DOJ's $241K natural gas contract for FY26 awarded to GAS SOUTH, LLC via full and open competition

Contract Overview

Contract Amount: $241,000 ($241.0K)

Contractor: GAS South, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $662/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SERVICE FOR FY 26

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76119

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $241,000 to GAS SOUTH, LLC for work described as: NATURAL GAS SERVICE FOR FY 26 Key points: 1. Value for money appears reasonable given the fixed-price nature and duration, though specific market benchmarks are needed for definitive assessment. 2. Full and open competition suggests a competitive pricing environment, potentially benefiting taxpayers. 3. Risk indicators are low, with a firm fixed-price contract and a single delivery order for a defined period. 4. Performance context is limited to a single delivery order for natural gas distribution services. 5. Sector positioning is within the energy utility services sector, a common requirement for federal facilities.

Value Assessment

Rating: good

The contract value of $241,000 for a one-year period appears to be in line with typical utility service costs for federal facilities of this nature. Without specific details on the volume of natural gas required or the exact location, a precise benchmark is difficult. However, the firm fixed-price structure provides cost certainty. Compared to other similar utility service contracts, this award seems to fall within a standard range for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the method of competition suggests that multiple companies likely participated, leading to a more robust price discovery process. This approach generally aims to secure the best value for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and ensuring that the government is not overpaying for essential services like natural gas.

Public Impact

Federal Prison System facilities in Texas will receive a reliable supply of natural gas. The contract ensures operational continuity for essential services within the Bureau of Prisons. The geographic impact is localized to Texas, where the natural gas service will be delivered. Workforce implications are minimal, primarily involving the contractor's personnel for service delivery and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics or service level agreements could obscure potential underperformance.
Market volatility in natural gas prices could impact the long-term value if not adequately hedged by the contractor.

Positive Signals

Firm fixed-price contract provides budget certainty for the agency.
Awarded through full and open competition, suggesting a competitive pricing process.
Clear delivery period (FY26) and defined service scope.

Sector Analysis

This contract falls within the energy sector, specifically focusing on natural gas distribution services. The market for utility services is generally stable and characterized by established providers. Federal agencies are significant consumers of such services, with spending often dictated by facility location and operational needs. Benchmarking against similar contracts for correctional facilities or other large government installations would provide further context on pricing and value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The competition was open to all responsible sources.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program managers within the Federal Prison System / Bureau of Prisons. Accountability is established through the firm fixed-price contract terms and the defined delivery period. Transparency is facilitated by the contract award notice, though detailed performance reports are not publicly available.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Facilities Management
Natural Gas Procurement
Energy Services for Government Facilities

Risk Flags

Lack of detailed performance metrics
Limited visibility into specific unit pricing benchmarks
Absence of sustainability or efficiency mandates

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $241,000 to GAS SOUTH, LLC. NATURAL GAS SERVICE FOR FY 26

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 $241,000.

What is the period of performance?

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

What is the historical spending pattern for natural gas services by the Federal Prison System in Texas?

Analyzing historical spending for natural gas by the Federal Prison System in Texas would provide crucial context for evaluating the current $241,000 award. Without specific historical data, it's challenging to determine if this represents an increase, decrease, or stable expenditure. Factors such as changes in facility size, energy efficiency initiatives, fluctuating market prices, and the number of facilities serviced over time all influence historical spending. A trend analysis could reveal if the current contract is competitive compared to past procurement costs and identify any significant deviations that warrant further investigation into the reasons behind them, such as market conditions or changes in service requirements.

How does the unit cost of natural gas under this contract compare to market rates in Texas for FY26?

To assess the unit cost competitiveness, we would need to know the estimated volume of natural gas (e.g., in dekatherms or cubic feet) to be supplied under this $241,000 contract. Comparing this volume-adjusted cost to prevailing market rates for natural gas in Texas for FY26, as reported by energy market analysts or utility commissions, is essential. Factors such as the specific delivery point, contract terms (e.g., fixed vs. variable pricing components), and the duration of the supply agreement influence the effective unit price. If the contract's unit cost is significantly higher than comparable market rates, it could indicate a potential issue with price discovery or market conditions at the time of award.

What is GAS SOUTH, LLC's track record with federal contracts, particularly for utility services?

Evaluating GAS SOUTH, LLC's track record with federal contracts is important for understanding their reliability and performance history. Information on past awards, contract values, performance evaluations (if available), and any history of disputes or contract terminations would be relevant. Specifically, examining their experience with similar utility service contracts for federal agencies, especially correctional facilities, can provide insights into their capacity to meet the demands of this award. A review of their performance on previous contracts can help mitigate risks associated with contractor performance and ensure the agency receives the expected level of service.

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

The provided data indicates a firm fixed-price contract for natural gas service, but it does not detail specific performance expectations or Service Level Agreements (SLAs). Typically, such contracts would include provisions for reliability of supply, response times for service interruptions, and potentially quality standards. Understanding these SLAs is crucial for assessing the contractor's obligations and the agency's recourse in case of non-performance. The absence of detailed SLAs in the summary data makes it difficult to fully evaluate the robustness of the performance monitoring framework and the potential risks associated with service delivery.

Are there any specific energy efficiency requirements or sustainability goals tied to this natural gas contract?

The current contract details do not specify any energy efficiency requirements or sustainability goals. Federal agencies are increasingly encouraged to adopt sustainable practices and improve energy efficiency across their operations. While this contract focuses on the provision of natural gas, future contracts or amendments could potentially incorporate elements such as sourcing from lower-emission natural gas providers, requirements for leak detection and repair, or integration with broader energy management strategies. Assessing the alignment of this contract with broader federal sustainability mandates would require further information on agency-specific goals.

Industry Classification

NAICS: Utilities › Natural Gas Distribution › Natural Gas Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $241,000

Exercised Options: $241,000

Current Obligation: $241,000

Actual Outlays: $27,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0724D0020

IDV Type: IDC

Timeline