DOJ's Bureau of Prisons awards $900K for natural gas services to National Grid USA in FY26
Contract Overview
Contract Amount: $900,000 ($900.0K)
Contractor: National Grid USA Service Company, Inc.
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: MDC BROOKLYN / DAYTON MANOR / WAREHOUSE (BUILDING 4) - NATURAL GAS SERVICES FY26
Place of Performance
Location: SYRACUSE, ONONDAGA County, NEW YORK, 13202
State: New York Government Spending
Plain-Language Summary
Department of Justice obligated $900,000 to NATIONAL GRID USA SERVICE COMPANY, INC. for work described as: MDC BROOKLYN / DAYTON MANOR / WAREHOUSE (BUILDING 4) - NATURAL GAS SERVICES FY26 Key points: 1. Spending is for natural gas distribution services for MDC Brooklyn / Dayton Manor. 2. The contract is a delivery order under a larger contract. 3. National Grid USA Service Company, Inc. is the awardee. 4. The contract is for a 1-year term, FY26. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The award amount of $900,000 for a 1-year natural gas service contract appears reasonable given the scale of the facility. Benchmarking against similar utility contracts for federal facilities of comparable size would provide a more definitive assessment.
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 is generally expected to yield fair market prices, though specific price discovery details are not provided.
Taxpayer Impact: The $900,000 expenditure for essential utility services represents a necessary cost for government operations. Full and open competition aims to ensure taxpayer funds are used efficiently.
Public Impact
Ensures continued operation of essential services at federal correctional facilities. Supports energy infrastructure in New York. Provides a stable energy supply for inmate welfare and facility operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in natural gas markets.
- Dependence on a single utility provider for a critical service.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Essential service for facility operations.
Sector Analysis
This contract falls under the Utilities sector, specifically natural gas distribution. Federal spending on utilities is a significant and ongoing requirement, with costs often influenced by market prices and regional infrastructure.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The awardee, National Grid USA Service Company, Inc., is a large utility provider, suggesting small businesses were likely not primary participants in this specific award.
Oversight & Accountability
Standard oversight for utility contracts would apply, focusing on service delivery and adherence to terms. The Bureau of Prisons is responsible for ensuring the contractor meets all contractual obligations.
Related Government Programs
- Natural Gas Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for price volatility in natural gas markets.
- Dependence on a single supplier for a critical utility.
- Contract duration is for one year, requiring future re-competition or extension.
- Geographic concentration of service in New York.
Tags
natural-gas-distribution, department-of-justice, ny, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $900,000 to NATIONAL GRID USA SERVICE COMPANY, INC.. MDC BROOKLYN / DAYTON MANOR / WAREHOUSE (BUILDING 4) - NATURAL GAS SERVICES FY26
Who is the contractor on this award?
The obligated recipient is NATIONAL GRID USA SERVICE COMPANY, 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 $900,000.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical pricing trend for natural gas in the New York region, and how does this contract's price compare?
Analyzing historical natural gas prices in New York is crucial for assessing the value of this $900,000 contract. Factors like market volatility, supply/demand dynamics, and regulatory changes influence pricing. A comparison would reveal if the firm fixed price offers a favorable rate against potential market increases or if it reflects a premium for guaranteed supply.
What are the risks associated with relying on a single provider for natural gas, especially for a critical federal facility?
Reliance on a single provider like National Grid USA introduces risks such as service disruptions due to infrastructure failure, labor disputes, or unforeseen events. The Bureau of Prisons should have contingency plans in place, including emergency protocols and potentially alternative energy sources, to mitigate the impact of any service interruptions.
How effectively does the 'Full and Open Competition' process ensure optimal value for taxpayer money in utility contracts of this nature?
Full and open competition is designed to foster a competitive environment, driving down prices and encouraging innovation. For utility services, it ensures multiple qualified providers can bid, theoretically leading to the best value. However, the nature of utility infrastructure can sometimes limit the number of truly competitive bids, making robust evaluation critical.
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: 40 SYLVAN RD, WALTHAM, MA, 02451
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $900,000
Exercised Options: $900,000
Current Obligation: $900,000
Actual Outlays: $383,942
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0423D0002
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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