DOJ's Bureau of Prisons Spends $61.4K on Natural Gas in Q3 FY26 from Sage Energy Trading LLC

Contract Overview

Contract Amount: $61,433 ($61.4K)

Contractor: Sage Energy Trading LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $683/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55802

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $61,433.2 to SAGE ENERGY TRADING LLC for work described as: SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES Key points: 1. Spending focuses on natural gas distribution for the Federal Prison System. 2. Sage Energy Trading LLC is the sole provider for this contract. 3. The contract is a firm fixed price purchase order, indicating price certainty. 4. The contract duration is 90 days, covering a single quarter.

Value Assessment

Rating: fair

The contract amount is $61,433.20 for a 90-day period. Without specific per-unit pricing or historical data for this facility, it's difficult to benchmark against similar contracts. However, the firm fixed price suggests a predictable cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: Taxpayer funds are used for this essential utility service. The lack of competition may result in a less optimal price for taxpayers.

Public Impact

Ensures essential utility services (natural gas) for federal correctional facilities. Supports energy needs for inmate housing, heating, and operations. Impacts the operational budget of the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the energy sector, specifically natural gas distribution. Federal agencies often procure energy services through various contract types, with sole-source awards sometimes necessary due to infrastructure or supplier limitations.

Small Business Impact

The data does not indicate if Sage Energy Trading LLC is a small business. The contract type and sole-source nature may limit opportunities for small businesses to participate.

Oversight & Accountability

The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard procurement regulations apply, but the sole-source nature warrants careful review to ensure necessity and fair pricing.

Related Government Programs

Risk Flags

Tags

natural-gas-distribution, department-of-justice, mn, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61,433.2 to SAGE ENERGY TRADING LLC. SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES

Who is the contractor on this award?

The obligated recipient is SAGE 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 $61,433.2.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the historical pricing trend for natural gas at this specific federal facility?

Historical pricing data for natural gas at this specific federal facility is not provided in the current data. To assess value effectively, a review of past contracts and consumption patterns would be necessary. Understanding fluctuations and average costs over previous periods would allow for a more robust comparison against the current firm fixed price.

What are the specific reasons for the sole-source designation, and have alternatives been explored?

The data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Typically, this requires documented reasons such as unique capabilities, urgent need, or lack of other qualified sources. A thorough review of the agency's justification and any documented exploration of alternative suppliers would be crucial to ensure the sole-source award is appropriate and taxpayer funds are protected.

How does the per-unit cost of natural gas in this contract compare to regional benchmarks for similar government or commercial contracts?

A direct per-unit cost benchmark is not available without knowing the exact quantity of natural gas purchased (e.g., therms or cubic feet) and the corresponding price. The total amount is $61,433.20 for 90 days. Comparing this to regional benchmarks would require obtaining the metered quantities and then calculating the price per unit to perform a meaningful comparison with other utility contracts in Minnesota.

Industry Classification

NAICS: UtilitiesNatural Gas DistributionNatural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4612 S VICTOR AVE, TULSA, OK, 74105

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $61,433

Exercised Options: $61,433

Current Obligation: $61,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-01

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2026-04-02

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