DOJ's Bureau of Prisons awards $180K for water services to Prestonsburg City Utilities Commission

Contract Overview

Contract Amount: $180,000 ($180.0K)

Contractor: Prestonsburg City Utilities Commission

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 PRESTONSBURG WATER SERVICE APR. - JUNE 26

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $180,000 to PRESTONSBURG CITY UTILITIES COMMISSION for work described as: FY26 P4 PRESTONSBURG WATER SERVICE APR. - JUNE 26 Key points: 1. The contract is a delivery order for water supply services. 2. The award is not available for competition, raising potential concerns about price discovery. 3. The contract duration is 90 days, indicating a short-term need. 4. The total award amount is $180,000.

Value Assessment

Rating: fair

The award amount of $180,000 for a 90-day water service contract appears reasonable given the context of utility services. However, without specific details on the volume of water or service level, a precise comparison to similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source or limited competition procurement. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The limited competition may lead to a higher price than if multiple vendors were bidding, potentially increasing taxpayer cost for essential water services.

Public Impact

Ensures essential water services for federal correctional facilities. Supports local utility infrastructure and services in Kentucky. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited duration may indicate a stop-gap measure

Positive Signals

Essential service provision
Support for local utility

Sector Analysis

This contract falls under the Water Supply and Irrigation Systems (NAICS 221310) sector. Spending in this sector is generally stable, driven by essential infrastructure needs. Benchmarks vary widely based on location and service scale.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The award went to a city utilities commission, suggesting a larger, established entity.

Oversight & Accountability

The Department of Justice's Bureau of Prisons is responsible for overseeing this contract. Standard oversight procedures should apply to ensure service delivery and payment accuracy.

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 overpayment
Short contract duration may indicate a gap or temporary solution

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $180,000 to PRESTONSBURG CITY UTILITIES COMMISSION. FY26 P4 PRESTONSBURG WATER SERVICE APR. - JUNE 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 $180,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the justification for limiting competition on this water service contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are due to the unique capabilities of a single provider, urgent needs where competition is impractical, or specific regulatory requirements. Further investigation into the contract file would be needed to ascertain the precise reason.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk is paying a premium price compared to what might be achieved through a competitive bidding process. Without competing offers, the vendor may not feel pressure to offer the lowest possible price, leading to an inefficient use of taxpayer funds over the contract term.

How effective is this contract in ensuring reliable water supply for the federal prison system?

Assuming the Prestonsburg City Utilities Commission is a reliable provider, the contract should be effective in ensuring water supply. However, the limited duration and lack of competition raise questions about long-term strategic sourcing and potential vulnerabilities if the sole provider faces issues.

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: $180,000

Exercised Options: $180,000

Current Obligation: $180,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11818D00000026

IDV Type: IDC

Timeline