DOJ's $14M natural gas contract for Wisconsin prisons awarded to Wisconsin Gas LLC

Contract Overview

Contract Amount: $14,000 ($14.0K)

Contractor: Wisconsin GAS LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $483/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 WE ENERGIES GAS TRANSPORT APRIL 2026

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53203

State: Wisconsin Government Spending

Plain-Language Summary

Department of Justice obligated $14,000 to WISCONSIN GAS LLC for work described as: FY26 P4 WE ENERGIES GAS TRANSPORT APRIL 2026 Key points: 1. Contract value represents a significant portion of the Bureau of Prisons' energy procurement for the specified period. 2. Sole-source award suggests limited market alternatives or specific infrastructure dependencies. 3. Fixed-price contract offers cost certainty but may limit flexibility for unforeseen circumstances. 4. Short duration indicates a potential for re-competition or a need for ongoing market assessment. 5. Geographic concentration in Wisconsin highlights regional energy market dynamics. 6. Lack of competition raises questions about potential overpayment and market responsiveness.

Value Assessment

Rating: fair

The contract value of $14 million for a one-month natural gas supply is substantial. Without comparable contract data for similar facilities or regions, it is difficult to definitively benchmark value. However, the 'NOT AVAILABLE FOR COMPETITION' status and sole-source nature raise concerns about whether the government secured the most competitive pricing. The firm fixed-price structure provides predictability, but the absence of competitive bidding prevents a thorough assessment of whether this price aligns with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition means there were no other bidders to compare against, limiting the government's ability to leverage market forces for price discovery and potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the best possible value for the government.

Public Impact

Inmates and staff at federal prisons in Wisconsin will have access to natural gas for heating and other essential services. The contract ensures continuity of essential utility services for correctional facilities. The primary beneficiaries are the facilities operated by the Federal Prison System / Bureau of Prisons within Wisconsin. The contract supports the operational needs of the Department of Justice's correctional infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Short contract duration may indicate a need for frequent re-evaluation or potential market instability.
Lack of detailed performance metrics in the provided data makes assessing service quality challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for a defined period.
Award to an established local utility (Wisconsin Gas LLC) suggests reliability of supply.
Contract ensures essential utility services for critical government facilities.

Sector Analysis

The energy sector, specifically natural gas distribution, is a critical utility service for government operations. Federal agencies procure vast amounts of energy annually. This contract falls within the broader category of utility services, where pricing can be influenced by regional market conditions, infrastructure costs, and regulatory environments. The market for natural gas can be volatile, making fixed-price contracts attractive for budget certainty, but sole-source awards in this sector warrant scrutiny regarding competitive pricing.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (ss: false) and does not appear to involve small business subcontracting goals (sb: false). Therefore, this specific award does not directly benefit the small business ecosystem through set-asides or mandated subcontracting. The focus is on a large utility provider, suggesting that the primary goal was securing a reliable energy source rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a purchase order, it is subject to internal procurement regulations and financial controls. Transparency is limited due to the sole-source nature and short duration. While the Inspector General's office for the DOJ could investigate potential improprieties, the lack of competitive data makes a proactive assessment of value for money challenging.

Related Government Programs

Federal Prison System Energy Procurement
Department of Justice Utility Contracts
Natural Gas Supply Contracts
Bureau of Prisons Operations

Risk Flags

Sole-source award raises concerns about price competition.
Lack of transparency in the procurement process.
Potential for overpayment due to absence of competitive bidding.
Limited data available for comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,000 to WISCONSIN GAS LLC. FY26 P4 WE ENERGIES GAS TRANSPORT APRIL 2026

Who is the contractor on this award?

The obligated recipient is WISCONSIN GAS 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 $14,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the historical spending pattern for natural gas at these specific Wisconsin federal prisons?

Analyzing historical spending for natural gas at these Wisconsin federal prisons is crucial for context. Without access to prior contract data or detailed spending reports, it's difficult to establish a baseline. However, if previous contracts were also sole-source or awarded at significantly different price points, it would indicate shifts in market conditions, contractor pricing strategies, or the government's negotiation leverage. A trend of increasing costs without corresponding increases in service or volume could signal potential inefficiencies or market power abuse by the sole provider. Conversely, stable or decreasing costs might suggest effective long-term relationships or favorable market conditions.

How does the price per unit of natural gas in this contract compare to market rates in Wisconsin for the same period?

Benchmarking the price per unit of natural gas against market rates in Wisconsin for April 2026 is essential for assessing value. Given this is a sole-source award, direct comparison is challenging. However, external data from energy market analysts, utility commission filings, or other large industrial consumers in the region could provide a proxy. If the contract price significantly exceeds prevailing market indices or rates paid by comparable entities, it suggests the government may not have achieved optimal pricing. The firm fixed-price nature, while offering certainty, could also mean the government misses out on potential price decreases if market rates fall below the contracted price.

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

Sole-source awards for essential services like natural gas carry several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most competitive rate. This can result in the government overpaying for the service. Secondly, it reduces the incentive for the sole provider to innovate or improve service quality, as there are no competitors to attract customers. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility in procurement strategies. Finally, it raises concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or inefficiency.

What performance standards or service level agreements are included in this purchase order?

The provided data for this purchase order does not specify any performance standards or service level agreements (SLAs). Typically, contracts for essential utilities would include clauses related to delivery reliability, gas quality specifications (e.g., British Thermal Units - BTU content), and response times for service interruptions. The absence of such details in the summary data makes it difficult to assess the contractor's obligations beyond simply supplying the natural gas. Without defined SLAs, the Bureau of Prisons may have limited recourse if service quality or reliability issues arise, beyond the general terms of the purchase order.

Could this natural gas requirement have been bundled with other federal facilities in the region for a more competitive solicitation?

Bundling this natural gas requirement with other federal facilities in the Wisconsin region could potentially have led to a more competitive solicitation. Larger contract volumes often attract more bidders and can result in economies of scale, potentially driving down per-unit costs. However, the feasibility of bundling depends on several factors, including the geographic proximity of facilities, their specific natural gas needs (volume and timing), and the existing distribution infrastructure. If facilities are served by different utility providers or have vastly different consumption patterns, bundling might not be practical or cost-effective. A thorough market analysis would be needed to determine if consolidation was a viable option for achieving better value.

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: WEC Energy Group, Inc.

Address: 231 W MICHIGAN ST, MILWAUKEE, WI, 53203

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

Financial Breakdown

Contract Ceiling: $14,000

Exercised Options: $14,000

Current Obligation: $14,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline