NASA awards $2.16M for natural gas supply to GSFC, with delivery orders extending through October 2026
Contract Overview
Contract Amount: $2,156,396 ($2.2M)
Contractor: United Energy Trading, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-11-01
End Date: 2026-10-31
Contract Duration: 729 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: GENERATION AND TRANSMISSION OF NATURAL GAS TO NASA GSFC IN GREENBELT, MD.
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.2 million to UNITED ENERGY TRADING, LLC for work described as: GENERATION AND TRANSMISSION OF NATURAL GAS TO NASA GSFC IN GREENBELT, MD. Key points: 1. Contract value appears reasonable for a multi-year utility service. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Service duration of two years provides stable energy supply. 5. Geographic concentration in Maryland for a critical facility. 6. Contractor is a single entity for a specific utility service.
Value Assessment
Rating: good
The contract value of $2.16 million for natural gas distribution over two years appears to be within a reasonable range for utility services supporting a federal facility. Benchmarking against similar contracts for natural gas supply to government installations in the Mid-Atlantic region would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics makes a comprehensive value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The specific number of bidders is not provided, but the designation implies a robust competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing for essential services like natural gas.
Public Impact
NASA Goddard Space Flight Center (GSFC) in Greenbelt, Maryland, will receive a reliable supply of natural gas. This ensures the continuous operation of critical facilities and research activities at GSFC. The service directly supports the energy needs of a major federal research and development hub. The contract supports the local energy infrastructure and potentially related jobs in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess service quality beyond basic delivery.
- Limited information on the number of bidders in the full and open competition.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive market for this service.
- Contract duration aligns with operational needs for a stable energy supply.
Sector Analysis
The energy sector, specifically natural gas distribution, is a critical utility service for government operations. This contract falls within the broader category of utility services and infrastructure support for federal agencies. Market size for natural gas distribution is substantial, with numerous providers competing for government contracts. This specific contract represents a small portion of the overall federal spending on energy and utilities.
Small Business Impact
There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. As a utility service, it is likely that the primary contractor is a specialized energy provider, and the nature of natural gas distribution may not lend itself to extensive subcontracting opportunities for small businesses.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA). Oversight would typically involve contract officers and technical monitors ensuring delivery and adherence to terms. Transparency is facilitated by public contract databases, but specific internal oversight mechanisms and accountability measures are not detailed in the provided data. Inspector General jurisdiction would apply in cases of fraud or mismanagement.
Related Government Programs
- NASA Facilities Operations Contracts
- Federal Utility Services
- Natural Gas Supply Contracts
- Energy Procurement for Government Facilities
Risk Flags
- Price Volatility Risk
- Supply Chain Disruption Risk
- Contractor Performance Risk
Tags
energy, natural-gas-distribution, nasa, gsfc, maryland, firm-fixed-price, full-and-open-competition, delivery-order, utility-services, federal-facility, mid-atlantic
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.2 million to UNITED ENERGY TRADING, LLC. GENERATION AND TRANSMISSION OF NATURAL GAS TO NASA GSFC IN GREENBELT, MD.
Who is the contractor on this award?
The obligated recipient is UNITED ENERGY TRADING, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $2.2 million.
What is the period of performance?
Start: 2024-11-01. End: 2026-10-31.
What is the historical spending pattern for natural gas at NASA GSFC?
Historical spending data for natural gas at NASA GSFC is not directly available from the provided contract details. However, this contract, valued at approximately $2.16 million over two years (2024-2026), suggests an average annual expenditure of around $1.08 million for this service. To understand historical patterns, one would need to access NASA's historical procurement data or financial reports for GSFC, looking for previous contracts for natural gas supply or similar utility services over prior fiscal years. This would reveal trends in pricing, volume, and contractor selection, providing context for the current award's value and terms.
How does the price per unit of natural gas compare to market rates for this contract?
The provided contract data does not include specific unit pricing (e.g., per therm or per MMBtu) or the total volume of natural gas to be delivered. Therefore, a direct comparison of the per-unit cost to prevailing market rates is not possible with the given information. To perform this analysis, one would need to know the estimated annual or total volume of natural gas consumption at NASA GSFC and then divide the total contract value by this volume. This calculated average unit cost could then be benchmarked against published indices for natural gas prices in the Maryland region during the contract period (2024-2026) and against historical averages.
What is the track record of UNITED ENERGY TRADING, LLC with federal contracts?
UNITED ENERGY TRADING, LLC has been awarded this contract for natural gas distribution to NASA GSFC. To assess their track record, a review of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify other contracts awarded to this entity. This would reveal the types of services they provide to the government, the agencies they serve, contract values, and performance history. A significant number of past awards, particularly for similar energy services, and a history of satisfactory performance ratings would indicate a strong track record. Conversely, a limited history or negative performance indicators would raise concerns.
What are the potential risks associated with this natural gas supply contract?
Potential risks for this natural gas supply contract include price volatility in the natural gas market, which could impact the effective value of the fixed-price contract if market prices rise significantly above projections. Supply disruptions due to infrastructure issues, extreme weather events, or geopolitical factors are also a risk, although less common for established distribution networks. Performance risk, related to the reliability and quality of service provided by UNITED ENERGY TRADING, LLC, exists, though mitigated by the fixed-price structure and NASA's oversight. Lastly, the dependence on a single contractor for a critical utility introduces a concentration risk.
How does this contract align with NASA's broader energy procurement strategy?
This contract for natural gas supply to NASA GSFC aligns with NASA's need to secure reliable and cost-effective energy for its facilities. While specific details of NASA's overarching energy procurement strategy are not provided, such contracts are essential for maintaining operational continuity. NASA, like other federal agencies, is often tasked with balancing energy security, cost efficiency, and increasingly, sustainability goals. This contract focuses on securing a necessary utility through competitive means, contributing to the agency's operational requirements. Further analysis would require understanding NASA's targets for renewable energy use and overall energy efficiency initiatives.
What is the significance of the delivery order (DO) award type for this contract?
The 'DELIVERY ORDER' award type, indicated by 'AW: DELIVERY ORDER', suggests that this contract is likely a task order or delivery order issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that UNITED ENERGY TRADING, LLC may have been selected through a competitive process for a broader contract, and this specific order represents a defined quantity of goods or services to be delivered within a specified timeframe. The 'NA: 221210' likely refers to the specific contract number under which this delivery order was issued. This award method allows agencies flexibility in procuring services as needed.
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
Parent Company: United Energy Corporation
Address: 919 S 7TH ST STE 405, BISMARCK, ND, 58504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,999,222
Exercised Options: $2,666,148
Current Obligation: $2,156,396
Actual Outlays: $1,430,277
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0724D0017
IDV Type: IDC
Timeline
Start Date: 2024-11-01
Current End Date: 2026-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-03-17
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