Coast Guard Base Kodiak energy contract with Kodiak Electric is valued at $31.3 million

The Defense Logistics Agency values its 20-year energy contract with Kodiak Electric Association at $31.3 million, according to a federal award notice posted Oct. 13. Federal spending records show $2 million obligated so far.

Alaska News reported Oct. 8 on the Sept. 30 award, which pays the Kodiak co-op to install energy conservation measures at Coast Guard Base Kodiak. That story had the $2 million figure but no published total value.

DLA Energy, the agency's energy office, awarded the firm-fixed-price contract without competition. Its justification says Kodiak Electric is the base's only utility and owns all the electrical distribution serving it. One base facility served by the City of Kodiak is excluded from the project. No General Services Administration areawide utility contract covers Kodiak, and a September 2025 notice of intent drew no responses.

The justification cites geographical and infrastructural limitations and says "competition is impossible." DLA Energy's 2025 audit justification said the agency would watch for other Kodiak utility providers before any new requirements. This year's justification does not include that pledge.

Kodiak Electric received a $1.1 million contract in March 2025 for an investment grade audit, which now serves as the new contract's statement of work. The audit proposes four energy conservation measures, with improvements to the central heating plant, building automation, lighting, water and wastewater systems, and electrical infrastructure. Kodiak Electric will also provide energy-related maintenance and repair for 280 facilities. The Coast Guard is paying with fiscal 2026 operating expense funds. The contract runs through Sept. 29, 2046.

DLA Energy's facility counts differ across its own records. A 2025 audit justification listed 743 facilities. The September 2025 notice of intent listed about 346. Both cited about 2.19 million square feet. The 2026 award justification lists 280.

Under utility energy service contracts, the Congressional Research Service says an agency generally pays no more than its current annual utility costs while the utility finances and installs the projects. The records do not show this contract's payment schedule, projected savings or baseline utility cost.

"Due to multiple government shutdowns, this project has been delayed from its original schedule; however, we are expecting it to move forward sometime during 2026," Chairman Michael C. Brechan and President and CEO Dan Menth wrote in the co-op's 2025 annual report.