DOJ awards $619K for sewer services at USP Canaan, extending existing contract

Contract Overview

Contract Amount: $619,096 ($619.1K)

Contractor: Waymart Area Authority

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 SEWER/WASTE WATER SERVICE FOR USP CANAAN, WAYMART, PA 18472 BASED OFF CONTRACT #15B21518D00000032

Place of Performance

Location: WAYMART, WAYNE County, PENNSYLVANIA, 18472

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $619,096.2 to WAYMART AREA AUTHORITY for work described as: FY26 SEWER/WASTE WATER SERVICE FOR USP CANAAN, WAYMART, PA 18472 BASED OFF CONTRACT #15B21518D00000032 Key points: 1. Contract value appears reasonable for specialized waste water services at a federal facility. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Contract duration is standard for this type of service delivery. 4. Performance risk is mitigated by the firm-fixed-price structure. 5. This contract supports essential facility operations for the Bureau of Prisons. 6. Geographic concentration of service delivery in Waymart, PA.

Value Assessment

Rating: good

The contract value of $619,096.20 for a 364-day period for sewer and wastewater services at USP Canaan appears to be within a reasonable range for specialized municipal services supporting a federal facility. Benchmarking against similar contracts for correctional facilities or large government installations would provide a more precise value-for-money assessment. However, given the essential nature of these services and the specific location, the price seems justifiable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, indicated by 'NOT AVAILABLE FOR COMPETITION' and the presence of a single award. This suggests that the Waymart Area Authority was likely the only entity capable of providing the required services, possibly due to geographic proximity, existing infrastructure agreements, or specific regulatory requirements. The limited competition may have reduced price discovery compared to a full and open solicitation, potentially leading to a higher price than if multiple bidders had competed.

Taxpayer Impact: For taxpayers, limited competition can mean less assurance of obtaining the lowest possible price. While the service is essential, the lack of robust bidding limits the government's ability to leverage market forces for cost savings.

Public Impact

The primary beneficiary is the Federal Prison System (Bureau of Prisons) at USP Canaan, ensuring operational continuity. Essential services including sewage treatment and wastewater management are delivered. The geographic impact is localized to Waymart, Pennsylvania, and the surrounding area. The contract supports the operational workforce at USP Canaan by maintaining essential utilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future contract renewals due to limited competition.
Dependence on a single provider for critical infrastructure services could pose a risk if the provider faces operational issues.

Positive Signals

Contract supports a critical federal facility, ensuring essential services are maintained.
Firm-fixed-price contract provides cost certainty for the government.
Existing relationship with the provider may indicate a history of satisfactory performance.

Sector Analysis

The contract falls within the Utilities and Waste Management sector, specifically focusing on sewage treatment facilities. This sector is crucial for public health and environmental protection, serving both public and private entities. Federal facilities often require specialized waste management solutions due to their unique operational demands and security requirements. Comparable spending benchmarks for municipal wastewater services can vary significantly based on population served, infrastructure complexity, and regulatory compliance costs.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting opportunities for small businesses within the provided data. The focus is on a municipal authority, suggesting a larger, established entity is providing the service.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' contracting and facility management divisions. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facility Maintenance
Municipal Wastewater Treatment Services
USP Canaan Operations

Risk Flags

Limited competition may lead to higher costs.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $619,096.2 to WAYMART AREA AUTHORITY. FY26 SEWER/WASTE WATER SERVICE FOR USP CANAAN, WAYMART, PA 18472 BASED OFF CONTRACT #15B21518D00000032

Who is the contractor on this award?

The obligated recipient is WAYMART AREA 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 $619,096.2.

What is the period of performance?

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

What is the historical spending pattern for sewer and wastewater services at USP Canaan?

The provided data indicates this is a delivery order based on contract #15B21518D00000032, suggesting a prior contract existed. To understand the historical spending pattern, one would need to examine the full contract history for USP Canaan's sewer and wastewater services, including the value and duration of previous awards. Without access to that historical data, it's difficult to determine if the current $619,096.20 award represents an increase, decrease, or stable spending trend compared to previous periods. Analyzing past performance and pricing would offer context on whether this award is consistent with prior expenditures or indicates a significant shift.

How does the pricing of this contract compare to similar municipal service contracts for federal facilities?

Benchmarking this contract's price against similar municipal service contracts for federal facilities requires access to a database of comparable contracts. Factors such as facility size, inmate population, specific treatment requirements, and geographic location significantly influence pricing. Given that this is a limited competition award to the Waymart Area Authority, the price might be higher than if it were fully competed. A detailed comparison would involve identifying contracts for similar services at comparable federal institutions and analyzing their per-unit costs or total contract values relative to service scope and duration. Without such comparative data, a definitive assessment of value-for-money is challenging.

What are the specific performance risks associated with this sewer/wastewater service contract?

The primary performance risks for this sewer and wastewater service contract revolve around service disruption and compliance. Potential risks include equipment failure at the Waymart Area Authority's facilities, unexpected surges in wastewater volume, or contamination events that could impact the USP Canaan's operations and environmental compliance. Given the firm-fixed-price nature, the contractor bears the financial risk of cost overruns. However, the government's risk lies in ensuring the continuity and quality of service. Mitigation strategies would involve clear performance standards, regular inspections, and contingency plans outlined in the contract.

What is the track record of the Waymart Area Authority in providing services to federal agencies?

The provided data indicates that this is a delivery order under contract #15B21518D00000032, suggesting a pre-existing relationship between the Waymart Area Authority and the Department of Justice or Bureau of Prisons. This implies some level of prior performance assessment. To fully evaluate the contractor's track record, one would need to review past performance evaluations, any documented issues or commendations related to this or other government contracts held by the Waymart Area Authority. A history of successful service delivery would increase confidence in the current contract's successful execution.

What are the implications of the limited competition for future contract renewals?

The limited competition for this contract raises concerns about future renewals. If the Waymart Area Authority remains the sole viable provider due to geographic constraints or infrastructure ownership, future solicitations may continue to be limited. This lack of robust competition could allow the provider to increase prices in subsequent contract periods, as the government may have fewer alternatives. It also reduces the incentive for potential competitors to enter the market. Long-term planning by the Bureau of Prisons might involve exploring options to foster greater competition or assess alternative service delivery models to mitigate this risk.

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: 66 RAILROAD LN, WAYMART, PA, 18472

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

Financial Breakdown

Contract Ceiling: $619,096

Exercised Options: $619,096

Current Obligation: $619,096

Actual Outlays: $136,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21518D00000032

IDV Type: IDC

Timeline