Justice Department's $566K electric services contract for Federal Prison System awarded to Puget Sound Energy Inc

Contract Overview

Contract Amount: $566,000 ($566.0K)

Contractor: Puget Sound Energy Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 PSE ELECTRIC SERVICES TO BE SUPPLIED IN ACCORDANCE WITH CONTRACT GS-00P-15-BSD-1179.

Place of Performance

Location: BELLEVUE, KING County, WASHINGTON, 98009

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $566,000 to PUGET SOUND ENERGY INC for work described as: FY26 PSE ELECTRIC SERVICES TO BE SUPPLIED IN ACCORDANCE WITH CONTRACT GS-00P-15-BSD-1179. Key points: 1. Contract value represents a modest portion of the Bureau of Prisons' overall utility spending. 2. Fixed-price contract type offers cost certainty for the government. 3. Contract duration of one year aligns with typical utility service agreements. 4. Geographic concentration in Washington state for this specific service. 5. Limited competition due to the nature of utility provision. 6. Performance risk appears low given the essential nature of the service.

Value Assessment

Rating: good

The contract value of $566,000 for one year of electric services is within a reasonable range for a federal prison facility. Benchmarking against similar utility contracts for correctional institutions of comparable size and location would provide a more precise value-for-money assessment. However, given the essential nature of electricity, the price is likely competitive, especially if sourced from a sole provider in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, likely because Puget Sound Energy is the incumbent and sole provider of electric services to the specific location of the Federal Prison System facility. In such cases, competition is inherently limited by the geographic monopoly of utility providers. The lack of competitive bidding means that price discovery is not driven by market forces.

Taxpayer Impact: For taxpayers, sole-source utility contracts mean that the government cannot leverage competitive bidding to potentially secure lower prices. The price is essentially set by the utility provider, with limited recourse for negotiation.

Public Impact

The Federal Prison System in Washington state benefits from reliable electricity supply. Essential services for inmate safety, security, and daily operations are maintained. The contract supports the operational continuity of a federal correctional facility. No direct workforce implications are apparent from this specific contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single utility provider could pose a risk during widespread outages.

Positive Signals

Ensures continuous and reliable power supply critical for facility operations.
Fixed-price contract provides budget predictability for the Bureau of Prisons.
Long-standing relationship with incumbent provider may ensure smooth service delivery.

Sector Analysis

The energy sector, specifically electric power distribution, is a critical utility service for all government operations. Federal agencies rely heavily on utility providers to maintain infrastructure. The market for electric power is often characterized by regulated monopolies or oligopolies at the local level, influencing procurement strategies. This contract fits within the broader category of essential services procurement for federal facilities.

Small Business Impact

This contract does not appear to involve small business set-asides. As a sole-source award to a large utility provider, there are no direct subcontracting opportunities for small businesses indicated within the provided data. The focus is on securing essential utility services from the incumbent provider.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons' facility management and contracting officers. Accountability is ensured through adherence to the terms of the firm-fixed-price contract and performance monitoring. Transparency is limited due to the sole-source nature, but contract awards are generally publicly reported.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facility Management
Utility Services Procurement
Department of Justice Contracts

Risk Flags

Sole-source award limits price competition.
Potential for price increases in future renewals.
Dependence on single provider for critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $566,000 to PUGET SOUND ENERGY INC. FY26 PSE ELECTRIC SERVICES TO BE SUPPLIED IN ACCORDANCE WITH CONTRACT GS-00P-15-BSD-1179.

Who is the contractor on this award?

The obligated recipient is PUGET SOUND ENERGY INC.

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 $566,000.

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 System facility?

Analyzing historical spending data for electric services at this particular Federal Prison System facility would provide crucial context for the current $566,000 award. Without specific historical figures, it's difficult to determine if this contract represents an increase, decrease, or stable spending trend. Examining past contract values, durations, and any adjustments made over previous fiscal years would help identify potential cost escalations or efficiencies. This historical perspective is vital for assessing whether the current award is competitive over time and if the Bureau of Prisons is achieving value for money compared to its own past expenditures.

How does the cost per kilowatt-hour (kWh) for this contract compare to national averages or similar federal facilities?

Determining the cost per kilowatt-hour (kWh) for this contract requires additional data on the facility's estimated annual electricity consumption. Once consumption is known, the total contract value can be divided by the kWh usage to derive a per-unit cost. This figure can then be benchmarked against national average commercial electricity rates, rates paid by other federal correctional facilities, or rates negotiated by similar large government installations. A higher-than-average kWh rate could indicate a lack of competitive pricing due to the sole-source nature or specific regional energy costs. Conversely, a rate at or below benchmarks would suggest reasonable value.

What are the specific risks associated with relying on a sole-source utility provider for a federal prison?

Relying on a sole-source utility provider for a federal prison presents several risks. Foremost is the lack of competitive pressure, which can lead to higher prices over time and reduced incentive for the provider to innovate or offer superior service. Secondly, there's a dependency risk; any service disruptions from the sole provider, whether due to infrastructure failure, natural disasters, or labor disputes, could have severe consequences for facility operations, security, and inmate welfare. The government has limited leverage to compel rapid restoration of services or negotiate favorable terms during an outage. Contingency planning and robust service level agreements are critical mitigation strategies.

What performance metrics or service level agreements (SLAs) are typically included in such utility contracts?

Typical performance metrics and service level agreements (SLAs) in utility contracts like this often focus on reliability and responsiveness. Key metrics might include the maximum allowable duration for unplanned outages, response times for service calls (especially for emergencies), power quality standards (e.g., voltage and frequency stability), and billing accuracy. For a federal prison, SLAs would likely emphasize minimizing service interruptions due to the critical nature of the facility. Penalties for failing to meet these SLAs might be stipulated, although enforcement can be challenging with sole-source providers. The contract's specific terms would detail these requirements.

Has Puget Sound Energy Inc. historically performed well on federal contracts, particularly for utility services?

Assessing Puget Sound Energy Inc.'s historical performance on federal contracts is crucial for evaluating the reliability and value of this award. A review of past contract data, including any reported issues, contract terminations, or performance evaluations (if publicly available), would provide insight. Positive performance history, especially in providing similar utility services to government facilities, would indicate a lower performance risk. Conversely, a history of significant problems or disputes might raise concerns about the contractor's ability to meet the needs of the Federal Prison System, despite the sole-source nature of this specific award.

Industry Classification

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

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

Address: 10885 NE 4TH ST STE 1200, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $566,000

Exercised Options: $566,000

Current Obligation: $566,000

Actual Outlays: $99,309

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P15BSD1179

IDV Type: IDC

Timeline