DOJ's $203M water supply contract for federal prisons awarded to City of Berlin

Contract Overview

Contract Amount: $203,525 ($203.5K)

Contractor: City of Berlin

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $559/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 INSTITUTIONAL WATER SUPPLY

Place of Performance

Location: BERLIN, COOS County, NEW HAMPSHIRE, 03570

State: New Hampshire Government Spending

Plain-Language Summary

Department of Justice obligated $203,524.66 to CITY OF BERLIN for work described as: FY26 INSTITUTIONAL WATER SUPPLY Key points: 1. Contract aims to ensure reliable water supply for federal correctional facilities. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Duration of one year indicates a focus on immediate operational needs. 5. Geographic focus on New Hampshire for this specific delivery order. 6. The contract falls under the 'Water Supply and Irrigation Systems' NAICS code.

Value Assessment

Rating: fair

The contract value of $203.5 million for a one-year water supply contract is substantial. Without specific details on the volume of water, treatment requirements, or infrastructure involved, a direct value-for-money assessment is challenging. However, for a large federal correctional system, ensuring a consistent and safe water supply is a critical operational necessity. Benchmarking against similar large-scale municipal or institutional water contracts would be necessary for a more precise evaluation of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the method of award implies that multiple proposals were likely considered.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding, ensuring the government receives the best possible value for its investment in essential services.

Public Impact

Federal inmates and staff in Bureau of Prisons facilities in New Hampshire will benefit from a reliable water supply. Ensures compliance with public health and safety standards related to water quality. Supports the operational continuity of federal correctional institutions. Indirectly impacts the local workforce through the contractor's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions change significantly during the contract term, despite fixed-price structure.
Dependence on a single contractor for a critical utility poses a risk if performance issues arise.
Geographic concentration of this delivery order might not reflect broader water supply needs across the entire Bureau of Prisons system.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Fixed-price contract type provides budget certainty for the specified period.
Contract duration of one year allows for periodic re-evaluation of needs and market conditions.

Sector Analysis

The water utility sector is essential for public health and infrastructure, encompassing the provision of potable water, wastewater treatment, and related services. Federal agencies, particularly those with large facilities like correctional institutions, are significant consumers of these services. This contract fits within the broader category of government procurement for essential infrastructure and operational support services. Market size for federal water supply contracts can be substantial, driven by the needs of agencies like the Department of Justice, Department of Defense, and others operating extensive physical footprints.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the primary contractor, City of Berlin, is likely not a small business, or if it is, the contract was not specifically designated for small business competition. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP), a component of the Department of Justice. The BOP is responsible for ensuring contract compliance, monitoring performance, and verifying that services meet specified standards. The Department of Justice's Office of the Inspector General may also conduct audits or investigations into contract management and expenditures to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Water Infrastructure Procurement
Public Health Services Contracts
Municipal Service Contracts with Federal Agencies

Risk Flags

Potential for service disruption due to infrastructure issues.
Water source vulnerability to environmental factors (e.g., drought, contamination).
Dependence on a single provider for a critical utility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $203,524.66 to CITY OF BERLIN. FY26 INSTITUTIONAL WATER SUPPLY

Who is the contractor on this award?

The obligated recipient is CITY OF BERLIN.

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 $203,524.66.

What is the period of performance?

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

What is the historical spending pattern for water supply services at the specific federal correctional facilities covered by this contract?

Analyzing historical spending for water supply at the targeted federal correctional facilities is crucial for understanding the context of the $203.5 million award. Without specific historical data for these locations, it's difficult to ascertain if this represents an increase, decrease, or stable expenditure. Typically, federal agencies maintain records of past contract awards and expenditures. A review of previous contracts for water services at these facilities, including their duration, value, and awarded contractors, would reveal trends. For instance, if previous contracts were significantly lower in value, this new award might indicate increased needs, inflation, or a shift in service scope. Conversely, if it aligns with prior spending, it suggests consistent operational requirements. Understanding this historical context allows for a more informed assessment of the current contract's value and necessity.

How does the City of Berlin's pricing for water supply compare to other municipal providers or similar federal contracts?

Benchmarking the City of Berlin's pricing against other municipal providers and similar federal contracts is essential for assessing value for money. As a municipal entity, the City of Berlin might operate under different cost structures and regulatory frameworks than private water utility companies. To conduct a fair comparison, one would need to identify comparable contracts awarded to other municipalities or private entities for similar services (volume, treatment standards, infrastructure maintenance) to federal facilities in different regions. Factors such as local water source availability, treatment complexity, distribution infrastructure, and regulatory compliance costs vary significantly by location. A detailed cost breakdown from the City of Berlin, if available, would facilitate this comparison. Without such granular data, a preliminary assessment suggests that a $203.5 million award for a one-year contract implies a large scale of service, potentially encompassing multiple facilities or significant infrastructure components.

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

The specific performance metrics and Service Level Agreements (SLAs) for this $203.5 million water supply contract are critical for evaluating the contractor's accountability and the government's ability to ensure service quality. While the award notice specifies a firm fixed-price contract type and a one-year duration, it does not detail the performance standards. Typically, water supply contracts would include SLAs related to water quality (e.g., meeting EPA standards), water pressure and volume availability, response times for service interruptions or emergencies, and maintenance schedules for any associated infrastructure. The Bureau of Prisons would be responsible for monitoring adherence to these SLAs. Failure to meet these metrics could result in penalties, contract modifications, or termination. A thorough review of the contract's statement of work would provide these crucial details, enabling an assessment of risk and performance expectations.

What is the track record of the City of Berlin in managing large-scale utility contracts, particularly with federal agencies?

The track record of the City of Berlin in managing large-scale utility contracts, especially with federal agencies, is a key indicator of potential performance and reliability. As a municipal entity, the City of Berlin likely has experience managing its own water infrastructure and services for its residents. However, managing a federal contract of this magnitude ($203.5 million) involves specific federal procurement regulations, reporting requirements, and security protocols that may differ from domestic municipal operations. Information regarding the City of Berlin's past performance on similar federal contracts, including any history of disputes, contract modifications, or performance issues, would be valuable. Assessing this track record helps anticipate potential challenges and gauge the likelihood of successful contract execution, ensuring the consistent delivery of essential water services to federal correctional facilities.

Are there any identified risks related to the water source or infrastructure managed by the City of Berlin that could impact service delivery?

Identifying risks associated with the water source or infrastructure managed by the City of Berlin is paramount for ensuring the uninterrupted supply of water to federal correctional facilities. Potential risks could include drought conditions affecting water availability, contamination of the water source (e.g., from agricultural runoff, industrial discharge, or natural events), aging or inadequate infrastructure leading to leaks or service disruptions, and cybersecurity threats to water management systems. The Bureau of Prisons, as the contracting agency, would likely have conducted due diligence to assess these risks prior to award. Furthermore, the contract itself may stipulate requirements for the City of Berlin to maintain emergency preparedness plans, conduct regular infrastructure assessments, and implement robust water quality monitoring programs. Understanding these potential vulnerabilities and the mitigation strategies in place is crucial for assessing the overall reliability of the service.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 WILLOW ST, BERLIN, NH, 03570

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

Financial Breakdown

Contract Ceiling: $203,525

Exercised Options: $203,525

Current Obligation: $203,525

Actual Outlays: $62,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21820D00000002

IDV Type: IDC

Timeline