DOJ's Bureau of Prisons awards $28.4M for natural gas to Kentucky Frontier Gas in FY26

Contract Overview

Contract Amount: $28,386 ($28.4K)

Contractor: Kentucky Frontier GAS, LLC.

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-04-07

Contract Duration: 37 days

Daily Burn Rate: $767/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 FRONTIER GAS MARCH 2026

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $28,386.02 to KENTUCKY FRONTIER GAS, LLC. for work described as: FY26 P4 FRONTIER GAS MARCH 2026 Key points: 1. Spending is concentrated with a single provider, raising concerns about competition. 2. The contract is for natural gas distribution, a critical utility for federal facilities. 3. Risk of price volatility exists given the firm fixed price contract for a commodity. 4. The sector is essential services, with limited flexibility for alternative providers.

Value Assessment

Rating: fair

The contract value of $28.4M for a one-month delivery period appears high. Benchmarking against similar natural gas distribution contracts for federal facilities is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in higher prices than could be achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Ensures continued natural gas supply to a federal facility, maintaining essential operations. Potential for higher costs due to limited competition impacts the budget for other federal programs. Lack of transparency in the procurement process may erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Short contract duration for a critical utility

Positive Signals

Ensures essential service delivery
Fixed price contract provides budget certainty

Sector Analysis

The natural gas distribution sector involves the delivery of a vital commodity. Spending benchmarks for similar contracts are difficult to ascertain without more detailed contract information and market data.

Small Business Impact

There is no indication that small businesses were involved in this contract award. The focus appears to be on a specific, potentially larger, supplier.

Oversight & Accountability

Oversight is needed to ensure the justification for limited competition is sound and that the pricing is reasonable. The Bureau of Prisons should have internal controls to validate contract costs.

Related Government Programs

Natural Gas Distribution
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competition
Potential for above-market pricing
Limited transparency in procurement
High cost for a short duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28,386.02 to KENTUCKY FRONTIER GAS, LLC.. FY26 P4 FRONTIER GAS MARCH 2026

Who is the contractor on this award?

The obligated recipient is KENTUCKY FRONTIER GAS, LLC..

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 $28,386.02.

What is the period of performance?

Start: 2026-03-01. End: 2026-04-07.

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

The contract is marked as 'NOT AVAILABLE FOR COMPETITION', suggesting a sole-source or limited source justification. This could be due to specific infrastructure requirements, unique delivery needs, or a lack of alternative suppliers in the immediate vicinity of the federal facility. A thorough review of the justification is crucial to ensure it aligns with federal procurement regulations and serves the best interest of the government.

How does the firm fixed price impact risk for this natural gas contract?

A firm fixed price contract shifts the risk of price fluctuations to the contractor. For a commodity like natural gas, where prices can be volatile, this could mean Kentucky Frontier Gas bears the risk of increased costs. However, if market prices decrease significantly, the government might be paying above market rates. The short duration of the contract limits the exposure to extreme price swings.

What is the potential impact on the Federal Prison System's budget if this contract is not competitively priced?

If this contract is not competitively priced due to limited competition, the Federal Prison System could be overpaying for natural gas. This would divert funds that could otherwise be used for inmate services, facility maintenance, or staffing. The $28.4 million award for a short period suggests a significant operational cost, making price efficiency critical for budget management.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2963 KENTUCKY RT 321 N, PRESTONSBURG, KY, 41653

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,386

Exercised Options: $28,386

Current Obligation: $28,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11818D00000024A

IDV Type: IDC

Timeline