DOJ's Federal Prison System awards $644K contract for natural gas supply in North Carolina
Contract Overview
Contract Amount: $64,456 ($64.5K)
Contractor: Public Service Company of North Carolina, Incorporated
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $177/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS - SMALL FIRM - 10/1/2025-12/31/2025
Place of Performance
Location: GASTONIA, GASTON County, NORTH CAROLINA, 28053
Plain-Language Summary
Department of Justice obligated $64,455.8 to PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED for work described as: NATURAL GAS - SMALL FIRM - 10/1/2025-12/31/2025 Key points: 1. Contract awarded to Public Service Company of North Carolina, Inc. 2. Covers natural gas distribution services for the Federal Prison System. 3. Duration of 364 days, starting October 1, 2025. 4. Firm Fixed Price contract type. 5. No specific small business set-aside mentioned.
Value Assessment
Rating: fair
The contract value of $644,555.80 for a 364-day natural gas supply appears reasonable given the market for utility services. However, without specific per-unit pricing or comparison data, a precise assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition approach, likely due to the nature of utility provision where a single provider often serves a geographic area. This limits price discovery and potential savings.
Taxpayer Impact: Taxpayer funds are being used for essential utility services. The lack of full competition may result in a higher price than could be achieved through a competitive bidding process.
Public Impact
Ensures consistent energy supply for federal correctional facilities. Supports operational continuity within the Bureau of Prisons. Impacts federal spending in the energy sector for North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Lack of detailed cost breakdown hinders value assessment.
Positive Signals
- Ensures essential utility service delivery.
- Fixed price contract provides budget certainty.
Sector Analysis
This contract falls within the Energy sector, specifically natural gas distribution. Utility contracts are often awarded through limited competition due to the monopolistic nature of service provision in many areas. Benchmarks for natural gas distribution vary significantly by region and volume.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Given the nature of utility provision, it's possible that the primary provider in the region is a larger entity, potentially limiting small business participation in this specific contract.
Oversight & Accountability
Oversight would involve ensuring the contractor meets service level agreements and that the pricing remains fair throughout the contract term, especially given the limited competition. The Bureau of Prisons is responsible for monitoring contract performance.
Related Government Programs
- Natural Gas Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Lack of detailed pricing data
- Potential for price volatility risk transfer
- No clear small business participation
Tags
natural-gas-distribution, department-of-justice, nc, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $64,455.8 to PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED. NATURAL GAS - SMALL FIRM - 10/1/2025-12/31/2025
Who is the contractor on this award?
The obligated recipient is PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED.
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 $64,455.8.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific justification for awarding this contract on a limited competition basis, and what steps were taken to ensure the best possible price was obtained?
The justification for limited competition likely stems from the nature of natural gas distribution, where a single utility company typically serves a given geographic area. To ensure the best price, the agency may have reviewed historical pricing, consulted market data, or negotiated directly with the sole provider based on regulated rates or established tariffs. However, without explicit documentation, the extent of price discovery efforts remains unclear.
How does the per-unit cost of natural gas in this contract compare to similar contracts awarded by other federal agencies or to commercial entities in the same region?
A direct comparison of the per-unit cost is challenging without the specific unit pricing from this contract and comparable data. Natural gas prices fluctuate based on market conditions, contract terms (e.g., fixed vs. variable), and volume. A thorough analysis would require accessing detailed pricing information from similar federal contracts or commercial agreements in North Carolina to establish a reliable benchmark.
What are the potential risks associated with a firm fixed-price contract for natural gas, particularly concerning price volatility and supply reliability over the 364-day period?
A firm fixed-price contract shifts the risk of price volatility to the contractor. While this offers budget certainty for the government, if market prices rise significantly, the contractor may face reduced profit margins or seek to renegotiate. Conversely, if prices fall, the government may overpay. Supply reliability is generally high for established utility providers, but extreme weather or infrastructure issues could pose risks.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dominion Energy, Inc.
Address: 800 GASTON RD, GASTONIA, NC, 28056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $64,456
Exercised Options: $64,456
Current Obligation: $64,456
Actual Outlays: $19,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-07
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