territory and operational knowledge. From a taxpayer perspective, it suggests that the value and cost-effectiveness are specific to the Georgia context and may not be directly generalizable to other military installations elsewhere in the country.

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

Pricing Type: FIXED PRICE REDETERMINATION (A)

Evaluated Preference: NONE

Contractor Details

Address: 342 E BRAZELL ST, REIDSVILLE, GA, 30453

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

Financial Breakdown

Contract Ceiling: $6,407,059

Exercised Options: $6,407,059

Current Obligation: $6,107,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060025D8371

IDV Type: IDC

Timeline