DOJ awards $480K for electricity to Dominion Energy, citing sole-source justification

Contract Overview

Contract Amount: $480,191 ($480.2K)

Contractor: Virginia Electric and Power Company

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 DOMINION ENERGY ELECTRICITY MEDIUM QTR 1

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23261

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $480,191.33 to VIRGINIA ELECTRIC AND POWER COMPANY for work described as: FY26 P4 DOMINION ENERGY ELECTRICITY MEDIUM QTR 1 Key points: 1. The contract's value appears reasonable for a year of electricity supply in Virginia. 2. Sole-source award limits price discovery and potentially increases costs for taxpayers. 3. The duration of the contract is one year, with a potential for extensions. 4. This award falls under the Federal Prison System's operational needs. 5. The contractor, Dominion Energy, is a major utility provider in the region.

Value Assessment

Rating: fair

The contract value of $480,191.33 for one year of electricity is difficult to benchmark without specific usage data. However, for a federal facility in Virginia, this amount seems within a plausible range for utility services. The lack of competition, however, prevents a robust value-for-money assessment against market alternatives. Without comparative bids, it's challenging to definitively state if this represents excellent or questionable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is 'NOT AVAILABLE FOR COMPETITION,' which typically implies a unique situation where only one vendor can provide the required service. This lack of competition means there were no other bidders to compare against, potentially leading to a higher price than if multiple vendors had vied for the contract.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially resulting in higher costs for taxpayers.

Public Impact

The primary beneficiaries are the inmates and staff at the federal correctional facility in Virginia, who will receive reliable electricity. The service delivered is essential electricity supply for the operational needs of the Federal Prison System. The geographic impact is localized to Virginia, where the facility is located. There are no direct workforce implications mentioned, as this is a utility service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs.
Lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' justification.
No clear performance metrics or service level agreements are detailed in the provided data.

Positive Signals

Ensures continuity of essential services (electricity) for a federal facility.
Contract awarded to a major, established utility provider in the region.
Fixed-price contract type provides cost certainty for the government.

Sector Analysis

The energy sector, specifically electricity generation and distribution, is a critical component of federal operations. Federal agencies are significant consumers of energy, and contracts like this ensure the reliable supply of power to facilities nationwide. While this specific award is for a relatively small amount, the federal government's total energy spending is substantial, encompassing a wide range of services from renewable energy solutions to traditional utility provision. This contract fits within the broader category of utility services procured by government entities.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'ss': false and 'sb': false. The award is to a large utility company, Dominion Energy. There is no information provided regarding subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Federal Prison System. Accountability measures would be tied to the delivery of electricity as per the contract terms. Transparency is limited due to the sole-source nature and the lack of detailed justification provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Operations
Federal Energy Procurement
Utility Services Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed justification for sole-source award.
No clear performance metrics provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $480,191.33 to VIRGINIA ELECTRIC AND POWER COMPANY. FY26 P4 DOMINION ENERGY ELECTRICITY MEDIUM QTR 1

Who is the contractor on this award?

The obligated recipient is VIRGINIA ELECTRIC AND POWER COMPANY.

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 $480,191.33.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for electricity at this specific federal facility?

Without access to historical spending data for this particular federal facility, it is difficult to establish a precise spending pattern. However, federal agencies generally aim for cost stability and efficiency in utility procurement. Awards for electricity are often recurring, with prices subject to market fluctuations and regulatory changes. The current award of $480,191.33 for a one-year period (FY26) provides a data point for future comparisons. Analyzing past awards for similar facilities in Virginia could offer a broader context, but specific historical data for this location is needed for a definitive pattern analysis. The sole-source nature of this award also suggests that historical competitive pricing may not be directly applicable.

How does the price per kilowatt-hour (kWh) for this contract compare to market rates in Virginia?

The provided data does not include the quantity of electricity (in kWh) to be supplied, making a direct comparison of the price per kWh impossible. The total contract value is $480,191.33 for a 364-day period. To benchmark the price per kWh, we would need to know the estimated total consumption for the facility over the contract period. Utility rates can also vary significantly based on usage tiers, time-of-day pricing, and demand charges. Without these crucial details, any comparison to market rates would be speculative. It is recommended to obtain the facility's projected energy consumption to perform a meaningful per-unit cost analysis.

What specific justification led to the 'NOT AVAILABLE FOR COMPETITION' determination?

The provided data only states 'NOT AVAILABLE FOR COMPETITION' as the reason for the sole-source award, without further elaboration. Typically, such justifications are based on specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include the existence of only one responsible source capable of meeting the government's needs, urgent and compelling circumstances that prevent competition, or when the contract is a follow-on to a previously competed contract where only the original contractor can provide the necessary services. Without a detailed justification document, it is impossible to ascertain the precise circumstances that precluded competition for this electricity supply contract.

What are the performance expectations and service level agreements (SLAs) associated with this electricity contract?

The provided data does not contain specific details regarding performance expectations or service level agreements (SLAs) for this electricity contract. Standard utility contracts typically include requirements for reliable service, adherence to safety standards, and timely delivery. However, the absence of explicit SLAs in the summary data means that specific metrics for uptime, response times to outages, or power quality are not detailed here. The Federal Prison System would have internal requirements and oversight to ensure the continuity of essential services, but the granular performance standards are not publicly available in this dataset.

Are there any provisions for renewable energy or energy efficiency within this contract?

The provided data does not indicate any specific provisions for renewable energy sources or energy efficiency measures within this contract. The description 'Other Electric Power Generation' and the award to Dominion Energy, a traditional utility provider, suggest a standard electricity supply agreement. While federal agencies are increasingly encouraged to procure renewable energy and implement efficiency measures, this particular contract, as summarized, does not explicitly mention such components. Further details within the full contract document would be necessary to confirm the presence or absence of these elements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dominion Energy, Inc.

Address: 120 TREDEGAR ST, RICHMOND, VA, 23219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $480,191

Exercised Options: $480,191

Current Obligation: $480,191

Actual Outlays: $185,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0072

IDV Type: IDC

Timeline