DOJ's Bureau of Prisons awards $100K for electric service in Kentucky, with limited competition
Contract Overview
Contract Amount: $100,000 ($100.0K)
Contractor: American Electric Power Company, Inc.
Awarding Agency: Department of Justice
Start Date: 2026-05-01
End Date: 2026-05-31
Contract Duration: 30 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: FY26 P4 AEP ELECTRIC SERVICE MAY 2026
Place of Performance
Location: INEZ, MARTIN County, KENTUCKY, 41224
State: Kentucky Government Spending
Plain-Language Summary
Department of Justice obligated $100,000 to AMERICAN ELECTRIC POWER COMPANY, INC. for work described as: FY26 P4 AEP ELECTRIC SERVICE MAY 2026 Key points: 1. Spending focuses on essential utility services for federal facilities. 2. Limited competition may impact price discovery and value. 3. Risk of service disruption is low due to established provider. 4. Sector is utilities, a stable but often regulated market.
Value Assessment
Rating: fair
The contract value of $100,000 for one month of electric service is difficult to assess without a clear benchmark. However, given the nature of utility services, the price is likely tied to regulated rates, suggesting a fair, though not necessarily deeply competitive, price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This approach limits price discovery and potentially leads to higher costs compared to a fully competitive process.
Taxpayer Impact: Taxpayer impact is minimal given the relatively small contract value for essential services. However, the lack of competition prevents potential cost savings.
Public Impact
Ensures continuous power supply to federal correctional facilities. Supports operational continuity for the Bureau of Prisons. Impacts local utility infrastructure and services in Kentucky.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdown
Positive Signals
- Essential service provision
- Fixed price contract
Sector Analysis
This contract falls within the utilities sector, specifically electric power distribution. Federal spending in this area is generally stable and driven by the operational needs of government facilities. Benchmarks are often dictated by regional utility rates and regulatory frameworks.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large utility company suggests a focus on established providers for essential services.
Oversight & Accountability
Oversight is primarily managed by the Department of Justice's Bureau of Prisons. The fixed-price nature of the contract provides some accountability, but the limited competition aspect warrants scrutiny to ensure fair pricing.
Related Government Programs
- Electric Power Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for overpayment due to limited competition
- Lack of transparency in the non-competitive award justification
- Dependence on a single utility provider for critical infrastructure
Tags
electric-power-distribution, department-of-justice, ky, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $100,000 to AMERICAN ELECTRIC POWER COMPANY, INC.. FY26 P4 AEP ELECTRIC SERVICE MAY 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 $100,000.
What is the period of performance?
Start: 2026-05-01. End: 2026-05-31.
What is the historical pricing for similar electric service contracts awarded by the Bureau of Prisons in Kentucky?
Historical pricing data for similar electric service contracts is crucial for a comprehensive value assessment. Without this, it's challenging to definitively determine if the $100,000 award represents a competitive rate. Analyzing past awards for comparable facilities or service durations would provide a more robust benchmark for evaluating the fairness of the current price.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' designation for this electric service contract?
The 'NOT AVAILABLE FOR COMPETITION' designation typically arises from situations like existing infrastructure dependencies, unique service requirements, or sole provider status within a specific geographic area. Understanding the precise justification is key to assessing whether this limitation was unavoidable or if alternative competitive strategies could have been explored to potentially achieve better pricing.
How does the fixed price contract structure mitigate risks associated with fluctuating energy costs for the Bureau of Prisons?
A firm fixed-price contract shifts the risk of fluctuating energy costs from the government to the contractor, American Electric Power Company. This provides budget certainty for the Bureau of Prisons, as the price remains constant regardless of market changes. However, it also means the government may not benefit from potential price decreases.
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: $100,000
Exercised Options: $100,000
Current Obligation: $100,000
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
Start Date: 2026-05-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-04-10
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