DOJ's Bureau of Prisons awards $1.2M for utility services to Northwestern Corp

Contract Overview

Contract Amount: $120,265 ($120.3K)

Contractor: Northwestern Corp

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $330/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 NORTHWESTERN ELECTRIC SERVICES

Place of Performance

Location: HURON, BEADLE County, SOUTH DAKOTA, 57350

State: South Dakota Government Spending

Plain-Language Summary

Department of Justice obligated $120,265.09 to NORTHWESTERN CORP for work described as: FY26 P4 NORTHWESTERN ELECTRIC SERVICES Key points: 1. Contract awarded to Northwestern Corp for utility regulation and administration. 2. Sole-source award raises questions about competition and potential cost savings. 3. Firm fixed price contract provides cost certainty but limits flexibility. 4. Spending aligns with utility sector needs for federal facilities.

Value Assessment

Rating: fair

The contract value of $1.2M for a 364-day period is difficult to benchmark without specific service details. However, utility services for federal facilities can vary significantly in cost based on location, size, and specific requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive bidding process.

Taxpayer Impact: Taxpayer funds are used for this sole-source contract, highlighting the importance of ensuring fair pricing and necessity.

Public Impact

Ensures continued operation of essential utility services for federal prisons. Potential for higher costs due to lack of competition impacts taxpayer value. Reliability of utility services is critical for correctional facility operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of detailed service description hinders cost analysis.

Positive Signals

Firm fixed price provides budget certainty.
Contract ensures essential utility services.

Sector Analysis

This contract falls under utility services, essential for the operation of federal facilities. Spending benchmarks for such services are highly variable, depending on the specific needs and location of the facility.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the awardee is Northwestern Corp, a larger entity. This contract does not appear to support small business participation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Bureau of Prisons should have internal controls to validate the necessity and cost-effectiveness of this award.

Related Government Programs

Regulation and Administration of Communications, Electric, Gas, and Other Utilities
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source award
Lack of competition
Limited transparency on service details
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $120,265.09 to NORTHWESTERN CORP. FY26 P4 NORTHWESTERN ELECTRIC SERVICES

Who is the contractor on this award?

The obligated recipient is NORTHWESTERN CORP.

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 $120,265.09.

What is the period of performance?

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

What specific utility services are being procured, and why was this contract sole-sourced?

The specific utility services are not detailed in the provided data, only 'Regulation and Administration of Communications, Electric, Gas, and Other Utilities.' The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification, likely due to unique capabilities or existing infrastructure dependencies with Northwestern Corp.

What is the risk of overpaying due to the sole-source nature of this award?

There is a moderate to high risk of overpaying. Sole-source contracts bypass competitive bidding, which is the primary mechanism for ensuring fair market prices. Without competition, the government relies on the contractor's pricing integrity and its own negotiation skills, which can be less effective.

How effective is this contract in ensuring reliable utility services for the Federal Prison System?

The contract is likely effective in ensuring service continuity, given it's a firm fixed-price agreement for a defined period. However, the sole-source nature means effectiveness in terms of value for money is less certain. The Bureau of Prisons must monitor performance closely.

Industry Classification

NAICS: Public Administration › Administration of Economic Programs › Regulation and Administration of Communications, Electric, Gas, and Other Utilities

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: 3010, WEST 69TH STREET, SIOUX FALLS, SD, 57108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $120,265

Exercised Options: $120,265

Current Obligation: $120,265

Actual Outlays: $84,665

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline