DOJ awards $162K contract for natural gas supply to Federal Prison System in Texas
Contract Overview
Contract Amount: $162,011 ($162.0K)
Contractor: NRG Business Marketing LLC
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $445/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLIER FOR OCT 1, 2025 - SEP 30, 2026
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $162,011.31 to NRG BUSINESS MARKETING LLC for work described as: NATURAL GAS SUPPLIER FOR OCT 1, 2025 - SEP 30, 2026 Key points: 1. Contract awarded to NRG BUSINESS MARKETING LLC for natural gas distribution. 2. The contract duration is 364 days, covering the period from October 1, 2025, to September 30, 2026. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. The procurement was conducted under Full and Open Competition. 5. The total award amount is $162,011.31.
Value Assessment
Rating: good
The award amount of $162,011.31 for a year's supply of natural gas appears reasonable given the sector. Benchmarking against similar contracts for federal facilities in Texas would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market pricing, ensuring taxpayer funds are used efficiently for essential utility services.
Public Impact
Ensures continuous supply of natural gas for federal correctional facilities. Supports operational needs of the Bureau of Prisons. Impacts energy costs for a federal agency. Contributes to the stability of energy markets in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in natural gas markets.
- Dependence on a single supplier for a critical utility.
Positive Signals
- Competitive bidding process.
- Firm Fixed Price contract.
Sector Analysis
The natural gas distribution sector is essential for government operations, providing critical utility services. Spending benchmarks vary significantly based on facility size, location, and market conditions. This contract falls within a typical range for a year's supply to a federal facility.
Small Business Impact
The data indicates the award went to NRG BUSINESS MARKETING LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors or if this award represents a missed opportunity for small business participation.
Oversight & Accountability
The contract falls under the purview of the Department of Justice, specifically the Federal Prison System. Standard oversight mechanisms for federal procurement contracts would apply, including monitoring 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 price volatility in the natural gas market.
- Dependence on a single supplier for a critical utility.
- Lack of specific per-unit cost data for benchmarking.
- Need to confirm small business participation.
Tags
natural-gas-distribution, department-of-justice, tx, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $162,011.31 to NRG BUSINESS MARKETING LLC. NATURAL GAS SUPPLIER FOR OCT 1, 2025 - SEP 30, 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 $162,011.31.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical price trend for natural gas in Texas over the past five years?
Natural gas prices in Texas have experienced significant volatility over the past five years, influenced by factors such as weather patterns, global demand, production levels, and regulatory changes. While there have been periods of low prices, extreme weather events have also led to sharp price spikes. Understanding these trends is crucial for assessing the long-term value of this fixed-price contract.
What are the potential risks associated with relying on a single supplier for natural gas, even with a fixed price?
Even with a fixed price, risks include potential supply disruptions due to unforeseen events (e.g., infrastructure damage, extreme weather impacting delivery), or the supplier's financial instability. While the price is locked, the continuity of service is paramount for the Federal Prison System's operations. Contingency plans should be in place.
How does the awarded price compare to the average per-unit cost for natural gas at similar federal facilities in Texas?
Without specific per-unit cost data or access to a benchmark database for similar federal facilities in Texas, a direct comparison is difficult. However, the total award of $162,011.31 for a 364-day contract suggests a monthly cost of approximately $14,000. This figure needs to be contextualized with the facility's consumption rate to determine its competitiveness.
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: $162,011
Exercised Options: $162,011
Current Obligation: $162,011
Actual Outlays: $58,417
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0725D0002
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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