DOJ's Bureau of Prisons awards $456K for natural gas supply in Texas

Contract Overview

Contract Amount: $456,398 ($456.4K)

Contractor: NRG Business Marketing LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2025-10-01

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NRG GAS SUPPLIER FY 2026

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $456,398.4 to NRG BUSINESS MARKETING LLC for work described as: NRG GAS SUPPLIER FY 2026 Key points: 1. Spending is for natural gas distribution in Texas. 2. NRG BUSINESS MARKETING LLC is the contractor. 3. Contract is a delivery order under a larger award. 4. Firm fixed price contract type. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract is a delivery order, making direct price comparison difficult without knowing the base contract's terms. However, the total award amount is relatively small for a year's supply of natural gas.

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 generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The direct taxpayer impact is limited due to the relatively small contract value, but efficient procurement practices ensure funds are used effectively.

Public Impact

Ensures consistent energy supply for federal correctional facilities. Supports operational continuity within the Bureau of Prisons. Contributes to the regional energy market in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for unit pricing.
Potential for price volatility in natural gas markets.
No explicit small business utilization reported.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Contract supports essential government operations.

Sector Analysis

This contract falls within the energy sector, specifically natural gas distribution. Spending benchmarks for such services can vary significantly based on location, volume, and market conditions.

Small Business Impact

The data indicates no specific set-aside for small businesses for this particular delivery order. Further analysis of the base contract would be needed to understand overall small business participation.

Oversight & Accountability

As a delivery order, oversight is likely tied to the parent contract. The Bureau of Prisons is responsible for ensuring performance and adherence to terms.

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 decrease.
Contractor risk if market prices increase significantly.
Lack of transparency on unit pricing basis.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $456,398.4 to NRG BUSINESS MARKETING LLC. NRG GAS SUPPLIER FY 2026

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 $456,398.4.

What is the period of performance?

Start: 2025-10-01. End: 2025-10-01.

What was the basis for the firm fixed price and how does it compare to market rates for natural gas in Texas during the award period?

The firm fixed price was likely determined through competitive bidding, aiming to secure a stable rate for natural gas. A comprehensive comparison to market rates would require access to historical pricing data for the specific region and contract volume, which is not provided here. However, the relatively modest total award suggests either a small facility or favorable pricing negotiated during the bidding process.

What are the risks associated with a firm fixed price contract for a volatile commodity like natural gas?

The primary risk with a firm fixed price contract for natural gas is that the government might overpay if market prices fall significantly below the fixed rate. Conversely, the contractor bears the risk if prices rise substantially, potentially impacting their profit margin or leading to performance issues if they cannot procure the gas at the agreed-upon price.

How does this contract contribute to the overall energy strategy and cost-efficiency of the Federal Prison System?

This contract ensures a reliable supply of natural gas, crucial for heating, cooking, and other essential functions within federal correctional facilities. While the individual contract value is modest, aggregating such contracts across facilities contributes to the overall energy budget. The firm fixed price aims for cost predictability, aiding in budget management, though market fluctuations could impact long-term cost-efficiency if not managed strategically.

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

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: $456,398

Exercised Options: $456,398

Current Obligation: $456,398

Actual Outlays: $66,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0068

IDV Type: IDC

Timeline