VA awards $72.5M for Natural Gas Services in Georgia to SCANA ENERGY MARKETING, LLC

Contract Overview

Contract Amount: $72,466 ($72.5K)

Contractor: Scana Energy Marketing, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $40/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: NATURAL GAS SERVICES

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30904

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $72,466.42 to SCANA ENERGY MARKETING, LLC for work described as: NATURAL GAS SERVICES Key points: 1. Contract awarded for natural gas distribution services in Georgia. 2. Significant contract value of $72.5 million over five years. 3. Sole-source award raises questions about competition and potential cost savings. 4. Sector is Energy, specifically natural gas supply.

Value Assessment

Rating: fair

Pricing is based on a firm fixed price contract. Without comparable contract data or a competitive bidding process, it is difficult to assess if the pricing is optimal or reflects market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most competitive pricing available for natural gas services.

Public Impact

Ensures a consistent supply of natural gas for VA facilities in Georgia. Potential for higher costs due to lack of competitive bidding. Impacts the energy sector by awarding a large contract to a single provider.

Waste & Efficiency Indicators

Waste Risk Score: 40 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Ensures service continuity
Long-term contract provides stability

Sector Analysis

This contract falls within the Energy sector, specifically natural gas distribution. Government spending on energy services can be substantial, and competitive bidding is crucial for cost efficiency.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to bid.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained fair pricing and that competition was appropriately waived.

Related Government Programs

Natural Gas Distribution
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
No small business participation indicated
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $72,466.42 to SCANA ENERGY MARKETING, LLC. NATURAL GAS SERVICES

Who is the contractor on this award?

The obligated recipient is SCANA ENERGY 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 $72,466.42.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation from the VA, the exact reason remains unclear, but it is a critical factor in assessing the value and fairness of the contract.

What is the estimated market price for similar natural gas services in Georgia to benchmark this contract's value?

Benchmarking this contract's value requires access to market data for natural gas distribution services in Georgia. Factors like volume, delivery points, and contract duration influence pricing. Without specific market intelligence or a competitive process, it's challenging to definitively state if $72.5 million over five years is competitive. However, the absence of competition suggests a potential risk of paying above market rates.

How does the VA ensure accountability and performance from SCANA ENERGY MARKETING, LLC under this sole-source contract?

Accountability and performance are typically managed through contract clauses, performance metrics, and regular oversight. For this sole-source contract, the VA would likely rely on defined service level agreements, delivery schedules, and quality standards. Periodic performance reviews and clear communication channels with SCANA ENERGY MARKETING, LLC are essential to ensure the government receives the contracted services effectively and efficiently.

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: 6100 EMERALD PARKWAY, DUBLIN, OH, 43016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,466

Exercised Options: $72,466

Current Obligation: $72,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline