DOJ's $56.8M Natural Gas Contract Awarded to United Energy Trading, LLC

Contract Overview

Contract Amount: $56,823 ($56.8K)

Contractor: United Energy Trading, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $156/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 UNITED ENERGY NATURAL GAS QTR 1 CONTRACT #47PA0724D0049

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19178

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $56,822.62 to UNITED ENERGY TRADING, LLC for work described as: FY26 P4 UNITED ENERGY NATURAL GAS QTR 1 CONTRACT #47PA0724D0049 Key points: 1. Contract Value: $56.8M over 1 year. 2. Competition: Full and open competition. 3. Risk: Low risk due to firm fixed price. 4. Sector: Energy - Natural Gas Distribution.

Value Assessment

Rating: good

The contract is a firm fixed price delivery order, which typically offers good value by locking in prices. Benchmarking against similar natural gas distribution contracts would provide further insight into cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing as multiple vendors can bid.

Taxpayer Impact: The firm fixed price structure protects taxpayers from potential price fluctuations in the natural gas market.

Public Impact

Ensures consistent energy supply for federal correctional facilities. Supports federal operations through reliable utility services. Impacts local energy markets through a significant contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility if market prices exceed the fixed rate.
Dependence on a single supplier for a critical utility.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract mitigates cost overruns.
Supports federal agency operations.

Sector Analysis

This contract falls within the Energy sector, specifically natural gas distribution, a critical utility for government facilities. Spending benchmarks for similar contracts would indicate if this price is competitive.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is managed by the Department of Justice, with oversight expected through standard federal procurement regulations and performance monitoring to ensure delivery and pricing compliance.

Related Government Programs

Natural Gas Distribution
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for market price to exceed fixed price.
Dependence on a single supplier.
Lack of small business participation data.
Geographic concentration of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $56,822.62 to UNITED ENERGY TRADING, LLC. FY26 P4 UNITED ENERGY NATURAL GAS QTR 1 CONTRACT #47PA0724D0049

Who is the contractor on this award?

The obligated recipient is UNITED ENERGY TRADING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $56,822.62.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical pricing trend for natural gas in the region covered by this contract?

Analyzing historical pricing trends for natural gas in Pennsylvania over the past few years would provide context for the firm fixed price. Understanding seasonal variations and long-term market movements helps assess if the current fixed price is advantageous for the government or if it might be higher than anticipated spot market prices.

What is the risk of supply disruption given the single awardee?

While United Energy Trading, LLC is the sole awardee for this delivery order, the risk of supply disruption is generally mitigated by the nature of natural gas distribution infrastructure and the potential for emergency backup suppliers. However, the contract's terms should outline contingency plans and penalties for non-performance.

How does the per-unit cost compare to similar contracts for federal facilities in adjacent regions?

Benchmarking the per-unit cost against similar natural gas contracts for federal facilities in adjacent regions is crucial for evaluating value. If this contract's unit price is significantly higher, it could indicate less effective price negotiation or unique regional market conditions that warrant further investigation.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: United Energy Corporation

Address: 919 S 7TH ST STE 405, BISMARCK, ND, 58504

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

Financial Breakdown

Contract Ceiling: $56,823

Exercised Options: $56,823

Current Obligation: $56,823

Actual Outlays: $18,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0049

IDV Type: IDC

Timeline