DOJ's $854K Natural Gas Contract for Virginia Prisons Awarded to WGL Energy Services
Contract Overview
Contract Amount: $853,964 ($854.0K)
Contractor: WGL Energy Services, Inc.
Awarding Agency: Department of Justice
Start Date: 2025-11-01
End Date: 2026-09-30
Contract Duration: 333 days
Daily Burn Rate: $2.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLY NOV25-SEP26
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $853,963.96 to WGL ENERGY SERVICES, INC. for work described as: NATURAL GAS SUPPLY NOV25-SEP26 Key points: 1. Contract value is $853,963.96 for natural gas supply. 2. WGL Energy Services, Inc. is the sole awardee. 3. The contract is for the Federal Prison System in Virginia. 4. Pricing is Firm Fixed Price for 333 days.
Value Assessment
Rating: good
The contract value appears reasonable for a 333-day natural gas supply for a federal facility. Benchmarking against similar contracts for natural gas distribution in the region would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for this essential utility service.
Public Impact
Ensures consistent energy supply for federal correctional facilities. Supports operational continuity within the Bureau of Prisons. Impacts energy costs for a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Firm Fixed Price contract type
- Clear delivery period specified
Sector Analysis
This contract falls within the Energy sector, specifically natural gas distribution. Federal spending on energy utilities is substantial, and competitive procurement is crucial for cost management.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The contract is managed by the Department of Justice, Federal Prison System. Standard oversight procedures for utility contracts are expected to be in place.
Related Government Programs
- Natural Gas Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for overpayment if market prices decline
- Limited insight into small business participation
- No specific mention of energy efficiency requirements
Tags
natural-gas-distribution, department-of-justice, va, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $853,963.96 to WGL ENERGY SERVICES, INC.. NATURAL GAS SUPPLY NOV25-SEP26
Who is the contractor on this award?
The obligated recipient is WGL ENERGY SERVICES, INC..
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 $853,963.96.
What is the period of performance?
Start: 2025-11-01. End: 2026-09-30.
What is the historical pricing trend for natural gas in Virginia over the contract period?
Analyzing historical natural gas pricing trends in Virginia for the period November 2025 to September 2026 is crucial. This helps determine if the firm fixed price offered by WGL Energy Services is competitive against market fluctuations. Understanding these trends allows for a better assessment of whether the government secured a favorable rate or potentially overpaid, considering potential volatility.
What are the potential risks associated with a firm fixed price contract for natural gas?
A firm fixed price contract for natural gas carries the risk of the government overpaying if market prices significantly decrease during the contract term. Conversely, if market prices surge unexpectedly, the contractor bears the risk, which could potentially lead to performance issues if their cost projections were too low. The fixed price locks in costs regardless of market volatility.
How does this contract's value compare to similar natural gas contracts for federal facilities in the region?
Comparing this contract's value of $853,963.96 to similar natural gas contracts for federal facilities in Virginia or adjacent regions is essential for assessing value for money. Benchmarking against contracts of similar duration and volume, procured under comparable market conditions, would reveal if the awarded price is competitive. This comparison helps identify potential cost savings or overspending.
Industry Classification
NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
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: Altagas Ltd
Address: 8614 WESTWOOD CENTER DR, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $853,964
Exercised Options: $853,964
Current Obligation: $853,964
Actual Outlays: $154,864
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0825D0016
IDV Type: IDC
Timeline
Start Date: 2025-11-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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