DOJ awards $758K PPL Electric contract for USP Canaan power in FY26
Contract Overview
Contract Amount: $75,852 ($75.9K)
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: $208/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PPL ELECTRIC DELIVERY FY 2026 FOR USP CANAAN
Place of Performance
Location: WAYMART, WAYNE County, PENNSYLVANIA, 18472
Plain-Language Summary
Department of Justice obligated $75,852 to PPL ELECTRIC UTILITIES CORPORATION for work described as: PPL ELECTRIC DELIVERY FY 2026 FOR USP CANAAN Key points: 1. Contract value of $758,520 for one year of service. 2. Competition method is 'COMPETED UNDER SAP', suggesting a streamlined process. 3. Risk of service disruption if PPL Electric fails to deliver. 4. Sector is 'Other Electric Power Generation', essential for federal facilities.
Value Assessment
Rating: fair
The contract value of $758,520 for a 364-day delivery order appears reasonable for electric power services. Benchmarking against similar contracts for federal facilities of comparable size would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition approach. This method is typically used for smaller dollar value procurements and may not achieve the best possible price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer impact is likely moderate, as the use of SAP aims for efficiency but may forgo potential cost savings from broader competition.
Public Impact
Ensures continuous power supply to USP Canaan, a critical federal facility. Supports the operational needs of the Department of Justice. Potential impact on inmate welfare and staff safety if power is interrupted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for a critical utility.
- Potential for price increases in future contract renewals.
- Limited competition may not yield the lowest possible price.
Positive Signals
- Ensures essential service delivery for a federal prison.
- Fixed-price contract provides cost certainty for the government.
- Defined contract period limits long-term financial commitment.
Sector Analysis
This contract falls under the 'Other Electric Power Generation' sector, crucial for maintaining operations at federal facilities. Spending in this sector can vary significantly based on facility size, location, and energy needs.
Small Business Impact
There is no indication that small businesses were involved in this procurement. The contract was awarded to PPL Electric Utilities Corporation, a large utility provider.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard oversight mechanisms for utility contracts would apply, focusing on service delivery and compliance.
Related Government Programs
- Other Electric Power Generation
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition may result in higher costs.
- Dependence on a single provider for a critical utility.
- Potential for service interruptions.
- Lack of small business participation.
Tags
other-electric-power-generation, department-of-justice, pa, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $75,852 to PPL ELECTRIC UTILITIES CORPORATION. PPL ELECTRIC DELIVERY FY 2026 FOR USP CANAAN
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 $75,852.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical cost of electricity for USP Canaan and how does this contract compare?
Historical cost data for USP Canaan's electricity consumption is not provided. However, the current contract value of $758,520 for a 364-day period at a firm fixed price offers cost certainty for FY26. A comparison would require access to past utility bills and an analysis of energy usage trends.
What are the risks associated with relying on PPL Electric for this critical service?
The primary risk is service disruption due to PPL Electric's operational issues, such as equipment failure or natural disasters. Another risk is potential price escalation in future contract periods, as competition was limited. The government's recourse would be through contract termination clauses and seeking alternative providers, which could be challenging for essential utilities.
How effective is the 'COMPETED UNDER SAP' approach for ensuring value in utility contracts?
Using SAP for utility contracts can be effective for ensuring timely delivery of essential services when the market is limited or specialized. It streamlines the acquisition process, potentially reducing administrative burden. However, it may not achieve the same level of price competition as full and open solicitations, potentially leading to a less optimal price for taxpayers.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
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: $75,852
Exercised Options: $75,852
Current Obligation: $75,852
Actual Outlays: $18,821
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47PA0418G0005
IDV Type: BOA
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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