DOJ's $56K sewer service contract for Paintsville, KY, awarded for a 37-day period

Contract Overview

Contract Amount: $56,151 ($56.2K)

Contractor: Paintsville Utilities Commission

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-04-07

Contract Duration: 37 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 P4 PAINTSVILLE UT SEWER SERVICE MARCH 2026

Place of Performance

Location: PAINTSVILLE, JOHNSON County, KENTUCKY, 41240

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $56,151.42 to PAINTSVILLE UTILITIES COMMISSION for work described as: FY26 P4 PAINTSVILLE UT SEWER SERVICE MARCH 2026 Key points: 1. Value for money appears fair given the short duration and specialized nature of the service. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are low due to the localized service and short performance period. 4. Performance context shows a specific need for utility services at a federal facility. 5. Sector positioning places this contract within essential infrastructure support for government operations.

Value Assessment

Rating: fair

The contract value of $56,151.42 for approximately one month of sewer services seems reasonable for a specialized utility function. Benchmarking against similar short-term municipal service contracts is difficult without more specific service details. However, the price appears aligned with the expected costs for essential utility maintenance in a specific geographic area.

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. This approach is typically used when only one vendor can provide the required service, often due to unique capabilities, location, or existing infrastructure. The lack of competition means there was no opportunity for multiple bidders to offer lower prices or alternative solutions.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from competitive bidding, which could have potentially led to a lower price.

Public Impact

The primary beneficiary is the Federal Prison System / Bureau of Prisons, ensuring operational continuity. Services delivered include essential sewage treatment and disposal for the facility. Geographic impact is localized to Paintsville, Kentucky. Workforce implications are minimal, likely involving existing utility personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to higher costs than a competed contract.
Sole-source awards may indicate a lack of market research or vendor consolidation.

Positive Signals

Contract addresses a critical operational need for the facility.
Short duration limits financial exposure and allows for future re-evaluation of needs.
Service is essential for public health and environmental compliance.

Sector Analysis

This contract falls under the Utilities and Waste Treatment sector, specifically focusing on sewage services. The market for such specialized municipal services is often localized, with established providers serving specific geographic areas. The federal government, like other large entities, relies on these local providers for essential infrastructure support. Comparable spending benchmarks are difficult to establish without knowing the specific volume and treatment requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized utility service, it's unlikely that subcontracting opportunities for small businesses would be significant unless the primary contractor actively seeks them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting and financial management offices. Accountability measures would involve ensuring the service is performed according to the contract's terms and conditions. Transparency is limited by the sole-source nature, but contract awards are generally publicly reported.

Related Government Programs

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

Risk Flags

Sole-source award may limit price competition.
Limited data on contractor's federal performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $56,151.42 to PAINTSVILLE UTILITIES COMMISSION. FY26 P4 PAINTSVILLE UT SEWER SERVICE MARCH 2026

Who is the contractor on this award?

The obligated recipient is PAINTSVILLE UTILITIES COMMISSION.

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 $56,151.42.

What is the period of performance?

Start: 2026-03-01. End: 2026-04-07.

What is the track record of Paintsville Utilities Commission in serving federal contracts?

Information regarding Paintsville Utilities Commission's specific track record with federal contracts is not readily available in the provided data. As a municipal utility, their primary focus is likely on serving the local community. Their ability to secure this sole-source contract suggests they possess the necessary infrastructure and capability to meet the Bureau of Prisons' requirements. Further investigation into their past performance on similar government contracts, if any, would be beneficial for a comprehensive assessment. However, the short duration and localized nature of this specific award suggest it may be an isolated requirement rather than a long-term federal engagement.

How does the pricing of this contract compare to similar municipal sewer services?

Direct comparison of this contract's pricing to similar municipal sewer services is challenging without detailed service specifications and local market data for Paintsville, KY. The contract value of $56,151.42 for a 37-day period averages approximately $1,518 per day. This daily rate would need to be benchmarked against the costs charged by Paintsville Utilities Commission to its non-federal customers, as well as against rates for comparable facilities in similar-sized municipalities. Factors such as the volume of sewage treated, specific treatment processes required, and emergency service provisions would influence the final price. Given the sole-source nature, it's difficult to ascertain if this represents the best value achievable through competition.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not be securing the most cost-effective solution. Another risk is the potential for vendor lock-in if the utility's infrastructure is uniquely integrated with the federal facility, making it difficult to switch providers in the future. Furthermore, reliance on a single provider could lead to service disruptions if the contractor experiences operational issues. However, the short duration of this specific contract mitigates some long-term risks.

How effective is this contract in ensuring the operational continuity of the federal facility?

This contract is likely effective in ensuring the operational continuity of the federal facility by providing essential sewage treatment services. Reliable utility infrastructure is critical for the day-to-day functioning of any large institution, including correctional facilities. By securing these services, the Bureau of Prisons prevents potential health hazards and operational shutdowns that could arise from inadequate waste management. The contract's effectiveness hinges on the contractor's ability to consistently deliver the required services throughout the performance period, which is a standard expectation for utility providers.

What is the historical spending pattern for sewer services at this specific federal facility?

The provided data does not include historical spending patterns for sewer services at this specific federal facility. This contract represents a single delivery order for a short duration (March 1, 2026, to April 7, 2026). To understand historical spending, one would need to examine previous contracts awarded for sewer services at this location, potentially including longer-term agreements or multiple delivery orders over several fiscal years. Analyzing past spending would reveal trends, identify potential cost increases or decreases, and inform future procurement strategies for this essential service.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' designation?

The 'NOT AVAILABLE FOR COMPETITION' designation, often synonymous with 'sole-source,' indicates that the contracting agency determined that only one responsible source exists to fulfill the requirement. This could be due to factors such as the unique capability of the contractor, the urgency of the need, or the limited availability of alternative providers in the specific geographic area. While it streamlines the procurement process by avoiding a lengthy competition, it removes the potential benefits of price reduction and innovation that competition typically brings. Agencies must justify sole-source awards, and they are subject to specific regulatory requirements.

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: 137 MAIN ST, PAINTSVILLE, KY, 41240

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

Financial Breakdown

Contract Ceiling: $56,151

Exercised Options: $56,151

Current Obligation: $56,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11820D00000006

IDV Type: IDC

Timeline