DOJ's $98K electric service contract for April 2026 awarded to American Electric Power Company, Inc

Contract Overview

Contract Amount: $98,271 ($98.3K)

Contractor: American Electric Power Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 - AEP ELECTRIC SERVICE APRIL 2026

Place of Performance

Location: INEZ, MARTIN County, KENTUCKY, 41224

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $98,271.16 to AMERICAN ELECTRIC POWER COMPANY, INC. for work described as: FY26 P4 - AEP ELECTRIC SERVICE APRIL 2026 Key points: 1. Contract value appears reasonable for a single month of electric service. 2. Limited competition due to the nature of utility services. 3. Risk indicators are low given the essential service provided. 4. Performance context is a short-term, single-month delivery order. 5. Sector positioning is within essential utility services for federal facilities.

Value Assessment

Rating: good

The contract value of $98,271.16 for one month of electric service is benchmarked against typical utility rates. While specific per-unit costs for electricity are not provided, the total amount seems aligned with the expected expenses for a federal facility of significant size. Without more granular data on energy consumption or historical spending for this specific location, a precise value-for-money assessment is challenging, but the price does not appear excessive for a month's supply of electricity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario. Electric utility services are typically provided by a single entity within a specific geographic area, making full and open competition impractical or impossible. The lack of multiple bidders is inherent to the nature of the service, not necessarily a failure of the procurement process.

Taxpayer Impact: Taxpayers are served by ensuring continuous and reliable power to federal facilities, which is a non-negotiable requirement. The cost is likely determined by regulated utility rates, minimizing opportunities for price negotiation.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from reliable electricity. Essential electric power services are delivered to a federal facility in Kentucky. Geographic impact is localized to the facility in Kentucky. Workforce implications are minimal, as this is a service contract for utility provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in energy markets not fully mitigated by fixed-price contract.
Dependence on a single utility provider could pose a risk if service is interrupted.

Positive Signals

Ensures essential service continuity for a federal facility.
Contract is for a short duration, limiting long-term exposure to market volatility.
Awarded to a known utility provider with established infrastructure.

Sector Analysis

The energy sector, specifically electric power distribution, is a critical infrastructure component. Federal agencies rely heavily on utility providers to maintain operations. This contract represents a small portion of the overall federal spending on utilities, which is a recurring and essential expenditure across numerous agencies and facilities nationwide. Benchmarking this specific contract is difficult without knowing the exact energy consumption of the facility.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is awarded to a large utility company. There is no indication of subcontracting opportunities for small businesses within this specific delivery order for electric service.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Federal Prison System. Accountability measures are inherent in the delivery of essential services; failure to provide power would have immediate operational consequences. Transparency is generally maintained through federal procurement databases, though specific performance metrics for utility services are often standard operational requirements rather than contract-specific deliverables.

Related Government Programs

Federal Energy Management Program
Utility Services Contracts
Department of Justice Facility Operations

Risk Flags

Sole-source award limits price competition.
Potential for price volatility in energy markets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $98,271.16 to AMERICAN ELECTRIC POWER COMPANY, INC.. FY26 P4 - AEP ELECTRIC SERVICE APRIL 2026

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 $98,271.16.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

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

Analyzing historical spending for electric services at this specific federal facility would provide crucial context for evaluating the current contract's value. Without access to past contract data (e.g., previous delivery orders or base contracts for the same facility), it is difficult to determine if the $98,271.16 for April 2026 represents an increase, decrease, or stable cost compared to previous periods. Factors such as changes in energy consumption, fluctuating market rates, and contract terms (fixed-price vs. cost-reimbursable) can significantly impact year-over-year spending. A trend analysis of historical data would reveal if this contract is in line with established spending patterns or if further investigation into price drivers is warranted.

How does the per-kilowatt-hour cost compare to national averages for commercial or industrial electricity rates?

A direct comparison of the per-kilowatt-hour (kWh) cost for this contract to national averages for commercial or industrial electricity rates would offer a valuable benchmark. However, the provided data does not include the total kilowatt-hours to be supplied, making a precise per-kWh calculation impossible. If such data were available, it could be compared against figures from the U.S. Energy Information Administration (EIA) or other industry sources. Federal facilities often have unique consumption patterns and may be subject to different rate structures than typical commercial entities. Therefore, while national averages provide a general reference, the specific rate structure negotiated with the utility provider for this facility is the most relevant comparison point.

What are the specific energy consumption needs of the facility that this contract is intended to cover?

The specific energy consumption needs of the facility are not detailed in the provided contract data. This contract covers 'Electric Power Distribution' for April 2026, implying it's for the provision of electricity. Understanding the facility's peak demand, average daily usage, and the types of operations requiring power (e.g., administrative, housing, specialized equipment) would be essential for a comprehensive assessment. This information would allow for a more accurate estimation of the expected kilowatt-hour usage and, consequently, a better evaluation of the contract's value for money. Without this context, the $98,271.16 is a total cost figure without a clear understanding of the volume of service it represents.

What is American Electric Power Company, Inc.'s track record with federal government contracts, particularly for utility services?

American Electric Power Company, Inc. (AEP) is a major utility provider with a significant presence in several states. While specific details on their track record with federal government contracts are not provided in this data snippet, large utility companies typically have established processes for serving government entities. Their experience would likely involve navigating government procurement regulations and meeting service level agreements. A deeper dive into AEP's contract history with federal agencies, including performance reviews and any past issues, would offer insight into their reliability and adherence to contractual obligations. However, for essential services like electricity, established providers are often chosen for their existing infrastructure and regulatory compliance.

Are there any alternative energy sources or providers that could have been considered for this facility?

The feasibility of considering alternative energy sources or providers for this facility depends heavily on its geographic location and existing infrastructure. As this contract is with American Electric Power Company, Inc. for 'Electric Power Distribution,' it implies reliance on the established grid infrastructure managed by AEP in that region. Exploring alternative sources like on-site solar generation or other renewable energy providers would require significant capital investment and infrastructure changes, which may not be feasible or cost-effective for a single-month service contract. The 'NOT AVAILABLE FOR COMPETITION' status strongly suggests that, for the period specified, AEP was the sole viable provider through the existing distribution network.

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: $98,271

Exercised Options: $98,271

Current Obligation: $98,271

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