DoD Awards $278M Firm Fixed Price Contract for Electric Power Generation to KEENAN FT DETRICK ENERGY LLC
Contract Overview
Contract Amount: $278,085,233 ($278.1M)
Contractor: Keenan FT Detrick Energy LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-01
End Date: 2049-03-31
Contract Duration: 10,957 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21701
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $278.1 million to KEENAN FT DETRICK ENERGY LLC for work described as: IGF::OT::IGF Key points: 1. Significant long-term contract value of $278M over 30 years. 2. Sole-source award raises questions about competition and potential price overruns. 3. Contract spans a long duration, increasing risk exposure. 4. Focus on electric power generation within the Defense sector.
Value Assessment
Rating: questionable
The contract's large value and long duration make a direct pricing comparison difficult without more detailed cost breakdowns. The firm fixed-price structure aims to control costs, but the lack of competition is a concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this large contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Long-term energy security for a military installation. Potential for price increases over the 30-year contract term. Limited visibility into the contractor's cost structure due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration (30 years)
- Large contract value
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the energy sector, specifically focusing on electric power generation for a Department of the Army facility. Benchmarks for similar long-term, sole-source energy generation contracts are difficult to establish due to unique site requirements and limited competitive data.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. The sole-source nature of the award further suggests that small businesses were not actively solicited for this requirement.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure performance standards are met and that pricing remains reasonable throughout its term. The sole-source award warrants scrutiny to confirm the necessity of this approach.
Related Government Programs
- Other Electric Power Generation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Long contract duration increases long-term risk.
- Potential for cost overruns due to lack of price discovery.
- Limited transparency into contractor's cost structure.
Tags
other-electric-power-generation, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $278.1 million to KEENAN FT DETRICK ENERGY LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is KEENAN FT DETRICK ENERGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $278.1 million.
What is the period of performance?
Start: 2019-04-01. End: 2049-03-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if other contractors could have met the requirement or if a competitive process was explored. This lack of competition limits the government's ability to secure the best possible price and terms.
How will the government ensure cost reasonableness over the 30-year contract period, given the sole-source nature?
Ensuring cost reasonableness over a 30-year sole-source contract requires strong contract management and performance monitoring. Mechanisms may include periodic price reviews, benchmarking against market trends for energy generation, and strict adherence to performance metrics. However, the inherent lack of competition makes ongoing price validation more challenging.
What are the potential risks associated with a 30-year firm fixed-price contract for electric power generation?
A 30-year firm fixed-price contract carries risks such as potential for significant price escalation if market conditions change drastically, contractor underperformance due to long-term commitment, and technological obsolescence. The government might overpay if initial pricing was too high, or face service disruptions if the contractor struggles.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1301 GERVAIS ST STE 805, COLUMBIA, SC, 29201
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,362,257,781
Exercised Options: $1,362,257,781
Current Obligation: $278,085,233
Actual Outlays: $31,723,456
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2019-04-01
Current End Date: 2049-03-31
Potential End Date: 2049-03-31 00:00:00
Last Modified: 2025-09-24
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