DOJ's $391K natural gas contract for FCI Texarkana awarded to Summit Utilities Oklahoma, Inc

Contract Overview

Contract Amount: $391,275 ($391.3K)

Contractor: Summit Utilities Oklahoma, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE NATURAL GAS SERVICES FOR FCI TEXARKANA FY-2026 FOR THE MONTHS OF OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026.

Place of Performance

Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $391,275 to SUMMIT UTILITIES OKLAHOMA, INC. for work described as: TO PROVIDE NATURAL GAS SERVICES FOR FCI TEXARKANA FY-2026 FOR THE MONTHS OF OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026. Key points: 1. Contract awarded for essential utility services, ensuring operational continuity for a federal correctional facility. 2. The contract value represents a modest portion of the Bureau of Prisons' overall utility spending. 3. Limited competition raises questions about potential price optimization and value for taxpayer funds. 4. The fixed-price structure provides cost certainty for the government over the contract term. 5. Performance will be monitored to ensure reliable natural gas delivery and adherence to service standards.

Value Assessment

Rating: fair

The contract value of $391,275 for one year of natural gas services appears reasonable for a federal correctional facility. Benchmarking against similar contracts for utility services at correctional institutions would provide a clearer picture of value for money. Without comparable data, it's difficult to definitively assess if the pricing is competitive or if there were opportunities for cost savings through broader competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one vendor was considered capable of providing the required natural gas services. This approach limits the opportunity for competitive bidding, which typically drives down prices and encourages innovation. The justification for a sole-source award needs to be robust to ensure that taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through a competitive bidding process.

Public Impact

The primary beneficiaries are the inmates and staff at FCI Texarkana, who will have access to essential heating and cooking services. Reliable natural gas supply ensures the uninterrupted operation of facility services, including heating, cooking, and water heating. The geographic impact is localized to Texarkana, Texas, where the facility is located. The contract supports the operational needs of the Federal Prison System, contributing to its mission of managing federal inmates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than could be achieved through a competitive process.
Reliance on a single provider could create risks if the contractor experiences operational issues or fails to meet service level agreements.

Positive Signals

The firm fixed-price contract provides budget certainty for the Bureau of Prisons.
The contract duration is aligned with the fiscal year, allowing for predictable budgeting and service provision.

Sector Analysis

The energy sector, specifically natural gas distribution, is a critical utility service for government facilities. Federal agencies are significant consumers of energy, and contracts for natural gas are common across various installations. The market for natural gas distribution is often localized, with established providers serving specific geographic areas. The value of this contract is relatively small compared to larger energy infrastructure projects but is essential for the day-to-day operations of the facility.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of utility services and the sole-source award, it is unlikely that subcontracting opportunities for small businesses would be significant unless Summit Utilities Oklahoma, Inc. voluntarily engages them for specific support services.

Oversight & Accountability

Oversight for this contract will likely fall under the Bureau of Prisons' contracting and facility management divisions. The contract terms and conditions will dictate performance standards and reporting requirements. Transparency is generally maintained through contract award databases, but detailed operational oversight specifics are typically internal.

Related Government Programs

Federal Prison System Utility Contracts
Bureau of Prisons Operations
Natural Gas Supply Contracts

Risk Flags

Sole-source award limits competition
Potential for higher costs due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $391,275 to SUMMIT UTILITIES OKLAHOMA, INC.. TO PROVIDE NATURAL GAS SERVICES FOR FCI TEXARKANA FY-2026 FOR THE MONTHS OF OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026.

Who is the contractor on this award?

The obligated recipient is SUMMIT UTILITIES OKLAHOMA, INC..

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 $391,275.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Summit Utilities Oklahoma, Inc. in providing natural gas services to federal facilities?

Information regarding Summit Utilities Oklahoma, Inc.'s specific track record with federal facilities is not readily available in the public domain through this contract's data alone. As a sole-source award, the justification for selecting this particular contractor would typically include an assessment of their capabilities and past performance. Further investigation into federal procurement databases or agency performance reviews would be necessary to ascertain their history with similar government contracts. Without this detailed performance history, it is difficult to assess their reliability and efficiency in serving federal correctional institutions.

How does the price of this contract compare to similar natural gas contracts for federal correctional facilities?

Direct price comparison is challenging without access to a database of similar natural gas contracts for federal correctional facilities, especially given the sole-source nature of this award. The contract value of $391,275 for a one-year period for FCI Texarkana needs to be contextualized by the facility's size, energy consumption patterns, and the specific market rates for natural gas in that region. Typically, competitive bidding processes yield prices that can be benchmarked against market averages. The absence of competition here means a direct, robust comparison to identify potential overpricing or cost savings is not feasible based solely on the provided data.

What are the primary risks associated with a sole-source award for essential utility services?

The primary risks associated with a sole-source award for essential utility services like natural gas include a lack of price competition, which can lead to higher costs for the government. There's also a reduced incentive for the contractor to innovate or improve service quality, as there are no competing providers. Furthermore, the government becomes heavily reliant on a single vendor, increasing vulnerability to service disruptions if the contractor faces financial difficulties, operational issues, or decides to terminate the contract. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

What is the expected impact of this contract on the operational effectiveness of FCI Texarkana?

This contract is crucial for the operational effectiveness of FCI Texarkana, as natural gas is a fundamental utility for heating, cooking, and other essential functions within the facility. Securing a reliable supply of natural gas ensures that these critical services can be provided without interruption, contributing to the safety and well-being of both inmates and staff. The firm fixed-price nature of the contract also provides budgetary certainty, allowing the facility to manage its operational expenses predictably over the contract period. Consistent service delivery is paramount for maintaining order and fulfilling the Bureau of Prisons' mandate.

What has been the historical spending trend for natural gas services at FCI Texarkana or similar facilities?

Historical spending data for natural gas services specifically at FCI Texarkana is not provided in this contract's summary. To analyze historical spending trends, one would need to examine past contracts awarded to this facility or comparable Bureau of Prisons institutions for similar utility services. Such an analysis would involve looking at contract values, durations, and any price escalations over multiple fiscal years. Understanding these trends is vital for assessing the current contract's value and identifying any significant deviations or patterns in energy expenditure.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

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: 10825 E. GEDDES AVENUE SUITE 410, CENTENNIAL, CO, 80112

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

Financial Breakdown

Contract Ceiling: $391,275

Exercised Options: $391,275

Current Obligation: $391,275

Actual Outlays: $116,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline