Tobyhanna Army Depot's $6.7M Electric Utility Services contract awarded to WGL Energy Services, Inc

Contract Overview

Contract Amount: $6,698,752 ($6.7M)

Contractor: WGL Energy Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRIC UTILITY SERVICES AT TOBYHANNA ARMY DEPOT

Place of Performance

Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to WGL ENERGY SERVICES, INC. for work described as: ELECTRIC UTILITY SERVICES AT TOBYHANNA ARMY DEPOT Key points: 1. Contract value represents a significant investment in essential utility services for a key military installation. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration is one year, indicating a need for ongoing, but not long-term, utility provision. 5. The North American Industry Classification System (NAICS) code 221112 points to the specific sector of fossil fuel electric power generation. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without access to comparable utility service contracts at other military depots or similar facilities. The firm fixed-price structure provides predictability, but the actual value-for-money depends on the prevailing market rates for electricity in the Tobyhanna, PA region during the contract period. Without detailed cost breakdowns or comparisons to historical spending for these services at the depot, a definitive assessment of cost-effectiveness is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically fosters competitive pricing. The number of bidders is not specified, but the open competition framework is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for essential services like electricity.

Public Impact

The primary beneficiary is the Tobyhanna Army Depot, ensuring reliable and continuous electric utility services essential for its operations. The services delivered are critical for maintaining the functionality of the depot, supporting military readiness and logistics. The geographic impact is localized to Tobyhanna, Pennsylvania, where the Army depot is situated. Workforce implications are likely minimal for this specific contract, as it primarily concerns the provision of a utility service rather than direct labor engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements (SLAs) in the provided data makes it difficult to assess service quality.
The contract's fixed-price nature could lead to potential cost overruns for the contractor if energy prices fluctuate significantly beyond projections.
Dependence on a single provider for a critical utility like electricity introduces a risk of service disruption if the contractor faces operational issues.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The firm fixed-price contract type provides budget certainty for the government.
The contract is for a defined period, allowing for re-evaluation of services and pricing at its conclusion.

Sector Analysis

The electric utility services sector is a mature and essential industry, critical for the functioning of all organizations, including government facilities. The market is characterized by regulated pricing in many areas, but also by competitive energy generation and supply options. This contract fits within the broader category of government procurement for essential operational support services. Comparable spending benchmarks for utility services at military installations vary widely based on size, location, and energy needs.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is not applicable or was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases, though detailed performance monitoring data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tobyhanna Army Depot Operations and Maintenance
Department of Defense Utility Procurement
Federal Energy Management Program
Army Installation Support Contracts

Risk Flags

Potential for contractor financial risk due to energy market volatility under fixed-price terms.
Lack of publicly available performance metrics makes service quality assessment difficult.
Dependence on a single provider for critical utility services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to WGL ENERGY SERVICES, INC.. ELECTRIC UTILITY SERVICES AT TOBYHANNA ARMY DEPOT

Who is the contractor on this award?

The obligated recipient is WGL ENERGY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical spending trend for electric utility services at Tobyhanna Army Depot?

Historical spending data for electric utility services at Tobyhanna Army Depot is not directly available in the provided data snippet. To ascertain spending trends, one would need to access historical contract awards for this specific service at the depot over multiple fiscal years. Analyzing past awards would reveal fluctuations in contract values, potential changes in pricing structures (e.g., fixed vs. variable rates), and shifts in awarded contractors. This analysis is crucial for understanding cost escalation, identifying potential inefficiencies, and establishing a baseline for evaluating the current contract's value for money. Without this historical context, it is difficult to determine if the current $6.7 million award represents an increase, decrease, or stable expenditure compared to previous periods.

How does the awarded price compare to market rates for similar electric utility services in Pennsylvania?

Comparing the awarded price of $6.69 million for one year of electric utility services to market rates in Pennsylvania requires access to regional energy market data and pricing for comparable government or large commercial contracts. The North American Industry Classification System (NAICS) code 221112 indicates fossil fuel electric power generation, but the specific service is utility provision. Factors influencing market rates include the specific energy mix, transmission costs, regulatory environment, and the volume of electricity consumed. Without granular data on the depot's energy consumption profile and prevailing commercial electricity rates in the Tobyhanna area, a precise benchmark is not feasible. However, the full and open competition suggests an attempt to align with market competitiveness.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this electric utility services contract. Typically, such contracts would include metrics related to reliability (e.g., uptime, frequency of outages), power quality (e.g., voltage stability), response times for service issues, and potentially energy efficiency targets. The absence of this information in the summary data makes it challenging to assess the expected quality of service and the mechanisms for holding the contractor accountable for performance. These details are usually found within the full contract document or its statement of work.

What is the track record of WGL Energy Services, Inc. in providing similar utility services to government entities?

WGL Energy Services, Inc. has a history of providing energy solutions, including electricity and natural gas, to various customers, including government entities. To assess their track record specifically for electric utility services at a scale comparable to Tobyhanna Army Depot, a review of their past government contracts would be necessary. This would involve examining contract performance history, any reported issues or disputes, and their overall reliability in meeting contractual obligations. Information on their past performance can often be found in federal procurement databases like SAM.gov or through agency performance rating systems, if available.

What is the potential risk associated with the firm fixed-price contract type in a volatile energy market?

A firm fixed-price (FFP) contract offers budget certainty to the government, as the price is set and generally not subject to adjustment based on the contractor's cost experience. However, in a volatile energy market, this contract type carries a higher risk for the contractor (WGL Energy Services, Inc.). If energy prices (e.g., for fuel or wholesale electricity) increase significantly beyond the contractor's projections during the contract period, their profit margins could be squeezed, or they could incur losses. Conversely, if prices decrease, the contractor benefits. The government is protected from price increases but may miss out on savings if market prices fall substantially, unless the contract includes specific clauses addressing such scenarios.

Does this contract represent a significant portion of WGL Energy Services, Inc.'s overall revenue or government contract portfolio?

Determining whether this $6.7 million contract represents a significant portion of WGL Energy Services, Inc.'s overall revenue or government contract portfolio requires access to the company's financial statements and a comprehensive list of their active contracts. As a single delivery order, it is likely part of a larger framework or a portfolio of services they offer. Without proprietary financial information or a detailed breakdown of their contract backlog, it is impossible to definitively state its significance to the company's overall business operations or its standing within their government contracting activities.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Fossil Fuel Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altagas Ltd

Address: 8614 WESTWOOD CENTER DR, 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: $13,547,636

Exercised Options: $6,698,752

Current Obligation: $6,698,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60426D8004

IDV Type: IDC

Timeline