DOJ's Bureau of Prisons awards $52.3M for natural gas utility services to NextEra Energy Services Midwest, LLC

Contract Overview

Contract Amount: $52,279 ($52.3K)

Contractor: Nextera Energy Services Midwest, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $144/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 1 RP# 26-0031

Place of Performance

Location: JUNO BEACH, PALM BEACH County, FLORIDA, 33408

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $52,278.98 to NEXTERA ENERGY SERVICES MIDWEST, LLC for work described as: FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 1 RP# 26-0031 Key points: 1. The contract value of $52.3M for a 364-day period represents a significant investment in essential utility services for federal correctional facilities. 2. Competition was full and open, suggesting a competitive bidding process that likely drove favorable pricing. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This spending falls within the broader energy and utilities sector, crucial for government operations.

Value Assessment

Rating: good

The award amount of $52.3M for a one-year contract appears reasonable given the scale of utility services required for federal prisons. Benchmarking against similar large-scale utility contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure the government receives good value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, with pricing likely driven down by market forces.

Public Impact

Ensures uninterrupted natural gas supply to federal correctional facilities, maintaining essential operations and inmate welfare. Supports energy infrastructure and services within the state of Florida. The contract's fixed-price nature provides budget certainty for the Bureau of Prisons. Potential for job creation within the natural gas utility sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in natural gas markets impacting long-term cost-effectiveness if not managed.
Dependence on a single provider for a critical utility service.

Positive Signals

Firm fixed-price contract limits cost escalation.
Full and open competition suggests competitive pricing.
Long-term contract provides service stability.

Sector Analysis

This contract for natural gas utility services is within the broader energy sector, specifically supporting critical infrastructure for government operations. Spending benchmarks for utility services to large federal facilities can vary significantly based on location, volume, and specific service requirements.

Small Business Impact

The data indicates the award went to NEXTERA ENERGY SERVICES MIDWEST, LLC, a large utility provider. There is no explicit indication of small business participation in this specific delivery order, suggesting the primary contract may not have set-aside goals or that larger prime contractors are utilized for such services.

Oversight & Accountability

The Department of Justice, through the Bureau of Prisons, is responsible for overseeing this contract. Standard procurement regulations and contract management practices should be in place to ensure performance and accountability. The award process itself, being full and open, implies a degree of oversight.

Related Government Programs

Natural Gas Extraction
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for natural gas price volatility.
Dependence on a single utility provider.
Contract duration may not align with long-term infrastructure planning.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $52,278.98 to NEXTERA ENERGY SERVICES MIDWEST, LLC. FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 1 RP# 26-0031

Who is the contractor on this award?

The obligated recipient is NEXTERA ENERGY SERVICES MIDWEST, 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 $52,278.98.

What is the period of performance?

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

What is the historical cost trend for natural gas for the Bureau of Prisons at this facility, and how does this award compare?

Analyzing historical natural gas costs for the Bureau of Prisons at this specific facility would provide crucial context for evaluating the current award. Comparing this $52.3M award against previous contract values, adjusted for inflation and market fluctuations, can reveal whether the government is achieving cost savings or facing increased expenses. This historical perspective is vital for assessing the long-term value and efficiency of the current contract.

What are the specific risks associated with relying on NextEra Energy Services Midwest, LLC for natural gas supply to federal prisons?

Key risks include potential disruptions in natural gas supply due to infrastructure failures, extreme weather events, or labor disputes affecting NextEra. Price volatility in the natural gas market, even with a fixed-price contract, could lead to future renegotiations or impact the provider's long-term viability. Furthermore, over-reliance on a single provider for a critical utility could create vulnerabilities if the provider fails to meet performance standards or faces financial distress.

How effectively does this contract ensure the consistent and reliable delivery of natural gas to federal correctional facilities?

The contract's effectiveness in ensuring reliable natural gas delivery hinges on NextEra Energy Services Midwest, LLC's operational capabilities and adherence to service level agreements. The firm fixed-price structure incentivizes timely delivery, while the full and open competition suggests a capable provider was selected. However, ongoing monitoring by the Bureau of Prisons is essential to track performance metrics, address any service interruptions promptly, and ensure the continuous operation of these critical facilities.

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

Address: 700 UNIVERSE BLVD, JUNO BEACH, FL, 33408

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

Financial Breakdown

Contract Ceiling: $52,279

Exercised Options: $52,279

Current Obligation: $52,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60425D7520

IDV Type: IDC

Timeline