DOJ's Bureau of Prisons awards $37K for natural gas distribution in Puerto Rico
Contract Overview
Contract Amount: $37,000 ($37.0K)
Contractor: Liquilux GAS Corporation
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $102/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: TO COVER INVOICE OF SERVICES OF OCTOBER 2025. ATTACHED CONTRACT SOLICITATION#15B30625Q00000012.RP#26-0003
Place of Performance
Location: PONCE, PONCE County, PUERTO RICO, 00732
Plain-Language Summary
Department of Justice obligated $36,999.97 to LIQUILUX GAS CORPORATION for work described as: TO COVER INVOICE OF SERVICES OF OCTOBER 2025. ATTACHED CONTRACT SOLICITATION#15B30625Q00000012.RP#26-0003 Key points: 1. Contract covers natural gas distribution services for the Federal Prison System. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 3. The contract duration is one year, aligning with operational needs. 4. Firm Fixed Price contract type helps manage cost certainty.
Value Assessment
Rating: good
The price of $36,999.97 for a one-year natural gas distribution contract appears reasonable given the service scope and location. Benchmarking against similar utility contracts in Puerto Rico would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process suitable for procurements under the simplified acquisition threshold. This method generally allows for broad competition, contributing to price discovery.
Taxpayer Impact: The cost of $36,999.97 represents a modest expenditure for essential utility services, with competition likely ensuring a fair price for taxpayers.
Public Impact
Ensures continued operation of essential services at a federal correctional facility. Supports energy infrastructure in Puerto Rico. Provides a stable energy source for inmate services and facility operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in natural gas markets.
- Geographic isolation of Puerto Rico could impact logistics and costs.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Competition under SAP likely secured a competitive rate.
- One-year duration allows for re-evaluation of needs and market conditions.
Sector Analysis
This contract falls within the utility services sector, specifically natural gas distribution. Spending benchmarks for such services can vary significantly based on location, volume, and infrastructure requirements. The DOJ's procurement aligns with standard operational needs for federal facilities.
Small Business Impact
The data does not indicate whether small businesses participated in this procurement. Further analysis of the solicitation details would be needed to assess small business involvement.
Oversight & Accountability
The award was made via a Purchase Order, a common method for simplified acquisitions. Oversight would typically involve monitoring service delivery and invoice accuracy by the contracting officer's representative.
Related Government Programs
- Natural Gas Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for price volatility in natural gas.
- Geographic isolation of Puerto Rico.
- Dependence on a single supplier for essential utility.
- Limited information on competitive landscape beyond SAP.
Tags
natural-gas-distribution, department-of-justice, pr, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $36,999.97 to LIQUILUX GAS CORPORATION. TO COVER INVOICE OF SERVICES OF OCTOBER 2025. ATTACHED CONTRACT SOLICITATION#15B30625Q00000012.RP#26-0003
Who is the contractor on this award?
The obligated recipient is LIQUILUX GAS CORPORATION.
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 $36,999.97.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical pricing trend for natural gas in Puerto Rico, and how does this contract's rate compare?
Analyzing historical natural gas pricing trends in Puerto Rico is crucial for assessing the value of this contract. Factors such as global energy markets, local infrastructure, and regulatory policies influence these prices. Comparing the contracted rate against these trends and similar utility contracts in the region will determine if the $36,999.97 represents a fair market price and offers good value to the taxpayer.
What are the potential risks associated with relying on a single vendor for natural gas distribution in a geographically isolated location like Puerto Rico?
Reliance on a single vendor for natural gas distribution in Puerto Rico carries risks such as supply chain disruptions due to weather events or logistical challenges, potential price gouging if competition is limited, and service interruptions if the vendor faces operational issues. The government should have contingency plans in place, including alternative suppliers or emergency protocols, to mitigate these risks and ensure uninterrupted service.
How effectively does the firm fixed price contract structure mitigate cost overruns for natural gas distribution services over the contract period?
A firm fixed price (FFP) contract is designed to provide maximum price stability and transfer risk to the contractor. For natural gas distribution, this structure effectively mitigates cost overruns due to fluctuating market prices, as the contractor assumes the burden of any increases. This benefits the government by providing budget certainty, though it may result in a slightly higher initial price compared to cost-reimbursable contracts.
Industry Classification
NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B30625Q00000012
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: CAR MUELLE FINAL PLAYA PONCE, PONCE, PR, 00730
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,000
Exercised Options: $37,000
Current Obligation: $37,000
Actual Outlays: $10,528
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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