DOT Awards $2.76M for Natural Gas Utility Services to National Grid USA

Contract Overview

Contract Amount: $2,760,824 ($2.8M)

Contractor: National Grid USA Service Company, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: NATURAL GAS UTILITY SERVICES FOR THE USMMA CAMPUS AND RESIDENTIAL QUARTERS

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $2.8 million to NATIONAL GRID USA SERVICE COMPANY, INC. for work described as: NATURAL GAS UTILITY SERVICES FOR THE USMMA CAMPUS AND RESIDENTIAL QUARTERS Key points: 1. Contract value of $2.76 million for natural gas utility services. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears low given the nature of utility services. 4. Sector is Energy, specifically natural gas distribution.

Value Assessment

Rating: good

The contract value of $2.76 million for natural gas utility services appears reasonable for a multi-year utility contract. Benchmarking against similar contracts for campus-wide utility provision would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the award is expected to ensure a fair price, minimizing unnecessary taxpayer expenditure for essential utility services.

Public Impact

Ensures continuous supply of natural gas for the USMMA campus and residential quarters. Supports the operational needs of a federal educational institution. Provides essential services to residents and facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Long-term contract provides service stability.
Fixed price with economic price adjustment offers some cost predictability.

Sector Analysis

This contract falls within the Energy sector, specifically natural gas distribution. Spending benchmarks for utility services can vary significantly based on location, campus size, and consumption patterns.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to a large utility provider. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is managed by the Maritime Administration within the Department of Transportation. Standard oversight procedures for utility contracts should apply, focusing on service delivery and adherence to terms.

Related Government Programs

Natural Gas Distribution
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for price volatility due to economic price adjustment.
Dependence on a single utility provider for a critical service.
Long-term contract duration may limit flexibility if market conditions change drastically.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.8 million to NATIONAL GRID USA SERVICE COMPANY, INC.. NATURAL GAS UTILITY SERVICES FOR THE USMMA CAMPUS AND RESIDENTIAL QUARTERS

Who is the contractor on this award?

The obligated recipient is NATIONAL GRID USA SERVICE COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the historical cost trend for natural gas in the service area?

Analyzing historical natural gas price trends in New York would provide context for the economic price adjustment clause. Understanding market volatility and long-term price forecasts can help assess the potential impact of price fluctuations on the total contract cost over its duration.

Are there any alternative energy sources being considered for the campus?

Exploring alternative energy sources or efficiency measures could present long-term cost savings and environmental benefits. While this contract ensures current natural gas supply, future strategic planning might involve diversification of energy procurement to mitigate risks associated with fossil fuel dependency and price volatility.

What are the key performance indicators (KPIs) for service delivery?

Understanding the specific KPIs for natural gas utility services, such as reliability of supply, response times for outages, and adherence to safety standards, is crucial. These metrics ensure the contractor meets operational requirements and provides value for the taxpayer.

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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 40 SYLVAN RD, WALTHAM, MA, 02451

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: $2,760,824

Exercised Options: $2,760,824

Current Obligation: $2,760,824

Actual Outlays: $1,712,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0423D0002

IDV Type: IDC

Timeline