DOJ's $1.56M electric power contract for Federal Prison System awarded to Puget Sound Energy Inc

Contract Overview

Contract Amount: $156,000 ($156.0K)

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: $429/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 PSE GAS BILL SUPPLIED UNDER TERMS AND CONDITIONS OF GS-00P-14-BSD-1137

Place of Performance

Location: BELLEVUE, KING County, WASHINGTON, 98009

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $156,000 to PUGET SOUND ENERGY INC for work described as: FY26 PSE GAS BILL SUPPLIED UNDER TERMS AND CONDITIONS OF GS-00P-14-BSD-1137 Key points: 1. Contract awarded as a delivery order under an existing IDIQ, suggesting potential for streamlined procurement. 2. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 3. Limited competition due to the nature of utility services, often tied to specific geographic service areas. 4. Performance period of one year aligns with typical utility service agreements. 5. The contract value is relatively small in the context of overall federal energy spending. 6. No indication of small business set-aside or subcontracting requirements.

Value Assessment

Rating: fair

The contract value of $1.56 million for one year of electric power distribution is difficult to benchmark without more specific usage data. However, as a delivery order under an existing contract (GS-00P-14-BSD-1137), it implies that pricing was likely established or reviewed during the initial IDIQ award. The firm fixed-price structure provides cost certainty. Without comparable utility contracts for similar facilities or detailed energy consumption metrics, a precise value-for-money assessment is challenging, but the price appears reasonable for a year's utility service in Washington state.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was issued as a delivery order under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract. The specific reason for limited competition is not detailed, but utility services are often provided by a single, regulated entity within a given geographic area. Puget Sound Energy Inc. is a major utility provider in Washington state, suggesting this award may be due to the contractor being the sole or primary provider of electric power to the facility's location. The limited competition means price discovery is less robust than in a fully open market.

Taxpayer Impact: For taxpayers, limited competition in utility contracts can mean less opportunity for competitive bidding to drive down prices. However, regulated utility pricing structures often incorporate oversight mechanisms to ensure fair rates.

Public Impact

The Federal Prison System (Bureau of Prisons) benefits from a reliable supply of electric power. Essential services for the facility's operations, including lighting, heating, cooling, and security systems, are maintained. The geographic impact is localized to the specific federal prison facility in Washington state. The contract supports the ongoing operations of a federal correctional institution, ensuring public safety and inmate management. Indirect workforce implications include the continued employment of personnel at the facility and within Puget Sound Energy's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed justification for limited competition.
Absence of specific energy usage data for precise value analysis.
Potential for price increases in future contract periods if not re-competed or regulated.

Positive Signals

Firm fixed-price contract type mitigates cost risk.
Awarded under an existing IDIQ, suggesting some level of pre-qualification and pricing review.
Puget Sound Energy is a established utility provider, implying operational reliability.

Sector Analysis

The energy sector, particularly electric power distribution, is a critical component of federal infrastructure. Federal agencies are significant consumers of electricity, with spending spread across various utility providers nationwide. Contracts for electric power are often awarded based on geographic service areas, as utilities operate within regulated monopolies or duopolies. Benchmarking this contract's value is challenging without specific kilowatt-hour consumption data, but it represents a typical operational expense for a federal facility requiring continuous power.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of utility services provided by large, established companies like Puget Sound Energy, it is unlikely that small businesses would be involved as prime contractors. There is no information provided regarding subcontracting plans or opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Bureau of Prisons. As a delivery order under a General Services Administration (GSA) IDIQ contract, the underlying contract likely has established oversight mechanisms. The firm fixed-price nature provides some cost control. Transparency is moderate, as the award is publicly visible, but detailed justifications for limited competition and specific pricing breakdowns may not be readily available to the public.

Related Government Programs

GSA Federal Supply Schedule Contracts
Federal Energy Management Program (FEMP)
Utility Services Contracts
Department of Justice Operational Expenses

Risk Flags

Limited Competition Justification
Lack of Detailed Usage Data for Benchmarking
Potential for Price Escalation in Future Periods

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $156,000 to PUGET SOUND ENERGY INC. FY26 PSE GAS BILL SUPPLIED UNDER TERMS AND CONDITIONS OF GS-00P-14-BSD-1137

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 $156,000.

What is the period of performance?

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

What is the historical spending pattern for electric power at this specific Federal Prison System facility?

Historical spending data for electric power at this specific facility is not provided in the current data. To assess historical patterns, one would need to examine previous contract awards for utility services at this location, likely from Puget Sound Energy or its predecessors, over multiple fiscal years. Analyzing these past awards would reveal trends in energy consumption, price fluctuations, and the duration of contracts. Comparing current spending against historical averages would help determine if the $1.56 million award represents an increase, decrease, or stable expenditure, and identify any significant deviations that might warrant further investigation into factors like energy efficiency upgrades, changes in facility operations, or market price volatility.

How does the pricing of this contract compare to other similar utility contracts awarded by the Federal Bureau of Prisons?

A direct comparison of this contract's pricing to other similar utility contracts awarded by the Federal Bureau of Prisons (BOP) is challenging without access to a comprehensive database of BOP utility awards, including specific energy consumption (e.g., kWh) and associated costs. However, the fact that this is a delivery order under an existing GSA IDIQ (GS-00P-14-BSD-1137) suggests that pricing was vetted at the IDIQ level. To perform a robust comparison, one would need to identify other BOP facilities of similar size and operational intensity, located within comparable utility service regions, and analyze their electric power contracts. Factors like average cost per kWh, demand charges, and fixed monthly service fees would be key metrics. Given the firm fixed-price nature, this contract offers cost certainty, but its overall value relative to peers depends heavily on the actual energy consumed.

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

The primary risk associated with sole-source or limited-competition awards for essential utility services, such as electric power, is the potential for inflated pricing due to the lack of competitive pressure. Utility providers often operate as regulated monopolies within specific geographic areas, limiting the government's options. This can lead to higher costs for taxpayers compared to a scenario with multiple bidders vying for the contract. Additionally, a lack of competition can reduce the incentive for the sole provider to innovate or improve service quality beyond regulatory requirements. While the government may have some recourse through regulatory bodies to challenge rates, the procurement process itself offers less leverage to negotiate favorable terms. The firm fixed-price structure here mitigates cost overrun risk during the performance period, but the initial price may be less competitive.

What is the expected impact of this contract on the operational effectiveness of the Federal Prison System facility?

This contract is crucial for the operational effectiveness of the Federal Prison System facility it serves. Reliable electric power is fundamental for maintaining security systems (lighting, surveillance, electronic locks), life support systems (HVAC, water treatment), inmate services (kitchens, laundry), and administrative functions. An uninterrupted power supply ensures the facility can operate safely and securely, fulfilling its mission of housing inmates and maintaining order. The firm fixed-price nature of this award provides budget certainty for this essential service, preventing unexpected cost increases that could disrupt operational planning or divert funds from other critical areas. The one-year duration is standard for utility services, allowing for consistent operational support.

Are there any performance metrics or service level agreements (SLAs) associated with this delivery order?

The provided data does not explicitly detail performance metrics or Service Level Agreements (SLAs) for this specific delivery order. However, as a delivery order under an existing GSA IDIQ contract (GS-00P-14-BSD-1137), it is likely that the underlying IDIQ contract contains general terms and conditions related to performance and delivery. For utility services, performance is typically measured by reliability of service (e.g., uptime, frequency of outages) and adherence to delivery schedules, although the latter is less applicable to ongoing utility provision. The contracting officer would be responsible for monitoring the contractor's performance. Specific SLAs related to power quality, response times for outages, or restoration targets might be included in the broader IDIQ terms or could be implicitly understood within the context of regulated utility operations.

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: $156,000

Exercised Options: $156,000

Current Obligation: $156,000

Actual Outlays: $22,804

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