DOJ's Federal Prison System awards $63M for natural gas supply in West Virginia over 364 days

Contract Overview

Contract Amount: $63,026 ($63.0K)

Contractor: Mountaineer GAS CO

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $173/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 MOUNTAINEER GAS NATURAL GAS QTR 1

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25361

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $63,026.3 to MOUNTAINEER GAS CO for work described as: FY26 P4 MOUNTAINEER GAS NATURAL GAS QTR 1 Key points: 1. Significant contract value for essential utility services. 2. Sole-source award limits competitive pricing opportunities. 3. Potential for price volatility in natural gas markets. 4. Focus on correctional facility operations.

Value Assessment

Rating: questionable

The contract is a Firm Fixed Price purchase order for natural gas. Without comparable contract data or a competitive bidding process, assessing the pricing's value relative to market benchmarks is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices than if multiple vendors had competed for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding for this essential service.

Public Impact

Ensures continuous natural gas supply for federal correctional facilities. Supports operational needs of the Bureau of Prisons. Impacts energy costs for a critical government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Market volatility risk for natural gas

Positive Signals

Ensures essential utility service delivery
Firm Fixed Price contract type

Sector Analysis

This contract falls under the utilities sector, specifically natural gas distribution. Federal spending on utilities is substantial, and pricing is often influenced by market fluctuations and regulatory environments.

Small Business Impact

No information is available regarding small business participation in this contract. The sole-source nature may limit opportunities for small businesses to compete.

Oversight & Accountability

The award is a purchase order, which is a common procurement instrument. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for above-market pricing.
Vulnerability to natural gas market volatility.
Lack of transparency in price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $63,026.3 to MOUNTAINEER GAS CO. FY26 P4 MOUNTAINEER GAS NATURAL GAS QTR 1

Who is the contractor on this award?

The obligated recipient is MOUNTAINEER GAS CO.

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 $63,026.3.

What is the period of performance?

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

What is the historical pricing trend for natural gas in West Virginia for similar government contracts?

Historical pricing data for similar government contracts in West Virginia is not readily available for this specific sole-source award. However, general natural gas market trends indicate significant price volatility over the past few years, influenced by global supply, demand, and geopolitical factors. Without a competitive bid, it's challenging to ascertain if this firm fixed price reflects favorable market conditions or a premium.

What are the risks associated with a sole-source award for a commodity like natural gas?

The primary risk of a sole-source award for natural gas is the potential for inflated pricing due to the lack of competitive pressure. It also removes the incentive for the supplier to offer the most cost-effective solution. Furthermore, reliance on a single supplier can create vulnerabilities if that supplier faces operational issues or market disruptions.

How does the firm fixed price contract type mitigate or exacerbate risks for this natural gas purchase?

A firm fixed price contract shifts the risk of cost overruns to the contractor, providing budget certainty for the government. However, for a volatile commodity like natural gas, this fixed price might be set at a level that either overcompensates the contractor if prices fall or becomes disadvantageous to the government if prices rise significantly above the contracted rate, especially in a sole-source scenario.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 56TH ST SE, CHARLESTON, WV, 25304

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

Financial Breakdown

Contract Ceiling: $63,026

Exercised Options: $63,026

Current Obligation: $63,026

Actual Outlays: $18,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline