RRB Awards $24.5K for Natural Gas Services, Lacking Competition

Contract Overview

Contract Amount: $24,543 ($24.5K)

Contractor: THE Peoples GAS Lght & Coke CO

Awarding Agency: Railroad Retirement Board

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $67/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60611

State: Illinois Government Spending

Plain-Language Summary

Railroad Retirement Board obligated $24,542.57 to THE PEOPLES GAS LGHT & COKE CO for work described as: NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026 Key points: 1. Spending is minimal at $24.5K for two months of service. 2. Sole-source award limits price discovery and potential savings. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector is essential utility services, typically stable.

Value Assessment

Rating: questionable

The contract value is low, making detailed pricing comparisons difficult. However, the lack of competition raises concerns about whether the price reflects market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The award was made on a sole-source basis, indicating no competition was sought. This limits the government's ability to ensure the best possible price through market forces.

Taxpayer Impact: Taxpayers may be paying more than necessary due to the absence of competitive bidding for these essential utility services.

Public Impact

Ensures essential heating and operational services for the Railroad Retirement Board. Potential for higher costs borne by taxpayers due to sole-source award. Limited transparency on pricing due to lack of competitive process.

Waste & Efficiency Indicators

Waste Risk Score: 67 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under utility services, specifically natural gas distribution. Spending benchmarks for such services vary widely by region and consumption volume, but competitive bidding is standard practice to ensure cost-effectiveness.

Small Business Impact

The data does not indicate whether small businesses were considered or involved in this sole-source award. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the price is fair and reasonable, and to understand why competition was not pursued.

Related Government Programs

Risk Flags

Tags

natural-gas-distribution, railroad-retirement-board, il, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Railroad Retirement Board awarded $24,542.57 to THE PEOPLES GAS LGHT & COKE CO. NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026

Who is the contractor on this award?

The obligated recipient is THE PEOPLES GAS LGHT & COKE CO.

Which agency awarded this contract?

Awarding agency: Railroad Retirement Board (Railroad Retirement Board).

What is the total obligated amount?

The obligated amount is $24,542.57.

What is the period of performance?

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

What is the justification for the sole-source award of natural gas services?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are granted when only one vendor can provide the required service, or in emergency situations. Without further information, it's unclear if these conditions were met, raising questions about the necessity of foregoing competition.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk to taxpayers is the potential for paying a non-competitive price. Without competitive bids, the government may not be securing the lowest possible cost for natural gas services, leading to potential overspending. The extent of this risk depends on market conditions and the vendor's pricing strategy.

How effective is this contract in ensuring reliable natural gas supply for the RRB?

The contract is likely effective in ensuring a reliable supply, as it is a direct award for essential services. However, the effectiveness in terms of value for money is questionable due to the lack of competition. While the service will be provided, taxpayers may not be receiving the best possible price for that reliability.

Industry Classification

NAICS: UtilitiesNatural Gas DistributionNatural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

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: 200 E RANDOLPH ST, CHICAGO, IL, 60601

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

Financial Breakdown

Contract Ceiling: $24,543

Exercised Options: $24,543

Current Obligation: $24,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

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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