NASA Ames Center Secures Natural Gas Supply for Over 2 Years at $2.4M
Contract Overview
Contract Amount: $2,403,117 ($2.4M)
Contractor: NRG Business Marketing LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-10-01
End Date: 2026-03-31
Contract Duration: 912 days
Daily Burn Rate: $2.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLIES FOR NASA AMES RESEARCH CENTER
Place of Performance
Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.4 million to NRG BUSINESS MARKETING LLC for work described as: NATURAL GAS SUPPLIES FOR NASA AMES RESEARCH CENTER Key points: 1. Contract awarded to NRG BUSINESS MARKETING LLC for natural gas supply. 2. Full and open competition was utilized for this procurement. 3. The contract duration is 912 days, ending March 31, 2026. 4. The total award amount is $2,403,117.18. 5. This contract falls under the 'Energy' sector.
Value Assessment
Rating: good
The firm fixed price contract for natural gas supply appears reasonable given the duration and market volatility. Benchmarking against similar energy contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive bidding process likely ensured a fair price, minimizing unnecessary taxpayer expenditure for essential energy services.
Public Impact
Ensures reliable energy for NASA Ames Research Center operations. Supports critical research and development activities at the facility. Contributes to the stability of energy supply in the California region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the natural gas market.
- Dependence on a single supplier for a critical resource.
Positive Signals
- Competitive award process.
- Long-term price stability through fixed-price contract.
Sector Analysis
This contract is within the Energy sector, specifically for natural gas supply. Energy costs can be volatile, making long-term fixed-price contracts attractive for budget certainty.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the awardee is NRG BUSINESS MARKETING LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the National Aeronautics and Space Administration (NASA) through a full and open competition process, suggesting adherence to procurement regulations. Oversight would involve monitoring contract performance and adherence to terms.
Related Government Programs
- Natural Gas Extraction
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Market volatility of natural gas prices.
- Potential for price increases beyond the fixed rate if market conditions change drastically.
- Dependence on a single supplier for a critical utility.
- Limited visibility into subcontractor participation for small business goals.
Tags
natural-gas-extraction, national-aeronautics-and-space-administr, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.4 million to NRG BUSINESS MARKETING LLC. NATURAL GAS SUPPLIES FOR NASA AMES RESEARCH CENTER
Who is the contractor on this award?
The obligated recipient is NRG BUSINESS MARKETING LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-03-31.
What is the historical price trend for natural gas in California over the contract period?
Analyzing historical natural gas prices in California for the period preceding and during the contract (October 1, 2023, to March 31, 2026) is crucial. This helps assess if the firm fixed price offers a favorable rate compared to market fluctuations. Significant price drops could indicate overpayment, while sharp increases would highlight the value of the fixed price.
What are the specific energy needs of NASA Ames Research Center that this contract supports?
Understanding the specific energy demands of NASA Ames Research Center is key to evaluating the contract's necessity and scale. This includes identifying whether the natural gas is for heating, power generation, or specialized research equipment. Knowing these details helps contextualize the $2.4M award and assess if it aligns with operational requirements and potential energy conservation efforts.
Were there any alternative energy sources considered or available to NASA Ames Research Center?
Investigating alternative energy sources considered or available to NASA Ames Research Center is important for assessing the long-term strategic value and potential risks of relying on natural gas. This includes evaluating renewable energy options, energy efficiency upgrades, or other fuel sources. Understanding the alternatives helps determine if this contract represents the most cost-effective and sustainable energy solution.
Industry Classification
NAICS: Mining, Quarrying, and Oil and Gas Extraction › Oil and Gas Extraction › Natural Gas Extraction
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $2,866,650
Exercised Options: $2,866,650
Current Obligation: $2,403,117
Actual Outlays: $1,958,936
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60423D7522
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-30
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