DO for Natural Gas Supply in FY26 awarded to NRG Business Marketing LLC for $136.8M

Contract Overview

Contract Amount: $136,820 ($136.8K)

Contractor: NRG Business Marketing LLC

Awarding Agency: Department of Justice

Start Date: 2026-02-23

End Date: 2026-09-30

Contract Duration: 219 days

Daily Burn Rate: $625/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SUPPLY FY 26

Place of Performance

Location: LEWIS RUN, MCKEAN County, PENNSYLVANIA, 16738

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $136,820.36 to NRG BUSINESS MARKETING LLC for work described as: NATURAL GAS SUPPLY FY 26 Key points: 1. Contract awarded via full and open competition, suggesting a competitive market for natural gas supply. 2. The firm fixed-price contract type provides cost certainty for the government. 3. Delivery order structure indicates flexibility in managing ongoing supply needs. 4. The contract duration of 219 days is relatively short, suggesting a focus on immediate or near-term supply. 5. The award to NRG Business Marketing LLC represents a significant commitment to securing energy resources for federal facilities. 6. The contract's value of $136.8 million warrants scrutiny for efficiency and market alignment.

Value Assessment

Rating: fair

Benchmarking the value of this natural gas supply contract requires detailed market analysis of regional energy prices during the contract period. Without specific comparable contracts or detailed cost breakdowns, it's difficult to definitively assess value for money. However, the firm fixed-price structure offers some protection against price volatility. The scale of the award suggests a substantial need, but the efficiency of meeting this need at the awarded price is not immediately clear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This process generally promotes price discovery and allows the government to select the most advantageous offer. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices through market forces, ensuring the government secures resources at competitive rates.

Public Impact

Federal Prison System facilities will benefit from a reliable supply of natural gas. This contract ensures the operational continuity of correctional institutions. The primary geographic impact is likely within Pennsylvania, where the contract is registered. Workforce implications are minimal for the direct contract award, but indirect employment in natural gas extraction and distribution may be supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly despite fixed-price contract.
Dependence on a single supplier for a critical utility.
Ensuring timely delivery and service quality from the awarded contractor.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Firm fixed-price contract provides budget certainty.
Secures essential energy supply for critical federal operations.

Sector Analysis

The energy sector, specifically natural gas supply, is a critical component of federal operations. This contract falls within the broader energy procurement category, which sees significant government spending to ensure the functioning of facilities nationwide. Benchmarking this contract's value against other federal or state-level natural gas procurements would provide a clearer picture of its market alignment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, NRG Business Marketing LLC, would determine any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice and the Federal Prison System. Accountability measures are inherent in the firm fixed-price delivery order structure, requiring the contractor to meet specified delivery terms. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available.

Related Government Programs

Federal Energy Management Program
Department of Justice Procurement
Bureau of Prisons Operations

Risk Flags

Potential for price volatility risk transfer to contractor.
Need for robust performance monitoring to ensure service quality.
Dependence on a single supplier for critical utility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $136,820.36 to NRG BUSINESS MARKETING LLC. NATURAL GAS SUPPLY FY 26

Who is the contractor on this award?

The obligated recipient is NRG BUSINESS MARKETING 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 $136,820.36.

What is the period of performance?

Start: 2026-02-23. End: 2026-09-30.

What is NRG Business Marketing LLC's track record with federal contracts, particularly for energy supply?

A comprehensive review of NRG Business Marketing LLC's federal contract history would be necessary to assess their track record. This would involve examining past awards, performance evaluations, and any instances of contract disputes or terminations. Understanding their experience with similar-sized energy supply contracts, especially for government facilities, would provide crucial context for evaluating their reliability and performance on this $136.8 million award.

How does the awarded price of $136.8 million for natural gas supply compare to market benchmarks for the specified period and region?

To assess the value for money, the awarded price needs to be benchmarked against prevailing market rates for natural gas in Pennsylvania during the contract period (February 23, 2026, to September 30, 2026). This involves analyzing historical price data from energy market indices (e.g., Henry Hub, regional spot prices), consulting industry reports, and comparing with similar federal or state government contracts awarded around the same time. Without this comparative data, it's challenging to determine if the $136.8 million represents a competitive price or an overpayment.

What are the specific risks associated with a firm fixed-price contract for natural gas supply, given potential market volatility?

While a firm fixed-price contract offers budget certainty, it carries risks if natural gas prices experience significant upward volatility. NRG Business Marketing LLC assumes the risk of price increases, which could incentivize them to seek cost efficiencies that might impact service quality or delivery reliability if not properly monitored. Conversely, if prices fall sharply, the government might be overpaying relative to the market. The contract's duration and specific clauses regarding price adjustments or force majeure events are critical for risk mitigation.

What is the expected program effectiveness and impact of securing this natural gas supply for the Federal Prison System?

The primary impact of this contract is ensuring the uninterrupted operation of federal correctional facilities, which rely on natural gas for heating, cooking, and other essential services. Effective program execution means consistent, reliable delivery of natural gas, preventing disruptions that could compromise inmate welfare and staff safety. The $136.8 million investment is expected to maintain operational continuity and support the core mission of the Bureau of Prisons.

What have been historical spending patterns for natural gas supply to the Federal Prison System or similar federal agencies?

Analyzing historical spending patterns for natural gas supply to the Federal Prison System and comparable agencies would provide valuable context. This includes examining the total annual expenditure, the number and value of contracts awarded, the types of contract vehicles used (e.g., delivery orders, IDIQs), and the primary contractors. Understanding trends in spending, price fluctuations, and competition levels over several fiscal years can help identify potential cost efficiencies or areas of concern for future procurements.

What oversight mechanisms are in place to ensure the quality and reliability of the natural gas supply provided under this contract?

Oversight for this contract would involve the contracting officer's representatives (CORs) within the Department of Justice or Bureau of Prisons. These representatives are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying the quality and quantity of the natural gas delivered. Performance metrics, delivery schedules, and any established service level agreements (SLAs) would be key components of this oversight. Regular communication and site inspections, where applicable, would also contribute to ensuring reliability.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Oil and Gas Extraction › Natural Gas Extraction

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 804 CARNEGIE CTR, PRINCETON, NJ, 08540

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

Financial Breakdown

Contract Ceiling: $136,820

Exercised Options: $136,820

Current Obligation: $136,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60425D7502

IDV Type: IDC

Timeline