Interior Department awards $43.9M contract for natural gas services to Washington Gas Light Company

Contract Overview

Contract Amount: $43,865 ($43.9K)

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: $121/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-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 $43,864.89 to WASHINGTON GAS LIGHT COMPANY for work described as: NON-INTERRUPTIBLE NATURAL GAS SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. Pricing structure is firm fixed price, offering cost certainty but potentially limiting flexibility. 3. Contract duration of one year with potential for extensions suggests ongoing need for services. 4. Service area is limited to the District of Columbia, indicating a localized requirement. 5. No small business set-aside or subcontracting requirements were noted, potentially impacting small business participation.

Value Assessment

Rating: fair

The contract value of $43.9 million for one year of natural gas services appears to be within a reasonable range for utility services in a major metropolitan area. However, without competitive bidding, it is difficult to benchmark the value for money effectively. The firm fixed price structure provides predictability, but the absence of competition means there's no direct market comparison to assess if this price is optimal. Further analysis would require comparing historical pricing for similar services in the DC area or examining Washington Gas Light Company's standard tariff rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates that the procurement was not open to full and open competition, and no justification for other than full and open competition is provided in the available data. This approach limits the number of potential bidders to one, which can sometimes lead to higher prices and reduced innovation compared to a competitive process. The lack of bidders means there is no direct comparison of offers to determine the best value.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price discovery and potential cost savings that competition typically provides. This can result in paying a premium for services.

Public Impact

Federal agencies operating within the District of Columbia will benefit from a reliable supply of natural gas. The contract ensures the provision of essential natural gas distribution services. The geographic impact is confined to Washington D.C. Workforce implications are likely internal to Washington Gas Light Company, as this is a utility service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Firm fixed price contract may not adapt to fluctuating market conditions.
Sole-source award limits transparency in pricing.

Positive Signals

Ensures continuity of essential utility services.
Firm fixed price provides budget certainty for the agency.
Contract is for a defined period, allowing for future re-evaluation.

Sector Analysis

The energy sector, specifically natural gas distribution, is a critical utility service. Federal agencies, like other large consumers, rely on established utility providers for essential services. Washington Gas Light Company is a major provider in the Washington D.C. metropolitan area. The contract value is significant for a one-year utility service agreement, reflecting the scale of operations and the essential nature of natural gas for heating, cooling, and other operational needs within federal facilities.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no information suggesting subcontracting opportunities for small businesses. This means that the primary contractor, Washington Gas Light Company, will likely perform the services directly, with limited or no direct benefit to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the firm fixed price contract, requiring delivery of services as specified. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Contracts
Natural Gas Procurement
Department of the Interior Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $43,864.89 to WASHINGTON GAS LIGHT COMPANY. NON-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 $43,864.89.

What is the period of performance?

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

What is the historical spending pattern for natural gas services by the Department of the Interior in the District of Columbia?

Analyzing historical spending for natural gas services by the Department of the Interior in the District of Columbia is crucial for context. While specific historical data for this exact contract is not provided, general trends in utility spending can be inferred. Federal agencies often enter into multi-year agreements for essential services like natural gas. The current award of $43.9 million for a one-year period suggests a significant and consistent need. Without access to prior contracts or detailed spending reports for the Department of the Interior's facilities in D.C., it's difficult to establish a precise year-over-year spending trend. However, the sole-source nature of this award implies that the agency has likely been using Washington Gas Light Company for these services for some time, potentially under similar contract structures. Future analysis could involve examining the agency's budget allocations for utilities and any publicly available procurement histories for Washington Gas Light Company.

How does the pricing of this contract compare to market rates for natural gas distribution in the District of Columbia?

Benchmarking the pricing of this $43.9 million contract against market rates for natural gas distribution in the District of Columbia is challenging due to the sole-source award. Washington Gas Light Company is a regulated utility, meaning its rates are often subject to oversight by public utility commissions. However, the absence of competition means this contract price isn't necessarily the lowest possible. To assess value, one would need to compare the per-unit cost (e.g., per therm or per dekatherm) against Washington Gas Light Company's published tariff rates for large commercial or industrial customers, or against rates charged to other large government entities in the same service area. If the contract price significantly deviates from regulated tariff rates or comparable contracts, it could indicate a lack of optimal value for the taxpayer.

What are the potential risks associated with a sole-source award for essential utility services?

Sole-source awards for essential utility services, like this natural gas contract, carry several potential risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most competitive rate. This can result in the government overpaying for services. Secondly, it limits the government's ability to explore innovative solutions or alternative service providers that might offer better terms or more efficient delivery. There's also a risk of complacency from the sole provider, potentially leading to a decline in service quality over time, as there's no immediate threat of losing the contract to a competitor. Finally, sole-source awards can reduce transparency in the procurement process, making it harder for oversight bodies and the public to verify that the government is achieving the best possible value.

What is the track record of Washington Gas Light Company in serving federal government contracts?

Washington Gas Light Company has a long-standing history of providing natural gas services to customers in the Washington D.C. metropolitan area, which includes federal government facilities. While specific details on their past performance with federal contracts are not provided in this data snippet, as a major utility provider, they are accustomed to serving large institutional clients. Their track record would typically be assessed based on reliability of service, responsiveness to issues, adherence to safety standards, and compliance with regulatory requirements. Federal agencies often rely on established utilities like Washington Gas Light Company due to their existing infrastructure and regulatory compliance. Any concerns regarding their past performance would likely be documented within the agency's contract management systems or through past performance reviews during previous procurement cycles.

What are the implications of the firm fixed price contract type for this natural gas service?

A firm fixed price (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. For natural gas services, this offers the Department of the Interior significant budget certainty. The agency knows exactly how much it will pay for the service over the contract period, simplifying financial planning. However, it also means that if the market price of natural gas decreases significantly, the government will continue to pay the fixed price, potentially missing out on savings. Conversely, if the market price increases, the contractor absorbs the additional cost, which is a benefit to the agency. The FFP structure places the cost risk on the contractor, incentivizing them to manage their own costs efficiently to maintain profitability.

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: 20342326Q00008

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: $52,000

Exercised Options: $43,865

Current Obligation: $43,865

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P16BSD1206

IDV Type: IDC

Timeline