DOJ's $21.5M natural gas contract for FCI Miami awarded to Gas South, LLC

Contract Overview

Contract Amount: $21,547 ($21.5K)

Contractor: GAS South, LLC

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $59/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GAS SOUTH SERVICES - FY25 - FCI MIAMI

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $21,546.57 to GAS SOUTH, LLC for work described as: GAS SOUTH SERVICES - FY25 - FCI MIAMI Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 3. Short duration (364 days) may indicate a need for flexibility or a pilot program. 4. Contract is for natural gas services, a critical utility for facility operations. 5. Awardee is Gas South, LLC, with the contract managed by the Federal Prison System. 6. Geographic location of service is Georgia, aligning with the facility's operational base.

Value Assessment

Rating: good

The contract value of $21.55 million for a 364-day period for natural gas services at FCI Miami appears reasonable given the nature of utility contracts. Without specific per-unit consumption data or historical pricing for this facility, a direct benchmark is challenging. However, utility costs are generally subject to market fluctuations, and a fixed-price contract provides cost certainty. Comparing this to similar contracts for federal facilities of comparable size and location would offer a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This process generally fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The number of actual bidders is not specified, but the method of procurement suggests a robust opportunity for price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in cost savings.

Public Impact

The primary beneficiaries are the inmates and staff at Federal Correctional Institution (FCI) Miami, who will receive reliable natural gas services. The contract ensures the provision of natural gas, essential for heating, cooking, and other operational needs within the correctional facility. Services are geographically focused on FCI Miami, located in Georgia. The contract supports the operational workforce at FCI Miami by ensuring essential utilities are maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in natural gas markets impacting the fixed price over the contract term.
Dependence on a single supplier for a critical utility could pose a risk if service is interrupted.

Positive Signals

Firm Fixed Price contract structure provides cost certainty and limits the government's exposure to price increases.
Award through full and open competition suggests a competitive market and potentially favorable pricing.
Short contract duration allows for reassessment and potential renegotiation or re-competition in the near future.

Sector Analysis

The energy sector, specifically natural gas supply, is a critical component of federal facility operations. Federal agencies are significant consumers of energy, and contracts for utilities like natural gas are recurring necessities. The market for natural gas is influenced by global supply and demand, geopolitical factors, and regulatory environments. This contract represents a portion of the Bureau of Prisons' broader energy procurement strategy, aiming to secure essential services at competitive rates.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor, Gas South, LLC, may engage small businesses as subcontractors, though this information is not detailed in the award notice. The absence of specific small business considerations in the award suggests that the primary focus was on full and open competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Prison System (part of the Department of Justice), specifically the Bureau of Prisons. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Potential for price volatility in natural gas markets.
Dependence on a single supplier for critical utility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21,546.57 to GAS SOUTH, LLC. GAS SOUTH SERVICES - FY25 - FCI MIAMI

Who is the contractor on this award?

The obligated recipient is GAS SOUTH, 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 $21,546.57.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for natural gas services at FCI Miami?

Historical spending data for natural gas at FCI Miami is not directly available in the provided award notice. However, the current award for FY25 is $21.55 million for a 364-day period. To understand historical patterns, one would need to access prior contract awards for this facility or similar facilities managed by the Bureau of Prisons. Analyzing past spending would reveal trends in pricing, consumption, and contractor performance over time, helping to contextualize the current award's value and identify any significant deviations or escalations in costs.

How does the price per unit of natural gas compare to market rates or similar federal contracts?

A precise per-unit cost comparison is not feasible with the current data, as the award notice does not specify the volume of natural gas to be supplied or the facility's consumption rate. To benchmark, one would need to calculate a cost per unit (e.g., per therm or MMBtu) based on estimated or actual usage and compare it against prevailing market rates for natural gas in Georgia during the contract period. Additionally, comparing this unit cost to similar contracts awarded by the Bureau of Prisons or other federal agencies for facilities of comparable size and location would provide valuable insights into whether the pricing is competitive.

What is Gas South, LLC's track record with federal contracts, particularly with the Department of Justice or Bureau of Prisons?

The provided data indicates Gas South, LLC is the awardee for this specific contract. To assess their track record, a review of federal procurement databases (like FPDS) would be necessary to identify previous contracts awarded to Gas South, LLC by the Department of Justice, Bureau of Prisons, or other federal agencies. This would reveal their history of performance, any past issues or disputes, and their experience with similar utility services. A positive track record with relevant agencies would suggest a lower performance risk for this new contract.

What are the potential risks associated with a firm fixed-price contract for natural gas?

While a firm fixed-price (FFP) contract offers cost certainty to the government, potential risks exist. The primary risk is that the contractor, Gas South, LLC, may face increased costs due to market volatility in natural gas prices during the contract period. If market prices rise significantly above the contracted rate, the contractor might experience reduced profit margins or, in extreme cases, seek contract modifications or face financial strain. Conversely, if prices fall, the government misses out on potential savings. Another risk involves ensuring the contractor's commitment to service quality and reliability under the fixed price, although performance standards should mitigate this.

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

Awarding this contract through full and open competition is generally advantageous for taxpayers. It allows any qualified vendor to bid, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as bidders strive to offer the most cost-effective solution to win the award. Furthermore, it increases the likelihood that the government secures services from a capable provider at a fair market price, maximizing the value obtained for taxpayer dollars and reducing the risk of paying inflated prices due to limited vendor options.

What is the significance of the short contract duration (364 days)?

The 364-day duration for this natural gas contract is noteworthy. Shorter contract terms can indicate several possibilities: it might be a bridge contract to cover a period while a longer-term strategy is developed, it could be a pilot program to test a new service or supplier, or it might reflect the agency's preference for frequent re-competition to ensure ongoing competitive pricing and access to the latest market conditions. For taxpayers, a shorter duration allows for more frequent opportunities to benefit from potentially lower market prices or to switch suppliers if better terms become available, while also providing the agency flexibility to adapt to changing needs.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Oil and Gas Extraction › Natural Gas Extraction

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: Cobb Electric Membership Corporation

Address: 3625 CUMBERLAND BLVD SE STE 1500, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $21,547

Exercised Options: $21,547

Current Obligation: $21,547

Actual Outlays: $21,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60421D7513

IDV Type: IDC

Timeline