IRS Secures Natural Gas Delivery for Brookhaven Facility at $87,000
Contract Overview
Contract Amount: $87,000 ($87.0K)
Contractor: Keyspan GAS East Corporation
Awarding Agency: Department of the Treasury
Start Date: 2025-11-13
End Date: 2026-09-30
Contract Duration: 321 days
Daily Burn Rate: $271/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: 2026 NATURAL GAS DELIVERY SERVICES FOR IRS BROOKHAVEN 1040 WAVERLY AVENUE, HOLTSVILLE NY 11742
Place of Performance
Location: HOLTSVILLE, SUFFOLK County, NEW YORK, 11742
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $87,000 to KEYSPAN GAS EAST CORPORATION for work described as: 2026 NATURAL GAS DELIVERY SERVICES FOR IRS BROOKHAVEN 1040 WAVERLY AVENUE, HOLTSVILLE NY 11742 Key points: 1. Contract awarded to KeySpan Gas East Corporation for essential utility services. 2. Limited competition due to contract type, potentially impacting price discovery. 3. Risk of price volatility for natural gas, though mitigated by firm fixed price. 4. Sector: Energy (Utilities) - essential service with stable demand.
Value Assessment
Rating: fair
The total award amount is $87,000. Without specific usage data or comparable contracts for natural gas delivery in the Long Island region, a precise value assessment is difficult. However, the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition scenario. This limits the opportunity for competitive bidding and may result in a higher price than if multiple vendors were involved.
Taxpayer Impact: Taxpayers bear the cost of this essential service. The firm fixed price aims to control expenditures, but the lack of competition could lead to less favorable pricing.
Public Impact
Ensures uninterrupted operations at the IRS Brookhaven facility by providing essential heating and energy. Supports federal agency infrastructure needs in New York. Potential for price fluctuations in the energy market, though contract type mitigates direct impact on the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Energy market price volatility
Positive Signals
- Essential service provision
- Firm fixed price contract
Sector Analysis
This contract falls within the Energy sector, specifically utility services. Natural gas delivery is a critical component for facility operations, and pricing is often influenced by market fluctuations and regional infrastructure.
Small Business Impact
No information is available regarding small business participation in this contract. The award was made to a single, established provider.
Oversight & Accountability
The award is a Purchase Order, which is a standard procurement instrument. Oversight would focus on ensuring timely delivery and adherence to the firm fixed price terms.
Related Government Programs
- Natural Gas Distribution
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for energy market price volatility.
- Lack of detailed cost breakdown for analysis.
- Dependence on a single utility provider.
Tags
natural-gas-distribution, department-of-the-treasury, ny, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $87,000 to KEYSPAN GAS EAST CORPORATION. 2026 NATURAL GAS DELIVERY SERVICES FOR IRS BROOKHAVEN 1040 WAVERLY AVENUE, HOLTSVILLE NY 11742
Who is the contractor on this award?
The obligated recipient is KEYSPAN GAS EAST CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $87,000.
What is the period of performance?
Start: 2025-11-13. End: 2026-09-30.
What is the historical cost of natural gas for this facility or similar facilities in the region to establish a better benchmark?
Establishing a historical cost benchmark is crucial for evaluating the value of this contract. Without access to past utility bills for the IRS Brookhaven facility or data on similar government facilities in the Long Island area, it's challenging to definitively assess if $87,000 represents a competitive price. Further analysis would require obtaining this comparative data.
What are the specific reasons this contract was deemed 'NOT AVAILABLE FOR COMPETITION'?
The designation 'NOT AVAILABLE FOR COMPETITION' suggests a sole-source award, potentially due to exclusive service rights by KeySpan Gas East Corporation in the specific geographic area of the IRS Brookhaven facility, or a specific emergency requirement. Understanding the justification is key to assessing if alternative, more competitive options were truly unavailable.
How does the firm fixed price mitigate the risk of energy market volatility over the contract period?
A firm fixed price contract locks in the cost of natural gas for the duration of the contract, regardless of market fluctuations. This insulates the government from potential price increases in the natural gas market. However, it also means the government cannot benefit if market prices were to decrease significantly.
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: 175 E OLD COUNTRY RD, HICKSVILLE, NY, 11801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $118,305
Exercised Options: $87,000
Current Obligation: $87,000
Actual Outlays: $40,919
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-11-13
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 09:04:03
Last Modified: 2026-04-02
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