Justice Department awards $119K for natural gas distribution to Mountaineer Gas Co

Contract Overview

Contract Amount: $119,389 ($119.4K)

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: $328/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 NATURAL GAS DISTRIBUTION ACCOUNT #513362-607046

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25361

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $119,389.24 to MOUNTAINEER GAS CO for work described as: FY26 NATURAL GAS DISTRIBUTION ACCOUNT #513362-607046 Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings. 2. The fixed-price contract term aligns with typical utility service agreements. 3. Limited competition may impact the government's ability to secure the most favorable pricing. 4. The contract supports essential utility services for a federal facility. 5. Geographic concentration in West Virginia suggests a localized service requirement.

Value Assessment

Rating: fair

The contract value of $119,389.24 for natural gas distribution over one year appears reasonable for a utility service. However, without competitive bidding, it's difficult to benchmark against market rates or determine if it represents the best value. Similar contracts for utility services can vary significantly based on volume, location, and market fluctuations. The firm fixed-price structure provides cost certainty but limits potential savings from negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario. This typically occurs when only one vendor can provide the required service, often due to geographic exclusivity or specialized infrastructure. The lack of multiple bidders means the government did not benefit from a competitive process to drive down prices or explore alternative solutions.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there's less assurance that the price reflects the lowest achievable cost for this essential service.

Public Impact

The Federal Prison System in West Virginia benefits from a reliable supply of natural gas. This contract ensures the operational continuity of a federal facility. The service directly impacts the infrastructure supporting correctional services. The primary beneficiaries are the inmates and staff within the facility requiring heating and other utilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated pricing.
Sole-source award limits opportunities for exploring innovative or cost-saving alternatives.
Reliance on a single provider may create vulnerability if the provider faces operational issues.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contract duration aligns with typical utility service periods.
Service supports essential government operations.

Sector Analysis

The natural gas distribution sector is characterized by regulated utilities operating within defined service territories. Contracts for natural gas supply to federal facilities are common, often awarded to the incumbent local utility provider due to the infrastructure requirements. Market size for such services is substantial, but individual contract values can vary widely based on facility size and consumption. This contract fits within the broader utility services category for government procurement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them. The award to Mountaineer Gas Co., a regional utility, suggests a focus on established infrastructure providers rather than a broad competition that might include smaller firms. The absence of small business considerations in this specific award does not preclude their involvement in other federal contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the firm fixed-price agreement, requiring the contractor to deliver the specified service at the agreed-upon cost. Transparency is limited due to the sole-source nature of the award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Utilities
Natural Gas Procurement
Department of Justice Contracts
Utility Services for Federal Facilities

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $119,389.24 to MOUNTAINEER GAS CO. FY26 NATURAL GAS DISTRIBUTION ACCOUNT #513362-607046

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 $119,389.24.

What is the period of performance?

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

What is the historical spending pattern for natural gas distribution services at this specific federal facility?

Historical spending data for natural gas distribution at this specific federal facility is not directly provided in the given data. However, the contract ID '221210' and the award to 'MOUNTAINEER GAS CO' suggest a recurring need for this service. To assess historical patterns, one would need to query federal procurement databases for previous contracts awarded to Mountaineer Gas Co. or other providers for natural gas at the Bureau of Prisons facility in West Virginia. Analyzing past award amounts, contract durations, and competition levels would reveal trends in pricing, vendor reliance, and potential cost increases or decreases over time. Without this historical context, it is difficult to definitively state whether the current $119,389.24 award represents an increase, decrease, or stable cost compared to previous years.

How does the per-unit cost of natural gas under this contract compare to market rates in West Virginia?

Determining the precise per-unit cost of natural gas under this contract is challenging without knowing the exact volume of natural gas to be consumed over the contract period. The total award is $119,389.24 for a 364-day period. To benchmark against market rates, we would need to know the estimated annual consumption in therms or cubic feet. Federal agencies typically procure natural gas based on estimated usage, which can fluctuate. Market rates in West Virginia are influenced by factors such as wholesale prices, transportation costs, and local distribution charges. While Mountaineer Gas Co. operates within a regulated service territory, the absence of competitive bidding makes it difficult to ascertain if the negotiated rate is truly competitive. A thorough analysis would involve comparing the estimated cost per therm or cubic foot against publicly available utility rate schedules or recent competitive bids for similar volumes in the same region.

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

Sole-source awards for essential utility services, like natural gas distribution, carry several risks. Firstly, the primary risk is the potential for inflated pricing. Without competitive pressure, the contractor may not be incentivized to offer the lowest possible rate, leading to higher costs for the government. Secondly, there's a risk of service disruption if the sole provider experiences operational issues, such as infrastructure failures or labor disputes, as there are no immediate alternative providers readily available. Thirdly, the government loses the opportunity to benefit from innovation or alternative service delivery models that might be offered by other companies in a competitive environment. Finally, a sole-source award can create a long-term dependency on a single vendor, potentially limiting future flexibility and negotiation leverage.

What is the track record of Mountaineer Gas Co. in serving federal government contracts?

Information regarding Mountaineer Gas Co.'s specific track record with federal government contracts is not detailed in the provided data. However, the award of this purchase order suggests they are a recognized provider of natural gas distribution services. To assess their track record, one would need to examine their past performance on federal contracts, including factors like on-time delivery, quality of service, adherence to contract terms, and any history of disputes or contract terminations. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be valuable resources for this assessment. Given that this is a sole-source award, it implies either a pre-existing relationship or a determination that they are the only entity capable of meeting the requirement, which could suggest a positive past performance or a unique capability.

How does the contract duration of 364 days align with typical utility service agreements for federal facilities?

A contract duration of 364 days is very common for utility service agreements, particularly for natural gas. This duration is often used to align with fiscal years or to avoid triggering longer-term procurement regulations that might require more extensive competition or justification. For essential services like natural gas, which are required continuously, a one-year term provides a stable supply while allowing the agency to re-evaluate needs and market conditions annually. It offers a balance between ensuring service continuity and maintaining flexibility. Longer-term contracts (e.g., multi-year) might offer potential cost savings through volume commitments, but they also reduce agility in responding to market shifts or changes in facility requirements. Therefore, a 364-day term is a standard and practical approach for this type of service.

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: $119,389

Exercised Options: $119,389

Current Obligation: $119,389

Actual Outlays: $53,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline