Denton secures $211K utility services contract for FEMA Region 6, covering water, wastewater, electricity, and trash disposal

Contract Overview

Contract Amount: $211,322 ($211.3K)

Contractor: City of Denton

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-30

End Date: 2025-11-29

Contract Duration: 364 days

Daily Burn Rate: $581/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS FIRM FIXED PRICE PURCHASE ORDER IS TO PROCURE UTILITY SERVICES RELATED TO THE WATER, WASTEWATER DISPOSAL, ELECTRIC USAGE, AND TRASH AND RECYCLING BIN RENTALS AND DISPOSAL SERVICES FOR FEMA REGION 6, LOCATED AT 800 NORTH LOOP 288 D

Place of Performance

Location: DENTON, DENTON County, TEXAS, 76209

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $211,321.83 to CITY OF DENTON for work described as: THE PURPOSE OF THIS FIRM FIXED PRICE PURCHASE ORDER IS TO PROCURE UTILITY SERVICES RELATED TO THE WATER, WASTEWATER DISPOSAL, ELECTRIC USAGE, AND TRASH AND RECYCLING BIN RENTALS AND DISPOSAL SERVICES FOR FEMA REGION 6, LOCATED AT 800 NORTH LOOP 288 D Key points: 1. The contract provides essential utility services for FEMA Region 6 operations. 2. The firm-fixed-price structure offers cost certainty for the government. 3. The duration of one year aligns with operational needs. 4. The services procured are critical for maintaining facility functionality. 5. The contract is awarded to the City of Denton, a local government entity.

Value Assessment

Rating: fair

The contract value of $211,321.83 for a one-year period for comprehensive utility services appears reasonable given the scope. However, without specific benchmarks for utility costs in the Denton area or comparable FEMA facility utility expenses, a precise value-for-money assessment is challenging. The firm-fixed-price nature helps control costs, but the absence of detailed cost breakdowns or comparisons makes it difficult to ascertain if the pricing is highly competitive or merely adequate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the City of Denton was the only entity considered capable of providing these specific utility services. While this can be efficient for essential services, it limits the opportunity for competitive bidding, potentially impacting price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had bid.

Public Impact

FEMA Region 6 personnel and operations benefit from reliable utility services. Essential services including water, wastewater, electricity, and trash disposal are delivered. The geographic impact is localized to FEMA Region 6 facilities in Denton, Texas. The contract supports the operational readiness of a key federal emergency management agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing for taxpayers.
Limited transparency into the specific cost components of the utility services.
Dependence on a single provider for critical infrastructure services.

Positive Signals

Ensures continuity of essential utility services for a critical federal agency.
Firm-fixed-price contract provides budget certainty.
Award to a local government entity may foster intergovernmental cooperation.

Sector Analysis

This contract falls within the broader 'Utilities' sector, specifically focusing on municipal services provided to a federal agency. The market for municipal utility services is typically characterized by local monopolies or limited competition due to infrastructure requirements. Federal agencies often rely on these established local providers for essential services at their facilities. Benchmarking utility costs can be complex as rates vary significantly by municipality and service type.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities, as it is awarded directly to the City of Denton for municipal services. The focus is on the provision of essential utilities rather than a procurement that would typically engage a diverse range of contractors, including small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). Accountability is maintained through the terms of the purchase order and the ongoing delivery of services. Transparency is limited due to the sole-source nature and the municipal service provision, but performance can be monitored through service level agreements and utility consumption data.

Related Government Programs

FEMA Facility Operations
Federal Utility Contracts
Municipal Service Agreements

Risk Flags

Sole-source award limits competition
Lack of detailed cost breakdown
Potential for higher costs due to no competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $211,321.83 to CITY OF DENTON. THE PURPOSE OF THIS FIRM FIXED PRICE PURCHASE ORDER IS TO PROCURE UTILITY SERVICES RELATED TO THE WATER, WASTEWATER DISPOSAL, ELECTRIC USAGE, AND TRASH AND RECYCLING BIN RENTALS AND DISPOSAL SERVICES FOR FEMA REGION 6, LOCATED AT 800 NORTH LOOP 288 D

Who is the contractor on this award?

The obligated recipient is CITY OF DENTON.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $211,321.83.

What is the period of performance?

Start: 2024-11-30. End: 2025-11-29.

What is the historical spending pattern for utility services at FEMA Region 6 facilities?

Historical spending data for utility services at FEMA Region 6 facilities is not directly available within the provided data. This contract represents a new award for the period of November 2024 to November 2025. To understand historical patterns, one would need to access FEMA's procurement databases or financial records for previous contracts or direct utility payments made for this specific region or similar facilities. Without this historical context, it's difficult to assess if the current $211,321.83 award represents an increase, decrease, or stable level of spending compared to prior periods. Analyzing past utility costs for comparable federal facilities in Texas or other FEMA regions could offer some comparative insight, but direct historical data for this specific contract's scope is essential for a precise analysis.

How does the pricing of this contract compare to similar utility service contracts for federal agencies?

A direct comparison of pricing for this $211,321.83 utility services contract is challenging without access to a database of similar federal utility contracts. The contract covers water, wastewater, electricity, and trash disposal for FEMA Region 6. Utility costs are highly localized and depend on municipal rates, energy market fluctuations, and the specific consumption levels of the facility. While the firm-fixed-price nature provides cost certainty, the absence of competitive bidding means there's no direct market validation of the price. To benchmark effectively, one would need to identify contracts for similar services at comparable federal facilities in Texas or other regions, considering factors like facility size, occupancy, and energy usage intensity. Without such comparative data, assessing whether this contract represents excellent, fair, or questionable value is speculative.

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

The primary risk associated with a sole-source award for essential utility services, as seen with this contract to the City of Denton, is the lack of competitive pressure on pricing. This can lead to the government paying more than it might if multiple utility providers or the municipality itself had to compete. Another risk is potential service disruptions if the sole provider faces operational issues, as there are no immediate alternative sources. Furthermore, the absence of competition can reduce the incentive for the provider to innovate or offer enhanced services. While sole-sourcing can ensure service continuity for critical infrastructure, it necessitates robust contract management and performance monitoring by the agency to mitigate these inherent risks and ensure the best possible outcome for taxpayers.

What is the track record of the City of Denton in providing utility services to government entities?

The provided data indicates the City of Denton is the contractor for these utility services. As a municipal entity, the City of Denton is responsible for providing essential utilities to its residents and businesses. Its track record in providing these services to government entities, specifically FEMA Region 6, would need to be assessed through FEMA's own performance evaluations, contract history databases, or public records of intergovernmental service agreements. Typically, municipalities have established infrastructure and operational procedures for utility provision. However, the specific performance quality, reliability, and responsiveness of the City of Denton in fulfilling similar contracts for federal agencies would require a deeper dive into performance metrics and any past issues or commendations.

How does the duration of this contract (364 days) impact the overall value and risk?

The 364-day duration of this contract is a standard one-year term, often used to align with fiscal years or simplify administrative processes. For utility services, a one-year term provides a reasonable period to establish service and assess performance without committing to a long-term sole-source agreement. This duration helps mitigate the risk associated with long-term sole-source contracts by allowing FEMA to re-evaluate the need for competition or alternative providers at the end of the term. From a value perspective, it allows for the capture of current market rates for utilities over a full year, including seasonal variations. However, it also means that FEMA will need to undertake a new procurement process or extension negotiation annually, which can incur administrative costs and potential short-term risks if a new contract is not secured in time.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 215 E MCKINNEY ST, DENTON, TX, 76201

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

Financial Breakdown

Contract Ceiling: $211,322

Exercised Options: $211,322

Current Obligation: $211,322

Actual Outlays: $104,850

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline