DOJ Awards $1.08M Firm Fixed Price Delivery Order to DTE Energy for Natural Gas Services

Contract Overview

Contract Amount: $1,080,795 ($1.1M)

Contractor: DTE Energy Company

Awarding Agency: Department of Justice

Start Date: 2026-09-30

End Date: 2026-09-30

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: DTE NATURAL GAS OCT 2024

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $1.1 million to DTE ENERGY COMPANY for work described as: DTE NATURAL GAS OCT 2024 Key points: 1. The contract is a delivery order under an unspecified basic contract. 2. DTE Energy Company is the sole awardee, indicating a lack of competition. 3. The contract is for natural gas services, likely for federal facilities in Michigan. 4. The firm fixed price contract type suggests cost certainty for the government.

Value Assessment

Rating: fair

Pricing is not explicitly detailed, making direct comparison difficult. The firm fixed price structure provides some cost control, but without a competitive benchmark, its value is uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is not available for competition, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had bid.

Public Impact

Ensures continued natural gas supply for federal facilities, maintaining essential operations. Supports energy infrastructure and services within Michigan. Potential for increased energy costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Unspecified basic contract

Positive Signals

Firm fixed price contract
Ensures service continuity

Sector Analysis

This contract falls under the 'Other Electric Power Generation' NAICS code, which includes services related to the generation and distribution of electricity and natural gas. Benchmarks for similar contracts are difficult to ascertain without more specific service details and competitive data.

Small Business Impact

There is no indication that small businesses were involved in this award, as it appears to be a direct award to a large utility provider.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of Justice's Federal Prison System. The firm fixed price contract type offers some level of cost accountability, but the lack of competition limits opportunities for robust oversight on pricing.

Related Government Programs

Other Electric Power Generation
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive pricing.
Basic contract details are not available.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.1 million to DTE ENERGY COMPANY. DTE NATURAL GAS OCT 2024

Who is the contractor on this award?

The obligated recipient is DTE ENERGY COMPANY.

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 $1.1 million.

What is the period of performance?

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

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one vendor can provide the required goods or services. To ensure fair pricing, the agency should have conducted a price analysis based on historical data, market research, or other available benchmarks, even without direct competition.

What is the potential risk associated with the lack of competition for this natural gas service contract?

The primary risk associated with the lack of competition is the potential for inflated pricing. Without competing bids, DTE Energy may not have been incentivized to offer the most competitive rate. This could lead to the government overpaying for the natural gas services compared to what might have been achieved in a competitive bidding process.

How does this contract contribute to the overall effectiveness of the Federal Prison System's operations?

This contract is crucial for the operational effectiveness of the Federal Prison System by ensuring a reliable supply of natural gas. This is essential for heating, power, and other critical functions within federal correctional facilities. Consistent energy provision directly supports the safety, security, and daily operations of these institutions.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DTE GAS Company

Address: 1 ENERGY PLZ, DETROIT, MI, 48226

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

Financial Breakdown

Contract Ceiling: $1,080,795

Exercised Options: $1,080,795

Current Obligation: $1,080,795

Actual Outlays: $261,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0418D0032

IDV Type: IDC

Timeline