DOJ awards $297K for electric power distribution to Powell Valley Electric Cooperative in Tennessee

Contract Overview

Contract Amount: $297,112 ($297.1K)

Contractor: Powell Valley Electric Cooperative

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 POWELL VALLEY ELECTRIC QTR 2

Place of Performance

Location: NEW TAZEWELL, CLAIBORNE County, TENNESSEE, 37824

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $297,112.46 to POWELL VALLEY ELECTRIC COOPERATIVE for work described as: FY26 P4 POWELL VALLEY ELECTRIC QTR 2 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of 89 days indicates a short-term need for electric power services. 4. The award amount is relatively small, suggesting a localized or specific service requirement. 5. The contract falls under the Federal Prison System/Bureau of Prisons, indicating a need for operational support at a federal facility.

Value Assessment

Rating: good

The contract value of $297,112.46 for 89 days of electric power distribution appears reasonable given the context of supporting a federal facility. Without specific details on the power requirements or the facility's size, a direct comparison is challenging. However, the firm-fixed-price structure suggests that the pricing was determined through a competitive process, which generally leads to fair market value. The benchmark of $3,338 (likely a per-day or per-month estimate based on the total award and duration) is a starting point for comparison, but actual market rates can vary significantly based on location and demand.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters robust price discovery and encourages multiple vendors to offer competitive pricing. The government likely sought the best value through this open process.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the most favorable terms and pricing for essential services.

Public Impact

The primary beneficiaries are the inmates and staff at the federal correctional facility in Tennessee, who will receive reliable electric power. The service delivered is essential electric power distribution, crucial for the daily operations and safety of the facility. The geographic impact is localized to the specific federal prison facility in Tennessee where the services are rendered. There are no direct workforce implications mentioned, as this contract is for utility services rather than direct labor provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in energy markets not fully captured in a short-term fixed-price contract.
Dependence on a single provider for a critical utility service.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the government.
Short duration minimizes long-term exposure to market volatility.

Sector Analysis

The electric power distribution sector is a critical utility service essential for the functioning of all organizations, including government facilities. Federal agencies procure these services regularly to maintain operations. The market size for such services is vast, encompassing numerous utility providers at local, regional, and national levels. This contract represents a small segment of the overall federal spending on utilities, likely supporting a specific operational need at a single facility.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Powell Valley Electric Cooperative, is likely a larger entity. There is no information provided regarding subcontracting requirements or opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice's Federal Prison System/Bureau of Prisons. Accountability measures are inherent in the firm-fixed-price delivery order structure, requiring the contractor to deliver the specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities are not detailed in this summary.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Utilities Contracts
Department of Justice Energy Procurement
Federal Correctional Facility Support Services

Risk Flags

Short contract duration may limit long-term price hedging.
Dependence on a single utility provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $297,112.46 to POWELL VALLEY ELECTRIC COOPERATIVE. FY26 P4 POWELL VALLEY ELECTRIC QTR 2

Who is the contractor on this award?

The obligated recipient is POWELL VALLEY ELECTRIC COOPERATIVE.

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 $297,112.46.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for electric power distribution at this specific federal facility?

Analyzing historical spending for electric power distribution at this specific federal facility would involve reviewing past contracts awarded by the Bureau of Prisons for similar services at the same location. This would help establish a baseline for costs and identify any significant trends or anomalies in spending over time. For instance, if previous contracts were significantly lower or higher, it would warrant further investigation into the reasons, such as changes in energy prices, facility needs, or contract scope. Without access to historical contract data for this particular facility, it is difficult to provide a precise spending pattern. However, the current award of $297,112.46 for a 89-day period suggests a substantial ongoing need for electricity.

How does the awarded price compare to market rates for similar electric power distribution services in Tennessee?

Comparing the awarded price of $297,112.46 for 89 days of electric power distribution to market rates in Tennessee requires detailed information on the specific energy consumption and infrastructure needs of the federal facility. The contract's firm-fixed-price nature, combined with full and open competition, suggests the price is likely competitive. However, without knowing the exact kilowatt-hour usage, peak demand, and any specific service level agreements, a precise market benchmark is challenging. Generally, utility rates can vary based on the volume of consumption, time-of-use pricing, and the specific provider's service area. Powell Valley Electric Cooperative operates within a specific region of Tennessee, and their pricing would be influenced by local energy generation costs and distribution infrastructure.

What are the potential risks associated with this firm-fixed-price contract for electric power distribution?

While firm-fixed-price contracts offer cost certainty, potential risks for this electric power distribution contract include the possibility that the fixed price may not adequately cover unforeseen increases in energy commodity costs if the contract duration were longer or if market volatility is extreme. For a short-term contract like this (89 days), the risk is generally lower. Another risk could be related to service reliability; if Powell Valley Electric Cooperative experiences disruptions, it could impact the federal facility's operations. The government's risk is primarily mitigated by the competitive bidding process, which should have incentivized the contractor to price realistically, and by the short duration, limiting long-term exposure to market fluctuations or contractor performance issues.

What is the track record of Powell Valley Electric Cooperative in performing similar government contracts?

To assess the track record of Powell Valley Electric Cooperative in performing similar government contracts, one would typically consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) for past performance information. These systems often contain records of previous awards, contract types, and sometimes performance evaluations. Without direct access to this specific data for Powell Valley Electric Cooperative, it's assumed that their selection for this contract implies they met the government's requirements and were deemed capable of performing the services. A thorough review would look for any history of contract disputes, performance issues, or exceptional performance on prior federal utility contracts.

How does the contract value of $297,112.46 align with the typical scale of federal prison operational support contracts?

The contract value of $297,112.46 for electric power distribution over 89 days is a relatively modest amount when considered within the broader spectrum of federal prison operational support. Larger contracts for federal facilities often encompass a wide range of services, including construction, major maintenance, food services, security, and comprehensive utility management, which can run into millions of dollars annually. This specific award appears to be for a focused, short-term need related to essential utility provision. Therefore, its value is likely appropriate for the defined scope of work, rather than indicative of a large-scale, long-term operational support agreement.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 STRAIGHT CREEK RD, NEW TAZEWELL, TN, 37825

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

Financial Breakdown

Contract Ceiling: $297,112

Exercised Options: $297,112

Current Obligation: $297,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11720D00000060

IDV Type: IDC

Timeline