Interior Dept Awards $491K for Natural Gas Services to Delta Utilities, Limited Competition

Contract Overview

Contract Amount: $49,125 ($49.1K)

Contractor: Delta Utilities Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2026-01-01

End Date: 2026-09-30

Contract Duration: 272 days

Daily Burn Rate: $181/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SERVICES FOR AFRH-GULFPORT CAMPUS

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39507

State: Mississippi Government Spending

Plain-Language Summary

Department of the Interior obligated $49,125 to DELTA UTILITIES SERVICES, LLC for work described as: NATURAL GAS SERVICES FOR AFRH-GULFPORT CAMPUS Key points: 1. Spending on natural gas distribution for AFRH-Gulfport is $491,250. 2. Delta Utilities Services, LLC is the sole awardee. 3. The contract is a delivery order with a firm fixed price. 4. The contract duration is 272 days.

Value Assessment

Rating: fair

The contract value of $491,250 for 272 days of natural gas services appears reasonable given the limited competition. Benchmarking is difficult without more specific service details or comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, indicating a limited approach. The lack of competition may impact price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds are being used for natural gas services. The limited competition raises concerns about whether the best possible price was secured.

Public Impact

Ensures essential utility services for the AFRH-Gulfport campus. Supports the operational needs of a federal facility. Limited competition may impact overall cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed pricing justification

Positive Signals

Essential service provision
Clear contract duration

Sector Analysis

This contract falls under the Natural Gas Distribution sector. Spending in this sector can vary significantly based on location, volume, and contract type. Without more data, it's hard to benchmark this specific award.

Small Business Impact

There is no indication that small businesses were involved in this contract award, as it was not available for competition.

Oversight & Accountability

Oversight would involve ensuring Delta Utilities Services, LLC meets the terms of the firm fixed price delivery order and provides reliable natural gas services as specified. Accountability rests with the Department of the Interior to justify the limited competition.

Related Government Programs

Natural Gas Distribution
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Limited competition
Lack of detailed pricing information
Potential for non-competitive pricing
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $49,125 to DELTA UTILITIES SERVICES, LLC. NATURAL GAS SERVICES FOR AFRH-GULFPORT CAMPUS

Who is the contractor on this award?

The obligated recipient is DELTA UTILITIES SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $49,125.

What is the period of performance?

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

What is the justification for limiting competition on this natural gas services contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A full justification would typically detail reasons such as urgent need, unique capabilities of the sole provider, or specific circumstances that preclude a competitive bidding process. Without this detailed justification, it's difficult to assess the validity of the limited competition.

How does the per-unit cost of natural gas services compare to market rates given the limited competition?

Benchmarking the per-unit cost is challenging as the data does not provide specific consumption volumes or a clear per-unit rate. The 'br' field shows 181, which might be a benchmark or a related value, but its context is missing. The limited competition raises a flag that the price might not be as competitive as it could be in a fully open market.

What is the potential impact on service quality and reliability when competition is limited?

Limited competition can sometimes reduce the incentive for a provider to maintain the highest standards of service quality and reliability, as customer switching options are restricted. However, for essential services like natural gas, established providers often have strong reputations to uphold. The Department of the Interior's oversight is crucial to ensure Delta Utilities Services, LLC meets all contractual obligations.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 20342326Q00009

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Delta Utilities Services LLC

Address: 201 SAINT CHARLES AVE STE 3000, NEW ORLEANS, LA, 70170

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $262,000

Exercised Options: $262,000

Current Obligation: $49,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0426D0001

IDV Type: IDC

Timeline