DOJ's $104K natural gas purchase for Federal Prison System in Ohio awarded via purchase order

Contract Overview

Contract Amount: $104,300 ($104.3K)

Contractor: Columbia GAS of Ohio Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $287/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: COLUMBIA GAS OF OHIO TRANSPORTATION FY26

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43215

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $104,299.94 to COLUMBIA GAS OF OHIO INC for work described as: COLUMBIA GAS OF OHIO TRANSPORTATION FY26 Key points: 1. Value for money appears fair given the firm fixed price structure for a one-year duration. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are low due to the nature of the commodity and fixed pricing. 4. Performance context is for natural gas distribution to a federal facility. 5. Sector positioning is within the energy utility services for government operations.

Value Assessment

Rating: fair

The contract value of $104,299.94 for a one-year supply of natural gas is modest. Without specific per-unit pricing benchmarks or comparison to other federal prison system utility contracts, a precise value assessment is difficult. However, the firm fixed-price structure provides cost certainty for the Federal Prison System. The award is a purchase order, which typically signifies a straightforward procurement for established needs.

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. The data does not specify the number of bidders, but the designation suggests that only one responsible source was available or that the procurement was justified on a non-competitive basis. This lack of broad competition may have implications for achieving the lowest possible price.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers compared to fully competed contracts, as the government may not benefit from competitive bidding to drive down prices.

Public Impact

The Federal Prison System in Ohio benefits from a reliable supply of natural gas for its operations. Services delivered include the distribution of natural gas, essential for heating and other facility functions. Geographic impact is localized to Ohio, specifically serving the needs of the federal correctional facility. Workforce implications are minimal, as this is a commodity purchase rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award.
Lack of transparency regarding the justification for non-competition.
Limited opportunity for small businesses to participate in this specific procurement.

Positive Signals

Firm fixed-price contract provides budget certainty.
Award ensures essential utility service for a federal facility.
Short contract duration (one year) allows for future re-evaluation of competition.

Sector Analysis

This contract falls within the energy sector, specifically focusing on natural gas distribution. The market for natural gas utilities is typically regional and regulated, with established providers serving specific geographic areas. The contract value is relatively small in the context of overall federal energy spending, but it represents a necessary procurement for the operational continuity of a federal facility. Comparable spending benchmarks would involve analyzing other utility contracts for federal buildings in similar regions.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false and the contract was not set aside for small businesses. There is no indication of subcontracting opportunities for small businesses within this purchase order. This procurement does not appear to directly support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a purchase order for a commodity, extensive oversight mechanisms may not be necessary beyond ensuring timely delivery and adherence to the fixed price. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Federal Prison System Utilities
Department of Justice Energy Procurement
Natural Gas Supply Contracts
Federal Correctional Facility Operations

Risk Flags

Sole-source award may limit price competition.
Lack of detailed justification for non-competition.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $104,299.94 to COLUMBIA GAS OF OHIO INC. COLUMBIA GAS OF OHIO TRANSPORTATION FY26

Who is the contractor on this award?

The obligated recipient is COLUMBIA GAS OF OHIO 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 $104,299.94.

What is the period of performance?

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

What is the historical spending pattern for natural gas at this specific Federal Prison System facility?

Historical spending data for natural gas at this specific Federal Prison System facility is not provided in the given data. To assess historical patterns, one would need to examine past contracts or purchase orders for natural gas at this location over several fiscal years. This would involve looking at contract values, quantities purchased, and unit prices to identify trends, fluctuations, and potential cost savings or increases over time. Without this historical context, it is difficult to determine if the current $104,299.94 award represents an increase, decrease, or stable expenditure compared to previous years.

How does the unit price of natural gas in this contract compare to market rates or other federal agency contracts?

The provided data does not include the specific quantity of natural gas to be purchased, making a direct unit price comparison impossible. The total award is $104,299.94 for a 364-day duration. To benchmark the unit price, we would need to know the volume (e.g., in dekatherms or cubic feet) of natural gas covered by this purchase order. Once the volume is known, the unit price can be calculated and compared against prevailing market rates for natural gas in Ohio during the contract period (FY26) and against similar utility contracts awarded by other federal agencies to facilities of comparable size and energy consumption. The sole-source nature of the award also raises questions about whether the price reflects competitive market dynamics.

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

The data explicitly states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited competition procurement. The specific justification for this sole-source award is not detailed in the provided information. Common reasons for sole-source awards include unique capabilities of a single provider, urgent and compelling needs where competition is impractical, or when only one responsible source exists. For a commodity like natural gas, sole-source awards are less common unless there are specific infrastructure or regulatory constraints that limit the available suppliers to a particular provider for that location. Further investigation into the contract file or agency justifications would be required to understand the precise reason.

What are the potential risks associated with a sole-source award for natural gas supply?

The primary risk associated with a sole-source award for natural gas supply is the potential for paying a higher price than would be achieved through a competitive bidding process. Without competition, the supplier has less incentive to offer the lowest possible price. Additionally, there might be risks related to service quality or reliability if the sole provider faces operational issues, as there are no immediate alternative suppliers readily available under contract. The lack of competition also limits the government's ability to leverage market forces to secure favorable terms or explore innovative supply solutions. However, for essential utilities in specific locations, sole-source awards might be necessary due to existing infrastructure or regulatory monopolies.

How does this contract align with the Federal Prison System's overall energy procurement strategy?

This contract represents a localized procurement for a specific facility's essential energy needs (natural gas). It aligns with the Federal Prison System's broader strategy of ensuring operational continuity and providing necessary services for its institutions. However, without insight into the Bureau of Prisons' comprehensive energy strategy—which might include goals for energy efficiency, renewable energy adoption, or diversification of energy sources—it's difficult to assess how this single natural gas contract fits into the larger picture. This award appears to be a standard, operational procurement rather than a strategic initiative aimed at transforming the energy portfolio.

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

Parent Company: Nisource Inc.

Address: 290 W NATIONWIDE BLVD, COLUMBUS, OH, 43215

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

Financial Breakdown

Contract Ceiling: $104,300

Exercised Options: $104,300

Current Obligation: $104,300

Actual Outlays: $32,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline