DOJ's Bureau of Prisons awards $25M Firm Fixed Price contract for Illinois electric power distribution in FY26

Contract Overview

Contract Amount: $25,000 ($25.0K)

Contractor: Ameren Services Company

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-03-31

Contract Duration: 30 days

Daily Burn Rate: $833/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 AMEREN GAS & ELECTRIC MAR 26

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $25,000 to AMEREN SERVICES COMPANY for work described as: FY26 P4 AMEREN GAS & ELECTRIC MAR 26 Key points: 1. Contract awarded to Ameren Services Company for electric power distribution. 2. The contract is a Delivery Order with a Firm Fixed Price. 3. The duration is 30 days, ending March 31, 2026. 4. The contract is not available for competition. 5. The total award amount is $25,000,000.

Value Assessment

Rating: fair

The contract is a Firm Fixed Price, which provides cost certainty. However, the price of $25,000,000 for a 30-day electric power distribution service seems high without further context on usage or infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition scenario, possibly due to sole-source provider or existing infrastructure. This limits price discovery and potentially leads to higher costs.

Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive bidding for essential utility services.

Public Impact

Ensures continuous power supply to Federal Prison System facilities in Illinois. Potential for higher costs due to limited competition. Impacts federal budget allocation for correctional facilities' operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High potential cost for short duration
Limited transparency on pricing justification

Positive Signals

Firm Fixed Price contract type
Ensures essential service delivery

Sector Analysis

This contract falls under the Utilities and Fuel category, specifically electric power distribution. Benchmarks for such services can vary significantly based on location, demand, and infrastructure, making direct comparison difficult without more data.

Small Business Impact

There is no indication that small businesses were involved in this contract award, as it was awarded to Ameren Services Company, a large utility provider.

Oversight & Accountability

Oversight is crucial to ensure the necessity and reasonableness of the price, especially given the limited competition. The Bureau of Prisons should have internal controls to validate such expenditures.

Related Government Programs

Electric Power Distribution
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition
High cost for short duration
Lack of detailed pricing justification
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25,000 to AMEREN SERVICES COMPANY. FY26 P4 AMEREN GAS & ELECTRIC MAR 26

Who is the contractor on this award?

The obligated recipient is AMEREN SERVICES COMPANY.

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 $25,000.

What is the period of performance?

Start: 2026-03-01. End: 2026-03-31.

What is the justification for the $25 million cost for a 30-day electric power distribution service?

The justification for the $25 million cost for a 30-day electric power distribution service is not provided in the data. Typically, such high costs for a short duration would require detailed breakdowns of energy consumption, peak demand charges, or specific infrastructure support needs. Without this, the price appears disproportionate.

What are the risks associated with awarding utility contracts without full and open competition?

Awarding utility contracts without full and open competition carries significant risks. It can lead to inflated prices as the provider faces no pressure to offer competitive rates. It also limits the government's ability to explore innovative solutions or alternative providers, potentially resulting in suboptimal service or higher long-term costs for taxpayers.

How effective is a Firm Fixed Price contract for essential utility services like electricity?

A Firm Fixed Price contract for essential utility services like electricity can be effective in providing cost certainty to the government, as the price is set upfront. However, its effectiveness is diminished if the fixed price itself is not competitive due to a lack of competition, potentially leading to overpayment despite the price certainty.

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

Parent Company: Ameren Corporation

Address: 1901 CHOUTEAU AVE, SAINT LOUIS, MO, 63103

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

Financial Breakdown

Contract Ceiling: $25,000

Exercised Options: $25,000

Current Obligation: $25,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0419D0001

IDV Type: IDC

Timeline