Justice Department awards $16.9M contract for industrial supplies, raising questions about competition and value

Contract Overview

Contract Amount: $16,913 ($16.9K)

Contractor: Coleman Construction, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-29

Contract Duration: 28 days

Daily Burn Rate: $604/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY 2026 COLEMAN CONSTRUCT PROJECT 26Z3AT2

Place of Performance

Location: HARLEM, COLUMBIA County, GEORGIA, 30814

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $16,913.36 to COLEMAN CONSTRUCTION, INC. for work described as: FY 2026 COLEMAN CONSTRUCT PROJECT 26Z3AT2 Key points: 1. The contract's value of $16.9 million warrants scrutiny for potential cost efficiencies. 2. A 'NOT COMPETED UNDER SAP' designation suggests limited market exploration. 3. The short duration of 28 days may indicate an urgent need or a pilot program. 4. The firm fixed-price contract type offers cost certainty but may limit flexibility. 5. The award to a single vendor, COLEMAN CONSTRUCTION, INC., warrants a review of market alternatives. 6. The contract's focus on industrial supplies for the Federal Prison System suggests a critical operational need.

Value Assessment

Rating: questionable

The $16.9 million award for industrial supplies appears high for a 28-day contract, especially given the lack of competitive bidding. Benchmarking against similar procurements for correctional facilities or industrial supply wholesalers is difficult without more detailed service descriptions. However, the absence of competition and the significant dollar amount suggest a potential for overpayment or a missed opportunity to secure better pricing through a more open process. The firm fixed-price nature provides cost certainty, but the overall value proposition is unclear without comparative data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was designated 'NOT COMPETED UNDER SAP,' indicating it was not procured through the standard competitive bidding process for smaller purchases. This suggests that the agency may have used other transaction authorities or a simplified acquisition procedure that did not involve broad solicitation. The lack of explicit information on the number of bidders or the specific justification for limiting competition makes it difficult to assess the extent of market engagement. This approach can sometimes be justified for urgent needs or specialized items, but it typically leads to less price discovery.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the limited competition. Without a robust bidding process, there's a risk that the awarded price is higher than it would be in a fully competitive environment.

Public Impact

The primary beneficiaries are the inmates and staff within the Federal Prison System, who will receive necessary industrial supplies. The contract ensures the availability of essential goods for the operational needs of federal correctional facilities. The geographic impact is concentrated within the facilities managed by the Federal Prison System, likely across multiple states. The contract supports the logistics and supply chain workforce involved in procuring and distributing these industrial supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to inflated prices.
Limited transparency in the procurement process raises concerns about fairness.
Short contract duration could indicate rushed decision-making or potential for follow-on issues.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Award to a known entity (COLEMAN CONSTRUCTION, INC.) might imply a pre-existing relationship or specialized capability.
Focus on essential industrial supplies ensures operational continuity for the Federal Prison System.

Sector Analysis

This contract falls within the broader industrial supplies and wholesale distribution sector, which is critical for supporting various government operations. The market for industrial supplies is vast, encompassing everything from maintenance equipment to raw materials. Government procurement within this sector often involves large dollar values, but the specific nature of 'industrial supplies' for a correctional facility can range widely. Benchmarking is challenging without a precise definition of the supplies, but the Federal Prison System is a significant consumer of such goods, necessitating reliable and timely delivery.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Without specific subcontracting requirements detailed in the award, the direct impact on the small business ecosystem is unclear. However, the lack of a small business set-aside suggests that larger contractors were likely considered or that the procurement mechanism did not prioritize small business participation. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement regulations and the Federal Prison System's administrative controls. Transparency is limited due to the non-competitive nature of the award. Accountability would be managed through contract performance monitoring and financial audits. The Inspector General for the Department of Justice may have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

Federal Prison System Operations
Department of Justice Procurement
Industrial Supplies Procurement
Government Supply Chain Management

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Unclear Value for Money

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16,913.36 to COLEMAN CONSTRUCTION, INC.. FY 2026 COLEMAN CONSTRUCT PROJECT 26Z3AT2

Who is the contractor on this award?

The obligated recipient is COLEMAN CONSTRUCTION, INC..

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 $16,913.36.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-29.

What specific types of industrial supplies are included in this $16.9 million contract?

The provided data classifies the contract under NAICS code 423840, 'Industrial Supplies Merchant Wholesalers.' However, it does not specify the exact types of industrial supplies. This category can encompass a wide range of products, including machinery, equipment parts, tools, hardware, and maintenance supplies. For the Federal Prison System, these could range from janitorial supplies and repair parts for facility maintenance to specialized equipment for workshops or security systems. A detailed breakdown of the supplies is crucial for a thorough value assessment and to understand the specific operational needs being met.

What is the justification for awarding this contract on a non-competitive basis?

The designation 'NOT COMPETED UNDER SAP' indicates that the contract was not awarded through the standard competitive bidding process, likely utilizing a simplified acquisition procedure or other exception. Common justifications for non-competitive awards include urgent and compelling needs, sole-source capabilities of a specific vendor, or when only one responsible source is available. Without further documentation from the Department of Justice, the precise reason for bypassing full and open competition remains unclear. This lack of transparency necessitates a review to ensure the justification was valid and that taxpayer funds were used appropriately.

How does the $16.9 million price compare to market rates for similar industrial supplies?

Directly comparing the $16.9 million price to market rates is challenging without knowing the specific industrial supplies procured and their quantities. However, the award amount for a contract with a duration of only 28 days is substantial. If this represents a typical monthly expenditure for such supplies, it suggests a significant operational budget for the Federal Prison System. To assess value for money, a benchmark analysis against historical pricing for similar items, prices from other government agencies, or commercial catalog prices would be necessary. The absence of competition further complicates this comparison, as market-driven price discovery was limited.

What is the track record of COLEMAN CONSTRUCTION, INC. in supplying industrial goods to the federal government?

Information regarding COLEMAN CONSTRUCTION, INC.'s specific track record in supplying industrial goods to the federal government is not detailed in the provided data. While the company is listed as the awardee, its history with government contracts, past performance evaluations, and experience in delivering industrial supplies are not specified. A comprehensive assessment would require reviewing federal procurement databases (like SAM.gov or FPDS) for previous awards, contract performance history reports, and any debriefings or disputes associated with their past government engagements. Understanding their experience is key to evaluating the reliability and potential risks associated with this award.

What are the potential risks associated with a non-competed contract of this magnitude?

The primary risks associated with a non-competed contract of this magnitude ($16.9 million) include potential overpricing due to lack of market competition, reduced innovation, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money if alternative vendors could have offered similar goods at a lower cost. There's also a risk that the chosen vendor may not have the most efficient supply chain or the best quality products compared to what could have been sourced through a competitive process. Furthermore, non-competitive awards can sometimes raise perceptions of favoritism or impropriety, necessitating robust justification and oversight.

How does this contract fit into the overall spending patterns for the Federal Prison System's industrial supply needs?

This $16.9 million contract represents a significant, albeit short-term (28 days), expenditure for industrial supplies within the Federal Prison System. To understand its place in overall spending patterns, one would need to examine historical data on similar procurements. Is this a recurring monthly expense, an annual purchase, or an isolated event? Analyzing trends in spending on industrial supplies over multiple fiscal years, identifying the average contract values, and noting the frequency of competitive versus non-competitive awards would provide crucial context. This single award, without historical context, makes it difficult to determine if it aligns with typical spending or represents an anomaly.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Industrial Supplies Merchant Wholesalers

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 HENRY MILLER ST, HARLEM, GA, 30814

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

Financial Breakdown

Contract Ceiling: $16,913

Exercised Options: $16,913

Current Obligation: $16,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline