Justice Department awards $108K for natural gas utility services to NextEra Energy Services Midwest, LLC

Contract Overview

Contract Amount: $108,000 ($108.0K)

Contractor: Nextera Energy Services Midwest, LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 2 RP# 26-0069

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $108,000 to NEXTERA ENERGY SERVICES MIDWEST, LLC for work described as: FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 2 RP# 26-0069 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Services are for a short duration (89 days), indicating a specific, potentially short-term need. 4. The contract value is relatively small, suggesting a localized or limited scope of service. 5. The awardee, NextEra Energy Services Midwest, LLC, is a known entity in the energy sector. 6. The contract is for natural gas utility services, a critical but often routine operational expense.

Value Assessment

Rating: good

The contract value of $108,000 for an 89-day period for natural gas utility services appears reasonable given the short term and the nature of utility provision. Benchmarking against similar short-term utility contracts for federal facilities would provide a more precise assessment, but the price per day is not excessively high. The firm-fixed-price structure helps manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the process itself suggests a deliberate effort to solicit multiple proposals.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, thereby maximizing the value of federal dollars spent.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from reliable natural gas utility services. This contract ensures the continued operation of essential services at a federal facility. The geographic impact is localized to the facility in Florida where the services are provided. There are no direct workforce implications as this is a utility service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in natural gas markets impacting long-term utility costs if this were a longer contract.
Dependence on a single utility provider for essential services at the facility.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost certainty for the specified period.
Awardee is an established energy services company.

Sector Analysis

The energy utility sector is a critical component of infrastructure, supporting government operations. Federal agencies are significant consumers of energy, including natural gas, for heating, power, and other operational needs. Spending in this sector is often characterized by long-term supply agreements and localized service contracts, similar to this award. The market includes large utility providers and specialized energy service companies.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of utility services and the size of the awardee, it is unlikely that small businesses were significantly involved as prime contractors. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on the operational needs of NextEra Energy Services Midwest, LLC.

Oversight & Accountability

Oversight for this contract would fall under the Federal Prison System / Bureau of Prisons, likely managed by facility administrators or contracting officers. Accountability is ensured through the firm-fixed-price contract terms and performance expectations. Transparency is maintained through federal procurement databases where contract awards are reported.

Related Government Programs

Federal Energy Management Program
Bureau of Prisons Facility Operations
Utility Services Contracts

Risk Flags

Short contract duration may indicate a temporary need or a pilot program.
Limited data available on specific performance metrics and SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $108,000 to NEXTERA ENERGY SERVICES MIDWEST, LLC. FY26 P4 NEXTERA NATURAL GAS UTILITY QTR 2 RP# 26-0069

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 $108,000.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for natural gas utility services at this specific federal facility?

Analyzing historical spending for natural gas at this facility would provide context for the current $108,000 award. Without specific historical data for this location, it's difficult to determine if this represents an increase, decrease, or stable expenditure. However, utility costs can fluctuate based on consumption, market prices, and contract terms. If previous contracts were longer-term or involved different pricing structures, direct comparison might be limited. A review of past solicitations and awards for this facility would reveal trends in pricing, competition, and contract duration, offering insights into the value proposition of the current award.

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

Directly comparing the price per unit for this $108,000 contract, which spans 89 days, to broader market rates or other federal contracts is challenging without knowing the exact volume of natural gas to be consumed and the specific delivery terms. Utility pricing often involves complex rate structures, demand charges, and seasonal variations. However, the firm-fixed-price nature of this contract suggests that NextEra Energy Services Midwest, LLC has factored in anticipated market conditions and operational costs. To perform a robust benchmark, one would need to obtain the estimated consumption volume and compare the effective price per therm or cubic foot against regional utility tariffs and recent federal utility awards in similar climates and facility types.

What is NextEra Energy Services Midwest, LLC's track record with federal contracts, particularly for utility services?

NextEra Energy Services Midwest, LLC, as part of the larger NextEra Energy family, has a significant presence in the energy sector. Their track record with federal contracts would need to be assessed through federal procurement databases like SAM.gov or FPDS. This would reveal past performance, any reported issues, and the types of contracts they have secured. For utility services specifically, their experience would indicate their capability to meet the demands of federal facilities, including reliability, regulatory compliance, and service quality. A review of their past federal awards would highlight their success in similar solicitations and their ability to deliver under firm-fixed-price agreements.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this natural gas utility contract. Typically, such contracts would include requirements for reliable delivery, adherence to safety standards, and potentially response times for any service disruptions. The firm-fixed-price nature implies that the contractor is responsible for delivering the service as specified. The contracting officer at the Federal Prison System / Bureau of Prisons would be responsible for monitoring performance against the contract's terms. Without access to the full contract document, a detailed assessment of performance expectations and accountability measures is not possible.

Are there any identified risks associated with this contract, such as supply chain vulnerabilities or regulatory changes?

Potential risks for this natural gas utility contract could include volatility in natural gas prices, although the firm-fixed-price structure mitigates this for the government during the contract period. Supply chain risks are generally low for established utility providers like NextEra, as they manage extensive infrastructure. Regulatory changes impacting natural gas production, transportation, or environmental standards could pose a risk, but these are typically broad market risks rather than contract-specific ones. The short duration of this contract (89 days) also limits the exposure to long-term market or regulatory shifts. The primary risk would likely be ensuring uninterrupted service delivery.

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: $108,000

Exercised Options: $108,000

Current Obligation: $108,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60425D7520

IDV Type: IDC

Timeline