Interior Department Awards $1.7M Contract for Natural Gas Services to Washington Gas Light Company

Contract Overview

Contract Amount: $170,000 ($170.0K)

Contractor: Washington GAS Light Company

Awarding Agency: Department of the Interior

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $467/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERRUPTIBLE NATURAL GAS SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $170,000 to WASHINGTON GAS LIGHT COMPANY for work described as: INTERRUPTIBLE NATURAL GAS SERVICES Key points: 1. Contract awarded for interruptible natural gas services. 2. Washington Gas Light Company is the sole provider in the District of Columbia. 3. The contract duration is one year, with a firm fixed price. 4. No small business participation is noted.

Value Assessment

Rating: fair

The contract is for interruptible natural gas services, which typically have lower prices than firm services. Without specific benchmarks for interruptible services in DC, it's difficult to definitively assess value. The firm fixed price provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is sole-source due to the nature of utility services, where competition is limited to the established provider. This limits price discovery and negotiation opportunities.

Taxpayer Impact: Taxpayers are paying a fixed price for a necessary utility service, but the lack of competition may result in a higher price than could be achieved through a competitive process.

Public Impact

Ensures essential natural gas supply for Department of the Interior facilities in DC. Supports energy infrastructure reliability for federal operations. Potential for higher costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
No small business participation.

Positive Signals

Firm fixed price provides cost certainty.
Ensures essential utility service.

Sector Analysis

This contract falls under the utility services sector, specifically natural gas distribution. Spending on utility services is generally stable and driven by operational needs. Benchmarks for natural gas are highly dependent on location and market fluctuations.

Small Business Impact

The contract does not indicate any provisions for small business participation. Given the sole-source nature and the provider being a large utility company, opportunities for small businesses are likely limited in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the price is fair and reasonable, even without direct competition. The Department of the Interior should have internal processes to validate pricing for utility contracts.

Related Government Programs

Natural Gas Distribution
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Sole-source award
Lack of competition
No small business participation
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $170,000 to WASHINGTON GAS LIGHT COMPANY. INTERRUPTIBLE NATURAL GAS SERVICES

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $170,000.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

Is the firm fixed price for interruptible natural gas services competitive given the sole-source nature?

Assessing competitiveness without market benchmarks for interruptible gas in DC is challenging. While sole-source awards inherently limit price discovery, the Department should have internal mechanisms to review the reasonableness of the fixed price against historical data or industry averages for similar interruptible service contracts, if available.

What is the risk associated with a sole-source award for essential utility services?

The primary risk of a sole-source award for essential utility services is the potential for paying a premium due to the lack of competitive bidding. This can lead to inefficient use of taxpayer funds. However, for regulated utilities, prices are often subject to oversight, which can mitigate some of this risk.

How effective is this contract in ensuring reliable natural gas supply for the Department of the Interior?

The contract is likely effective in ensuring a reliable supply, as it is with the established local utility provider. The firm fixed price provides budget certainty. However, the 'interruptible' nature means service could be curtailed during peak demand periods, which is a standard characteristic of such contracts.

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

Solicitation ID: 20342326Q00007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altagas Ltd

Address: 1000 MAINE AVE SW, WASHINGTON, DC, 20024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $316,667

Exercised Options: $170,000

Current Obligation: $170,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P16BSD1206

IDV Type: IDC

Timeline