DOJ awards $740K for natural gas to FCI Fort Dix, highlighting stable utility costs

Contract Overview

Contract Amount: $740,352 ($740.4K)

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: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR TO PROVIDE NATURAL GAS (UTILITIES) TO FCI, FORT DIX. NEW GSA CONTRACT 47PA0724D0067

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $740,352.29 to NRG BUSINESS MARKETING LLC for work described as: CONTRACTOR TO PROVIDE NATURAL GAS (UTILITIES) TO FCI, FORT DIX. NEW GSA CONTRACT 47PA0724D0067 Key points: 1. Contract value appears reasonable for a 364-day utility service agreement. 2. Full and open competition suggests a competitive market for natural gas supply. 3. Low number of bidders could indicate specific regional or technical requirements. 4. Fixed-price contract provides cost certainty for the Bureau of Prisons. 5. Contract duration aligns with typical utility service periods. 6. Geographic location of the facility is a key factor in service provision.

Value Assessment

Rating: good

The contract value of approximately $740,352 for a one-year natural gas supply to FCI Fort Dix seems aligned with market rates for utility services in the region. Benchmarking against similar utility contracts for federal facilities of comparable size and energy needs would provide further validation. The firm fixed-price structure offers predictable costs, which is a positive indicator for value, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of full and open competition generally suggests a healthy level of market interest and potential for price discovery. This approach is intended to ensure the government receives the best possible value.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to drive down costs and ensure efficient use of federal funds for essential services like utilities.

Public Impact

Federal Prison System (Bureau of Prisons) benefits from a reliable natural gas supply for operational needs at FCI Fort Dix. The contract ensures the continued provision of essential utilities for inmate welfare and facility operations. Geographic impact is localized to the Fort Dix, New Jersey area. Workforce implications are minimal, primarily involving the contractor's service personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of true competition intensity.
Potential for price fluctuations in the natural gas market, despite fixed-price contract, if market conditions change drastically.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
Firm fixed-price contract provides budget certainty for the agency.
Contract duration is standard for utility services, allowing for predictable planning.

Sector Analysis

The natural gas distribution sector is a critical component of the energy infrastructure, providing essential fuel for heating, cooking, and industrial processes. Federal agencies are significant consumers of utility services, including natural gas, across numerous facilities nationwide. Contracts for natural gas supply are typically awarded based on competitive bidding, with pricing influenced by market fluctuations, regional supply, and contract terms. This contract fits within the broader category of government utility procurement, ensuring operational continuity for correctional facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While NRG BUSINESS MARKETING LLC is the awardee, further analysis would be needed to determine if they are a large business or if they intend to use small business subcontractors. Without explicit subcontracting plans or set-aside goals, the direct impact on the small business ecosystem for this specific award is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and facility management officials. Standard contract administration processes, including performance monitoring and invoice verification, would be in place. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Utilities Contracts
Department of Justice Energy Procurement
GSA Federal Supply Schedule Contracts
Natural Gas Supply Agreements

Risk Flags

Potential for service disruption if contractor faces operational issues.
Market volatility in natural gas prices could impact long-term cost-effectiveness beyond the fixed-price term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $740,352.29 to NRG BUSINESS MARKETING LLC. CONTRACTOR TO PROVIDE NATURAL GAS (UTILITIES) TO FCI, FORT DIX. NEW GSA CONTRACT 47PA0724D0067

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 $740,352.29.

What is the period of performance?

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

What is the historical spending pattern for natural gas at FCI Fort Dix?

Analyzing historical spending data for natural gas at FCI Fort Dix would provide crucial context for the current $740,352 award. This would involve examining previous contract values, durations, and any significant price variations over the past several years. Understanding historical trends can reveal whether the current award represents an increase, decrease, or stable cost compared to previous periods. It also helps in identifying potential anomalies or long-term cost escalation. Without access to historical data specific to this facility's utility contracts, it is difficult to definitively assess if this award represents a favorable or unfavorable price point in the long run. However, the current award covers a 364-day period, suggesting a focus on annual operational costs.

How does the pricing of this natural gas contract compare to similar federal facilities?

Benchmarking the pricing of this $740,352 natural gas contract against similar federal facilities requires access to a database of comparable utility contracts. Key comparison factors would include the facility's size (inmate population and square footage), average daily energy consumption, and geographic location, as natural gas prices vary significantly by region. If similar correctional facilities of comparable size in the Northeast region have recently secured natural gas contracts at a lower per-unit cost or a lower total annual cost, it could indicate that this award is not optimally priced. Conversely, if other facilities face higher costs due to market conditions or specific supply challenges, this contract might represent good value. The firm fixed-price nature provides cost certainty, which is a positive aspect regardless of minor price variations.

What are the specific risks associated with relying on a single natural gas provider for this facility?

While the contract was awarded under full and open competition, the immediate risk lies in the potential for service disruption if the selected provider, NRG BUSINESS MARKETING LLC, faces operational issues. This could include supply chain problems, infrastructure failures, or financial instability within the contractor. For a critical utility like natural gas, such disruptions could impact heating, cooking, and other essential functions within FCI Fort Dix, potentially affecting inmate welfare and facility security. Although the contract duration is one year, mitigating long-term dependency risk, the agency must have contingency plans in place. The Bureau of Prisons likely has protocols for addressing contractor failures, but the immediate impact of a disruption could still be significant.

What is the track record of NRG BUSINESS MARKETING LLC in providing utility services to federal agencies?

Evaluating the track record of NRG BUSINESS MARKETING LLC is crucial for assessing the reliability and performance risk associated with this contract. Information on past performance, including adherence to delivery schedules, quality of service, and any history of contract disputes or terminations with federal agencies, would be highly informative. A positive performance history suggests a lower risk of service interruption and better overall value. Conversely, a history of issues could indicate potential problems ahead. Accessing past performance evaluations or contract databases (like the Federal Procurement Data System - FPDS) would provide insights into their reliability. Without this specific data, the assessment relies on the assumption that the competitive bidding process adequately vetted the contractor's capabilities.

How does the 'full and open competition' classification translate to taxpayer value in this specific instance?

The 'full and open competition' classification for this $740,352 natural gas contract is intended to maximize taxpayer value by fostering a competitive environment. This means that multiple potential suppliers had the opportunity to bid, driving prices down through market forces. Taxpayers benefit when the lowest price that meets the government's requirements is secured. However, the true measure of value also includes the reliability and quality of the service provided. If the competition resulted in a low price but subpar service or frequent disruptions, the overall taxpayer value would be diminished. Therefore, while the procurement method is sound, ongoing performance monitoring is essential to ensure the anticipated value is realized throughout the contract period.

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: $740,352

Exercised Options: $740,352

Current Obligation: $740,352

Actual Outlays: $283,384

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0067

IDV Type: IDC

Timeline