DOJ awards $2.1M for wastewater services at FCC Butner, highlighting a sole-source procurement

Contract Overview

Contract Amount: $2,142,351 ($2.1M)

Contractor: South Granville Water & Sewer Auth

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCC BUTNER WATER AND WASTEWATER FY26 CONTRACT # 15B10618D00000023

Place of Performance

Location: BUTNER, GRANVILLE County, NORTH CAROLINA, 27509

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $2.1 million to SOUTH GRANVILLE WATER & SEWER AUTH for work described as: FCC BUTNER WATER AND WASTEWATER FY26 CONTRACT # 15B10618D00000023 Key points: 1. The contract value represents a significant investment in essential facility maintenance. 2. Limited competition suggests potential for higher costs compared to an open market. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Performance is tied to operational continuity at a federal correctional complex. 5. This contract falls within the broader category of public works and utilities. 6. The duration aligns with typical annual service agreements for such facilities.

Value Assessment

Rating: fair

The contract value of approximately $2.14 million for a one-year wastewater treatment service at FCC Butner appears within a reasonable range for specialized federal facility maintenance. However, without direct comparable contracts for similar facilities in the same geographic region or detailed cost breakdowns, a precise value-for-money assessment is challenging. The sole-source nature of the award limits the ability to benchmark against competitive bids, potentially indicating a premium paid for convenience or lack of alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific regulatory requirements. The lack of competition means there was no opportunity for price discovery through bidding, which could lead to less favorable pricing for the government.

Taxpayer Impact: Taxpayers may be paying a higher price than they would in a competitive environment due to the absence of multiple bids. This also raises questions about whether alternative solutions or providers were adequately explored.

Public Impact

The primary beneficiaries are the inmates and staff at the Federal Correctional Complex in Butner, North Carolina, through the provision of essential sanitation services. The contract ensures the continuous operation and compliance of the facility's wastewater treatment systems. The geographic impact is localized to Butner, North Carolina, where the federal correctional complex is situated. This contract supports essential public infrastructure services rather than directly impacting a large workforce, though it sustains the operational staff at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in if specialized knowledge or equipment is required.
Absence of small business subcontracting opportunities due to sole-source nature.

Positive Signals

Ensures critical wastewater services are maintained at a federal facility.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Contract duration provides stability for essential service delivery.

Sector Analysis

The contract falls within the Utilities and Waste Management sector, specifically focusing on sewage treatment facilities. This sector is critical for public health and environmental protection. Federal spending in this area often involves long-term service agreements for maintaining essential infrastructure at government installations. Benchmarking this specific contract is difficult without more granular data on specialized federal facility wastewater treatment costs, but it represents a necessary operational expense for the Bureau of Prisons.

Small Business Impact

As this contract was awarded on a sole-source basis, there is no indication of small business set-aside provisions or subcontracting opportunities. The nature of specialized wastewater treatment services for federal facilities often requires specific certifications and capabilities that may limit the pool of eligible small businesses. Further analysis would be needed to determine if any aspects of the service could have been subcontracted to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) contracting officers and program managers. The Department of Justice's Office of the Inspector General (OIG) may conduct audits or investigations into contract performance and financial management if concerns arise. Transparency is limited by the sole-source nature of the award, with details on the justification for this procurement method not readily available.

Related Government Programs

Federal Prison System / Bureau of Prisons Operations
Federal Correctional Facility Maintenance
Public Utilities and Waste Management Services
Department of Justice Facility Support Contracts

Risk Flags

Sole-source procurement limits competition.
Lack of detailed cost breakdown for value assessment.
Potential for higher pricing due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to SOUTH GRANVILLE WATER & SEWER AUTH. FCC BUTNER WATER AND WASTEWATER FY26 CONTRACT # 15B10618D00000023

Who is the contractor on this award?

The obligated recipient is SOUTH GRANVILLE WATER & SEWER AUTH.

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 $2.1 million.

What is the period of performance?

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

What is the historical spending pattern for wastewater treatment services at FCC Butner?

Historical spending data for wastewater treatment at FCC Butner is not directly available in the provided data. However, the current contract is a delivery order under a larger contract, suggesting a history of such services being procured. To understand historical patterns, one would need to examine previous contracts or delivery orders issued to the same or different vendors for similar services at this specific facility or within the Bureau of Prisons. Analyzing trends in contract values, durations, and competition levels over several fiscal years would reveal spending patterns and potential changes in service costs or requirements.

How does the pricing of this contract compare to similar federal wastewater treatment contracts?

Direct price comparison is challenging due to the sole-source nature of this award and the lack of specific cost breakdowns. Typically, competitive bids allow for benchmarking against market rates and other government contracts. Without comparable sole-source contracts for similar-sized federal correctional facilities in North Carolina or adjacent states, it's difficult to definitively assess if the $2.14 million price is optimal. Factors like the specific treatment technologies required, the volume of wastewater, and local labor costs would influence pricing. A thorough comparison would require access to a database of similar federal contracts and detailed cost elements.

What are the specific risks associated with a sole-source award for essential facility services?

The primary risk of a sole-source award for essential facility services like wastewater treatment is the potential for inflated pricing due to the absence of competitive pressure. The government may pay a premium because the contractor knows they are the only option. Another risk is reduced incentive for the contractor to innovate or improve efficiency, as there is no direct competition to outperform. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences operational issues, financial instability, or decides to exit the market. This can lead to service disruptions and necessitate emergency, potentially more expensive, procurements.

What is the track record of SOUTH GRANVILLE WATER & SEWER AUTH with federal contracts?

Information regarding the specific track record of SOUTH GRANVILLE WATER & SEWER AUTH with federal contracts is not provided in the data. To assess their track record, one would need to research their past performance on federal awards, including contract values, duration, compliance with terms, and any reported issues or successes. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be essential resources for evaluating their history, reliability, and quality of service delivery on previous government engagements.

What are the performance metrics and accountability measures for this contract?

The provided data does not detail the specific performance metrics or accountability measures for this contract. Typically, federal contracts include a Performance Work Statement (PWS) outlining required services, quality standards, and delivery timelines. Accountability is usually enforced through contract clauses that allow for remedies such as price adjustments, termination for default, or withholding payment if performance falls short. The firm-fixed-price nature of this contract implies that the contractor is responsible for meeting all specified performance standards within the agreed-upon price. Formal performance evaluations, likely through CPARS, would track the contractor's adherence to these standards.

How does this contract align with the Bureau of Prisons' overall mission and operational needs?

This contract directly aligns with the Bureau of Prisons' (BOP) mission by ensuring the safe, secure, and humane treatment of federal prisoners. Maintaining essential infrastructure, such as wastewater treatment facilities, is critical for public health, environmental compliance, and the overall operational integrity of correctional institutions like FCC Butner. Failure to provide these services could lead to health hazards, environmental violations, and disruptions to the facility's core functions. Therefore, securing reliable wastewater management is a fundamental operational requirement for the BOP.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities

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: 415B CENTRAL AVE, BUTNER, NC, 27509

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,142,351

Exercised Options: $2,142,351

Current Obligation: $2,142,351

Actual Outlays: $1,695,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B10618D00000023

IDV Type: IDC

Timeline