HHS Awards $13M for Natural Gas Distribution to Navajo Tribal Utility Authority in New Mexico
Contract Overview
Contract Amount: $13,005,000 ($13.0M)
Contractor: Navajo Tribal Utility Authority
Awarding Agency: Department of Health and Human Services
Start Date: 2021-03-10
End Date: 2031-03-31
Contract Duration: 3,673 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NON-PSC FOR UTILITY SERVICES FOR THE FACILITIES DEPT. AT THE NNMC.
Place of Performance
Location: SHIPROCK, SAN JUAN County, NEW MEXICO, 87420
Plain-Language Summary
Department of Health and Human Services obligated $13.0 million to NAVAJO TRIBAL UTILITY AUTHORITY for work described as: NON-PSC FOR UTILITY SERVICES FOR THE FACILITIES DEPT. AT THE NNMC. Key points: 1. Significant contract value of $13 million over 10 years. 2. Sole provider identified, raising questions about competition. 3. Long-term contract duration may pose price escalation risks. 4. Focus on utility services for a specific facility.
Value Assessment
Rating: questionable
The contract value is substantial for utility services. Without comparable contract data or a clear benchmark for natural gas distribution in this region, assessing value for money is difficult. The lack of competition further complicates a fair value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the specific awardee, Navajo Tribal Utility Authority, suggests potential limitations or specific circumstances. The impact on price discovery is unclear without knowing the bidding process and number of offers.
Taxpayer Impact: Taxpayer funds are committed to a long-term utility service contract. The efficiency and cost-effectiveness of this award will determine the ultimate taxpayer impact.
Public Impact
Ensures essential utility services for a federal facility. Supports a tribal enterprise, potentially fostering economic development. Long-term commitment provides service stability for the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for price increases over time
Positive Signals
- Supports tribal business
- Ensures critical service delivery
Sector Analysis
This contract falls under utility services, specifically natural gas distribution. Spending benchmarks for such services can vary widely based on location, volume, and market conditions. The $13 million over 10 years indicates a consistent, long-term need.
Small Business Impact
While the awardee is a tribal utility authority, it is not explicitly identified as a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract's long duration and the nature of utility services warrant ongoing oversight to ensure performance standards are met and pricing remains reasonable. The Department of Health and Human Services and Indian Health Service are responsible for this oversight.
Related Government Programs
- Natural Gas Distribution
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential lack of robust competition
- Long-term price risk exposure
- Limited transparency on award justification
- Absence of specified performance metrics
Tags
natural-gas-distribution, department-of-health-and-human-services, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.0 million to NAVAJO TRIBAL UTILITY AUTHORITY. NON-PSC FOR UTILITY SERVICES FOR THE FACILITIES DEPT. AT THE NNMC.
Who is the contractor on this award?
The obligated recipient is NAVAJO TRIBAL UTILITY AUTHORITY.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Indian Health Service).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2021-03-10. End: 2031-03-31.
What is the justification for awarding this contract to a single entity, and were other utility providers considered?
The provided data indicates 'FULL AND OPEN COMPETITION' but also lists a single awardee, the Navajo Tribal Utility Authority. Clarification is needed on whether this was a sole-source award or if multiple bids were received and evaluated. Understanding the specific circumstances that led to this award is crucial for assessing competitive fairness and potential value.
How will price fluctuations in the natural gas market be managed over the 10-year contract period to protect taxpayer interests?
The contract is a 'FIRM FIXED PRICE' type, which typically offers protection against market fluctuations for the government. However, the long duration (over 10 years) necessitates careful review of the contract's escalation clauses, if any, and the initial pricing strategy to ensure it reflects a fair market value throughout its term.
What performance metrics and service level agreements are in place to ensure the reliability and quality of natural gas distribution services?
The data does not specify performance metrics or service level agreements. For a critical utility service contract of this magnitude and duration, robust performance standards are essential. These should include reliability targets, response times for outages, and quality control measures to ensure the facility's operational needs are consistently met.
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: HWY 12 N, FORT DEFIANCE, AZ, 86504
Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,005,000
Exercised Options: $13,005,000
Current Obligation: $13,005,000
Actual Outlays: $10,806,373
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00P14BSD1060
IDV Type: IDC
Timeline
Start Date: 2021-03-10
Current End Date: 2031-03-31
Potential End Date: 2031-03-31 00:00:00
Last Modified: 2025-12-19
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