DOJ's $709K water utility contract for FCI Yazoo City awarded via non-competitive process

Contract Overview

Contract Amount: $709,322 ($709.3K)

Contractor: Public Service Commission of Yazoo City

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATER AND SEWER UTILITY SERVICE FOR FCI YAZOO CITY POP: OCT. 1, 2025 - JAN. 31, 2026 (CR) CONTRACT #15B31519D00000049 ESTABLISHED UTILITIES CONTRACT

Place of Performance

Location: YAZOO CITY, YAZOO County, MISSISSIPPI, 39194

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $709,321.92 to PUBLIC SERVICE COMMISSION OF YAZOO CITY for work described as: WATER AND SEWER UTILITY SERVICE FOR FCI YAZOO CITY POP: OCT. 1, 2025 - JAN. 31, 2026 (CR) CONTRACT #15B31519D00000049 ESTABLISHED UTILITIES CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is 364 days, suggesting a need for ongoing service. 3. The estimated value is $709,321.92 for the specified period. 4. The service is essential for the operation of a federal correctional institution. 5. The North American Industry Classification System (NAICS) code is 221310 for water supply and irrigation systems. 6. The contract type is a Firm Fixed Price delivery order.

Value Assessment

Rating: fair

The contract value of $709,321.92 for 364 days of water and sewer utility service appears reasonable for a federal correctional facility. However, without comparable contract data for similar facilities or specific service level agreements, a precise value-for-money assessment is challenging. The lack of competition inherently limits the ability to benchmark pricing against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded on a sole-source basis. This indicates that the agency identified a single source believed to be capable of providing the required services. The absence of a competitive bidding process means that potential cost savings through market competition were not realized.

Taxpayer Impact: Taxpayers may have paid a higher price than if the contract had been competed, as there was no mechanism for multiple vendors to bid and drive down costs.

Public Impact

The primary beneficiaries are the inmates and staff of Federal Correctional Institution (FCI) Yazoo City, who rely on consistent water and sewer services. The contract ensures the delivery of essential utility services, maintaining public health and safety standards within the facility. The geographic impact is localized to Yazoo City, Mississippi, where the federal prison is located. The contract supports the operational continuity of a federal law enforcement and correctional facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can indicate potential planning or market research deficiencies.
Reliance on a single provider could pose risks if service is interrupted.

Positive Signals

Ensures essential utility services for a critical federal facility.
Contract duration provides stability for service provision.
Firm Fixed Price structure offers cost certainty for the government.

Sector Analysis

This contract falls within the Utilities sector, specifically water supply and irrigation systems. The market for utility services to federal facilities is often characterized by long-term contracts and specific regulatory requirements. While the exact market size for federal prison utility services is not readily available, the broader water and sewer utility market is substantial, with significant public and private investment. This contract represents a small but critical component of federal infrastructure spending.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The sole-source nature of the award further limits opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) within the Department of Justice. Accountability measures would include performance monitoring, adherence to service level agreements, and financial audits. Transparency is limited due to the sole-source award, but contract details are generally available through federal procurement databases.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Federal Correctional Institution Services
Utility Services Contracts

Risk Flags

Sole-source award
Lack of competition
Essential service dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $709,321.92 to PUBLIC SERVICE COMMISSION OF YAZOO CITY. WATER AND SEWER UTILITY SERVICE FOR FCI YAZOO CITY POP: OCT. 1, 2025 - JAN. 31, 2026 (CR) CONTRACT #15B31519D00000049 ESTABLISHED UTILITIES CONTRACT

Who is the contractor on this award?

The obligated recipient is PUBLIC SERVICE COMMISSION OF YAZOO CITY.

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 $709,321.92.

What is the period of performance?

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

What is the historical spending pattern for water and sewer utility services at FCI Yazoo City?

The provided data indicates this is a delivery order under an established utilities contract, with an estimated value of $709,321.92 for a 364-day period (Oct 1, 2025 - Jan 31, 2026). To understand historical spending, one would need to examine previous delivery orders under contract #15B31519D00000049 or prior contracts for utility services at FCI Yazoo City. Without access to that historical data, it's impossible to determine if this current estimated value represents an increase, decrease, or consistent level of spending compared to previous years. Analyzing past expenditures would reveal trends in utility costs and the contractor's performance over time.

How does the per-unit cost of this contract compare to similar federal correctional facility utility contracts?

A direct per-unit cost comparison is challenging without specific metrics like gallons of water consumed or cubic feet of sewage processed, alongside the associated costs. The contract is for 'Water and Sewer Utility Service' with a total estimated value of $709,321.92 for approximately one year. To benchmark, we would need to identify similar-sized federal correctional facilities and analyze their utility contracts, looking for comparable service scopes and pricing structures. Given this contract is sole-source, it inherently bypasses the competitive process that typically helps establish market-based per-unit costs. Therefore, any comparison would be against potentially non-competitive historical data or other sole-source awards, limiting its validity.

What are the specific risks associated with a sole-source award for essential utility services?

The primary risk of a sole-source award for essential utility services like water and sewer is the lack of price competition, potentially leading to higher costs for the government compared to a competitively bid contract. Another significant risk is vendor lock-in; the agency may become dependent on the incumbent provider, making it difficult to switch even if performance or pricing becomes unsatisfactory. Furthermore, without the vetting process of a competitive bid, there's a potential, albeit usually mitigated by other oversight, risk of inadequate service quality or reliability if the sole provider is not properly monitored. Emergency service disruptions could also be more problematic if there are no alternative pre-vetted providers.

What is the track record of the Public Service Commission of Yazoo City as a government contractor?

The provided data identifies the 'Public Service Commission of Yazoo City' as the contractor. To assess their track record as a government contractor, one would need to search federal procurement databases (like SAM.gov or FPDS) for past awards and performance history associated with this entity. Information regarding past performance, contract compliance, and any history of disputes or terminations would be crucial. Without this specific historical data, it is impossible to evaluate their reliability and performance in fulfilling government contracts, particularly for essential services like utilities.

What oversight mechanisms are in place to ensure the quality and reliability of the utility services provided?

Oversight for this contract is primarily managed by the contracting agency, the Department of Justice's Federal Prison System / Bureau of Prisons. This typically involves a designated Contracting Officer's Representative (COR) responsible for monitoring the contractor's performance against the contract's terms and conditions, including service level agreements. Regular inspections, performance reviews, and adherence to established utility standards are expected. While the data doesn't detail specific oversight protocols, the Bureau of Prisons has established procedures for managing facility operations and service contracts to ensure the safety and well-being of inmates and staff.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

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: 210 S MOUND ST, YAZOO CITY, MS, 39194

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

Financial Breakdown

Contract Ceiling: $709,322

Exercised Options: $709,322

Current Obligation: $709,322

Actual Outlays: $425,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B31519D00000049

IDV Type: IDC

Timeline