RRB Awards $24.5K for Natural Gas Services, Lacking Competition
Contract Overview
Contract Amount: $24,543 ($24.5K)
Contractor: THE Peoples GAS Lght & Coke CO
Awarding Agency: Railroad Retirement Board
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $67/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60611
State: Illinois Government Spending
Plain-Language Summary
Railroad Retirement Board obligated $24,542.57 to THE PEOPLES GAS LGHT & COKE CO for work described as: NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026 Key points: 1. Spending is minimal at $24.5K for two months of service. 2. Sole-source award limits price discovery and potential savings. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector is essential utility services, typically stable.
Value Assessment
Rating: questionable
The contract value is low, making detailed pricing comparisons difficult. However, the lack of competition raises concerns about whether the price reflects market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The award was made on a sole-source basis, indicating no competition was sought. This limits the government's ability to ensure the best possible price through market forces.
Taxpayer Impact: Taxpayers may be paying more than necessary due to the absence of competitive bidding for these essential utility services.
Public Impact
Ensures essential heating and operational services for the Railroad Retirement Board. Potential for higher costs borne by taxpayers due to sole-source award. Limited transparency on pricing due to lack of competitive process.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Sole-source award
- Lack of price competition
Positive Signals
- Essential service provision
- Low contract value
Sector Analysis
This contract falls under utility services, specifically natural gas distribution. Spending benchmarks for such services vary widely by region and consumption volume, but competitive bidding is standard practice to ensure cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were considered or involved in this sole-source award. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the price is fair and reasonable, and to understand why competition was not pursued.
Related Government Programs
- Natural Gas Distribution
- Railroad Retirement Board Contracting
- Railroad Retirement Board Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for non-competitive pricing
- Limited transparency on price justification
Tags
natural-gas-distribution, railroad-retirement-board, il, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Railroad Retirement Board awarded $24,542.57 to THE PEOPLES GAS LGHT & COKE CO. NATURAL GAS SERVICES FOR THE RRB FOR JANUARY AND FEBRUARY 2026
Who is the contractor on this award?
The obligated recipient is THE PEOPLES GAS LGHT & COKE CO.
Which agency awarded this contract?
Awarding agency: Railroad Retirement Board (Railroad Retirement Board).
What is the total obligated amount?
The obligated amount is $24,542.57.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for the sole-source award of natural gas services?
The justification for the sole-source award is not provided in the data. Typically, sole-source awards are granted when only one vendor can provide the required service, or in emergency situations. Without further information, it's unclear if these conditions were met, raising questions about the necessity of foregoing competition.
What is the potential financial risk to taxpayers due to the lack of competition?
The primary financial risk to taxpayers is the potential for paying a non-competitive price. Without competitive bids, the government may not be securing the lowest possible cost for natural gas services, leading to potential overspending. The extent of this risk depends on market conditions and the vendor's pricing strategy.
How effective is this contract in ensuring reliable natural gas supply for the RRB?
The contract is likely effective in ensuring a reliable supply, as it is a direct award for essential services. However, the effectiveness in terms of value for money is questionable due to the lack of competition. While the service will be provided, taxpayers may not be receiving the best possible price for that reliability.
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: 200 E RANDOLPH ST, CHICAGO, IL, 60601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,543
Exercised Options: $24,543
Current Obligation: $24,543
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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