DOJ awards $425K for water services at FCI McKean, raising questions about competition and value

Contract Overview

Contract Amount: $425,282 ($425.3K)

Contractor: Bradford City Water Authority

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOMESTIC WATER FEE - FCI MCKEAN FY-26

Place of Performance

Location: LEWIS RUN, MCKEAN County, PENNSYLVANIA, 16738

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $425,282.02 to BRADFORD CITY WATER AUTHORITY for work described as: DOMESTIC WATER FEE - FCI MCKEAN FY-26 Key points: 1. The contract for domestic water services at FCI McKean appears to be a sole-source award, potentially limiting price discovery. 2. The fixed-price structure offers some cost certainty, but the absence of competition makes benchmarking difficult. 3. The duration of the contract (one year) is standard, but the specific need for these services warrants further scrutiny. 4. The award to Bradford City Water Authority, a local entity, suggests a focus on established utility providers. 5. The lack of a small business set-aside indicates this contract was not specifically targeted to small businesses. 6. The Federal Prison System's reliance on local water authorities is a common operational model.

Value Assessment

Rating: fair

The contract value of $425,282.02 for one year of domestic water services at FCI McKean is difficult to assess without comparable data. As a sole-source award, direct price comparisons are limited. However, the fixed-price nature provides a predictable cost for the government. The absence of competition means there's no clear indication if this price represents the best value achievable in a competitive market. Further analysis would require benchmarking against similar utility contracts for federal facilities of comparable size and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach is typically used when only one responsible source is available or authorized by statute. The lack of multiple bidders means there was no opportunity for price negotiation or discovery through a competitive bidding process, which could potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the inmates and staff at Federal Correctional Institution (FCI) McKean, who will receive reliable domestic water services. The services delivered are essential for sanitation, hygiene, and daily operations within the correctional facility. The geographic impact is localized to the area surrounding FCI McKean in Bradford, Pennsylvania. The contract supports the operational workforce of the Federal Prison System by ensuring a critical utility is provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards can indicate potential barriers to entry for other qualified providers.
Transparency is reduced without a competitive bidding process to review.
The specific justification for the sole-source award is not detailed in the provided data.

Positive Signals

The contract is for a critical utility service essential for facility operations.
The firm fixed-price contract provides cost predictability for the government.
The award is to a local water authority, potentially ensuring responsiveness.
The contract duration is for one year, allowing for future reassessment of needs and competition.

Sector Analysis

The provision of public utilities, such as water services, to federal facilities often involves contracts with established municipal or regional water authorities. This sector is characterized by regulated pricing and significant infrastructure investment. While not a high-technology or defense-specific contract, it represents essential government operational spending. Benchmarking for such services can be challenging due to the localized nature of water infrastructure and varying regulatory environments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a municipal water authority suggests that the primary contractor is likely a larger, established entity rather than a small business. This means the direct economic impact on the small business ecosystem from this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would fall under the Federal Prison System's procurement and facility management divisions within the Department of Justice. Accountability measures would include performance monitoring against the terms of the purchase order and adherence to service level agreements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Operations
Correctional Facility Utilities
Public Water Infrastructure Contracts
Department of Justice Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $425,282.02 to BRADFORD CITY WATER AUTHORITY. DOMESTIC WATER FEE - FCI MCKEAN FY-26

Who is the contractor on this award?

The obligated recipient is BRADFORD CITY WATER AUTHORITY.

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 $425,282.02.

What is the period of performance?

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

What is the historical spending pattern for domestic water services at FCI McKean?

The provided data only details the award for FY26. To understand the historical spending pattern, one would need to access procurement records for previous fiscal years for FCI McKean. This would involve searching databases like FPDS or agency-specific contract repositories. Analyzing past awards would reveal if this is a recurring need, if the pricing has fluctuated, and whether previous awards were also sole-source or competed. Understanding this history is crucial for assessing the current award's value and the justification for its sole-source status.

How does the cost per user compare to similar federal facilities?

Calculating a precise cost per user requires knowing the average daily population (inmates and staff) at FCI McKean during the contract period. Without this population data, a direct comparison is impossible. If the population were known, it could be divided into the total contract value ($425,282.02) to derive a per-user cost. This figure could then be benchmarked against per-user costs for water services at other Bureau of Prisons facilities or similar federal institutions, considering regional cost-of-living and utility rate differences. The absence of this data in the current record prevents a meaningful comparison.

What is the specific justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Common reasons for sole-source awards include unique capabilities of a single provider, urgent and compelling needs where competition is impractical, or when a specific statute authorizes or requires it. For a utility like water, it might be that Bradford City Water Authority is the only entity capable of providing service to the facility's location due to existing infrastructure. A formal Justification and Approval (J&A) document would typically be required for sole-source procurements above certain thresholds, detailing the specific rationale and market research conducted.

What are the performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not specify the performance metrics or service level agreements (SLAs) for this domestic water service contract. Typically, such contracts would include clauses related to water quality standards (e.g., meeting EPA regulations), water pressure, reliability of service (e.g., maximum allowable downtime), and response times for service interruptions. The government would monitor the contractor's adherence to these metrics to ensure satisfactory performance. Without these details, it's difficult to assess the full scope of the government's expectations and the contractor's obligations beyond basic service provision.

Has the contractor, Bradford City Water Authority, previously held contracts with the Federal Prison System or other federal agencies?

To determine if Bradford City Water Authority has prior federal contracts, a search of federal procurement databases such as the Federal Procurement Data System (FPDS) would be necessary. This would reveal any past awards, their values, durations, and the agencies involved. Understanding the contractor's federal track record can provide insights into their experience, reliability, and past performance, which are important factors in assessing the risk associated with the current award. Without this historical data, it's difficult to evaluate their established relationship with the federal government.

Industry Classification

NAICS: Public Administration › Executive, Legislative, and Other General Government Support › Other General Government Support

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28 KENNEDY ST, BRADFORD, PA, 16701

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $425,282

Exercised Options: $425,282

Current Obligation: $425,282

Actual Outlays: $110,136

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline