Electricity utility for USMMA

The U.S. Department of Transportation Maritime Administration has awarded a sole-source, Firm Fixed Price contract for electricity utility services to the Long Island Power Authority (LIPA) and PSEG to support the U.S. Merchant Marine Academy (USMMA) campus in Kings Point, New York. This procurement is justified under FAR 6.103-1(b) and 41 U.S.C. 3304(a)(1) because the contractors maintain exclusive ownership and operational control of the electrical infrastructure serving the area, making competition infeasible without prohibitive costs or service disruptions. The contract includes a one-year base period beginning April 19, 2026, with four one-year options extending the period of performance through April 18, 2031. These electrical services are part of a broader suite of mission-critical utility requirements for the academy, which also include potable water and sewage services provided by the Water Authority of Great Neck North and the Great Neck Water Pollution Control District. These utilities are essential for the health, safety, and operational readiness of approximately 1,250 to 1,520 personnel, supporting vital functions such as fire protection, sanitation, and facility climate control. Award decisions were based on the providers' exclusive service territories and satisfactory past performance ratings in CPARS, with pricing determined to be fair and reasonable based on historical rates and market comparisons.