DOJ Awards $438K for Canaan Water Service to Essential Utilities, Inc

Contract Overview

Contract Amount: $438,717 ($438.7K)

Contractor: Essential Utilities, Inc.

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

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AQUA AMERICA FY 2026 WATER SERVICE FOR USP CANAAN

Place of Performance

Location: BRYN MAWR, MONTGOMERY County, PENNSYLVANIA, 19010

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $438,717.18 to ESSENTIAL UTILITIES, INC. for work described as: AQUA AMERICA FY 2026 WATER SERVICE FOR USP CANAAN Key points: 1. Essential Utilities, Inc. is the sole provider for this water service contract. 2. The contract value is relatively small, suggesting a localized service need. 3. Lack of competition raises concerns about potential overpricing and limited options. 4. The sector is essential utilities, a stable but often monopolized market.

Value Assessment

Rating: questionable

The contract value of $438,717.18 for one year of water service is difficult to benchmark without specific service details. However, the absence of competition suggests potential for higher pricing than might be achieved in a competitive market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and negotiation leverage for the government, potentially leading to less favorable terms.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding for this essential water service.

Public Impact

Ensures continuous water service for USP Canaan, maintaining operational capacity. Potential for higher costs impacts the Bureau of Prisons' budget allocation. Highlights reliance on single providers for critical infrastructure services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential service provision
Clear contract duration

Sector Analysis

This contract falls under the essential utilities sector, specifically water supply. Spending in this area is generally stable, but often characterized by regional monopolies or limited providers, impacting competitive dynamics.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable, despite the lack of competition. Oversight should focus on validating the necessity of the sole-source justification.

Related Government Programs

Water Supply and Irrigation Systems
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited vendor options
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $438,717.18 to ESSENTIAL UTILITIES, INC.. AQUA AMERICA FY 2026 WATER SERVICE FOR USP CANAAN

Who is the contractor on this award?

The obligated recipient is ESSENTIAL UTILITIES, 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 $438,717.18.

What is the period of performance?

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

What is the justification for the sole-source award, and was a market research conducted to confirm the lack of alternatives?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. A thorough review would require access to the contract file to verify the specific justification (e.g., unique capability, urgent need) and confirm that comprehensive market research was performed to ensure no other viable options existed.

How does the per-unit cost of this water service compare to similar contracts awarded competitively in other federal facilities?

Without specific per-unit metrics (e.g., cost per gallon, cost per user) and comparable contract data, a direct comparison is not possible. However, given the sole-source nature, it is reasonable to assume the price may be higher than what could be achieved through competitive bidding, necessitating a detailed price analysis by the agency.

What is the long-term risk associated with relying on a single provider for critical water services at a federal facility?

The primary long-term risk is service disruption if the sole provider faces financial difficulties, operational issues, or decides to cease services. This could lead to an urgent, high-cost sole-source procurement under duress. Additionally, the lack of competition removes the incentive for the provider to innovate or offer cost efficiencies over time.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

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: 762 W LANCASTER AVE, BRYN MAWR, PA, 19010

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $438,717

Exercised Options: $438,717

Current Obligation: $438,717

Actual Outlays: $126,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21519D00000056

IDV Type: IDC

Timeline