DOJ Awards $300K for Electric Power Distribution to Powell Valley Electric Cooperative in FY26

Contract Overview

Contract Amount: $300,000 ($300.0K)

Contractor: Powell Valley Electric Cooperative

Awarding Agency: Department of Justice

Start Date: 2026-07-01

End Date: 2026-09-30

Contract Duration: 91 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 POWELL VALLEY ELECTRIC QTR 4

Place of Performance

Location: NEW TAZEWELL, CLAIBORNE County, TENNESSEE, 37824

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $300,000 to POWELL VALLEY ELECTRIC COOPERATIVE for work described as: FY26 POWELL VALLEY ELECTRIC QTR 4 Key points: 1. Spending on electric power distribution is essential for federal facilities. 2. Powell Valley Electric Cooperative is the awardee for this delivery order. 3. The contract is a firm-fixed-price delivery order, indicating defined costs. 4. Competition method is 'Full and Open', suggesting broad market participation.

Value Assessment

Rating: fair

The award amount of $300,000 for a 3-month period seems reasonable for electric power distribution services. Benchmarking against similar contracts for utility services in the region would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to competitive pricing. The delivery order mechanism suggests this is part of a larger contract or a specific need fulfillment.

Taxpayer Impact: The $300,000 expenditure supports essential federal operations, with competitive bidding aiming to ensure taxpayer funds are used efficiently.

Public Impact

Ensures continuous power supply to federal facilities managed by the Bureau of Prisons. Supports regional economic activity through contracts with local utility providers. Contributes to the operational readiness of law enforcement and correctional services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Electric power distribution is a critical utility service for all federal agencies. Spending benchmarks vary widely based on facility size, location, and specific energy needs. This contract appears to be a standard procurement for operational support.

Small Business Impact

The data does not indicate if Powell Valley Electric Cooperative is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The award is a delivery order under a larger contract, implying prior oversight. The Bureau of Prisons is responsible for ensuring the effective delivery of these services.

Related Government Programs

Risk Flags

Tags

electric-power-distribution, department-of-justice, tn, delivery-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $300,000 to POWELL VALLEY ELECTRIC COOPERATIVE. FY26 POWELL VALLEY ELECTRIC QTR 4

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 $300,000.

What is the period of performance?

Start: 2026-07-01. End: 2026-09-30.

What is the historical spending on electric power distribution for the Federal Prison System in Tennessee?

Historical spending data for electric power distribution within the Federal Prison System in Tennessee is not provided in this dataset. To assess this, one would need to query federal procurement databases for similar contracts over previous fiscal years, considering factors like facility size, energy consumption patterns, and regional utility rates. This would help establish a baseline for comparison and identify trends or anomalies in current spending.

What are the potential risks associated with a short-term (91-day) delivery order for essential services?

A short-term delivery order for essential services like electric power distribution carries risks such as potential service interruptions if a follow-on contract is not secured promptly. It can also lead to higher per-unit costs due to the lack of long-term commitment and economies of scale. Furthermore, it may limit the contractor's incentive to invest in infrastructure upgrades or specialized support, potentially impacting service reliability and quality over time.

How does the firm-fixed-price contract type ensure effectiveness in this scenario?

A firm-fixed-price contract ensures effectiveness by establishing a set price for the electric power distribution services, regardless of the contractor's actual costs. This incentivizes Powell Valley Electric Cooperative to manage its resources efficiently and deliver the required services within the agreed budget. The effectiveness is further tied to the clarity of the delivery order's scope of work and performance standards, ensuring the Bureau of Prisons receives the necessary power supply reliably.

Industry Classification

NAICS: UtilitiesElectric Power Generation, Transmission and DistributionElectric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

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: $300,000

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11720D00000060

IDV Type: IDC

Timeline

Start Date: 2026-07-01

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-04-09

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