Washington Gas Awarded $8.8M for Arlington National Cemetery Gas Main Relocation

Contract Overview

Contract Amount: $8,843,942 ($8.8M)

Contractor: Washington GAS Light Company

Awarding Agency: Department of Transportation

Start Date: 2023-03-17

End Date: 2026-06-30

Contract Duration: 1,201 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES FOR WASHINGTON GAS FOR THE TEMPORARY AND PERMANENT GAS MAIN RELOCATION WORK FOR THE ARLINGTON NATIONAL CEMETERY (ANC) SOUTHERN EXPANSION (SE) PROJECT VA ST ANC(1).

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.8 million to WASHINGTON GAS LIGHT COMPANY for work described as: SERVICES FOR WASHINGTON GAS FOR THE TEMPORARY AND PERMANENT GAS MAIN RELOCATION WORK FOR THE ARLINGTON NATIONAL CEMETERY (ANC) SOUTHERN EXPANSION (SE) PROJECT VA ST ANC(1). Key points: 1. Contract awarded to Washington Gas Light Company for essential infrastructure work. 2. The project supports the Arlington National Cemetery Southern Expansion. 3. Pricing is fixed, providing cost certainty for the government. 4. Natural Gas Distribution is the primary sector for this service.

Value Assessment

Rating: fair

The contract value of $8.8M for a 3-year duration appears reasonable given the specialized nature of utility infrastructure work. Benchmarking is difficult without specific details on the scope of relocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs than a competitive process.

Taxpayer Impact: Taxpayers bear the cost of this essential infrastructure upgrade, with potential for increased cost due to limited competition.

Public Impact

Ensures continued natural gas service during cemetery expansion. Supports a critical national landmark's infrastructure needs. Potential for cost overruns due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for cost inefficiencies

Positive Signals

Supports critical infrastructure
Fixed price contract

Sector Analysis

This contract falls under Natural Gas Distribution, a utility service essential for infrastructure projects. Spending in this sector can vary widely based on project scale and location.

Small Business Impact

There is no indication that small businesses were involved in this contract award. The award went to a large utility company.

Oversight & Accountability

The Federal Highway Administration is overseeing this contract. Oversight is crucial to ensure the project meets its objectives and stays within budget, especially given the limited competition.

Related Government Programs

Natural Gas Distribution
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for scope creep impacting fixed price.
Reliance on a single utility provider.
Coordination challenges with cemetery expansion activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.8 million to WASHINGTON GAS LIGHT COMPANY. SERVICES FOR WASHINGTON GAS FOR THE TEMPORARY AND PERMANENT GAS MAIN RELOCATION WORK FOR THE ARLINGTON NATIONAL CEMETERY (ANC) SOUTHERN EXPANSION (SE) PROJECT VA ST ANC(1).

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2023-03-17. End: 2026-06-30.

What specific factors justified the limited competition for this natural gas distribution service?

The justification for limited competition likely stems from the unique infrastructure and service territory of Washington Gas Light Company. Relocating existing gas mains requires specialized knowledge, permits, and coordination with the utility's network, making it difficult for other entities to perform the work efficiently or safely.

How will the fixed-price contract mitigate risks associated with potential cost overruns?

A fixed-price contract shifts the risk of cost overruns to the contractor, Washington Gas Light Company. While this provides budget certainty for the government, it's crucial that the initial price accurately reflects the scope and complexity of the work to avoid inadequate performance or contractor financial distress.

What is the long-term impact of this gas main relocation on the Arlington National Cemetery's expansion project?

This relocation is critical for enabling the physical expansion of Arlington National Cemetery. By ensuring the safe and uninterrupted flow of natural gas, the project removes a significant infrastructure impediment, allowing construction and development to proceed as planned.

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

Parent Company: Altagas Ltd

Address: 1000 MAINE AVE SW, WASHINGTON, DC, 20024

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: $8,843,942

Exercised Options: $8,843,942

Current Obligation: $8,843,942

Actual Outlays: $8,109,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline