Unity Health Service Natural Gas Delivery Contract Awarded to Public Service Company of NC for $460K

Contract Overview

Contract Amount: $46,020 ($46.0K)

Contractor: Public Service Company of North Carolina, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $63/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NATURAL GAS DELIVERY SERVICES FOR UNITY HEALTH SERVICE

Place of Performance

Location: GASTONIA, GASTON County, NORTH CAROLINA, 28056

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46,020.09 to PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED for work described as: NATURAL GAS DELIVERY SERVICES FOR UNITY HEALTH SERVICE Key points: 1. Contract awarded for natural gas delivery services to Unity Health Service. 2. The sole awardee is Public Service Company of North Carolina, Inc. 3. The contract value is $460,020.09 over a 2-year period. 4. This is a firm fixed price contract. 5. The contract is for services in North Carolina.

Value Assessment

Rating: fair

The contract value of $460,020.09 for 729 days of service appears reasonable for natural gas delivery in North Carolina. However, without specific usage data or comparable contract benchmarks, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers due to the lack of competitive pressure to lower prices.

Public Impact

Ensures essential natural gas supply for Unity Health Service operations. Supports healthcare services provided by the Indian Health Service. Impacts residents in North Carolina who rely on these healthcare facilities. Government spending on essential utility services for health infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of detailed usage data makes cost validation challenging.

Positive Signals

Secures essential utility service for a healthcare facility.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under utility services, specifically natural gas delivery, essential for the operation of healthcare facilities. Spending on such services is generally stable but can be influenced by market fluctuations and regional infrastructure.

Small Business Impact

No indication of small business participation in this sole-source award. The focus appears to be on securing a necessary utility service from an established provider.

Oversight & Accountability

The award is a purchase order, which is a standard procurement instrument. Oversight would focus on contract performance and adherence to terms, especially given the sole-source nature.

Related Government Programs

Natural Gas Distribution
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Sole-source award
Lack of competition
Limited price discovery
Potential for overpayment
Insufficient cost validation data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46,020.09 to PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED. NATURAL GAS DELIVERY SERVICES FOR UNITY HEALTH SERVICE

Who is the contractor on this award?

The obligated recipient is PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED.

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 $46,020.09.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the historical natural gas consumption for Unity Health Service to justify this contract value?

Historical consumption data is crucial for validating the $460,020.09 contract value. Without it, it's difficult to determine if the allocated funds accurately reflect the actual natural gas needs over the 729-day period. This information would allow for a more precise cost-benefit analysis and ensure taxpayer funds are used efficiently.

Were there any attempts to explore alternative sole-source providers or negotiate better terms given the lack of competition?

Given this was a sole-source award, it's important to understand if any due diligence was performed to ensure Public Service Company of North Carolina was the only viable option. Exploring potential negotiation strategies or seeking justification for the lack of competition could reveal opportunities for cost savings or better contract terms for the government.

How does the per-unit cost of natural gas in this contract compare to regional benchmarks for similar healthcare facilities?

Benchmarking the per-unit cost of natural gas against similar contracts for healthcare facilities in North Carolina or the surrounding region is essential for assessing value. If this contract's pricing is significantly higher, it could indicate a lack of competitive pressure or unfavorable market conditions, raising concerns about cost-effectiveness for taxpayers.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

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

Parent Company: Dominion Energy, Inc.

Address: 800 GASTON RD, GASTONIA, NC, 28056

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

Financial Breakdown

Contract Ceiling: $46,020

Exercised Options: $46,020

Current Obligation: $46,020

Actual Outlays: $9,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline