DOJ's $875K electric services contract for Texas prisons awarded to Direct Energy Business LLC

Contract Overview

Contract Amount: $875,000 ($875.0K)

Contractor: Direct Energy Business LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 DIRECT ENERGY (NRG) - ELECTRIC SERVICES OCT-DEC CONTRACT #47PA0724D0009

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76119

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $875,000 to DIRECT ENERGY BUSINESS LLC for work described as: FY26 DIRECT ENERGY (NRG) - ELECTRIC SERVICES OCT-DEC CONTRACT #47PA0724D0009 Key points: 1. Contract value appears reasonable for a 12-month period of electric services for a federal facility. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance period spans one year, aligning with typical utility service agreements. 5. The contract falls under the 'Energy' sector, specifically electric power distribution. 6. Awarded to a single entity, Direct Energy Business LLC, indicating a specific provider for this service.

Value Assessment

Rating: good

The contract value of $875,000 for a 12-month period of electric services for the Federal Prison System in Texas appears to be within a reasonable range for such a utility contract. Benchmarking against similar federal contracts for electric power distribution to correctional facilities would provide a more precise value-for-money assessment. However, given the fixed-price nature, the government has a predictable cost for this essential service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of full and open competition generally promotes price discovery and encourages multiple vendors to offer competitive pricing. This approach is intended to secure the best value for the government.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service terms due to the competitive nature of the bidding process. Full and open competition aims to ensure that federal agencies are not overpaying for goods and services.

Public Impact

The primary beneficiaries are the Federal Prison System facilities in Texas, ensuring continuous and reliable electric power. The service delivered is essential electric power distribution, crucial for the operation of correctional institutions. The geographic impact is localized to Texas, where the federal prison facilities are located. There are no direct workforce implications mentioned, as this is a service contract for utility provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competition intensity.
No details on energy efficiency or sustainability clauses in the contract.
Potential for price fluctuations in future contract periods if market conditions change significantly.

Positive Signals

Firm-fixed-price structure provides cost certainty for the government.
Full and open competition suggests a robust procurement process.
Contract duration aligns with typical utility service agreements, allowing for stable service.

Sector Analysis

The energy sector, particularly electric power distribution, is a critical component of federal operations. Federal agencies are significant consumers of electricity, and contracts for these services are common. The market for electric utilities is often regulated, with competition varying by region and service type. This contract fits within the broader category of utility services procured by government entities to maintain infrastructure and operations.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was on full and open competition, which may or may not have included small businesses as prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting and financial management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Energy Management Program
Bureau of Prisons Operations
Utility Services Contracts
Electric Power Procurement

Risk Flags

Lack of detailed performance metrics.
Limited information on bidder participation.
Absence of historical spending data for comparison.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $875,000 to DIRECT ENERGY BUSINESS LLC. FY26 DIRECT ENERGY (NRG) - ELECTRIC SERVICES OCT-DEC CONTRACT #47PA0724D0009

Who is the contractor on this award?

The obligated recipient is DIRECT ENERGY BUSINESS LLC.

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 $875,000.

What is the period of performance?

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

What is the historical spending pattern for electric services at this specific federal prison facility or within the Bureau of Prisons in Texas?

Analyzing historical spending for electric services at this specific federal prison facility or across the Bureau of Prisons in Texas would provide crucial context for the current $875,000 contract. Without access to historical data, it's difficult to determine if this award represents an increase, decrease, or stable expenditure compared to previous periods. Factors such as facility expansion, energy efficiency upgrades, or changes in electricity rates can influence spending over time. A trend analysis of past contracts would reveal if Direct Energy Business LLC has been a consistent provider, or if there have been shifts in awarded vendors and pricing, offering insights into market dynamics and potential cost savings or escalations.

How does the price per kilowatt-hour (kWh) for this contract compare to average commercial or industrial rates in Texas?

To assess the value for money, comparing the price per kilowatt-hour (kWh) under this contract to average commercial or industrial rates in Texas is essential. While the total contract value is $875,000 over 364 days, the actual kWh consumption is not provided. If this information were available, it could be divided by the total cost to derive an effective rate. This rate could then be benchmarked against publicly available data from the U.S. Energy Information Administration (EIA) or state utility commissions for similar customer classes (e.g., large industrial or government facilities) in Texas. Significant deviations from market rates, whether higher or lower, would warrant further investigation into the contract's specifics and the competitive landscape.

What specific performance metrics or service level agreements (SLAs) are included in the contract to ensure reliable electric service?

The provided data does not detail specific performance metrics or Service Level Agreements (SLAs) for this electric services contract. Typically, such contracts would include clauses related to power reliability (e.g., maximum allowable downtime), response times for outages, and potentially power quality standards. The firm-fixed-price nature suggests the contractor is responsible for meeting defined service levels. The absence of explicit SLAs in the summary data makes it challenging to assess the robustness of performance monitoring and the contractor's accountability beyond basic service provision. Further review of the full contract document would be necessary to understand these critical performance aspects.

Were there any notable challenges or issues reported in previous contracts awarded to Direct Energy Business LLC by federal agencies?

Assessing the track record of Direct Energy Business LLC requires examining past performance on federal contracts. Information regarding past performance, including any reported challenges, disputes, or contract terminations, is crucial for evaluating the risk associated with this current award. Federal procurement regulations often require agencies to consider past performance when making award decisions. Without access to contractor performance evaluations or databases like the Contractor Performance Assessment Reporting System (CPARS), it is difficult to ascertain if Direct Energy Business LLC has a history of successful contract execution or if there are any red flags that might impact the reliability of service for the Bureau of Prisons.

What is the estimated total energy consumption (in kWh) anticipated under this contract, and how was this estimate derived?

The provided data does not include an estimate for the total energy consumption (in kWh) anticipated under this $875,000 contract. This figure is critical for a thorough value analysis, as it allows for a direct comparison of the contracted rate against market benchmarks. The derivation of the consumption estimate is also important; it would typically be based on historical usage data for the facility, projected operational needs, and potentially energy efficiency considerations. Understanding the basis of this estimate helps in evaluating the reasonableness of the overall contract price and identifying potential risks of under- or over-estimation.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 910 LOUISIANA ST, HOUSTON, TX, 77002

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $875,000

Exercised Options: $875,000

Current Obligation: $875,000

Actual Outlays: $247,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0009

IDV Type: IDC

Timeline