DOJ's $57M water treatment contract awarded to ChemTreat, Inc. for Federal Prison System

Contract Overview

Contract Amount: $57,000 ($57.0K)

Contractor: Chemtreat, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $157/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POWER HOUSE CLOSED LOOP WATER TREATMENT FY26

Place of Performance

Location: GLEN ALLEN, HENRICO County, VIRGINIA, 23060

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $57,000 to CHEMTREAT, INC. for work described as: POWER HOUSE CLOSED LOOP WATER TREATMENT FY26 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and 3-year duration. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are low with a firm-fixed-price contract and established vendor. 4. Performance context is for essential water treatment services within correctional facilities. 5. Sector positioning is within the 'Other' category, specifically supporting federal correctional operations.

Value Assessment

Rating: good

The contract's value of $57 million over three years for water treatment services is within a reasonable range for federal facilities of this scale. The firm-fixed-price structure provides cost certainty. Benchmarking against similar contracts for correctional facilities or large industrial water treatment needs would offer further insight, but initial assessment suggests fair pricing given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally positive for price discovery and ensures a broad range of potential vendors could participate. The presence of multiple bidders suggests the market is responsive to this type of requirement.

Taxpayer Impact: A full and open competition with multiple bidders typically leads to more competitive pricing, which is beneficial for taxpayers by potentially lowering the overall cost of the services.

Public Impact

Benefits federal correctional facilities by ensuring safe and compliant water treatment. Delivers essential water treatment chemicals and services to maintain operational integrity. Geographic impact is nationwide, supporting the Federal Prison System's infrastructure. Workforce implications are minimal for the government, with services provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to switch.
Reliance on a single vendor for critical infrastructure services could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a healthy market and potential for competitive pricing.
Established vendor with a track record in government contracting.

Sector Analysis

This contract falls within the broader chemical manufacturing and services sector, specifically supporting government operations. The market for industrial water treatment chemicals and services is substantial, with numerous players ranging from large chemical conglomerates to specialized service providers. Federal spending in this area supports essential infrastructure maintenance across various agencies.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. The award to a large vendor suggests it was not specifically targeted towards small business participation.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Prisons contracting officers and facility managers. Accountability measures are inherent in the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Maintenance Contracts
Chemical and Water Treatment Services

Risk Flags

Potential for vendor lock-in
Reliance on critical infrastructure services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $57,000 to CHEMTREAT, INC.. POWER HOUSE CLOSED LOOP WATER TREATMENT FY26

Who is the contractor on this award?

The obligated recipient is CHEMTREAT, 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 $57,000.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is ChemTreat, Inc.'s track record with the Federal Prison System or similar government agencies?

Chemtreat, Inc. has a history of providing water treatment solutions to various government entities. While specific details on their past performance with the Federal Prison System require deeper investigation into contract databases and performance reports, their ability to secure this contract suggests a satisfactory track record. Federal agencies typically vet vendors for past performance, especially for critical services like water treatment. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations related to their government contracts to fully assess their reliability and expertise in serving correctional facilities.

How does the $57 million value compare to similar water treatment contracts for correctional facilities?

Benchmarking the $57 million value requires comparing it against contracts for similar-sized correctional facilities or networks of facilities over a comparable duration (three years). Factors influencing cost include the number of facilities served, the complexity of water systems (e.g., potable water, wastewater, HVAC), the specific chemicals and services required, and geographic location. Without specific comparable contract data, it's challenging to definitively state if $57 million is high or low. However, for a nationwide or large regional network of federal prisons, this figure appears to be within a plausible range for comprehensive water treatment solutions, especially considering the stringent regulatory and security requirements of correctional environments.

What are the primary risks associated with this firm-fixed-price contract for water treatment?

The primary risks with a firm-fixed-price contract for water treatment services, while generally favorable for cost control, revolve around potential scope creep or unforeseen operational challenges. If the scope of services is not precisely defined, or if unexpected issues arise within the water systems that require more intensive treatment than initially anticipated, the contractor might face reduced profit margins or seek contract modifications. Another risk is the potential for the contractor to cut corners on service quality to maintain profitability if not adequately monitored. However, the firm-fixed-price structure incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed budget.

How effective are full and open competitions in ensuring competitive pricing for specialized services like water treatment?

Full and open competitions are generally effective in ensuring competitive pricing for specialized services like water treatment, provided there is sufficient market capacity and interest. The requirement for multiple bidders (three in this case) indicates a degree of market responsiveness. This process allows agencies to solicit proposals from a wide range of qualified vendors, fostering price competition and encouraging vendors to offer their best pricing to win the contract. The effectiveness is maximized when the solicitation clearly defines requirements and evaluation criteria, allowing vendors to accurately price their offerings and the agency to select the best value proposal, not just the lowest price.

What is the historical spending pattern for water treatment services within the Federal Prison System?

Analyzing historical spending patterns for water treatment services within the Federal Prison System is crucial for context. This involves examining prior contract awards for similar services, their values, durations, and the vendors involved over several fiscal years. Significant year-over-year increases or decreases in spending could indicate changes in facility needs, regulatory requirements, or procurement strategies. Understanding this history helps in assessing whether the current $57 million award represents a consistent level of investment, an increase due to expanded needs, or a potential area for cost-saving review if spending has escalated disproportionately compared to service levels or inflation.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5640 COX RD, GLEN ALLEN, VA, 23060

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

Financial Breakdown

Contract Ceiling: $57,576

Exercised Options: $57,576

Current Obligation: $57,000

Actual Outlays: $13,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0139Y

IDV Type: FSS

Timeline