DOJ awards $167,859 contract for natural gas distribution in Pennsylvania

Contract Overview

Contract Amount: $167,859 ($167.9K)

Contractor: UGI Utilities Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $461/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USP CANAAN NATURAL GAS DISTRIBUTION FY26 BASED OFF CONTRACT #15B21518D00000031

Place of Performance

Location: DENVER, LANCASTER County, PENNSYLVANIA, 17517

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $167,859.19 to UGI UTILITIES INC for work described as: USP CANAAN NATURAL GAS DISTRIBUTION FY26 BASED OFF CONTRACT #15B21518D00000031 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for firm fixed price, providing cost certainty for the government. 3. Duration of 364 days indicates a short-term need for natural gas distribution services. 4. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The specific service is natural gas distribution, essential for facility operations. 6. The awardee, UGI Utilities Inc., is a known utility provider in the region.

Value Assessment

Rating: good

The contract value of $167,859 for a one-year natural gas distribution service appears reasonable for a federal facility. Without specific details on the volume of gas or the exact location and size of the facility, a direct per-unit cost comparison is difficult. However, given the nature of utility services, pricing is often regulated or based on established market rates for the region. The firm fixed-price structure helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely sought the best value proposition through this open process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better terms due to the pressure of multiple bidders vying for the contract.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from a reliable supply of natural gas. Services delivered include the distribution of natural gas, crucial for heating, cooking, and other operational needs. The geographic impact is localized to Pennsylvania, where the facility is located. Workforce implications are minimal, as this contract primarily procures a utility service rather than direct labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract periods if market conditions change.
Dependence on a single utility provider for a critical service.

Positive Signals

Awarded through full and open competition, ensuring competitive pricing.
Firm fixed-price contract provides cost certainty.
Awardee is an established utility provider with existing infrastructure.

Sector Analysis

The natural gas distribution sector is a mature utility market, characterized by established infrastructure and regulated pricing. Federal agencies often procure such essential services through competitive bidding processes to ensure value. The market size for natural gas distribution is substantial, with numerous regional providers. This contract fits within the broader category of essential facility support services for government operations.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting requirements. Given the nature of utility services, it is likely that the prime contractor is a large, established utility company. The impact on the small business ecosystem is likely negligible for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Federal Prison System / Bureau of Prisons. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of services as specified. Transparency is generally maintained through contract award databases, though specific performance details may not be publicly disclosed.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Utility Services Contracts
Natural Gas Supply Contracts

Risk Flags

Potential for supply disruption
Service quality concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $167,859.19 to UGI UTILITIES INC. USP CANAAN NATURAL GAS DISTRIBUTION FY26 BASED OFF CONTRACT #15B21518D00000031

Who is the contractor on this award?

The obligated recipient is UGI UTILITIES INC.

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 $167,859.19.

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?

Analyzing historical spending for natural gas distribution at this facility would require accessing past contract awards for the same or similar services. Without access to that specific data, it's difficult to establish a trend. However, federal agencies typically aim for cost stability or reduction over time. If this is a recurring service, comparing the current award value to previous years, adjusted for inflation and usage, would provide insight into whether costs are increasing, decreasing, or remaining stable. The current award of $167,859 for a one-year period provides a baseline for future comparisons.

How does the awarded price compare to market rates for natural gas distribution in Pennsylvania?

Comparing the awarded price to market rates requires detailed information on the volume of natural gas to be distributed, the specific service area within Pennsylvania, and current utility tariffs. UGI Utilities Inc. operates in specific regions of Pennsylvania, and their pricing is subject to state regulatory oversight. Generally, utility rates are published and can be benchmarked. However, federal contracts may include specific service level agreements or delivery requirements that could influence the final price. The firm fixed-price nature suggests the government has negotiated a set rate, which should be competitive within the regulated market.

What is the track record of UGI Utilities Inc. in serving federal government contracts?

UGI Utilities Inc. is a long-standing utility provider in Pennsylvania. Their track record with federal government contracts would need to be assessed by reviewing their past performance on similar awards. This would involve looking at contract databases for previous awards, performance ratings (if available), and any history of disputes or contract terminations. As a regulated utility, they are accustomed to providing essential services, which generally implies a degree of reliability. However, specific performance metrics on government contracts would be the most relevant indicator.

What are the potential risks associated with this natural gas distribution contract?

Potential risks include supply disruptions due to weather events or infrastructure failures, although utility companies typically have contingency plans. Price volatility in the natural gas market could be a risk if the contract were not firm fixed-price, but this contract mitigates that. Another risk could be service quality issues, such as inconsistent delivery or pressure problems, which could impact facility operations. Ensuring the contractor has robust emergency response protocols and meets all service level agreements is crucial for mitigating these risks.

How does the competition level (full and open) impact the value for taxpayers?

Awarding this contract through full and open competition is a significant positive for taxpayers. It ensures that multiple qualified vendors had the opportunity to bid, creating a competitive environment. This competition typically drives down prices as vendors strive to offer the most attractive bid to win the contract. Furthermore, it allows the government to select the offer that provides the best overall value, considering not just price but also factors like service quality and reliability. This process maximizes the efficient use of taxpayer funds for essential services.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: UGI Corporation

Address: 1 UGI DR, DENVER, PA, 17517

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

Financial Breakdown

Contract Ceiling: $167,859

Exercised Options: $167,859

Current Obligation: $167,859

Actual Outlays: $38,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21518D00000031

IDV Type: IDC

Timeline