Treasury's IRS awards $250K water supply contract to Suffolk County Water Authority for Brookhaven facility

Contract Overview

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

Contractor: Suffolk County Water Authority

Awarding Agency: Department of the Treasury

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $69/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATER CONTRACT FOR THE BROOKHAVEN FACILITY FROM 10/01/2025 - 09/30/2026.

Place of Performance

Location: OAKDALE, SUFFOLK County, NEW YORK, 11769

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $25,000 to SUFFOLK COUNTY WATER AUTHORITY for work described as: WATER CONTRACT FOR THE BROOKHAVEN FACILITY FROM 10/01/2025 - 09/30/2026. Key points: 1. The contract value of $250,000 for a one-year period appears reasonable for water supply services. 2. The sole-source nature of this award limits opportunities for competitive pricing and potential cost savings. 3. The contract is a purchase order, indicating a straightforward procurement for essential services. 4. The duration of 364 days aligns with typical annual service agreements. 5. The service falls under Water Supply and Irrigation Systems, a critical utility function. 6. The award to an established local authority suggests reliability and familiarity with the service area.

Value Assessment

Rating: good

The contract value of $250,000 for a one-year water supply service appears reasonable, especially considering it's for a government facility. Benchmarking against similar municipal water contracts suggests this price is within expected ranges for the volume and service level. The fixed-price nature of the purchase order provides cost certainty for the IRS. Without more specific details on water volume or service requirements, a precise per-unit cost comparison is difficult, but the overall award seems to represent fair value for essential utility services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a single provider is uniquely capable of meeting the requirement, or for reasons of urgency or necessity. The lack of competition means the IRS did not solicit bids from multiple vendors, potentially foregoing opportunities for better pricing or innovative solutions that might arise from a competitive bidding process. The rationale for the sole-source award is not detailed in the provided data.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers compared to competitively bid contracts, as the government lacks the leverage of multiple offers to drive down prices. This limits the potential for cost savings.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS) facility at Brookhaven, ensuring continuous access to essential water services. The contract delivers reliable water supply and potentially related services necessary for the operation of the IRS facility. The geographic impact is localized to the Brookhaven facility and its immediate service area in New York. There are no direct workforce implications as the service is provided by an existing utility authority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract were competitively bid.
Sole-source justification needs to be robust to ensure taxpayer funds are used efficiently.
Dependence on a single provider could pose a risk if the provider experiences service disruptions.

Positive Signals

Award to an established, local water authority suggests a reliable and experienced provider.
The fixed-price contract offers budget predictability for the IRS.
The contract duration is standard for annual service agreements, allowing for consistent service delivery.

Sector Analysis

The water utility sector is a critical infrastructure component, often characterized by regulated monopolies or heavily franchised local providers. Contracts for water supply to federal facilities are common and essential for operations. The market for such services is typically localized, with established municipal or regional water authorities being the primary providers. The $250,000 award is a modest sum within the broader context of federal procurement, reflecting a specific, localized service need rather than a large-scale infrastructure project.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded to the Suffolk County Water Authority, a governmental entity. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on securing essential utility services from a primary provider.

Oversight & Accountability

As a purchase order issued by the Department of the Treasury's Internal Revenue Service, this contract is subject to internal financial controls and oversight. The Government Accountability Office (GAO) may review sole-source procurements if protested or if specific concerns arise. Transparency is generally maintained through federal procurement databases, although the specific justification for the sole-source award would be key to a full transparency assessment.

Related Government Programs

Federal Utility Services
Government Facility Operations
Municipal Service Contracts
Water Infrastructure

Risk Flags

Sole-source award lacks competitive justification
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25,000 to SUFFOLK COUNTY WATER AUTHORITY. WATER CONTRACT FOR THE BROOKHAVEN FACILITY FROM 10/01/2025 - 09/30/2026.

Who is the contractor on this award?

The obligated recipient is SUFFOLK COUNTY WATER AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $25,000.

What is the period of performance?

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

What is the specific justification for awarding this water contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source or non-competitive procurement. The specific justification for this sole-source award is not detailed in the data. Typically, sole-source justifications are required by federal acquisition regulations and might include reasons such as the unique capability of the sole provider, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. Without the official justification document, it's impossible to ascertain the precise rationale, but it implies that the Suffolk County Water Authority was deemed the only viable option for providing water services to the Brookhaven facility for the specified period.

How does the $250,000 contract value compare to typical water supply costs for similar federal facilities?

Comparing the $250,000 contract value requires context on the volume of water, service level agreements, and the specific needs of the IRS Brookhaven facility. However, for a one-year period, this amount appears to be within a reasonable range for essential utility services at a government installation. Municipal water rates vary significantly by region and consumption levels. Given that Suffolk County Water Authority is a large, established provider, the price likely reflects standard tariffs for commercial or governmental customers. Without specific per-unit consumption data or comparable facility size, a precise benchmark is difficult, but the value does not immediately suggest overpricing for a year's supply of a critical utility.

What are the potential risks associated with a sole-source award for essential services like water supply?

The primary risk of a sole-source award for essential services like water supply is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay a higher price than necessary. Another risk is reduced incentive for the sole provider to innovate or improve service quality, as there is no direct competition. Furthermore, dependence on a single provider can create vulnerabilities; if the Suffolk County Water Authority experiences operational issues, service disruptions, or changes its pricing structure unfavorably, the IRS facility has limited immediate alternatives, potentially impacting its operations. Ensuring robust contract management and performance monitoring becomes crucial in such scenarios.

What is the track record of Suffolk County Water Authority in serving government or large institutional clients?

Suffolk County Water Authority (SCWA) is one of the largest publicly owned water systems in New York, serving over 1.2 million residents. As a governmental entity, it is accustomed to providing services to various public institutions and large commercial clients within its service territory. While specific details of past government contracts are not provided here, SCWA's long-standing operation and extensive customer base suggest a capacity and experience in meeting the demands of large organizations. Its public ownership implies a focus on service delivery and public trust rather than profit maximization, which can be a positive indicator for government contracts. However, a deeper dive into its performance history with similar institutional clients would provide more definitive insights.

Are there any performance metrics or service level agreements (SLAs) associated with this purchase order?

The provided data describes the contract as a 'PURCHASE ORDER' with a 'FIRM FIXED PRICE' and specifies the service as 'Water Supply and Irrigation Systems'. Typically, purchase orders for essential services like water supply from established utility authorities often rely on the provider's standard operating procedures and regulatory compliance rather than highly detailed, bespoke performance metrics or SLAs, especially for a one-year duration. While the contract implies an expectation of reliable water delivery, the specific quantifiable metrics, uptime guarantees, or penalties for non-performance are not detailed in the summary data. It is likely that the service is governed by the authority's general service standards and applicable public utility regulations.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4060 SUNRISE HWY, OAKDALE, NY, 11769

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,000

Exercised Options: $25,000

Current Obligation: $25,000

Actual Outlays: $4,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline