DOJ's FBI awards $4.6M contract for electric power in Virginia, raising questions about competition

Contract Overview

Contract Amount: $4,665,234 ($4.7M)

Contractor: Virginia Electric and Power Company

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: QUANTICO ELECTRIC

Place of Performance

Location: QUANTICO, STAFFORD County, VIRGINIA, 22135

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $4.7 million to VIRGINIA ELECTRIC AND POWER COMPANY for work described as: QUANTICO ELECTRIC Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. The contract duration is one year, suggesting a need for ongoing services. 3. The award was not competitively procured, indicating potential for higher costs. 4. The service area is Virginia, a region with established utility providers. 5. The contract value is significant for a single-year utility service. 6. The contractor, Virginia Electric and Power Company, is a known entity in the region.

Value Assessment

Rating: fair

The contract value of $4.6 million for a one-year electric power service appears substantial for a single utility contract. Benchmarking against similar utility contracts is difficult without more specific service details (e.g., load, voltage, specific facilities served). However, given the contractor's likely established infrastructure and market position in Virginia, the pricing may reflect standard rates for bulk power. The firm-fixed-price structure offers predictability but could lead to overpayment if actual usage is lower than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This suggests that the Federal Bureau of Investigation (FBI) likely determined that only one vendor, Virginia Electric and Power Company, could provide the required electric bulk power transmission and control services. Reasons for sole-sourcing often include unique capabilities, existing infrastructure integration, or geographic necessity. The lack of competition means that price discovery through bidding was bypassed.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. The government may not be achieving the best possible value without exploring alternative providers or negotiating more aggressively.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation, ensuring operational continuity for its facilities in Virginia. The service delivered is essential electric bulk power transmission and control. The geographic impact is localized to the FBI facilities within Virginia served by Virginia Electric and Power Company. There are no direct workforce implications for the public, but it supports the operational workforce of the FBI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source award requires strong justification to ensure necessity and fairness.
Contract duration of one year might not reflect long-term strategic planning for energy needs.

Positive Signals

Firm-fixed-price contract provides budget certainty for the FBI.
Contractor is an established utility provider in the service region.
Award ensures uninterrupted essential services for a critical federal agency.

Sector Analysis

This contract falls within the Energy sector, specifically focusing on electric power transmission and control. The market for utility services is typically characterized by natural monopolies or heavily regulated environments, especially for transmission infrastructure. Virginia Electric and Power Company operates within a regulated utility market in Virginia. Comparable spending benchmarks for bulk power transmission are difficult to establish without detailed load and service specifications, but utility rates are generally set by regulatory bodies.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of bulk electric power transmission and control is typically handled by large, established utility companies with extensive infrastructure, making it less likely for small businesses to be primary contractors in this domain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Bureau of Investigation's contracting and program management offices. Transparency is limited due to the sole-source nature of the award. Accountability would be measured by the reliable delivery of electric power as per the contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Energy Management Program
Utility Services Contracts
Department of Justice Energy Procurement
FBI Facility Operations

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.7 million to VIRGINIA ELECTRIC AND POWER COMPANY. QUANTICO ELECTRIC

Who is the contractor on this award?

The obligated recipient is VIRGINIA ELECTRIC AND POWER COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. The specific justification would typically be documented in the contract file by the Federal Bureau of Investigation (FBI). Common reasons for sole-sourcing utility services include the contractor being the only entity with the necessary infrastructure to serve the specific location, unique technical requirements that only one vendor can meet, or urgent and compelling needs where competition is not feasible. Without access to the FBI's justification documentation, the precise reason remains unknown, but it implies a lack of viable alternatives or a critical dependency on Virginia Electric and Power Company's services for the designated FBI facilities in Virginia.

How does the contract value of $4.6 million compare to typical utility spending for federal facilities in Virginia?

Comparing the $4.6 million contract value requires context regarding the specific facilities and their energy consumption. Federal facilities vary greatly in size and operational demands. A large complex with significant data centers or specialized equipment would naturally have higher energy costs than a smaller office building. Virginia Electric and Power Company serves a broad range of customers, including large industrial and commercial entities. While $4.6 million is a substantial sum for a one-year utility contract, it may be reasonable if it covers multiple high-demand facilities or a single, very large installation. Benchmarking against other federal utility contracts in Virginia would ideally consider factors like square footage, energy usage intensity (EUI), and the specific services provided (e.g., transmission, distribution, generation).

What are the potential risks associated with a sole-source award for essential services like electricity?

The primary risk of a sole-source award for essential services like electricity is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not achieve the most economical price. There's also a risk of complacency from the sole provider, potentially leading to less focus on service quality or efficiency improvements, although regulated utilities often have performance standards. Furthermore, reliance on a single provider can create vulnerability if that provider experiences significant operational issues or if their long-term viability becomes uncertain. Robust oversight and contract management are crucial to mitigate these risks, ensuring the government receives fair value and reliable service.

What is the historical spending pattern for electric power services by the FBI in Virginia?

Analyzing historical spending patterns for the FBI in Virginia requires access to prior contract awards for similar utility services. This single award of $4.6 million for a one-year period does not provide sufficient data to establish a trend. To understand historical spending, one would need to examine contracts awarded over several preceding years, noting the values, durations, contractors, and procurement methods (competitive vs. sole-source). This would reveal whether spending has increased, decreased, or remained stable, and whether the FBI has historically relied on sole-source awards for these services or has successfully competed them. Without this historical data, it's impossible to assess if the current award represents a deviation or a continuation of past practices.

What performance metrics or service level agreements (SLAs) are likely included in this firm-fixed-price contract?

While the specific performance metrics or Service Level Agreements (SLAs) are not detailed in the provided data, firm-fixed-price contracts for essential utility services typically include clauses ensuring reliability and availability. These often revolve around maintaining power quality (voltage, frequency), minimizing service interruptions, and adhering to response times for outages or emergencies. Penalties might be associated with prolonged or frequent disruptions, while bonuses are less common in such contracts. The contract likely specifies the points of delivery and the required capacity. The Federal Bureau of Investigation would have defined its essential operational needs, and the contract terms would aim to guarantee those requirements are met by Virginia Electric and Power Company.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dominion Energy, Inc.

Address: 120 TREDEGAR ST, RICHMOND, VA, 23219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $4,665,234

Exercised Options: $4,665,234

Current Obligation: $4,665,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline