DOJ's $811K DTE Energy Contract for FY26 Electric Power Generation in Michigan

Contract Overview

Contract Amount: $811,358 ($811.4K)

Contractor: DTE Energy Company

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 DTE ENERGY ELECTRIC

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $811,358.29 to DTE ENERGY COMPANY for work described as: FY26 P4 DTE ENERGY ELECTRIC Key points: 1. Contract awarded to DTE Energy Company for electric power generation. 2. The contract is a delivery order with a firm fixed price. 3. No small business participation is indicated. 4. The sector is Other Electric Power Generation, with a specific NAICS code of 221118.

Value Assessment

Rating: fair

The contract value of $811,358.29 for a 364-day period appears reasonable for electric power generation services. Benchmarking against similar federal contracts for utility services in Michigan would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition approach. This could potentially impact price discovery and may not always yield the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential electric power services. The lack of full competition warrants scrutiny to ensure value for money.

Public Impact

Ensures reliable electricity supply for Federal Prison System facilities. Supports operational continuity for the Bureau of Prisons. Potential for higher costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
No small business participation

Positive Signals

Firm fixed price contract
Clear delivery period

Sector Analysis

This contract falls under the 'Other Electric Power Generation' sector, specifically NAICS 221118. Federal spending in this sector typically involves utility services for government facilities, with costs varying based on location and service type.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that the procurement did not specifically target or include small businesses, which could be an area for improvement in future solicitations.

Oversight & Accountability

The contract is a delivery order under a larger agreement. Oversight would focus on the performance of DTE Energy Company in meeting the terms of the delivery order and ensuring compliance with federal regulations.

Related Government Programs

Other Electric Power Generation
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Potential for price increases in future contract periods.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $811,358.29 to DTE ENERGY COMPANY. FY26 P4 DTE ENERGY ELECTRIC

Who is the contractor on this award?

The obligated recipient is DTE ENERGY COMPANY.

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 $811,358.29.

What is the period of performance?

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

What is the justification for limiting competition for this electric power generation contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities of the vendor, urgent needs, or specific facility requirements. Further investigation into the contract file would be necessary to understand the specific reasons and assess their validity.

How does the unit cost of electricity compare to market rates in Michigan for similar federal facilities?

Without specific unit cost data (e.g., cost per kilowatt-hour) and comparable market rates for federal facilities in Michigan, a direct comparison is not possible. The total contract value of $811,358.29 for 364 days provides a general cost, but a detailed breakdown is needed to assess unit cost competitiveness against market benchmarks.

What are the potential risks associated with a sole-source or limited competition contract for essential utility services?

The primary risks include potentially higher costs due to lack of competitive bidding, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in pricing. This can lead to taxpayers paying more than necessary for essential services, impacting overall government budget efficiency.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

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

Parent Company: DTE GAS Company

Address: 1 ENERGY PLZ, DETROIT, MI, 48226

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

Financial Breakdown

Contract Ceiling: $811,358

Exercised Options: $811,358

Current Obligation: $811,358

Actual Outlays: $263,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0032

IDV Type: IDC

Timeline