DOJ's $2.16M FY25 Utility Contract for FCC Hazelton Faces Funding Uncertainty Under CR

Contract Overview

Contract Amount: $2,161,335 ($2.2M)

Contractor: Monongahela Power Company

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25- FCC HAZELTON, ELECTRIC UTILITY COVERED BY GSA AREAWIDE UTILITY CONTRACT VEHICLE FUNDING FOR OCTOBER ONLY WHILE UNDER CR.

Place of Performance

Location: AKRON, SUMMIT County, OHIO, 44308

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $2.2 million to MONONGAHELA POWER COMPANY for work described as: FY25- FCC HAZELTON, ELECTRIC UTILITY COVERED BY GSA AREAWIDE UTILITY CONTRACT VEHICLE FUNDING FOR OCTOBER ONLY WHILE UNDER CR. Key points: 1. The contract is for essential utility services at FCC Hazelton, with funding contingent on CR status. 2. Monongahela Power Company is the incumbent, raising questions about competition. 3. The contract's reliance on a GSA Areawide Utility Contract vehicle suggests potential for streamlined procurement. 4. The primary risk lies in the ongoing CR, which could disrupt service continuity if not resolved. 5. The 'Other Electric Power Generation' NAICS code indicates a specialized service area.

Value Assessment

Rating: fair

The contract is a delivery order under a GSA Areawide Utility Contract. Pricing is firm fixed price, but without specific benchmarks or historical data for this exact delivery order, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition scenario, likely due to the nature of utility services and existing GSA schedules. This limits price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential utility services. The limited competition may result in a higher cost than a fully competitive bid, but the necessity of the service justifies the expenditure.

Public Impact

Ensures continuous power supply to the Federal Correctional Complex (FCC) Hazelton, vital for operations. Supports the Bureau of Prisons' mission by maintaining critical infrastructure. Potential for service disruption if Continuing Resolution (CR) funding is not resolved. Impacts federal employees and incarcerated individuals at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Funding uncertainty due to Continuing Resolution (CR).
Limited competition for essential utility services.
Potential for price increases if CR extends.
Dependence on a single provider for critical infrastructure.

Positive Signals

Utilizes a GSA Areawide Utility Contract vehicle for efficiency.
Firm Fixed Price contract provides cost predictability.
Ensures essential service delivery for a federal facility.

Sector Analysis

This contract falls under the utility services sector, specifically electric power generation. Spending benchmarks for such services can vary widely based on location, facility size, and specific energy needs. Federal utility contracts often leverage GSA schedules for efficiency.

Small Business Impact

The data does not indicate any specific provisions or participation by small businesses in this contract. The primary contractor is Monongahela Power Company, a large utility provider.

Oversight & Accountability

The use of a GSA Areawide Utility Contract suggests some level of pre-vetted oversight. However, the limited competition and CR funding status warrant close monitoring by the Bureau of Prisons and relevant oversight bodies to ensure cost-effectiveness and service continuity.

Related Government Programs

Other Electric Power Generation
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Funding contingent on Continuing Resolution (CR).
Limited competition ('Not Available for Competition').
Potential for price escalation if CR extends.
Dependence on a single utility provider for critical infrastructure.
Lack of specific performance metrics or benchmarks in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.2 million to MONONGAHELA POWER COMPANY. FY25- FCC HAZELTON, ELECTRIC UTILITY COVERED BY GSA AREAWIDE UTILITY CONTRACT VEHICLE FUNDING FOR OCTOBER ONLY WHILE UNDER CR.

Who is the contractor on this award?

The obligated recipient is MONONGAHELA POWER COMPANY.

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 $2.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical cost performance of Monongahela Power Company under similar GSA contracts, and how does it compare to market rates for utility services in Ohio?

Assessing historical cost performance requires access to past contract data and market rate analysis for utility services in Ohio. Without this specific data, it's challenging to benchmark Monongahela Power Company's pricing accurately. However, the 'limited' competition status suggests that price discovery may not be fully optimized, potentially leading to costs that are not the absolute lowest achievable in a fully competitive market.

What are the contingency plans if the Continuing Resolution (CR) is not resolved before October 1st, impacting the funding for this delivery order?

Contingency plans would likely involve the Bureau of Prisons identifying emergency funding sources or potentially halting non-essential services if absolutely necessary. However, for critical utilities like electricity, agencies typically have established protocols to ensure continuity, which might include direct appeals for emergency appropriations or utilizing other available operational funds, though this could strain other program budgets.

How does the 'NOT AVAILABLE FOR COMPETITION' classification impact the long-term cost-effectiveness of securing utility services for federal facilities?

Classifying a contract as 'not available for competition' inherently limits the government's ability to leverage market forces to achieve the lowest possible price. While it may ensure service continuity or access to specialized providers, it can lead to higher costs over the long term compared to fully competed contracts. Agencies must carefully justify such classifications and explore options for future competition where feasible.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

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: 1310 FAIRMONT AVE, FAIRMONT, WV, 26554

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,161,335

Exercised Options: $2,161,335

Current Obligation: $2,161,335

Actual Outlays: $2,161,544

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0034

IDV Type: IDC

Timeline