NARA awards $344K for natural gas service at Nixon Library, extending through 2031

Contract Overview

Contract Amount: $344,450 ($344.5K)

Contractor: Southern California GAS Company

Awarding Agency: National Archives and Records Administration

Start Date: 2021-10-01

End Date: 2031-09-30

Contract Duration: 3,651 days

Daily Burn Rate: $94/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW GAS SERVICE AT THE RICHARD NIXON LIBRARY.

Place of Performance

Location: YORBA LINDA, ORANGE County, CALIFORNIA, 92886

State: California Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $344,450.12 to SOUTHERN CALIFORNIA GAS COMPANY for work described as: NEW GAS SERVICE AT THE RICHARD NIXON LIBRARY. Key points: 1. Contract value appears reasonable for a decade-long utility service agreement. 2. Sole-source award limits price discovery and potential savings. 3. Long contract duration presents potential for price escalation beyond market norms. 4. Service is essential for facility operations, indicating a critical need. 5. Geographic concentration in California may limit broader market comparisons. 6. Contract type is firm fixed price, offering budget certainty but limiting flexibility.

Value Assessment

Rating: fair

The contract value of $344,450.12 over 10 years for natural gas service is difficult to benchmark without specific usage data. However, for a utility service, the annual cost averages around $34,445. This seems within a reasonable range for a federal facility, but the lack of competition prevents a true value-for-money assessment. Without comparable contracts for similar facilities or detailed usage metrics, it's hard to definitively state if this represents excellent or questionable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Southern California Gas Company, was considered. This approach is typically used when only one responsible source is available or in the interest of economy and efficiency. However, the absence of competition means there was no opportunity to solicit bids from other providers, potentially leading to higher prices than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without exploring alternative suppliers, it's impossible to know if a lower price could have been secured.

Public Impact

The Richard Nixon Presidential Library and Museum will receive essential natural gas services. Facility operations, including heating, cooling, and potentially other functions, will be maintained. The primary beneficiaries are the National Archives and Records Administration (NARA) and the public accessing the library. The geographic impact is localized to Yorba Linda, California, where the library is situated. There are no direct workforce implications mentioned, as this is a utility service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Long contract duration (10 years) increases risk of price escalation over time.
Lack of detailed performance metrics makes it difficult to assess service quality objectively.

Positive Signals

Firm fixed price provides budget certainty for the agency.
Contract ensures continuous and essential utility service for a critical federal facility.
Awarding to an established utility provider in the region ensures reliable service delivery.

Sector Analysis

This contract falls within the Utilities and Energy sector, specifically focusing on natural gas distribution. The market for utility services is often characterized by natural monopolies or highly regulated environments, especially at the local distribution level. Southern California Gas Company is a major provider in its service area. Benchmarking this contract is challenging without specific consumption data, but the duration and sole-source nature are key factors in its assessment.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is directly to Southern California Gas Company, a large utility provider. Therefore, there is no direct impact on the small business ecosystem from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Archives and Records Administration (NARA). As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the lack of competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Utilities Contracts
Presidential Library Operations Support
National Archives and Records Administration Facilities Management

Risk Flags

Sole-source award may lead to non-competitive pricing.
Long contract duration (10 years) poses risk of unfavorable price escalation.
Lack of detailed performance metrics hinders objective assessment of service quality.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $344,450.12 to SOUTHERN CALIFORNIA GAS COMPANY. NEW GAS SERVICE AT THE RICHARD NIXON LIBRARY.

Who is the contractor on this award?

The obligated recipient is SOUTHERN CALIFORNIA GAS COMPANY.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $344,450.12.

What is the period of performance?

Start: 2021-10-01. End: 2031-09-30.

What is the historical spending pattern for natural gas services at the Richard Nixon Library?

Historical spending data for natural gas at the Richard Nixon Library is not provided in the available contract details. This specific award covers a new service period from October 1, 2021, to September 30, 2031, with a total value of $344,450.12. To understand historical patterns, one would need to access previous contracts or utility bills for the facility. Without this information, it's difficult to assess if the current pricing represents an increase or decrease compared to past expenditures or if the total value is consistent with previous long-term agreements.

How does the per-unit cost of natural gas compare to market rates in Southern California?

A direct per-unit cost comparison is not feasible with the provided data. The contract value is a total for a 10-year period, and specific consumption volumes (e.g., therms) are not detailed. Natural gas pricing is typically variable, influenced by market fluctuations, regulatory changes, and tiered rate structures. Southern California Gas Company operates in a regulated environment, and its rates are approved by the California Public Utilities Commission. To assess the per-unit cost, one would need to know the exact volume of gas consumed and compare the effective rate per unit against the utility's published tariffs or rates for comparable commercial/institutional customers in the region.

What is the justification for the sole-source award, and were alternatives considered?

The contract states the award was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Typically, such justifications are based on factors like the existence of only one responsible source, urgent and compelling needs where competition is not feasible, or when a specific brand or service is required and only one vendor can provide it. For utility services like natural gas distribution, the justification often stems from the existence of a regulated monopoly provider in a specific geographic area. Southern California Gas Company is likely the sole provider of natural gas distribution infrastructure to the Richard Nixon Library's location. Alternatives would typically involve assessing if other gas providers could serve the location or if alternative energy sources could be utilized, which may not have been feasible or cost-effective.

What are the potential risks associated with a 10-year fixed-price contract for natural gas?

A significant risk with a 10-year fixed-price contract for natural gas is price volatility. While the fixed price offers budget certainty for the agency, it insulates the contractor from potential decreases in market gas prices. Conversely, if market prices rise significantly above the fixed rate, the government could end up paying substantially more than current market value over the contract's life. Another risk is the potential for the contractor to reduce service quality or responsiveness over such a long period, although this is mitigated by the nature of utility services. Furthermore, changes in energy policy or technology over a decade could render the contract less optimal.

Are there any performance metrics or service level agreements (SLAs) included in this contract?

The provided data does not specify any performance metrics or service level agreements (SLAs) for this natural gas service contract. Typically, utility contracts might include clauses related to reliability of service, response times for outages, or accuracy of billing. However, for essential services like natural gas distribution from a regulated utility, the primary performance expectation is reliable delivery as per the utility's tariff. The absence of explicit SLAs makes it harder to quantitatively measure contractor performance beyond the basic provision of the service itself.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 W 5TH ST, LOS ANGELES, CA, 90013

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

Financial Breakdown

Contract Ceiling: $494,450

Exercised Options: $494,450

Current Obligation: $344,450

Actual Outlays: $317,868

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P14BSD1054

IDV Type: IDC

Timeline