DOJ awards $110K for natural gas distribution to United Energy Trading, LLC for FY26

Contract Overview

Contract Amount: $110,610 ($110.6K)

Contractor: United Energy Trading, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $304/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: UNITED ENERGY BILLS FY26 CONTRACT #47PA0724D0049 CUSTOMER #11001874173 ACCOUNT #513362-607046

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19178

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $110,610.33 to UNITED ENERGY TRADING, LLC for work described as: UNITED ENERGY BILLS FY26 CONTRACT #47PA0724D0049 CUSTOMER #11001874173 ACCOUNT #513362-607046 Key points: 1. Contract awarded on a firm fixed-price basis, providing cost certainty. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 364 days aligns with annual operational needs. 4. Delivery order under a larger contract vehicle. 5. Service area is Pennsylvania, indicating a specific geographic focus. 6. Small business set-aside was not utilized for this award.

Value Assessment

Rating: fair

The contract value of $110,610.33 for natural gas distribution for one year appears reasonable for a single delivery order. Without specific details on the volume of natural gas or the exact services required, a direct comparison to similar contracts is challenging. However, the firm fixed-price structure offers predictability. Benchmarking against market rates for natural gas in Pennsylvania would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this method generally promotes price discovery and potentially lower costs for the government. The absence of restrictions suggests a healthy competitive environment for this particular requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of potential solutions, maximizing the value of government spending.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from a reliable supply of natural gas. Services include natural gas distribution, essential for facility operations. The geographic impact is limited to Pennsylvania. Workforce implications are likely minimal, as this is a service contract for utility provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for price volatility in natural gas markets impacting long-term value.
Limited insight into the contractor's past performance on similar federal contracts.

Positive Signals

Firm fixed-price contract provides budget certainty.
Awarded through full and open competition, suggesting competitive pricing.
Clear delivery order structure under a contract vehicle.

Sector Analysis

The natural gas distribution sector involves the delivery of natural gas from processing plants to end-users, including government facilities. This contract falls within the broader energy utility services market. Government agencies frequently procure utility services, with spending varying significantly based on facility size, location, and energy needs. Benchmarking this contract's value against other federal utility contracts would require detailed analysis of energy consumption and local market rates.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award went to United Energy Trading, LLC, which may or may not be a small business itself. Further investigation would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting and financial management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be public.

Related Government Programs

Federal Prison System Utilities
Department of Justice Energy Contracts
Natural Gas Supply Contracts

Risk Flags

Potential for natural gas price volatility impacting long-term value.
Limited public information on contractor's specific past performance for this service type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $110,610.33 to UNITED ENERGY TRADING, LLC. UNITED ENERGY BILLS FY26 CONTRACT #47PA0724D0049 CUSTOMER #11001874173 ACCOUNT #513362-607046

Who is the contractor on this award?

The obligated recipient is UNITED ENERGY TRADING, 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 $110,610.33.

What is the period of performance?

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

What is the historical spending pattern for natural gas distribution by the Federal Prison System in Pennsylvania?

Analyzing historical spending for natural gas distribution by the Federal Prison System in Pennsylvania requires accessing past contract awards and obligations data. This would involve searching federal procurement databases for contracts with similar service descriptions (e.g., natural gas supply, distribution) awarded to various contractors within the specified geographic region and for the Bureau of Prisons. Trends in spending could reveal whether this $110,610.33 award is consistent with previous years, or if there have been significant increases or decreases. Factors such as changes in energy prices, facility expansions or closures, and shifts in procurement strategies would need to be considered when interpreting historical data.

How does the per-unit cost of natural gas under this contract compare to market rates in Pennsylvania?

To compare the per-unit cost of natural gas under this contract to market rates in Pennsylvania, one would need to know the estimated volume of natural gas to be delivered. The contract value is $110,610.33 for a 364-day period. If the volume is known, this total cost can be divided by the volume to get a per-unit cost (e.g., per dekatherm or thousand cubic feet). This calculated rate can then be benchmarked against publicly available average natural gas prices for the relevant region in Pennsylvania, often reported by energy information agencies or state utility commissions. A significant deviation from market rates, either higher or lower, would warrant further investigation into the reasons behind it, such as contract terms, specific service requirements, or market fluctuations.

What is United Energy Trading, LLC's track record with federal contracts, particularly for utility services?

Assessing United Energy Trading, LLC's track record involves reviewing its contract history within federal procurement databases. This includes examining the types of contracts awarded, their values, durations, and performance outcomes if available. Specifically for utility services, one would look for prior awards related to natural gas, electricity, or other energy provisions. Key indicators of track record include the number of contracts successfully completed, any instances of contract terminations or disputes, and past performance evaluations. A history of reliable service delivery and adherence to contract terms would suggest a positive track record, while frequent issues might raise concerns about contractor capability and reliability for this current award.

What are the specific performance expectations and metrics for this natural gas distribution contract?

The provided data indicates a firm fixed-price delivery order for natural gas distribution, but it does not detail specific performance expectations or metrics. Typically, such contracts would include clauses related to delivery reliability, quality of service, adherence to safety standards, and potentially response times for any service disruptions. Performance would likely be monitored by the contracting officer's representative (COR) within the Bureau of Prisons. Without access to the full contract document or associated performance work statements, it is difficult to ascertain the precise metrics used to evaluate United Energy Trading, LLC's performance. However, the firm fixed-price nature implies that the contractor is responsible for meeting all service requirements within the agreed price.

Are there any known risks associated with United Energy Trading, LLC or the natural gas distribution market that could impact this contract?

Risks associated with this contract could stem from both the contractor and the market. For United Energy Trading, LLC, risks might include financial stability, operational capacity, or past performance issues, though the provided data doesn't highlight any specific concerns. The natural gas market itself is subject to price volatility due to factors like weather, geopolitical events, and supply/demand dynamics. While the firm fixed-price contract offers some protection against price increases, significant market fluctuations could still impact the contractor's profitability and potentially their ability or incentive to maintain consistent service. Furthermore, disruptions in the natural gas supply chain or infrastructure could pose delivery risks.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: United Energy Corporation

Address: 919 S 7TH ST STE 405, BISMARCK, ND, 58504

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $110,610

Exercised Options: $110,610

Current Obligation: $110,610

Actual Outlays: $46,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0049

IDV Type: IDC

Timeline