DOJ's $2.7M electric utility contract awarded to Pacific Gas and Electric Company for California facility

Contract Overview

Contract Amount: $2,704,594 ($2.7M)

Contractor: Pacific GAS and Electric Company

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: USP ATWATER ELECTRIC UTILITY FY26 CONTRACT #47PA0425D0021

Place of Performance

Location: OAKLAND, ALAMEDA County, CALIFORNIA, 94612

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $2.7 million to PACIFIC GAS AND ELECTRIC COMPANY for work described as: USP ATWATER ELECTRIC UTILITY FY26 CONTRACT #47PA0425D0021 Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration is one year, aligning with annual budget cycles. 3. The contract is for electric power distribution services. 4. Awarded to a single, established utility provider, suggesting a reliance on existing infrastructure. 5. The contract is a delivery order under a larger contract vehicle. 6. The geographic location is California, a state with significant energy market dynamics.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details or comparable contract data. However, the firm-fixed-price structure helps manage cost risks. The price appears to be set based on established utility rates, which are generally regulated. Further analysis would require understanding the specific energy consumption and service level agreements for the facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This typically occurs when a specific vendor is the only one capable of providing the required goods or services, often due to existing infrastructure, geographic exclusivity, or unique capabilities. The lack of competition means the government did not benefit from a competitive bidding process to potentially drive down prices.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to offer the lowest possible price. The government relies on the vendor's regulated pricing or negotiation to ensure fair value.

Public Impact

The primary beneficiary is the Federal Prison System / Bureau of Prisons facility in Atwater, California, which will receive reliable electric power. The service delivered is essential electric power distribution, crucial for the operation of the correctional facility. The geographic impact is localized to Atwater, California. There are no direct workforce implications as this contract is for utility services, not direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if multiple bids were solicited.
Reliance on a single provider could create vulnerability if the provider experiences service disruptions.
The contract is a delivery order, meaning its specific terms and value might be subject to the terms of a potentially broader, pre-existing contract.

Positive Signals

Awarded on a firm-fixed-price basis, providing budget predictability.
Pacific Gas and Electric Company is a major, established utility provider with extensive infrastructure.
The contract ensures essential services for a federal facility.

Sector Analysis

This contract falls within the Energy sector, specifically focusing on electric power distribution. The market for utility services is often characterized by natural monopolies or heavily regulated environments, leading to limited competition. Pacific Gas and Electric Company operates within the California energy market, which is one of the largest and most complex in the United States, subject to state-level regulatory oversight. Comparable spending benchmarks would typically be based on regulated utility rates for similar-sized facilities within the same service territory.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded on a sole-source basis to a large utility provider. There are no explicit subcontracting requirements mentioned that would directly benefit small businesses in this context. The focus is on securing essential utility services from an established provider.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a sole-source award, scrutiny would focus on ensuring the pricing is fair and reasonable based on regulated utility rates and that the services provided meet the contract's specifications. Transparency is limited due to the non-competitive nature, but contract awards are generally publicly reported.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Department of Justice Utilities Contracts
California Electric Grid Services

Risk Flags

Sole-source award
Potential for higher cost due to lack of competition
Dependency on a single utility provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.7 million to PACIFIC GAS AND ELECTRIC COMPANY. USP ATWATER ELECTRIC UTILITY FY26 CONTRACT #47PA0425D0021

Who is the contractor on this award?

The obligated recipient is PACIFIC GAS AND 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 $2.7 million.

What is the period of performance?

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

What is the historical spending pattern for electric utility services at the USP Atwater facility?

Historical spending data for USP Atwater's electric utility services prior to FY26 is not directly available in the provided data. However, the contract number format suggests this is a delivery order under a potentially larger, pre-existing contract vehicle. To understand historical patterns, one would need to examine previous delivery orders or contracts issued to Pacific Gas and Electric Company or other utility providers for this specific facility. Analyzing spending over multiple fiscal years would reveal trends in energy consumption, price fluctuations, and the overall cost of maintaining utility services, which could be influenced by factors such as facility expansion, energy efficiency initiatives, or changes in utility rate structures.

How does the awarded price compare to market rates for similar facilities in California?

Directly comparing the awarded price of $2,704,594.37 to market rates for similar facilities in California is difficult without specific details on the energy consumption, service levels, and contract terms. However, since Pacific Gas and Electric Company is a regulated utility, its rates are typically set by the California Public Utilities Commission (CPUC). This means the pricing is subject to regulatory oversight and is intended to reflect costs plus a reasonable rate of return. To perform a robust comparison, one would need to benchmark the per-kilowatt-hour cost or the total cost per square foot against other government facilities or large commercial entities with similar energy demands within PG&E's service territory, considering any specific service level agreements or demand charges applicable to the prison.

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

The primary risks associated with a sole-source award for essential utility services like electric power distribution include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency beyond mandated levels, and a heightened dependency on a single provider. If Pacific Gas and Electric Company experiences significant operational issues, such as widespread outages or labor disputes, the federal facility's operations could be severely impacted. Furthermore, the government has limited leverage to negotiate better terms or pricing outside of the established regulatory framework governing the utility.

What is the track record of Pacific Gas and Electric Company in serving federal government facilities?

Pacific Gas and Electric Company (PG&E) is a major utility provider in California and has a long history of serving a diverse range of customers, including federal government facilities within its service territory. While specific details of PG&E's performance on past federal contracts are not provided here, as a large, regulated entity, it generally operates under stringent service standards and regulatory oversight. Its track record would likely be characterized by its ability to maintain reliable power distribution infrastructure across a vast geographic area. Any assessment of its track record for federal contracts would ideally involve reviewing past performance evaluations, any documented disputes or penalties, and its history of meeting service level agreements for similar government installations.

How does the firm-fixed-price contract type mitigate financial risks for the government?

The firm-fixed-price (FFP) contract type significantly mitigates financial risks for the government by establishing a ceiling price that will not be adjusted upwards, regardless of the contractor's actual costs. This provides budget certainty and predictability for the Department of Justice. Unlike cost-reimbursement contracts, the contractor assumes the risk of cost overruns. For essential services like electric power, where consumption can fluctuate, an FFP contract ensures that the government pays a predetermined amount, protecting it from unexpected increases in energy prices or operational costs incurred by Pacific Gas and Electric Company, provided the scope of services remains consistent.

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: 300 LAKESIDE DR, OAKLAND, CA, 94612

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

Financial Breakdown

Contract Ceiling: $2,719,341

Exercised Options: $2,719,341

Current Obligation: $2,704,594

Actual Outlays: $809,550

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0425D0021

IDV Type: IDC

Timeline