VA Awards $1.6M Firm Fixed Price Contract for Natural Gas Supply in Rhode Island
Contract Overview
Contract Amount: $1,612,531 ($1.6M)
Contractor: NRG Business Marketing LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLY
Place of Performance
Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908
Plain-Language Summary
Department of Veterans Affairs obligated $1.6 million to NRG BUSINESS MARKETING LLC for work described as: NATURAL GAS SUPPLY Key points: 1. Contract awarded to NRG BUSINESS MARKETING LLC for natural gas distribution. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 364 days, aligning with typical annual utility needs. 4. The firm fixed price structure provides cost certainty for the VA. 5. The contract is for delivery to Rhode Island, a specific geographic region.
Value Assessment
Rating: good
The firm fixed price contract provides cost certainty for the VA. The award amount of $1.61M for a 364-day supply appears reasonable given market fluctuations for natural gas.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The firm fixed price ensures taxpayers are protected from potential price increases in the natural gas market over the contract period.
Public Impact
Ensures reliable energy supply for VA facilities in Rhode Island. Supports the operational needs of veterans' healthcare services. Potential for cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in the natural gas market impacting future renewals.
- Dependence on a single supplier for a critical utility.
Positive Signals
- Firm fixed price contract provides budget certainty.
- Full and open competition likely resulted in a competitive price.
- Supports critical VA operations.
Sector Analysis
This contract falls within the Energy sector, specifically focusing on utility services. Natural gas prices can be volatile, influenced by global supply, demand, and geopolitical factors. Benchmarks for similar utility contracts vary widely based on location and volume.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award was made by the Department of Veterans Affairs, suggesting internal oversight processes are in place. The use of full and open competition is a positive indicator of accountability.
Related Government Programs
- Natural Gas Distribution
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for price volatility in future contract periods.
- Dependence on a single supplier.
- Geographic concentration of service.
Tags
natural-gas-distribution, department-of-veterans-affairs, ri, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $1.6 million to NRG BUSINESS MARKETING LLC. NATURAL GAS SUPPLY
Who is the contractor on this award?
The obligated recipient is NRG BUSINESS MARKETING LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $1.6 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What was the historical pricing for natural gas for this VA facility, and how does this award compare?
Historical pricing data is not provided. However, a firm fixed price contract for a 364-day term at $1.61M suggests a stable cost projection. A detailed comparison would require access to past contract values and prevailing market rates at those times to assess if this award represents a favorable or unfavorable price point.
What are the specific risks associated with relying on NRG BUSINESS MARKETING LLC for natural gas supply in Rhode Island?
The primary risks include potential supply disruptions due to unforeseen events affecting NRG, or the company's financial stability. Additionally, if NRG secures a dominant market position, future contract renewals might face less competitive pricing. The firm fixed price mitigates direct price escalation risk for the VA during the contract term.
How effectively does this contract ensure the continuity of natural gas supply for critical VA operations?
The contract appears effective in ensuring continuity by securing a supply for a full year (364 days) with a firm fixed price. The use of full and open competition suggests a robust selection process, likely vetting the supplier's capability. However, contingency plans for potential supplier failure or extreme weather events would further enhance effectiveness.
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: 194 S WOOD AVE 2ND FL, ISELIN, NJ, 08830
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,612,531
Exercised Options: $1,612,531
Current Obligation: $1,612,531
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0422D0074
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-02
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