DOJ awards $271K for electric power distribution in West Virginia, with limited competition
Contract Overview
Contract Amount: $271,394 ($271.4K)
Contractor: American Electric Power Company, Inc.
Awarding Agency: Department of Justice
Start Date: 2026-01-01
End Date: 2026-03-31
Contract Duration: 89 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: FCI BECKLEY ELECTRIC Q2 FY26 CONTRACT #47PA0422D0063
Place of Performance
Location: BEAVER, RALEIGH County, WEST VIRGINIA, 25813
Plain-Language Summary
Department of Justice obligated $271,393.94 to AMERICAN ELECTRIC POWER COMPANY, INC. for work described as: FCI BECKLEY ELECTRIC Q2 FY26 CONTRACT #47PA0422D0063 Key points: 1. Spending is concentrated in the Federal Prison System. 2. The contract is for electric power distribution services. 3. Competition is limited, raising potential cost concerns. 4. The sector is essential infrastructure, but specific contract value is modest.
Value Assessment
Rating: fair
The contract value of $271,393.94 for electric power distribution is a moderate amount. Without specific benchmarks for similar contracts in West Virginia, a precise pricing assessment is difficult. However, the duration of 89 days suggests a focused service period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competitive environment. This could be due to specific infrastructure requirements or existing relationships. The lack of broad competition may impact price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being used for essential utility services. The limited competition raises questions about whether the most cost-effective solution was secured.
Public Impact
Ensures continued operation of federal facilities through reliable electricity. Supports essential services within the Bureau of Prisons. Impacts local utility infrastructure and service providers in West Virginia.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdown
- Short contract duration may indicate a temporary solution
Positive Signals
- Essential service provision
- Firm fixed price contract type
Sector Analysis
This contract falls under the utility services sector, specifically electric power distribution. Spending in this area is generally stable and driven by the operational needs of federal facilities. Benchmarks for such contracts can vary significantly based on location and service scope.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if opportunities were missed or if the nature of the service inherently favors larger providers.
Oversight & Accountability
Oversight is primarily managed by the Department of Justice's Federal Prison System. The limited competition suggests a need for robust internal review to ensure fair pricing and service quality.
Related Government Programs
- Electric Power Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Potential for inflated pricing
- Lack of transparency in award justification
- Short contract duration may indicate a stop-gap measure
Tags
electric-power-distribution, department-of-justice, wv, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $271,393.94 to AMERICAN ELECTRIC POWER COMPANY, INC.. FCI BECKLEY ELECTRIC Q2 FY26 CONTRACT #47PA0422D0063
Who is the contractor on this award?
The obligated recipient is AMERICAN ELECTRIC POWER COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $271,393.94.
What is the period of performance?
Start: 2026-01-01. End: 2026-03-31.
What specific factors led to the determination that this contract was not available for competition?
The determination that a contract is not available for competition typically stems from unique circumstances such as the existence of only one responsible source, urgent and compelling needs where delays would cause unacceptable loss, or specific government-unique requirements that only one contractor can fulfill. Without further details, it's difficult to ascertain the exact reason for this limited competition.
How does the pricing of this contract compare to similar electric power distribution contracts in the region?
A direct comparison of pricing is challenging without access to a broader dataset of similar contracts in West Virginia. Factors like the specific voltage, reliability requirements, and service level agreements significantly influence pricing. The $271,393.94 award for an 89-day period necessitates a detailed analysis of the scope of work to assess its cost-effectiveness against regional benchmarks.
What is the potential long-term impact of relying on limited competition for essential utility services?
Consistently awarding essential utility contracts with limited competition can lead to reduced innovation, higher costs over time, and a lack of incentive for contractors to offer competitive pricing. It may also limit opportunities for new or smaller providers to enter the market. This practice warrants careful consideration to ensure sustained value and efficiency for taxpayer dollars.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1, RIVERSIDE PLAZA, COLUMBUS, OH, 43215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $271,394
Exercised Options: $271,394
Current Obligation: $271,394
Actual Outlays: $178,202
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0422D0063
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-02
More Contracts from American Electric Power Company, Inc.
- Electrical Utility Service for Msha, Mine Academy, 1301 Airport RD., Beaver, WV 25813 for the Period 3/1/2020 - 2/28/2030 — $4.3M (Department of Labor)
- FY26 P4 AEP Electric Service June 2026 — $100.0K (Department of Justice)
- FY26 P4 AEP Electric Service MAY 2026 — $100.0K (Department of Justice)
- FY26 P4 - AEP Electric Service April 2026 — $98.3K (Department of Justice)
- Electric Service for Monacan Health Center — $67.5K (Department of Health and Human Services)
View all American Electric Power Company, Inc. federal contracts →
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)