NASA awards $2.15M contract for natural gas supply to United Energy Trading, LLC

Contract Overview

Contract Amount: $2,148,870 ($2.1M)

Contractor: United Energy Trading, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SUPPLY - GRC MAIN CAMPUS

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $2.1 million to UNITED ENERGY TRADING, LLC for work described as: NATURAL GAS SUPPLY - GRC MAIN CAMPUS Key points: 1. Contract value appears reasonable for a two-year natural gas supply agreement. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates risk of cost overruns for the agency. 4. Contract duration of two years allows for stable energy provision. 5. Geographic focus on New Jersey for the GRC Main Campus supply. 6. No small business set-aside indicates a focus on larger market participants.

Value Assessment

Rating: good

The contract value of $2.15 million for two years of natural gas supply seems aligned with market rates for a facility of this nature. While specific per-unit cost benchmarks are not provided, the firm fixed-price structure offers predictable expenses for NASA. The competition level, as indicated by the number of bids (10), suggests a healthy market response, which typically leads to better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 10 bids received. This indicates that the solicitation was widely advertised, and multiple vendors were able to participate. The presence of 10 bidders suggests a robust competitive environment, which is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it increases the likelihood of securing the natural gas supply at the most economical price, preventing potential overspending.

Public Impact

The primary beneficiary is NASA's GRC Main Campus, ensuring a consistent supply of natural gas for its operations. Services delivered include the provision of natural gas, a critical utility for facility functioning. The geographic impact is localized to New Jersey, where the GRC Main Campus is situated. Workforce implications are minimal, as this is a supply contract rather than a service requiring significant on-site labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The energy sector, specifically natural gas distribution, is a critical component of infrastructure for government facilities. This contract falls within the broader category of utility services, which are essential for the day-to-day operations of federal agencies. Market size for natural gas supply is substantial, with numerous providers competing for contracts. This specific award represents a small fraction of the overall federal spending on energy.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a small business set-aside. This suggests that the primary focus was on securing the best value from the broader market, rather than specifically targeting small businesses. There is no explicit information regarding subcontracting plans for small businesses, which may be a missed opportunity for engaging the small business ecosystem.

Oversight & Accountability

The contract is a definitive contract awarded by NASA, subject to standard federal procurement regulations and oversight. Accountability is maintained through the firm fixed-price structure, which caps NASA's liability. Transparency is generally provided through federal contract databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

energy, natural-gas, nasa, definitive-contract, firm-fixed-price, full-and-open-competition, new-jersey, utility-services, medium-value, operational-support

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $2.1 million to UNITED ENERGY TRADING, LLC. NATURAL GAS SUPPLY - GRC MAIN CAMPUS

Who is the contractor on this award?

The obligated recipient is UNITED ENERGY TRADING, 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 $2.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the historical spending pattern for natural gas at NASA's GRC Main Campus?

Historical spending data for natural gas at NASA's GRC Main Campus is not directly available in the provided data. However, understanding past expenditures would allow for a more robust comparison of the current $2.15 million award over two years. Analyzing previous contract values, volumes purchased, and price fluctuations would help determine if this new contract represents an increase, decrease, or stable cost compared to prior periods. Without this historical context, it is difficult to definitively assess the long-term value proposition of this specific award beyond the immediate competitive landscape.

How does the per-unit cost of natural gas under this contract compare to market rates in New Jersey?

The provided data does not include the specific per-unit cost (e.g., per therm or MMBtu) of natural gas for this contract, nor does it offer a direct comparison to prevailing market rates in New Jersey. To perform such an analysis, one would need to know the estimated annual or total volume of natural gas to be supplied under the $2.15 million contract. This volume could then be divided into the total contract value to derive an average per-unit cost. This derived cost would then need to be benchmarked against publicly available indices for natural gas prices in the relevant New Jersey region during the contract period (October 2024 - September 2026). Without these specific figures, a precise per-unit cost comparison is not possible.

What are the specific risks associated with a firm fixed-price contract for natural gas supply?

While a firm fixed-price contract offers cost certainty for the buyer (NASA), the primary risk is borne by the seller (United Energy Trading, LLC). If market prices for natural gas significantly exceed the contracted price during the two-year term, the supplier could incur substantial losses. Conversely, if market prices fall dramatically, the supplier might have secured an exceptionally favorable deal. For NASA, the main risk is that the fixed price might be higher than the market price at certain points, representing a suboptimal purchase if market conditions were to decline. However, the competitive bidding process is intended to mitigate this by ensuring the initial fixed price is deemed reasonable by the market.

What is the track record of United Energy Trading, LLC in supplying natural gas to federal agencies?

Information regarding the specific track record of United Energy Trading, LLC in supplying natural gas to federal agencies is not detailed in the provided contract data. To assess their performance, one would need to review their past federal contract history, including contract values, durations, performance reviews, and any instances of contract disputes or terminations. A thorough analysis would involve checking databases like the Federal Procurement Data System (FPDS) or SAM.gov for previous awards and performance information. Without this external data, it's challenging to evaluate their reliability and experience specifically within the federal contracting environment.

How does the number of bidders (10) influence the price discovery for this natural gas contract?

A total of 10 bidders for this natural gas supply contract significantly enhances price discovery. With multiple companies vying for the contract, each is incentivized to submit a competitive bid to secure the business. This competition drives down prices as bidders aim to offer the most attractive terms and pricing to NASA. A higher number of bidders generally indicates a more dynamic market and reduces the likelihood that any single bidder can dictate terms or prices. It suggests that NASA is likely receiving a price that closely reflects the current market value for natural gas in that region.

Industry Classification

NAICS: UtilitiesNatural Gas DistributionNatural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPINGUTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 94674

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: United Energy Corporation

Address: 919 S 7TH ST STE 405, BISMARCK, ND, 58504

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

Financial Breakdown

Contract Ceiling: $6,000,000

Exercised Options: $6,000,000

Current Obligation: $2,148,870

Actual Outlays: $1,521,583

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2024-10-01

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-03-10

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