DOJ Awards $1.85M Contract for Water Treatment Chemicals to BESCO
Contract Overview
Contract Amount: $185,126 ($185.1K)
Contractor: Besco Water Treatment Inc
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $509/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 P4 BESCO BAG SALT DEC 2025
Place of Performance
Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49016
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $185,126 to BESCO WATER TREATMENT INC for work described as: FY26 P4 BESCO BAG SALT DEC 2025 Key points: 1. Contract awarded to BESCO WATER TREATMENT INC for $1,851,260. 2. Procurement method was 'COMPETED UNDER SAP', suggesting a competitive process. 3. The contract duration is 364 days, aligning with typical annual requirements. 4. The product falls under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing'. 5. The award type is a 'PURCHASE ORDER'.
Value Assessment
Rating: good
The award amount of $1.85M appears reasonable for a one-year supply of specialized chemicals. Benchmarking against similar contracts for water treatment supplies would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Small Acquisition Program), indicating a competitive process for smaller value contracts. This method aims for efficiency while still allowing for multiple bids.
Taxpayer Impact: The competitive nature of the SAP process likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for essential supplies.
Public Impact
Ensures continued operation of water treatment facilities within the Federal Prison System. Supports the Bureau of Prisons' mission to provide safe and secure correctional facilities. Maintains public health and environmental standards through proper water management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract periods.
- Dependence on a single supplier for critical chemicals.
Positive Signals
- Competitive award process under SAP.
- Firm Fixed Price contract type provides cost certainty.
- Contract duration aligns with operational needs.
Sector Analysis
This contract falls within the miscellaneous chemical manufacturing sector, supporting essential operational needs for government facilities. Spending benchmarks for similar chemical supplies vary widely based on product type and volume.
Small Business Impact
The data does not indicate if BESCO WATER TREATMENT INC is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The award was made via a Purchase Order, a common method for acquiring goods and services. Oversight would focus on contract performance and adherence to terms.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for sole-source reliance in future
- Lack of specific chemical identification
- Limited visibility into BESCO's small business status
- Price volatility for chemical commodities
Tags
all-other-miscellaneous-chemical-product, department-of-justice, mi, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $185,126 to BESCO WATER TREATMENT INC. FY26 P4 BESCO BAG SALT DEC 2025
Who is the contractor on this award?
The obligated recipient is BESCO WATER TREATMENT 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 $185,126.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific type of water treatment chemical being procured, and how does its price compare to market rates for similar products?
The specific chemical is not detailed in the provided data, falling under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing'. A precise price comparison is difficult without knowing the exact product. However, the 'COMPETED UNDER SAP' designation suggests a competitive bidding process aimed at achieving a fair market price for the awarded quantity and duration.
What are the potential risks associated with relying on a single supplier for critical water treatment chemicals, especially if BESCO is the sole manufacturer?
Reliance on a single supplier, even if competitively selected, poses risks such as supply chain disruptions, potential price escalations in future contracts, and limited options during emergencies. The government should monitor BESCO's production capacity and explore alternative suppliers or contingency plans to mitigate these risks.
How effectively does this contract support the Bureau of Prisons' mission to maintain safe and secure correctional facilities?
This contract is crucial for maintaining the operational integrity of water treatment systems within federal prisons, directly supporting the mission. Reliable access to these chemicals ensures safe drinking water and proper wastewater management, contributing to the health and safety of inmates and staff, and environmental compliance.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
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
Address: 20400 CAPITAL AVE NE, BATTLE CREEK, MI, 49017
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $185,126
Exercised Options: $185,126
Current Obligation: $185,126
Actual Outlays: $71,146
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-10
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