DOJ awards $1.05M for FY26 electric power to Direct Energy Business LLC
Contract Overview
Contract Amount: $1,050,000 ($1.1M)
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: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRIC POWER SUPPLY FOR MDC BROOKLYN FY26 CONTRACT #47PA0724D0059
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $1.1 million to DIRECT ENERGY BUSINESS LLC for work described as: ELECTRIC POWER SUPPLY FOR MDC BROOKLYN FY26 CONTRACT #47PA0724D0059 Key points: 1. Contract value is $1.05 million for one year. 2. Direct Energy Business LLC is the awardee. 3. The contract is for electric power supply. 4. Awarded under full and open competition.
Value Assessment
Rating: good
The $1.05 million contract value for a one-year electric power supply appears reasonable given the scale of operations for MDC Brooklyn. Benchmarking against similar federal prison system contracts for utilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market pricing, ensuring taxpayer funds are used efficiently for essential services.
Public Impact
Ensures continuous operation of critical infrastructure at MDC Brooklyn. Supports the daily functions and safety of inmates and staff. Provides a stable and predictable energy cost for the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in energy markets impacting future renewals.
- Dependence on a single supplier for a critical utility.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports essential government operations.
Sector Analysis
This contract falls within the energy sector, specifically electric power distribution. Federal agencies often procure utility services through competitive bidding to secure reliable and cost-effective supply for facilities nationwide.
Small Business Impact
The data indicates that small businesses were not awarded this specific contract, as it went to Direct Energy Business LLC. Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.
Oversight & Accountability
The award was made under a delivery order against an existing contract, suggesting prior vetting and oversight. The Bureau of Prisons' procurement processes should ensure compliance and accountability for this expenditure.
Related Government Programs
- Electric Power Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for energy market price volatility.
- Dependence on a single supplier.
- Limited visibility into subcontracting opportunities for small businesses.
- Need for ongoing monitoring of service delivery.
Tags
electric-power-distribution, department-of-justice, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $1.1 million to DIRECT ENERGY BUSINESS LLC. ELECTRIC POWER SUPPLY FOR MDC BROOKLYN FY26 CONTRACT #47PA0724D0059
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 $1.1 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical price trend for electric power in the region of MDC Brooklyn?
Analyzing historical price trends for electric power in the specific region of MDC Brooklyn is crucial for assessing the long-term value of this contract. Understanding market volatility, regulatory changes, and supply/demand dynamics can help determine if the current firm fixed price is advantageous or if there's a risk of overpayment compared to potential future market rates.
What are the potential risks associated with relying on Direct Energy Business LLC for this critical service?
Potential risks include service disruptions due to the supplier's operational issues, unexpected price escalations if the fixed price contract has unfavorable clauses for renewal, or challenges in switching providers if performance is unsatisfactory. Ensuring robust service level agreements and contingency plans are in place mitigates these risks.
How effectively does this contract ensure reliable electric power delivery compared to alternative procurement methods?
The firm fixed price awarded through full and open competition suggests a strong emphasis on reliability and cost-effectiveness. This method typically secures a set price and service level, reducing the risk of budget overruns and ensuring consistent power delivery, which is vital for correctional facility 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: 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: $1,050,000
Exercised Options: $1,050,000
Current Obligation: $1,050,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0724D0059
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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