DOJ awards $610K for electric power generation services in Pennsylvania, with limited competition

Contract Overview

Contract Amount: $61,000 ($61.0K)

Contractor: PPL Electric Utilities Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $168/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI LEWISBURG TASK ORDER FY26 PPL 81360-50003 FOR THE PERIOD BEGINNING OCT 1 2025 CURRENT CR PERIOD COVERS THE PERIOD OF OCTOBER 1, 2025, TO JANUARY 30, 2026. ALL TERMS AND CONDITIONS PRESENT UNDER PARENT CONTRACT

Place of Performance

Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $61,000 to PPL ELECTRIC UTILITIES CORPORATION for work described as: FCI LEWISBURG TASK ORDER FY26 PPL 81360-50003 FOR THE PERIOD BEGINNING OCT 1 2025 CURRENT CR PERIOD COVERS THE PERIOD OF OCTOBER 1, 2025, TO JANUARY 30, 2026. ALL TERMS AND CONDITIONS PRESENT UNDER PARENT CONTRACT Key points: 1. The contract value of $610,000 for a 12-month period suggests a moderate expenditure for essential utility services. 2. Limited competition for this delivery order raises questions about potential price efficiencies and market responsiveness. 3. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for budget predictability. 4. This contract supports the Federal Prison System's operational needs, highlighting the critical role of reliable utilities in government facilities. 5. The contractor, PPL Electric Utilities Corporation, is a known entity in the energy sector, suggesting a degree of established capability. 6. The duration of the current period (Oct 2025 - Jan 2026) is short, indicating potential for future task orders and evolving needs.

Value Assessment

Rating: fair

The awarded amount of $610,000 for a 12-month period for electric power generation services appears to be within a reasonable range for utility provision to a federal facility. Benchmarking against similar contracts for correctional facilities or large government installations in Pennsylvania would provide a more precise value assessment. However, without specific per-unit energy consumption data or detailed service level agreements, a definitive value-for-money judgment is challenging. The firm-fixed-price nature of the contract provides budget certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action, indicating that PPL Electric Utilities Corporation was the only source considered capable of providing the required electric power generation services. This could be due to the nature of the service, which often relies on existing infrastructure and distribution networks controlled by specific utility providers. The lack of competition means that price discovery through a bidding process was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The absence of competition limits the government's ability to negotiate the best possible price for these essential services.

Public Impact

The primary beneficiaries are the inmates and staff of the Federal Prison System facility in Lewisburg, Pennsylvania, who rely on consistent and reliable electricity. The service delivered is essential electric power generation and distribution, ensuring the continuous operation of the facility's infrastructure. The geographic impact is localized to Lewisburg, Pennsylvania, where the federal prison is located. Workforce implications are minimal for this specific contract, as it primarily involves the provision of utility services rather than direct labor augmentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing for taxpayers.
Reliance on a single provider could create vulnerabilities if service is interrupted.
The contract's short initial period might indicate uncertainty or a need for frequent re-evaluation of services.

Positive Signals

The contractor is an established utility provider, suggesting reliability.
Firm-fixed-price contract provides budget certainty for the agency.
The contract supports essential operational needs of a federal facility.

Sector Analysis

The electric power generation sector is a critical infrastructure industry, characterized by significant capital investment, regulatory oversight, and often regional monopolies or oligopolies for distribution. Contracts for utility services to federal facilities are common and essential for maintaining operations. The market size for such services is vast, encompassing all government installations requiring power. This contract fits within the broader category of essential services procurement, where reliability and continuity are paramount, often leading to sole-source or limited-competition awards due to existing infrastructure.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the nature of electric utility provision, which typically requires extensive infrastructure and regulatory compliance, it is unlikely that small businesses would be primary providers or subcontractors in this specific instance. The focus is on a large, established utility provider. Subcontracting opportunities for small businesses are not explicitly mentioned and are likely limited given the scope of the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and financial management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is limited due to the sole-source nature of the award, with details of the justification for this approach not publicly elaborated. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Operations
Department of Justice Utilities Procurement
Electric Power Generation Contracts
Federal Facility Maintenance

Risk Flags

Sole-source award limits price competition.
Potential for service disruption from a single provider.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61,000 to PPL ELECTRIC UTILITIES CORPORATION. FCI LEWISBURG TASK ORDER FY26 PPL 81360-50003 FOR THE PERIOD BEGINNING OCT 1 2025 CURRENT CR PERIOD COVERS THE PERIOD OF OCTOBER 1, 2025, TO JANUARY 30, 2026. ALL TERMS AND CONDITIONS PRESENT UNDER PARENT CONTRACT

Who is the contractor on this award?

The obligated recipient is PPL ELECTRIC UTILITIES CORPORATION.

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 $61,000.

What is the period of performance?

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

What is the historical spending pattern for electric power services at the FCI Lewisburg facility?

Analyzing historical spending for electric power at FCI Lewisburg would provide crucial context for the current $610,000 award. Without access to prior contract data for this specific facility, it's difficult to determine if this amount represents an increase, decrease, or stable expenditure. Typically, federal agencies maintain records of past contract awards, including value, duration, and contractor. A review of these records would reveal trends in energy consumption, pricing fluctuations, and the consistency of the service provider. If historical data shows significantly lower costs or different providers, it would raise questions about the current sole-source award and its pricing. Conversely, consistent spending with the same provider might indicate a stable, long-term operational requirement.

What specific justification was provided for the sole-source award to PPL Electric Utilities Corporation?

The justification for a sole-source award typically centers on the unique capabilities or circumstances that preclude competition. For electric utilities, this often relates to the existing infrastructure and distribution network owned and operated by a specific company within a defined service territory. PPL Electric Utilities Corporation likely holds the franchise or necessary permits to provide electricity to the FCI Lewisburg location. The justification would need to articulate why no other entity could feasibly or legally supply the required power, considering factors like grid connection, reliability standards, and regulatory requirements. Without this specific justification, it's challenging to fully assess the necessity of the sole-source approach.

How does the firm-fixed-price contract type impact the risk and cost for the government in this scenario?

A firm-fixed-price (FFP) contract is generally advantageous for the government when the scope of work is well-defined and the risks of cost overruns are manageable. In this case, for electric power generation services, the primary cost driver is the consumption of electricity, which can be somewhat predictable for a facility like a federal prison. The FFP structure means that PPL Electric Utilities Corporation assumes the risk of cost increases related to energy production, labor, or materials. This provides budget certainty for the Department of Justice, as the total cost is fixed for the contract period, barring any unforeseen contract modifications. However, if the contractor significantly underestimates costs or faces unexpected operational challenges, they bear the loss, which could incentivize them to seek efficiencies or, in extreme cases, lead to service quality issues if not properly monitored.

What are the potential risks associated with relying on a single utility provider for a federal prison?

Relying on a single utility provider, such as PPL Electric Utilities Corporation for FCI Lewisburg, presents several potential risks. Foremost is the risk of service disruption due to the provider's operational issues, such as equipment failure, natural disasters affecting their infrastructure, or labor disputes. A prolonged power outage at a federal prison could have severe consequences for security, inmate welfare, and the facility's ability to function. Another risk is the lack of competitive pressure, which might lead to complacency in service quality or less aggressive pricing over time. Furthermore, dependence on one provider can limit the government's leverage in negotiating terms or responding to emergencies, as alternative options may not be readily available or feasible to implement quickly.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail performance metrics or Service Level Agreements (SLAs) for this task order. However, for essential services like electricity provision to a federal prison, it is highly probable that the parent contract or the task order itself includes specific requirements regarding reliability, uptime, and response times to outages. These would likely be defined in terms of maximum allowable downtime, restoration targets, and potentially power quality standards. The firm-fixed-price nature suggests that meeting these performance standards is a condition of payment. The Bureau of Prisons would typically monitor these aspects to ensure the facility's operational integrity and safety.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

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

Parent Company: PPL Corporation

Address: 2 N 9TH ST, ALLENTOWN, PA, 18101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,000

Exercised Options: $61,000

Current Obligation: $61,000

Actual Outlays: $17,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0036

IDV Type: IDC

Timeline