DOJ's Bureau of Prisons Spends $61.4K on Natural Gas in Q3 FY26 from Sage Energy Trading LLC
Contract Overview
Contract Amount: $61,433 ($61.4K)
Contractor: Sage Energy Trading LLC
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-06-30
Contract Duration: 90 days
Daily Burn Rate: $683/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES
Place of Performance
Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55802
Plain-Language Summary
Department of Justice obligated $61,433.2 to SAGE ENERGY TRADING LLC for work described as: SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES Key points: 1. Spending focuses on natural gas distribution for the Federal Prison System. 2. Sage Energy Trading LLC is the sole provider for this contract. 3. The contract is a firm fixed price purchase order, indicating price certainty. 4. The contract duration is 90 days, covering a single quarter.
Value Assessment
Rating: fair
The contract amount is $61,433.20 for a 90-day period. Without specific per-unit pricing or historical data for this facility, it's difficult to benchmark against similar contracts. However, the firm fixed price suggests a predictable cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: Taxpayer funds are used for this essential utility service. The lack of competition may result in a less optimal price for taxpayers.
Public Impact
Ensures essential utility services (natural gas) for federal correctional facilities. Supports energy needs for inmate housing, heating, and operations. Impacts the operational budget of the Bureau of Prisons.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Short contract duration may not reflect long-term market trends.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Firm fixed price provides cost predictability.
- Essential service for facility operations.
- Clear contract period and amount.
Sector Analysis
This contract falls under the energy sector, specifically natural gas distribution. Federal agencies often procure energy services through various contract types, with sole-source awards sometimes necessary due to infrastructure or supplier limitations.
Small Business Impact
The data does not indicate if Sage Energy Trading LLC is a small business. The contract type and sole-source nature may limit opportunities for small businesses to participate.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard procurement regulations apply, but the sole-source nature warrants careful review to ensure necessity and fair pricing.
Related Government Programs
- Natural Gas Distribution
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award
- Limited competition
- Potential for non-optimal pricing
- Lack of detailed cost breakdown
Tags
natural-gas-distribution, department-of-justice, mn, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $61,433.2 to SAGE ENERGY TRADING LLC. SST-P4-SAGE NATURAL GAS-Q3-FY26 APRIL 1, 2026 - JUNE 30, 2026 AMOUNT EST/METERED INV QUANTITIES
Who is the contractor on this award?
The obligated recipient is SAGE ENERGY TRADING 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 $61,433.2.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-30.
What is the historical pricing trend for natural gas at this specific federal facility?
Historical pricing data for natural gas at this specific federal facility is not provided in the current data. To assess value effectively, a review of past contracts and consumption patterns would be necessary. Understanding fluctuations and average costs over previous periods would allow for a more robust comparison against the current firm fixed price.
What are the specific reasons for the sole-source designation, and have alternatives been explored?
The data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Typically, this requires documented reasons such as unique capabilities, urgent need, or lack of other qualified sources. A thorough review of the agency's justification and any documented exploration of alternative suppliers would be crucial to ensure the sole-source award is appropriate and taxpayer funds are protected.
How does the per-unit cost of natural gas in this contract compare to regional benchmarks for similar government or commercial contracts?
A direct per-unit cost benchmark is not available without knowing the exact quantity of natural gas purchased (e.g., therms or cubic feet) and the corresponding price. The total amount is $61,433.20 for 90 days. Comparing this to regional benchmarks would require obtaining the metered quantities and then calculating the price per unit to perform a meaningful comparison with other utility contracts in Minnesota.
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
Address: 4612 S VICTOR AVE, TULSA, OK, 74105
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $61,433
Exercised Options: $61,433
Current Obligation: $61,433
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-02
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