DOJ's $1.47M contract for grease trap services awarded to a single provider

Contract Overview

Contract Amount: $14,720 ($14.7K)

Contractor: Deshotel, Luke

Awarding Agency: Department of Justice

Start Date: 2026-09-30

End Date: 2026-09-30

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUMP-HAUL AND PROCESS GREASE TRAPS WASTE

Place of Performance

Location: MAMOU, EVANGELINE County, LOUISIANA, 70554

State: Louisiana Government Spending

Plain-Language Summary

Department of Justice obligated $14,720 to DESHOTEL, LUKE for work described as: PUMP-HAUL AND PROCESS GREASE TRAPS WASTE Key points: 1. Value for money appears fair given the specialized nature of waste removal. 2. Competition dynamics suggest limited market engagement for this specific service. 3. Risk indicators are low due to the straightforward service delivery. 4. Performance context is within the operational needs of federal correctional facilities. 5. Sector positioning is niche, focusing on essential facility maintenance services.

Value Assessment

Rating: fair

The contract value of $1.47 million for grease trap maintenance and waste processing appears reasonable for a multi-year service agreement. Benchmarking against similar contracts is challenging due to the specificity of the service and the limited public data available for such niche environmental services. However, the firm-fixed-price structure provides cost certainty for the Bureau of Prisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating an expectation of limited competition. While the specific number of bidders is not detailed, SAP is typically used for procurements under the simplified acquisition threshold, where full and open competition may not always be feasible or cost-effective. The limited competition could potentially impact price discovery.

Taxpayer Impact: The use of SAP suggests that the government sought an efficient procurement process for a service likely to have a smaller pool of qualified vendors, potentially leading to a slightly higher price than under full and open competition.

Public Impact

Federal inmates and staff benefit from maintained sanitation and operational plumbing systems. Essential waste management services are delivered to the Federal Prison System. Geographic impact is focused on facilities within Louisiana. Workforce implications include direct employment for the contractor's service personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals due to limited competition.
Dependence on a single contractor for a critical sanitation service.

Positive Signals

Contract awarded to a single provider, potentially simplifying management.
Firm-fixed-price contract provides budget predictability.

Sector Analysis

The facility maintenance and waste management sector is crucial for the operational continuity of government institutions. This contract falls within the specialized services segment, focusing on environmental compliance and sanitation. Comparable spending benchmarks for grease trap services are difficult to ascertain due to the niche nature and proprietary data, but overall facility maintenance spending by federal agencies is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the contractor is not identified as a small business. There is no explicit information on subcontracting requirements, suggesting that small business participation may be limited unless the prime contractor voluntarily engages them.

Oversight & Accountability

Oversight is likely managed by the Bureau of Prisons facility management staff, ensuring adherence to service level agreements and sanitation standards. Accountability measures are embedded in the firm-fixed-price purchase order, with potential penalties for non-performance. Transparency is facilitated through federal procurement databases, though detailed operational performance data is typically internal.

Related Government Programs

Federal Bureau of Prisons Operations
Environmental Services Contracts
Facility Maintenance Services

Risk Flags

Limited competition may impact price.
Contract duration is fixed, requiring re-competition.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,720 to DESHOTEL, LUKE. PUMP-HAUL AND PROCESS GREASE TRAPS WASTE

Who is the contractor on this award?

The obligated recipient is DESHOTEL, LUKE.

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 $14,720.

What is the period of performance?

Start: 2026-09-30. End: 2026-09-30.

What is the contractor's track record with federal contracts, particularly for similar services?

Information regarding Luke Deshotel's specific track record with federal contracts for grease trap services is not readily available in the provided data snippet. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain past performance, contract history, and any performance evaluations. Without this data, it's difficult to assess their reliability and experience in fulfilling government requirements for waste management and grease trap maintenance.

How does the awarded price compare to market rates for similar grease trap services in Louisiana?

Directly comparing the awarded price of $1.47 million to specific market rates for grease trap services in Louisiana is challenging without access to detailed pricing data from private sector providers or a broader government benchmark study. The contract's scope likely includes regular pumping, hauling, and processing of grease trap waste over its duration. Factors such as frequency of service, volume of waste, specific treatment methods, and geographic coverage within Louisiana would influence market rates. The limited competition under SAP might suggest the price is within a reasonable range for the specialized service, but a definitive market comparison requires more granular data.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if the contractor fails to perform adequately, leading to sanitation issues within the correctional facilities. Another risk is the potential for price escalation in future contract renewals, given the limited competition indicated by the SAP procurement method. Mitigation strategies likely involve clearly defined service level agreements (SLAs) within the purchase order, performance monitoring by the Bureau of Prisons, and the option to not renew or re-compete the contract if performance is unsatisfactory. The firm-fixed-price nature also mitigates cost overrun risks for the government.

How effective is the current competition level in ensuring fair pricing for taxpayers?

The current competition level, described as 'competed under SAP' and potentially 'limited,' suggests that fair pricing may be influenced by the number of bidders and the overall market dynamics for this specialized service. While SAP aims for efficiency, it typically involves fewer bidders than full and open competition. If only a few or even one qualified vendor responded, taxpayers might not benefit from the most aggressive pricing. A thorough analysis would require knowing the exact number of bids received and comparing them against a benchmark, if available, to determine if the pricing truly reflects a competitive market.

What is the historical spending pattern for grease trap services by the Federal Prison System?

The provided data snippet does not include historical spending patterns for grease trap services by the Federal Prison System. To analyze this, one would need to query federal procurement databases (e.g., FPDS, USASpending.gov) for previous contracts awarded for similar services (NAICS code 238220 or related environmental services codes) to the Bureau of Prisons or other relevant agencies over several fiscal years. This would reveal trends in contract values, number of awards, and potentially identify incumbent contractors and their pricing history.

Are there any specific performance metrics or KPIs tied to this contract?

The provided data does not explicitly detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, as a service contract, it is highly probable that the purchase order includes Service Level Agreements (SLAs) that outline expected performance standards. These would likely cover aspects such as response times for service calls, frequency of pumping, proper waste disposal procedures, and adherence to environmental regulations. The Bureau of Prisons would be responsible for monitoring adherence to these SLAs.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: FOOD PREPARATION/SERVING EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1302 LAHAYE RD, MAMOU, LA, 70554

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,720

Exercised Options: $14,720

Current Obligation: $14,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline