DOJ awards $218K for wastewater services to County of Lee, raising questions on competition and value

Contract Overview

Contract Amount: $218,541 ($218.5K)

Contractor: County of LEE

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USP LEE WASTE WATER SERVICES FY26 1/1/26 - 3/31/26 CONTRACT #15B11720D00000028

Place of Performance

Location: JONESVILLE, LEE County, VIRGINIA, 24263

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $218,540.86 to COUNTY OF LEE for work described as: USP LEE WASTE WATER SERVICES FY26 1/1/26 - 3/31/26 CONTRACT #15B11720D00000028 Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Short contract duration (3 months) suggests a potential gap-filling or short-term need. 3. Lack of competition raises concerns about whether the government secured the best possible price. 4. The service falls under sewage treatment, a critical but often overlooked municipal function. 5. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency if priced too high. 6. Limited data available on contractor performance or specific service requirements.

Value Assessment

Rating: questionable

The contract value of $218,540.86 for a 3-month period appears high for sewage treatment services, especially without competitive bidding. Benchmarking against similar contracts is difficult due to the limited information and non-competitive nature. The absence of competition suggests the government may not have achieved optimal value for money, as there was no pressure from competing bids to drive down costs. Further analysis of the scope of work and historical pricing for similar services would be needed to definitively assess value.

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 means the County of Lee was likely the only entity considered capable of providing the required services, or there were other justifications for not opening it to a wider competition. The lack of multiple bidders means there was no direct price comparison or negotiation leverage derived from a competitive process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to lower the price. The government's ability to secure the most cost-effective solution is diminished without exploring multiple vendor options.

Public Impact

The primary beneficiary is the Federal Prison System / Bureau of Prisons, ensuring essential wastewater treatment services for its facilities. The service delivered is sewage treatment, crucial for public health and environmental compliance. The geographic impact is localized to the facility served by the County of Lee's wastewater infrastructure. Workforce implications are likely minimal, as the contract appears to leverage existing municipal services rather than creating new federal jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential cost savings for taxpayers.
Short contract duration raises questions about long-term planning and potential for recurring sole-source awards.
Lack of detailed performance metrics or service level agreements makes assessing effectiveness challenging.
Limited public information on the specific needs driving this sole-source award.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarding to a local government entity (County of Lee) may indicate a streamlined process for essential services.
Ensures continuity of critical wastewater treatment services for a federal facility.

Sector Analysis

The sewage treatment facilities sector involves the operation and maintenance of systems designed to treat wastewater. This contract falls under the broader category of public works and essential services. While specific market size data for federal sewage treatment contracts is not readily available, it represents a consistent need for government facilities. Comparable spending benchmarks are difficult to establish due to the sole-source nature and short duration of this specific award.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb: false'. There is no information suggesting subcontracting opportunities for small businesses. The award to a county government entity further suggests that small businesses were not a primary consideration in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures would be tied to the terms of the Firm Fixed Price contract and the delivery of specified services. Transparency is limited due to the sole-source nature and the lack of publicly available detailed documentation regarding the justification for non-competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Environmental Services Contracts
Municipal Service Agreements

Risk Flags

Non-competitive award
Potential for overpricing
Lack of transparency in justification
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $218,540.86 to COUNTY OF LEE. USP LEE WASTE WATER SERVICES FY26 1/1/26 - 3/31/26 CONTRACT #15B11720D00000028

Who is the contractor on this award?

The obligated recipient is COUNTY OF LEE.

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 $218,540.86.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

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

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION). This typically means that the contracting agency, in this case, the Department of Justice's Federal Prison System, determined that only one source was reasonably available or could satisfy the agency's needs. Common justifications include unique capabilities, urgent and compelling needs where competition is impractical, or specific statutory authority. Without further documentation from the agency, the precise reason remains unspecified. However, awarding to a local government entity for essential services like wastewater treatment can sometimes be justified if that entity is the sole provider for the geographic area encompassing the federal facility.

How does the cost of this contract compare to similar wastewater treatment services for federal facilities?

Direct comparison is challenging due to the limited data and the sole-source nature of this award. The contract value is $218,540.86 for a 3-month period (January 1, 2026, to March 31, 2026). This equates to approximately $72,847 per month. Benchmarking requires access to data on similar contracts, including the scope of services, volume of wastewater treated, and specific treatment levels required. Given the non-competitive award, it is difficult to ascertain if this price represents fair market value. A thorough analysis would involve reviewing historical pricing for this facility or comparable facilities, factoring in any unique operational requirements or service level agreements.

What are the potential risks associated with awarding a contract on a sole-source basis for essential services?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible value for its money. Another risk is reduced innovation, as there is less incentive for the sole provider to offer more efficient or cost-effective solutions. Furthermore, it can create a dependency on a single contractor, making future procurements potentially more difficult if the contractor's pricing increases significantly or if their performance is unsatisfactory. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

What is the expected performance standard or scope of work for these wastewater services?

The provided data is limited and does not detail the specific scope of work or performance standards for the wastewater treatment services. It only specifies the North American Industry Classification System (NAICS) code '221320' for Sewage Treatment Facilities. This suggests the contract covers the operation, maintenance, and potentially the treatment of sewage generated by a federal facility. Detailed requirements would typically be outlined in a Statement of Work (SOW) or Performance Work Statement (PWS) within the contract documentation. Without this, it's impossible to assess the quality or extent of services expected, beyond the general function of sewage treatment.

Are there any historical spending patterns with the County of Lee for similar services?

The provided data does not include historical spending information with the County of Lee for similar services. This contract is for a specific period (FY26, Q1) and is a Delivery Order under a larger contract vehicle (contract #15B11720D00000028). To understand historical patterns, one would need to examine previous awards under this contract number or search for prior contracts between the Department of Justice/Bureau of Prisons and the County of Lee for wastewater services. The fact that this is a Delivery Order suggests it might be part of a larger, potentially indefinite-delivery/indefinite-quantity (IDIQ) contract, which could have a history of task orders.

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: 397 PARK ST, JONESVILLE, VA, 24263

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

Financial Breakdown

Contract Ceiling: $218,541

Exercised Options: $218,541

Current Obligation: $218,541

Actual Outlays: $79,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11720D00000028

IDV Type: IDC

Timeline