DOJ's $7.88M Contract for CNG Maintenance Awarded to Nuovo Energy Solutions, LLC

Contract Overview

Contract Amount: $7,875 ($7.9K)

Contractor: Nuovo Energy Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $22/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NUOVO CNG MAINTENANCE OCT 01, 2025 - SEPT. 30, 2026

Place of Performance

Location: KERNERSVILLE, FORSYTH County, NORTH CAROLINA, 27285

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $7,875 to NUOVO ENERGY SOLUTIONS, LLC for work described as: NUOVO CNG MAINTENANCE OCT 01, 2025 - SEPT. 30, 2026 Key points: 1. The contract is for compressed natural gas (CNG) maintenance services. 2. Nuovo Energy Solutions, LLC is the sole awardee. 3. The contract duration is one year, with a total value of $7.88 million. 4. The procurement method was 'NOT COMPETED', raising potential concerns about price discovery.

Value Assessment

Rating: questionable

The contract value of $7.88 million for a one-year CNG maintenance service appears high without competitive bidding. Benchmarking against similar contracts for compressor maintenance is difficult due to the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be overpaying for CNG maintenance due to the absence of competitive bidding. The Federal Prison System relies on this service, making its uninterrupted provision critical. Lack of transparency in the procurement process hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Essential service for Federal Prison System
Clear contract duration and value

Sector Analysis

The contract falls under the Air and Gas Compressor Manufacturing (NAICS 333912) sector. Spending in this sector can vary widely based on the complexity and scale of maintenance required. Without competitive data, it's hard to benchmark this specific award.

Small Business Impact

There is no indication that small businesses were involved in this sole-source procurement, which is a missed opportunity for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was valid and that the price is reasonable.

Related Government Programs

Air and Gas Compressor Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited oversight on sole-source justification
Missed opportunity for small business engagement

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7,875 to NUOVO ENERGY SOLUTIONS, LLC. NUOVO CNG MAINTENANCE OCT 01, 2025 - SEPT. 30, 2026

Who is the contractor on this award?

The obligated recipient is NUOVO ENERGY SOLUTIONS, 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 $7,875.

What is the period of performance?

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

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without the specific justification documentation, it's impossible to assess its validity.

How can the government ensure fair pricing without competition?

When competition is not feasible, the government can employ various methods to ensure fair pricing. These include conducting thorough market research, obtaining independent government cost estimates, negotiating aggressively, and utilizing price analysis techniques based on historical data or commercial pricing. However, these methods are generally less effective than robust competition.

What is the potential risk of relying on a single vendor for critical maintenance?

Relying on a single vendor for critical maintenance poses several risks. These include potential price gouging, reduced service quality over time, and vulnerability to vendor performance issues or business failures. A sole-source arrangement can also limit the government's flexibility in adapting to changing needs or technological advancements.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Air and Gas Compressor Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 211 WILLOW OAK PL, KERNERSVILLE, NC, 27284

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,875

Exercised Options: $7,875

Current Obligation: $7,875

Actual Outlays: $2,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline