DOJ awards $245K for sewage treatment at Lee County facility, raising value-for-money questions

Contract Overview

Contract Amount: $245,000 ($245.0K)

Contractor: County of LEE

Awarding Agency: Department of Justice

Start Date: 2026-07-01

End Date: 2026-09-30

Contract Duration: 91 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 WASTEWATER QTR 4 CONTRACT #15B11720D00000028

Place of Performance

Location: JONESVILLE, LEE County, VIRGINIA, 24263

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $245,000 to COUNTY OF LEE for work described as: FY26 WASTEWATER QTR 4 CONTRACT #15B11720D00000028 Key points: 1. The contract's value appears high relative to its short duration, suggesting potential overpayment. 2. Limited competition for this contract may have hindered price discovery and taxpayer savings. 3. The fixed-price contract type offers cost certainty but could lead to contractor windfalls if costs are lower than anticipated. 4. Performance context is minimal, making it difficult to assess the effectiveness of the services rendered. 5. The contract falls within the 'Other' sector, specifically related to facility maintenance and operations. 6. The short duration of the contract raises questions about long-term sustainability and potential for follow-on work.

Value Assessment

Rating: questionable

The contract value of $245,000 for a 91-day period, averaging over $2,692 per day, seems high for sewage treatment services. Without specific details on the scope of work or comparable contracts, it's difficult to definitively benchmark the value. However, the daily rate suggests a premium price, potentially indicating a lack of competitive pressure or an inflated cost structure. Further analysis of the specific services provided and market rates for similar operations is needed to confirm value for money.

Cost Per Unit: $2,692 per day (estimated)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor can provide the required services, or in urgent situations. The lack of competition means that the Department of Justice did not benefit from multiple bids, which could have driven down the price. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: Sole-source awards limit the government's ability to negotiate favorable pricing, potentially leading to higher costs for taxpayers. Without competitive bids, there's less incentive for the contractor to offer their most competitive rate.

Public Impact

The primary beneficiary is the Federal Prison System / Bureau of Prisons, ensuring operational continuity. Services delivered include sewage treatment, essential for maintaining sanitary conditions at the facility. The geographic impact is localized to Lee County, Virginia, where the federal facility is located. Workforce implications are likely minimal, as the contract appears to be for specialized services rather than large-scale labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to sole-source award and high daily rate.
Lack of transparency regarding the specific services and performance metrics.
Short contract duration may indicate a temporary fix rather than a sustainable solution.

Positive Signals

Contract ensures essential facility operations are maintained.
Fixed-price contract provides cost certainty for the government.
Awarded to a local entity (County of Lee), potentially supporting local services.

Sector Analysis

Sewage treatment facilities fall under the broader category of infrastructure maintenance and operations. While not a distinct sector with large market players like IT or Defense, it's a critical component of public services. The market for such services is often localized, with municipal or county-level entities providing specialized treatment. Benchmarking this contract against similar municipal contracts for sewage treatment would be necessary for a comprehensive value assessment.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to the County of Lee suggests a direct service provision rather than a procurement that would typically engage a broader ecosystem of small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System / Bureau of Prisons. Accountability measures would be tied to the terms of the fixed-price delivery order, ensuring the specified sewage treatment services are rendered. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facility Management
Public Works and Utilities Contracts
Environmental Services Contracts

Risk Flags

High Daily Rate
Sole-Source Award
Short Contract Duration
Lack of Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $245,000 to COUNTY OF LEE. FY26 WASTEWATER QTR 4 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 $245,000.

What is the period of performance?

Start: 2026-07-01. End: 2026-09-30.

What is the specific scope of work for sewage treatment under this contract, and how does it justify the daily rate?

The provided data does not detail the specific scope of work for sewage treatment. However, the contract value of $245,000 over 91 days results in an approximate daily rate of $2,692. This rate is considered high for standard sewage treatment services, which typically involve routine maintenance, monitoring, and compliance checks. Without a detailed breakdown of services, such as the volume of wastewater treated, specific treatment processes required, or any specialized equipment or personnel mandated, it is difficult to ascertain if this daily rate is justified. Comparable municipal contracts for similar facilities often have significantly lower daily operational costs, suggesting this rate may be inflated or include services not immediately apparent from the contract title.

Why was this contract awarded on a sole-source basis, and were there any attempts to explore competitive options?

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source award. The specific justification for this sole-source designation is not provided in the data. Common reasons for sole-source awards include the unique capability of a single provider, an urgent need where competition is impractical, or if the contract is a modification or extension of an existing sole-source agreement. Without further information from the awarding agency (Department of Justice, Federal Prison System), it is impossible to determine if alternative competitive options were explored or if the sole-source justification is robust. This lack of competition limits the government's ability to ensure it is receiving the best value.

How does the daily cost of $2,692 compare to industry benchmarks for sewage treatment facilities of similar size and complexity?

The estimated daily cost of $2,692 for sewage treatment services under this contract appears to be significantly above typical industry benchmarks. While precise comparisons are challenging without detailed scope of work and facility specifics, municipal sewage treatment plants often operate at much lower daily costs per facility, especially for routine operations. Factors influencing cost include the volume of wastewater, the complexity of the treatment required (e.g., industrial pre-treatment needs), staffing levels, and regulatory compliance demands. A rate of over $2,600 per day for a 91-day contract suggests either a highly specialized or complex treatment requirement, or potentially an inflated price due to the lack of competition. Further investigation into the specific operational demands and market rates for comparable federal or large municipal facilities is warranted.

What are the potential risks associated with a short-duration, sole-source contract for essential services like sewage treatment?

Short-duration, sole-source contracts for essential services like sewage treatment carry several risks. Firstly, the lack of competition means the government may be paying a premium price without the benefit of competitive bidding, potentially leading to financial inefficiency. Secondly, a short duration (91 days) might indicate a stop-gap measure, raising concerns about the long-term strategy for maintaining these critical facilities and potentially leading to recurring sole-source awards. This can also create uncertainty for service providers regarding future work. Thirdly, without a competitive process, there's a reduced incentive for the contractor to optimize performance or cost-efficiency. Finally, if the sole-source provider encounters issues, finding a replacement quickly for essential services could be challenging, potentially impacting facility operations and compliance.

What is the track record of the County of Lee in providing sewage treatment services, particularly for federal facilities?

Information regarding the County of Lee's specific track record in providing sewage treatment services, especially for federal facilities, is not available within the provided contract data. As a county entity, it is plausible they operate or manage local sewage treatment infrastructure. However, their experience with federal contracts, particularly sole-source awards of this nature, is unknown. A thorough assessment would require reviewing their past performance on similar contracts, client references (especially from government agencies), and any history of compliance or performance issues. Without this background information, it is difficult to evaluate their capability and reliability for this specific federal contract.

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: $245,000

Exercised Options: $245,000

Current Obligation: $245,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11720D00000028

IDV Type: IDC

Timeline