DOJ's Bureau of Prisons to Spend $596M on Wastewater Treatment in FY26
Contract Overview
Contract Amount: $596,472 ($596.5K)
Contractor: Lafayette Township
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $1.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WASTEWATER TREATMENT FY 26
Place of Performance
Location: LEWIS RUN, MCKEAN County, PENNSYLVANIA, 16738
Plain-Language Summary
Department of Justice obligated $596,472 to LAFAYETTE TOWNSHIP for work described as: WASTEWATER TREATMENT FY 26 Key points: 1. Significant investment in essential infrastructure for federal correctional facilities. 2. Limited competition raises concerns about potential overspending and lack of innovation. 3. Risk of cost overruns due to fixed-price contract and potential unforeseen issues. 4. Sector focus on public utilities and infrastructure maintenance.
Value Assessment
Rating: questionable
The contract is a delivery order with a firm fixed price. Without comparable contract data, it's difficult to assess if the $596M price is competitive for a 364-day duration. The lack of competition is a primary driver of the questionable rating.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The limited competition for a substantial $596M contract raises concerns about taxpayer value. Without competitive bidding, there's a risk of paying a premium for services.
Public Impact
Ensures operational continuity for federal prisons, impacting inmate welfare and public safety. Potential for environmental impact if treatment facilities are not adequately maintained or upgraded. Investment in aging infrastructure, which could have broader implications for federal facility management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency on pricing benchmarks
Positive Signals
- Addresses critical infrastructure needs
- Ensures essential service delivery
Sector Analysis
This contract falls within the public utilities and infrastructure maintenance sector, specifically focusing on wastewater treatment for federal correctional facilities. Benchmarks for similar large-scale wastewater treatment contracts are not readily available, making direct comparison difficult.
Small Business Impact
There is no indication of small business participation in this contract. The limited competition approach may further exclude small businesses from opportunities.
Oversight & Accountability
The Bureau of Prisons is responsible for this contract. Oversight will be crucial to ensure the funds are used effectively and that the wastewater treatment services meet all regulatory and operational requirements, especially given the limited competition.
Related Government Programs
- Sewage Treatment Facilities
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification for limited competition
- Risk of scope creep impacting fixed price
- Dependency on a single provider
Tags
sewage-treatment-facilities, department-of-justice, pa, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $596,472 to LAFAYETTE TOWNSHIP. WASTEWATER TREATMENT FY 26
Who is the contractor on this award?
The obligated recipient is LAFAYETTE TOWNSHIP.
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 $596,472.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What specific factors justify the 'NOT AVAILABLE FOR COMPETITION' status for this significant wastewater treatment contract?
The justification for 'NOT AVAILABLE FOR COMPETITION' needs to be thoroughly reviewed. Typically, this designation is reserved for unique circumstances like urgent needs, sole-source providers with unique capabilities, or specific government requirements that only one entity can fulfill. Without this justification, the limited competition raises significant concerns about value for money.
How will the Bureau of Prisons ensure cost-effectiveness and prevent overruns with a $596M fixed-price contract awarded under limited competition?
Effective oversight, detailed performance metrics, and robust contract management are essential. The Bureau of Prisons should implement stringent monitoring of service delivery, conduct regular cost reviews, and establish clear protocols for managing any change orders or unforeseen issues that could impact the fixed price. Transparency in reporting on cost performance will be key.
What are the long-term implications of investing $596M in wastewater treatment for federal prisons, particularly regarding environmental compliance and infrastructure modernization?
This substantial investment suggests a focus on addressing potential deficiencies or upgrades in federal prison wastewater systems. It could lead to improved environmental compliance and modernized infrastructure, reducing long-term risks of system failures or regulatory penalties. However, the effectiveness will depend on the specific scope of work and the chosen technology.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities
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: 7534 ROUTE 59, LEWIS RUN, PA, 16738
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $596,472
Exercised Options: $596,472
Current Obligation: $596,472
Actual Outlays: $262,242
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15B20922D00000002
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-10
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