DoD's $31.1M Electricity Contract for German Garrisons: Firm Fixed Price, Full and Open Competition
Contract Overview
Contract Amount: $31,125,606 ($31.1M)
Contractor: Foreign Utility Consolidated Reporting
Awarding Agency: Department of Defense
Start Date: 2011-10-01
End Date: 2012-09-30
Contract Duration: 365 days
Daily Burn Rate: $85.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CONSOLIDATED UTILITIES ELECTRICITY REPORT US ARMY GARRISONS STUTTGART, MANNHEIM, HEIDELBERG, KAISERSLAUTERN AND GARMISCH, GERMANY FOR THE PERIOD 01 OCT 2011 - 31 DEC 2011
Plain-Language Summary
Department of Defense obligated $31.1 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED UTILITIES ELECTRICITY REPORT US ARMY GARRISONS STUTTGART, MANNHEIM, HEIDELBERG, KAISERSLAUTERN AND GARMISCH, GERMANY FOR THE PERIOD 01 OCT 2011 - 31 DEC 2011 Key points: 1. The contract covers electricity for multiple US Army garrisons in Germany. 2. A firm fixed price contract was used, providing cost certainty. 3. Full and open competition was employed, suggesting a competitive bidding process. 4. The contract period spans one year, from October 2011 to September 2012.
Value Assessment
Rating: good
The contract value of $31.1 million for a year of electricity services appears reasonable given the scope of supporting multiple large military installations in Germany. Benchmarking against similar utility contracts for overseas bases would provide further validation.
Cost Per Unit: $85,276 per day
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors were allowed to bid, which typically drives competitive pricing. This method is expected to yield a fair market price for the electricity services provided.
Taxpayer Impact: The competitive bidding process likely ensured taxpayers received good value for the electricity procured for these overseas installations.
Public Impact
Ensures reliable power for critical US Army operations in Germany. Supports the daily functions of thousands of military personnel and their families. Demonstrates US commitment to maintaining infrastructure for its overseas forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations if energy markets shift significantly, though mitigated by fixed price.
- Geopolitical risks in Germany could impact service delivery or costs.
- Dependence on foreign utility infrastructure.
Positive Signals
- Firm fixed price contract provides budget certainty.
- Full and open competition suggests competitive pricing.
- Supports essential military operations.
Sector Analysis
This contract falls under the utilities sector, specifically electricity generation and distribution. Spending on utilities for overseas bases is a significant component of the DoD's operational budget, with costs influenced by local market conditions and geopolitical factors.
Small Business Impact
The data does not indicate whether small businesses participated in this contract. Given the scale and nature of utility provision for large military garrisons, it is likely that larger, established utility providers were the primary bidders.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating internal DoD oversight. The firm fixed price and full and open competition suggest established procurement processes were followed to ensure accountability and value.
Related Government Programs
- Nuclear Electric Power Generation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price increases if market conditions change unfavorably.
- Dependence on foreign infrastructure and potential for disruptions.
- Geopolitical risks affecting service delivery or cost.
- Lack of detailed breakdown of costs per garrison.
Tags
nuclear-electric-power-generation, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED UTILITIES ELECTRICITY REPORT US ARMY GARRISONS STUTTGART, MANNHEIM, HEIDELBERG, KAISERSLAUTERN AND GARMISCH, GERMANY FOR THE PERIOD 01 OCT 2011 - 31 DEC 2011
Who is the contractor on this award?
The obligated recipient is FOREIGN UTILITY CONSOLIDATED REPORTING.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2011-10-01. End: 2012-09-30.
What was the specific breakdown of electricity consumption across the named garrisons to justify the $31.1 million cost?
The provided data does not detail the specific electricity consumption breakdown per garrison. The total cost reflects the aggregate demand from US Army Garrisons Stuttgart, Mannheim, Heidelberg, Kaiserslautern, and Garmisch. A detailed analysis would require access to individual consumption records and pricing structures for each location within the reporting period.
How did the firm fixed price contract mitigate risks associated with potential energy market volatility in Europe during the contract period?
The firm fixed price contract locked in the cost of electricity for the duration of the contract, shielding the Department of Defense from potential increases in energy prices due to market volatility. This provided budget certainty and predictability, although it also meant the DoD would not benefit from potential price decreases.
What mechanisms were in place to ensure the effectiveness and reliability of electricity supply from the foreign utility provider?
While the data confirms a contract award, it does not specify the oversight mechanisms for ensuring service effectiveness and reliability. Typically, such contracts include performance standards, service level agreements, and penalties for non-compliance. The Department of the Army would have been responsible for monitoring the foreign utility's performance against these contractual obligations.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Nuclear Electric Power Generation
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1275 FIRST ST NE, WASHINGTON, DC, 98
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $31,125,606
Exercised Options: $31,125,606
Current Obligation: $31,125,606
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-10-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-09-26
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