DOJ's $1.35M contract for Yazoo City electric service awarded to Yazoo Valley Electric Power Association

Contract Overview

Contract Amount: $1,354,267 ($1.4M)

Contractor: Yazoo Valley Electric Power Association

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC SERVICE FOR FCC YAZOO CITY, MS PERIOD OF PERFROMANCE: OCTOBER 1, 2025 - JAN. 31, 2026 (CR) CONTRACT# 15B31519D00000048

Place of Performance

Location: YAZOO CITY, YAZOO County, MISSISSIPPI, 39194

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $1.4 million to YAZOO VALLEY ELECTRIC POWER ASSOCIATION for work described as: ELECTRIC SERVICE FOR FCC YAZOO CITY, MS PERIOD OF PERFROMANCE: OCTOBER 1, 2025 - JAN. 31, 2026 (CR) CONTRACT# 15B31519D00000048 Key points: 1. Contract awarded for essential utility services, ensuring operational continuity for federal facilities. 2. Limited competition due to the nature of utility service provision in the specified geographic area. 3. Performance period of one year with a fixed price contract structure. 4. Contract value appears reasonable for a year of electric service in Mississippi. 5. Focus on reliable energy delivery for a critical government function. 6. Potential for long-term reliance on incumbent utility providers.

Value Assessment

Rating: good

The contract value of approximately $1.35 million for one year of electric service appears to be in line with typical utility costs for a facility of this nature. Benchmarking against similar contracts for electric power distribution to federal facilities in the region would provide a more precise assessment, but the price does not immediately suggest overpayment. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicated as 'NOT AVAILABLE FOR COMPETITION'. This suggests that the award was made on a sole-source or limited basis, likely due to the nature of utility services where a single provider typically serves a specific geographic area. The lack of open competition means there was no opportunity for multiple bidders to offer proposals, potentially limiting price discovery and the government's ability to secure the lowest possible price through competitive bidding.

Taxpayer Impact: The absence of full and open competition means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process. The government relied on the existing utility provider, potentially at a price that was not optimized through market forces.

Public Impact

Federal facilities in Yazoo City, Mississippi, will receive reliable electric service. Ensures uninterrupted operations for the Bureau of Prisons facilities. Supports the energy needs of government personnel and infrastructure. Indirectly supports the local economy through utility service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs than a fully competed contract.
Reliance on a single provider could create future pricing vulnerabilities.
Lack of transparency in the procurement process due to non-competitive award.

Positive Signals

Ensures essential utility service for critical federal operations.
Firm fixed-price contract provides budget certainty.
Award to a known local utility provider suggests established service capabilities.

Sector Analysis

The electric power distribution sector is characterized by regulated monopolies or oligopolies in many geographic areas, making open competition for utility services challenging. Federal agencies often rely on established local providers to ensure continuity of essential services. The market size for federal utility contracts is substantial, but specific contract awards are highly localized based on infrastructure availability. This contract fits within the broader category of essential services procurement for government facilities.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of utility provision, it is unlikely that small businesses would be primary bidders for such a large-scale service contract. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting and financial management departments. Accountability measures are inherent in the firm fixed-price contract, requiring the vendor to deliver the specified service. Transparency is limited due to the non-competitive nature of the award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

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

Risk Flags

Non-competitive award limits price discovery.
Potential for price increases in future contract periods.
Reliance on a single utility provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.4 million to YAZOO VALLEY ELECTRIC POWER ASSOCIATION. ELECTRIC SERVICE FOR FCC YAZOO CITY, MS PERIOD OF PERFROMANCE: OCTOBER 1, 2025 - JAN. 31, 2026 (CR) CONTRACT# 15B31519D00000048

Who is the contractor on this award?

The obligated recipient is YAZOO VALLEY ELECTRIC POWER ASSOCIATION.

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 $1.4 million.

What is the period of performance?

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

What is the historical spending pattern for electric services at this specific federal facility or similar Bureau of Prisons facilities in Mississippi?

Analyzing historical spending for electric services at this facility or comparable Bureau of Prisons (BOP) sites in Mississippi is crucial for context. Without specific historical data for this Yazoo City location, we can infer general trends. BOP facilities, like other government installations, require consistent and reliable power. Spending can fluctuate based on energy price volatility, facility expansion or contraction, and energy efficiency initiatives. A review of past contracts for similar BOP facilities would reveal average annual costs, contract durations, and the prevalence of fixed-price versus other pricing structures. This comparison would help determine if the current $1.35 million award is an outlier or consistent with past expenditures, considering inflation and service level changes. For instance, if previous contracts for similar-sized facilities averaged $1 million annually, this award might warrant further scrutiny regarding the reasons for the higher cost, such as increased demand or specific service requirements.

How does the awarded price compare to market rates for commercial electric service in Yazoo City, Mississippi?

Comparing the awarded price to commercial market rates in Yazoo City, Mississippi, is essential for assessing value for money. While federal contracts often include specific service level agreements and security requirements that may differ from commercial contracts, a significant deviation could indicate an issue. Commercial rates are influenced by factors such as the utility provider's rate structure (e.g., tiered pricing, demand charges), the customer's load profile, and negotiated terms. To perform this comparison, one would need to obtain the utility provider's standard commercial rate schedules for comparable service levels and consumption volumes. Additionally, understanding the specific energy consumption patterns of the federal facility is key. If the federal facility has a high and consistent energy demand, it might align with commercial industrial rates. A preliminary assessment suggests that $1.35 million for a year of electric service for a substantial facility is within a plausible range, but a detailed rate schedule comparison is necessary for a definitive conclusion on value.

What are the specific service requirements and performance standards outlined in the contract?

The contract likely specifies detailed service requirements and performance standards to ensure reliable electric power delivery. These would typically include maintaining a certain voltage and frequency, ensuring minimal power interruptions, and adhering to emergency response protocols. For a facility like a federal prison, uninterrupted power is critical for security and operations. The contract may also outline requirements for meter reading, billing accuracy, and response times for outages or service issues. Performance standards might be tied to metrics such as uptime percentage or maximum allowable outage duration. While the provided data does not detail these specifics, a thorough review of the full contract document would be necessary to understand the precise obligations of Yazoo Valley Electric Power Association and the metrics by which their performance will be evaluated. These standards are crucial for ensuring the government receives the expected value and service quality.

What is the track record of Yazoo Valley Electric Power Association in serving government contracts or large commercial clients?

The track record of Yazoo Valley Electric Power Association (YVEPA) in serving government contracts or large commercial clients is a key indicator of reliability and performance. As a utility provider, YVEPA likely has established relationships with various customers, including potentially other government entities or large industrial users in its service territory. Information regarding their experience with federal contracts, specifically with agencies like the Department of Justice or the Bureau of Prisons, would be valuable. Assessing their history of service reliability, responsiveness to issues, and adherence to contractual terms with similar clients can provide insights into their capability to meet the demands of this contract. A review of past performance evaluations, if available through federal procurement databases or public records, would offer a more concrete understanding of their operational strengths and any potential weaknesses relevant to this award.

Are there any alternative energy sources or efficiency measures that could have been considered to reduce long-term costs?

Exploring alternative energy sources or efficiency measures is a standard consideration for long-term cost reduction in energy procurement. For a federal facility, this could involve evaluating the feasibility of on-site renewable energy generation (e.g., solar panels), energy storage solutions, or implementing advanced energy efficiency upgrades (e.g., LED lighting, HVAC optimization). While this specific contract focuses on the provision of electric service for a defined period, the agency could potentially explore these options for future procurements or facility upgrades. The current contract's fixed price structure for standard electric service might limit immediate opportunities for incorporating such measures directly. However, the agency could initiate separate studies or projects to assess the long-term benefits and payback periods of investing in energy efficiency or alternative energy, which could lead to significant cost savings beyond the scope of this immediate utility service contract.

Industry Classification

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

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: 2255 GORDON AVE, YAZOO CITY, MS, 39194

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

Financial Breakdown

Contract Ceiling: $1,354,267

Exercised Options: $1,354,267

Current Obligation: $1,354,267

Actual Outlays: $842,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B31519D00000048

IDV Type: IDC

Timeline