DOJ's Bureau of Prisons awards $120K for natural gas distribution to Kentucky Frontier Gas

Contract Overview

Contract Amount: $120,000 ($120.0K)

Contractor: Kentucky Frontier GAS, LLC.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 - KY FRONTIER GAS APRIL - JUNE 2026

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $120,000 to KENTUCKY FRONTIER GAS, LLC. for work described as: FY26 P4 - KY FRONTIER GAS APRIL - JUNE 2026 Key points: 1. Contract value appears reasonable for a 3-month natural gas supply. 2. Sole-source award limits price discovery and potential savings. 3. Short contract duration suggests a tactical, short-term need. 4. Performance risk is likely low given the nature of utility services. 5. This contract supports essential facility operations for the Bureau of Prisons. 6. Geographic concentration in Kentucky limits broader market impact.

Value Assessment

Rating: fair

The contract value of $120,000 for a 90-day period for natural gas distribution is difficult to benchmark without specific volume requirements and local market rates. However, given the nature of utility services, the price is likely aligned with market conditions for the specified period. The absence of competition, however, prevents a definitive assessment of whether this represents the best possible value.

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 justification for this approach is not provided in the available data. Sole-source awards typically result in fewer bids, potentially leading to higher prices and reduced innovation compared to fully competed contracts.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the lack of open competition for this natural gas supply.

Public Impact

Inmates and staff at the Bureau of Prisons facility in Kentucky benefit from reliable natural gas service. Essential services such as heating, cooking, and hot water are maintained. The contract directly supports the operational continuity of a federal correctional institution. The local economy in Kentucky may see indirect benefits through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to suboptimal pricing.
Sole-source justification needs further review to ensure necessity.
Limited contract duration may necessitate future competitive procurements.

Positive Signals

Contract supports essential utility services for a federal facility.
Short-term nature reduces long-term financial commitment risk.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

The energy sector, specifically natural gas distribution, is a critical utility service for government operations. While this contract is relatively small in dollar amount, it represents a component of the broader federal spending on essential services. Benchmarking this specific contract is challenging without detailed volume and rate information, but it falls within the typical range for short-term utility supply contracts for institutional facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does the data indicate any subcontracting requirements. The contractor, Kentucky Frontier Gas, LLC, is likely a small business itself, but the award does not reflect a strategic effort to promote small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons' contracting and facility management departments. As a delivery order under a larger framework (though not specified here), standard procurement regulations apply. Transparency is limited due to the sole-source nature and lack of detailed justification publicly available.

Related Government Programs

Bureau of Prisons Facility Operations
Federal Utility Contracts
Natural Gas Supply Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on pricing and competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $120,000 to KENTUCKY FRONTIER GAS, LLC.. FY26 P4 - KY FRONTIER GAS APRIL - JUNE 2026

Who is the contractor on this award?

The obligated recipient is KENTUCKY FRONTIER GAS, 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 $120,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source justification. However, the specific reason for this determination is not detailed. Typically, sole-source awards are justified when only one responsible source can provide the required supply or service, often due to unique capabilities, urgent and compelling needs, or specific government property requirements. Without further documentation from the Department of Justice's Bureau of Prisons, it is impossible to ascertain the precise rationale. This lack of transparency raises questions about whether competition was genuinely impossible or if alternative solutions were adequately explored.

How does the price of $120,000 for 90 days of natural gas compare to market rates for similar facilities?

Directly comparing the $120,000 price for a 90-day period is challenging without knowing the exact volume of natural gas required and the specific delivery point in Kentucky. Natural gas prices fluctuate based on market demand, supply, weather conditions, and transportation costs. However, for a typical correctional facility, this amount suggests a moderate consumption level. To perform a robust comparison, one would need to obtain the facility's historical consumption data and compare the implied per-unit cost (e.g., per dekatherm or thousand cubic feet) against prevailing commercial or industrial rates in that specific geographic region during the April-June 2026 timeframe. The sole-source nature of the award prevents a direct competitive benchmark.

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

The primary risk of a sole-source award for essential utility services like natural gas is the potential for paying a non-competitive price. Without the pressure of multiple bidders vying for the contract, the awarded contractor may not offer the lowest possible rate. This can lead to inefficient use of taxpayer funds. Additionally, sole-source awards can reduce transparency and accountability in the procurement process. While the service itself (natural gas distribution) is generally standardized, the lack of competition means the government cannot explore alternative suppliers or potentially more innovative service delivery models that might emerge in a competitive environment. The short duration of this contract mitigates some long-term risk but necessitates future procurements.

What is the expected performance standard for natural gas distribution, and how is it monitored?

The expected performance standard for natural gas distribution typically revolves around reliable and continuous delivery of the contracted volume and pressure, meeting all safety and regulatory requirements. For a utility service like this, the primary performance metric is uninterrupted supply. Monitoring would likely involve tracking delivery volumes against the contract, ensuring compliance with safety protocols, and responding to any service disruptions. The Bureau of Prisons would be responsible for monitoring contractor performance, potentially through facility managers or designated contracting officers' representatives. Given the essential nature of the service, any failure in delivery could have significant operational impacts on the correctional facility.

How does this contract fit into the Bureau of Prisons' overall spending on facility utilities?

This $120,000 contract represents a small fraction of the Bureau of Prisons' overall budget for facility operations and utilities. The Bureau manages numerous correctional institutions across the country, each with significant energy demands, including electricity, water, and heating fuels like natural gas. While the specific amount is modest, it is indicative of the ongoing need for reliable utility services to maintain secure and functional prison environments. Analyzing this single contract provides limited insight into the broader utility spending patterns, which would require a review of multiple contracts across various facilities and energy types over several fiscal years.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2963 KENTUCKY RT 321 N, PRESTONSBURG, KY, 41653

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

Financial Breakdown

Contract Ceiling: $120,000

Exercised Options: $120,000

Current Obligation: $120,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B11818D00000024A

IDV Type: IDC

Timeline