DOJ awards $276K for electric services to El Paso Electric, deemed mission essential

Contract Overview

Contract Amount: $276,458 ($276.5K)

Contractor: EL Paso Electric Company

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $760/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI LA TUNA ELECTRIC SERVICES FY26 CONTRACT#47PA0420D0013 IN ACCORDANCE WITH EO 14222 AND APN 2025, AWARD IS CONSIDERED MISSION ESSENTIAL.

Place of Performance

Location: ANTHONY, EL PASO County, TEXAS, 79821

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $276,458 to EL PASO ELECTRIC COMPANY for work described as: FCI LA TUNA ELECTRIC SERVICES FY26 CONTRACT#47PA0420D0013 IN ACCORDANCE WITH EO 14222 AND APN 2025, AWARD IS CONSIDERED MISSION ESSENTIAL. Key points: 1. Contract awarded under EO 14222 and APN 2025, indicating strategic importance. 2. Mission essential designation suggests critical infrastructure support. 3. Firm Fixed Price contract type offers cost certainty for the government. 4. Contract duration of one year aligns with annual budget cycles. 5. Awarded to a single, established utility provider in the region. 6. Focus on electric power distribution for federal facilities.

Value Assessment

Rating: good

The contract value of $276,458 for a one-year period for electric power distribution services appears reasonable for a utility provider serving a federal facility. Without specific details on the scope of services (e.g., energy consumption, infrastructure maintenance), direct comparison is challenging. However, utility contracts are typically based on regulated rates or established service agreements, suggesting a degree of price predictability. The firm fixed-price nature provides cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. This is common for essential utility services where a single provider holds the necessary infrastructure and rights to serve a specific geographic area. The lack of competition means pricing is likely based on established tariffs or negotiated rates rather than market bidding, which could limit price discovery.

Taxpayer Impact: For taxpayers, a sole-source award for essential services like electricity means the government does not benefit from competitive bidding that could potentially drive down costs. However, it ensures service continuity for critical federal operations.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from reliable electric power distribution. Services ensure the continuous operation of federal facilities in Texas. The geographic impact is localized to the area served by El Paso Electric in Texas. Workforce implications are minimal as this is a service provision contract with an existing utility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher than market prices if not properly regulated.
Dependence on a single provider for a critical utility service poses a risk.

Positive Signals

Awarded under Executive Orders and APN 2025, signifying alignment with government priorities.
Firm Fixed Price contract provides budget certainty.
Mission essential designation ensures prioritization of services.

Sector Analysis

This contract falls within the Utilities sector, specifically focusing on electric power distribution. The market for utility services is often characterized by natural monopolies or heavily regulated environments, where competition is limited due to infrastructure requirements and regulatory oversight. Federal agencies rely on these established providers to ensure consistent power supply for their operations. Comparable spending benchmarks would typically involve analyzing rates charged by utility providers in similar geographic regions or for similar types of facilities.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'ss' and 'sb' being false. The award is to a large utility company, El Paso Electric. There are no explicit subcontracting implications mentioned that would directly benefit small businesses through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System / Bureau of Prisons. As a utility service contract, it is likely subject to standard procurement regulations and oversight mechanisms. Transparency is generally maintained through contract awards databases. Specific accountability measures would be tied to service level agreements and performance standards outlined in the contract, with potential oversight from agency contracting officers.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Department of Justice Utilities Procurement
Mission Essential Services Contracts

Risk Flags

Sole-source award limits price competition.
Dependence on a single utility provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $276,458 to EL PASO ELECTRIC COMPANY. FCI LA TUNA ELECTRIC SERVICES FY26 CONTRACT#47PA0420D0013 IN ACCORDANCE WITH EO 14222 AND APN 2025, AWARD IS CONSIDERED MISSION ESSENTIAL.

Who is the contractor on this award?

The obligated recipient is EL PASO ELECTRIC 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 $276,458.

What is the period of performance?

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

What is the historical spending pattern for electric power distribution services at this specific federal facility or within the Bureau of Prisons in Texas?

Analyzing historical spending requires access to detailed procurement data beyond this single award. However, typical patterns for utility services involve recurring annual contracts, often with modest price adjustments year-over-year due to inflation or regulatory changes. For a facility like a federal prison, consistent and reliable power is critical, suggesting a stable demand. If this is a new contract, it might represent a shift in service providers or a consolidation of services. Without prior contract numbers or detailed historical data for this specific location, a precise comparison is not possible, but annual spending for such services can range from tens of thousands to hundreds of thousands of dollars depending on the facility's size and energy needs.

How does the awarded price compare to market rates for similar electric power distribution services in the El Paso, Texas region?

Comparing the awarded price of $276,458 for a one-year firm fixed-price contract to market rates requires access to El Paso Electric's tariff schedules or publicly available rate information for commercial and industrial customers in the region. Utility pricing is often regulated, meaning rates are set by a public utility commission. The 'mission essential' and 'sole-source' nature of the award suggests the government is likely paying established tariff rates or rates negotiated under specific agreements for critical infrastructure. Without direct access to these specific rates or a benchmark of similar government contracts in the area, a precise comparison is difficult. However, for a large utility provider serving a federal facility, the price appears within a plausible range for essential services.

What specific risks are associated with a sole-source award for electric power distribution, and what mitigation strategies are in place?

The primary risk of a sole-source award for electric power distribution is the potential for inflated pricing due to the lack of competitive pressure. Another risk is service disruption if the sole provider experiences operational issues. Mitigation strategies often include robust regulatory oversight of utility rates by state commissions, which indirectly protects government pricing. Additionally, contracts typically include service level agreements (SLAs) with penalties for non-performance and clauses for termination for convenience or default. The government may also engage in direct negotiations with the utility to ensure fair pricing based on established tariffs and potentially explore alternative energy sources or infrastructure upgrades over the long term to reduce dependence.

What is El Paso Electric Company's track record in serving federal government contracts, particularly for mission-essential services?

El Paso Electric Company is a major utility provider serving the El Paso region. While specific details on their track record with federal government contracts, especially those designated as 'mission essential,' are not provided in the award data, their status as a primary utility provider suggests experience in managing large-scale service delivery. Federal agencies often contract with established, regulated utilities for essential services like electricity due to the inherent infrastructure requirements and service continuity needs. A review of federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the extent and nature of their past federal contract performance, including any performance issues or commendations.

How does the designation 'mission essential' under EO 14222 and APN 2025 impact the contract's terms and oversight?

The 'mission essential' designation, linked to Executive Order 14222 and APN 2025, signifies that the services provided under this contract are critical for the continuity of government operations, national security, or public health and safety. This designation can expedite contract awards and may influence prioritization of resources for the contractor. For oversight, it implies a heightened level of scrutiny regarding performance and reliability. Agencies are expected to ensure that mission-essential services are uninterrupted, potentially leading to more stringent performance metrics and more frequent performance reviews. It also suggests that the contract is crucial for the agency's core functions, justifying a sole-source award if competitive options are not feasible.

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: 100 N STANTON ST, EL PASO, TX, 79901

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

Financial Breakdown

Contract Ceiling: $276,458

Exercised Options: $276,458

Current Obligation: $276,458

Actual Outlays: $103,487

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0420D0013

IDV Type: IDC

Timeline