Army awards $36.5M for gas services to Noram Energy Corp, later CenterPoint Energy
Contract Overview
Contract Amount: $36,570,353 ($36.6M)
Contractor: Centerpoint Energy Resources Corp.
Awarding Agency: Department of Defense
Start Date: 1997-06-01
End Date: 2021-10-29
Contract Duration: 8,916 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: 199711!2100!0190!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997C4001 !A!*!970601 !19970601!19970601!006948210!006948210!007931728!N!1V634!NORAM ENERGY CORP !1600 SMITH ST !HOUSTON !TX!77002!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !0001!+000000053264!N!N!000000000000!S111!GAS SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !4923!3!A!S!C!B!N!Z!B !N!J!1!001!N!1E!Z!Y!Z!* !* !N!C!*!Z!Z!A!A!A!*!* !*!N!A!A!N!*!*!*!*!*!
Place of Performance
Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $36.6 million to CENTERPOINT ENERGY RESOURCES CORP. for work described as: 199711!2100!0190!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997C4001 !A!*!970601 !19970601!19970601!006948210!006948210!007931728!N!1V634!NORAM ENERGY CORP !1600 SMITH ST !HOUSTON !TX!77002!27300!031!40!FORT SILL !COMANC… Key points: 1. Contract awarded in 1997 for gas services, with an end date in 2021. 2. Initial award to Noram Energy Corp, with CenterPoint Energy Resources Corp. listed as the contractor. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. The contract was not available for competition, raising questions about price discovery.
Value Assessment
Rating: fair
The contract value is $36.5 million over its extended duration. Benchmarking is difficult without specific service details and historical pricing for gas services in Oklahoma.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited competition approach. This could potentially lead to less favorable pricing compared to a fully competitive process.
Taxpayer Impact: The long duration and significant value suggest a substantial taxpayer investment, with potential for cost savings if competition had been fully leveraged.
Public Impact
Long-term energy supply contract for a military installation. Potential for price fluctuations in natural gas markets impacting final cost. Transition from Noram Energy to CenterPoint Energy indicates corporate changes affecting contract administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Unclear initial awardee vs. current contractor
Positive Signals
- Firm Fixed Price contract type provides cost certainty
- Long-term commitment ensures stable energy supply
Sector Analysis
This contract falls under utility services, specifically gas supply for a federal facility. Spending benchmarks for such contracts vary widely based on location, volume, and market conditions.
Small Business Impact
No specific information is available regarding small business participation in this contract. The awardee, CenterPoint Energy, is a large utility provider.
Oversight & Accountability
The long duration and limited competition warrant oversight to ensure fair pricing and efficient service delivery throughout the contract's life.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Long contract duration
- Potential for price escalation despite FFP
- Lack of detailed service scope
Tags
department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.6 million to CENTERPOINT ENERGY RESOURCES CORP.. 199711!2100!0190!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3997C4001 !A!*!970601 !19970601!19970601!006948210!006948210!007931728!N!1V634!NORAM ENERGY CORP !1600 SMITH ST !HOUSTON !TX!77002!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !0001!+000000053264!N!N!000000000000!S111!GAS SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !4923!3!A!S!C!B!N!Z!B !N!J!1!0
Who is the contractor on this award?
The obligated recipient is CENTERPOINT ENERGY RESOURCES CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $36.6 million.
What is the period of performance?
Start: 1997-06-01. End: 2021-10-29.
What was the justification for limiting competition on this long-term gas services contract?
The justification for limiting competition is not detailed in the provided data. Typically, limited competition might be due to specific infrastructure requirements, existing utility service areas, or unique delivery needs at the Fort Sill facility. Further investigation into the contract file would be necessary to ascertain the precise reasons and assess if they were valid.
How did the pricing evolve over the contract's extended period, given the volatility of natural gas markets?
The provided data indicates a Firm Fixed Price contract, suggesting an attempt to stabilize costs. However, without access to contract modifications or detailed pricing schedules, it's impossible to determine how the price evolved or if adjustments were made for market fluctuations. The long duration (1997-2021) likely encompassed significant market volatility.
What was the process for transitioning the contract from Noram Energy Corp. to CenterPoint Energy Resources Corp.?
The data lists both Noram Energy Corp. and CenterPoint Energy Resources Corp. in relation to the contract. The transition likely occurred due to corporate acquisition or restructuring. The specific process would involve contract novation or assignment, requiring government approval to ensure continuity of service and maintain agreed-upon terms and pricing.
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: Centerpoint Energy, Inc. (UEI: 104590802)
Address: 1600 SMITH ST, HOUSTON, TX, 77002
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,634,064
Exercised Options: $3,634,064
Current Obligation: $36,570,353
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1997-06-01
Current End Date: 2021-10-29
Potential End Date: 2021-10-29 00:00:00
Last Modified: 2021-10-31
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