VA awards $6.7M for Natural Gas Distribution in Massachusetts, ensuring energy supply for 2025
Contract Overview
Contract Amount: $6,734 ($6.7K)
Contractor: NRG Business Marketing LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $18/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLY
Place of Performance
Location: NEW BEDFORD, BRISTOL County, MASSACHUSETTS, 02740
Plain-Language Summary
Department of Veterans Affairs obligated $6,733.52 to NRG BUSINESS MARKETING LLC for work described as: NATURAL GAS SUPPLY Key points: 1. Spending focuses on essential utility services, a recurring government need. 2. NRG Business Marketing LLC secured the contract, indicating market presence. 3. Risk is moderate, tied to energy price volatility and supply chain disruptions. 4. The IT sector is not directly involved, focusing on physical infrastructure.
Value Assessment
Rating: good
The award amount of $6.73 million for a 12-month period appears reasonable for natural gas distribution services. Benchmarking against similar utility contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for essential energy services.
Public Impact
Ensures consistent heating and power for VA facilities in Massachusetts. Supports local energy infrastructure and employment within the region. Provides a stable energy source critical for patient care and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for natural gas price fluctuations impacting long-term costs.
- Dependence on a single supplier for a critical utility.
- Geopolitical events could affect global natural gas availability.
Positive Signals
- Awarded through full and open competition, suggesting fair pricing.
- Contract duration aligns with typical utility service agreements.
- Supports essential government operations with a critical resource.
Sector Analysis
This contract falls under the energy sector, specifically utility services. Government spending on natural gas is benchmarked against fluctuating market prices and regional demand, with contracts often awarded through competitive bidding for fixed-term supply.
Small Business Impact
The data does not indicate if small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and performance monitoring should ensure accountability and adherence to contract terms.
Related Government Programs
- Natural Gas Distribution
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Energy price volatility
- Supply chain disruptions
- Contractor performance risk
- Dependence on a single utility provider
Tags
natural-gas-distribution, department-of-veterans-affairs, ma, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $6,733.52 to NRG BUSINESS MARKETING LLC. NATURAL GAS SUPPLY
Who is the contractor on this award?
The obligated recipient is NRG BUSINESS MARKETING LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $6,733.52.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical price trend for natural gas in Massachusetts over the past five years?
Analyzing historical price trends for natural gas in Massachusetts over the past five years would provide crucial context for evaluating the current contract's value. This data helps determine if the $6.73 million award represents a fair market price, considering potential seasonal variations, supply/demand shifts, and broader economic factors influencing energy costs.
What are the contingency plans if NRG Business Marketing LLC fails to meet its delivery obligations?
Contingency plans for delivery failures are critical for essential services like natural gas. The VA likely has clauses within the contract addressing default or non-performance, potentially including penalties or the right to procure services from alternative sources at the original contractor's expense. Understanding these provisions is key to assessing supply risk.
How does the firm fixed price structure mitigate risks associated with energy market volatility for the VA?
A firm fixed price structure locks in the cost of natural gas for the contract duration, shielding the VA from short-term market volatility. This provides budget certainty. However, it could mean the VA misses out on potential savings if market prices decrease significantly. The risk is transferred to the contractor, who must manage their supply costs effectively.
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
Address: 194 S WOOD AVE 2ND FL, ISELIN, NJ, 08830
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,734
Exercised Options: $6,734
Current Obligation: $6,734
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0422D0075
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-06
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