DOJ's Bureau of Prisons awards $52K for water service in Kentucky, limited competition

Contract Overview

Contract Amount: $52,139 ($52.1K)

Contractor: Prestonsburg City Utilities Commission

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-04-07

Contract Duration: 37 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 PRESTONSBURG UT WATER SERVICE MARCH 26

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $52,138.6 to PRESTONSBURG CITY UTILITIES COMMISSION for work described as: FY26 P4 PRESTONSBURG UT WATER SERVICE MARCH 26 Key points: 1. Spending is minimal at $52K, suggesting a localized or short-term need. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The contract is for essential water services, a recurring operational need for federal facilities. 4. Sector is Utilities, a stable but often regulated market.

Value Assessment

Rating: fair

The contract value is low, making direct comparison difficult. However, the benchmark of $1409 per month for water services seems reasonable for a small operation, though specific usage details are unknown.

Cost Per Unit: $1409/month

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a potential sole-source or limited-source award. This limits price discovery and may result in a less favorable price for taxpayers.

Taxpayer Impact: The low contract value limits the immediate taxpayer impact, but the lack of competition sets a precedent for potentially higher costs on future, larger contracts.

Public Impact

Ensures continued operation of essential water services for a federal facility. Supports local utility infrastructure and services within Prestonsburg, KY. Minimal direct impact on the general public due to the small contract size and specific facility focus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited contract duration
Unclear performance metrics

Positive Signals

Essential service provision
Support for local infrastructure

Sector Analysis

This contract falls within the Utilities sector, specifically water supply. Federal spending in this area typically supports operational needs of facilities. Benchmarks vary widely based on facility size and water usage.

Small Business Impact

Information regarding small business participation is not available for this contract. Given the limited competition and specific nature of the service, it's unclear if small businesses were considered or could have competed.

Oversight & Accountability

Oversight is managed by the Department of Justice's Bureau of Prisons. The limited competition and short duration suggest a focus on immediate operational needs rather than extensive oversight.

Related Government Programs

Water Supply and Irrigation Systems
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition
Potential for non-competitive pricing
Lack of detailed performance metrics
Short contract duration may indicate a temporary solution

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $52,138.6 to PRESTONSBURG CITY UTILITIES COMMISSION. FY26 P4 PRESTONSBURG UT WATER SERVICE MARCH 26

Who is the contractor on this award?

The obligated recipient is PRESTONSBURG CITY UTILITIES COMMISSION.

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 $52,138.6.

What is the period of performance?

Start: 2026-03-01. End: 2026-04-07.

What is the justification for the limited competition for this water service contract?

The justification for limited competition is not explicitly stated in the provided data. Typically, reasons could include urgent need, unique service requirements, or lack of available qualified sources. Further investigation into the contract file would be necessary to determine the precise rationale and assess its validity.

What are the potential risks associated with awarding a water service contract with limited competition?

The primary risk is paying a non-competitive price, leading to inefficient use of taxpayer funds. Limited competition can also stifle innovation and reduce the incentive for the contractor to provide high-quality service. Furthermore, it may prevent potentially more capable or cost-effective providers from participating.

How does this contract contribute to the overall effectiveness of the Federal Prison System's operations?

This contract ensures the uninterrupted provision of essential water services, which is critical for the daily operations and safety of the federal facility. Reliable water supply is fundamental for sanitation, hygiene, and overall habitability, directly supporting the core mission of the Bureau of Prisons.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

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: 2560 S LAKE DR, PRESTONSBURG, KY, 41653

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,139

Exercised Options: $52,139

Current Obligation: $52,139

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11818D00000026

IDV Type: IDC

Timeline