HHS awards $42M for Natural Gas Extraction to WGL Energy Services, Inc. under full and open competition
Contract Overview
Contract Amount: $42,076,652 ($42.1M)
Contractor: WGL Energy Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-23
End Date: 2027-09-30
Contract Duration: 1,833 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: WASHINGTON GAS ENERGY SERVICES INC
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $42.1 million to WGL ENERGY SERVICES, INC. for work described as: WASHINGTON GAS ENERGY SERVICES INC Key points: 1. Contract awarded to WGL Energy Services, Inc. for $42.1M. 2. Procurement method was full and open competition. 3. Contract duration is 1833 days, ending September 30, 2027. 4. The PSC code is not specified, but the NAICS code is 211130 (Natural Gas Extraction).
Value Assessment
Rating: fair
The contract value of $42.1M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar natural gas extraction contracts would be necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive bidding process aims to secure the best value for taxpayers, although the specific savings achieved through this method are not detailed.
Public Impact
Ensures a stable supply of natural gas for NIH facilities. Supports energy infrastructure and services for a key federal agency. The long-term nature of the contract provides budget predictability for NIH.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific PSC code hinders detailed analysis.
- No mention of small business participation.
- Annual spending breakdown not provided.
Positive Signals
- Full and open competition utilized.
- Long contract duration provides stability.
- Clear awardee and agency identified.
Sector Analysis
The contract falls under the Natural Gas Extraction sector, specifically for energy services to the National Institutes of Health. Benchmarking would require comparing this to other federal energy service contracts.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (NIH) using full and open competition, suggesting a degree of oversight. However, detailed oversight mechanisms and accountability measures are not specified.
Related Government Programs
- Natural Gas Extraction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of detailed performance metrics.
- No clear indication of small business utilization.
- Potential for price volatility in the natural gas market.
- PSC code missing for deeper analysis.
Tags
natural-gas-extraction, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $42.1 million to WGL ENERGY SERVICES, INC.. WASHINGTON GAS ENERGY SERVICES INC
Who is the contractor on this award?
The obligated recipient is WGL ENERGY SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $42.1 million.
What is the period of performance?
Start: 2022-09-23. End: 2027-09-30.
What is the estimated annual cost of this natural gas supply contract?
The total contract value is $42,076,652.37 over a period of 1833 days (approximately 5 years). Dividing the total value by the duration suggests an average annual expenditure of roughly $8.4 million. However, this is a simplified calculation and actual annual spending may vary based on usage and delivery schedules.
Are there any identified risks associated with WGL Energy Services, Inc. as a sole awardee in this competitive process?
While the contract was awarded under full and open competition, the data does not specify if WGL Energy Services, Inc. was the sole entity performing the service or if there were multiple awardees. Risks would typically be assessed based on the vendor's past performance, financial stability, and the criticality of the service provided.
How does the pricing structure (firm fixed price) compare to market rates for natural gas supply to federal agencies?
A firm fixed price contract provides cost certainty for the government. To assess its effectiveness, this price would need to be benchmarked against prevailing market rates for natural gas at the time of award and throughout the contract period, considering factors like volume, delivery location, and contract length.
Industry Classification
NAICS: Mining, Quarrying, and Oil and Gas Extraction › Oil and Gas Extraction › Natural Gas Extraction
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Altagas Ltd
Address: 8614 WESTWOOD CTR DR STE 1200, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $42,076,652
Exercised Options: $42,076,652
Current Obligation: $42,076,652
Actual Outlays: $31,869,639
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60421D7500
IDV Type: IDC
Timeline
Start Date: 2022-09-23
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-02
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