NASA awards $10.8M for natural gas supply, with a significant portion allocated for delivery orders
Contract Overview
Contract Amount: $10,759,943 ($10.8M)
Contractor: GAS South, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-11-01
End Date: 2025-10-31
Contract Duration: 730 days
Daily Burn Rate: $14.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: NATURAL GAS SUPPLY (JSC, EF & SCTF)
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $10.8 million to GAS SOUTH, LLC for work described as: NATURAL GAS SUPPLY (JSC, EF & SCTF) Key points: 1. Value for money appears reasonable given the firm fixed-price structure and duration. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low due to the established nature of the service and contractor. 4. Performance context is within the scope of routine utility provision. 5. Sector positioning places this contract within essential infrastructure services for NASA facilities.
Value Assessment
Rating: good
The contract's total value of approximately $10.8 million over two years suggests a stable, predictable cost for natural gas. The firm fixed-price (FFP) contract type helps mitigate cost overrun risks for the agency. Benchmarking against similar utility contracts is challenging without specific volume data, but the price per day ($14,740) seems within a reasonable range for a large federal facility's energy needs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and ensures the government receives the best value. The open nature of the competition suggests that Gas South, LLC's pricing is likely aligned with market rates.
Taxpayer Impact: Taxpayers benefit from the competitive pricing achieved through an open bidding process, ensuring that federal funds are used efficiently for essential services.
Public Impact
NASA facilities in Texas will benefit from a reliable supply of natural gas. This contract ensures the continuous operation of essential services requiring natural gas, such as heating and power generation. The geographic impact is concentrated in Texas, where the natural gas supply will be delivered. Workforce implications are minimal, as this contract primarily covers the supply of a commodity rather than extensive labor services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the natural gas market, though mitigated by FFP.
- Dependence on a single supplier for a critical utility.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests competitive pricing.
- Long-term contract (2 years) ensures supply stability.
- Contract awarded to a known entity (Gas South, LLC).
Sector Analysis
The energy sector, specifically natural gas distribution, is a critical component of infrastructure for government operations. This contract fits within the broader category of utility services, which are essential for maintaining federal facilities. Comparable spending benchmarks for natural gas supply to large federal installations can vary significantly based on location, volume, and market conditions, but this award appears to be a standard procurement for such services.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans with small businesses. This suggests that the primary award was made to a larger entity, and the direct impact on the small business ecosystem for this specific contract is likely limited unless Gas South, LLC engages small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the National Aeronautics and Space Administration's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of natural gas as specified. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Energy Management Program
- Utility Services Contracts
- Natural Gas Procurement
Risk Flags
- Potential for market price fluctuations in natural gas.
- Dependence on a single supplier for a critical utility.
Tags
energy, natural-gas, utility-services, nasa, firm-fixed-price, full-and-open-competition, delivery-order, texas, infrastructure, commodity-supply
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $10.8 million to GAS SOUTH, LLC. NATURAL GAS SUPPLY (JSC, EF & SCTF)
Who is the contractor on this award?
The obligated recipient is GAS SOUTH, 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 $10.8 million.
What is the period of performance?
Start: 2023-11-01. End: 2025-10-31.
What is the historical spending pattern for natural gas supply at NASA facilities?
Analyzing historical spending for natural gas at NASA facilities requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this contract or similar contracts at NASA, it's difficult to establish a precise pattern. However, federal agencies typically procure energy commodities like natural gas through competitive bidding processes. Spending can fluctuate based on market prices, energy demand, and facility operational changes. Contracts are often awarded for multi-year periods to ensure supply stability and leverage potential volume discounts. A review of past awards for similar services at NASA or other agencies could reveal trends in pricing, contract duration, and supplier choices, providing context for the current $10.8 million award.
How does the price per unit for this natural gas contract compare to market rates or similar federal contracts?
The provided data indicates a total award of $10,759,942.93 over 730 days (2 years), resulting in an average daily cost of approximately $14,740. However, a direct per-unit cost (e.g., per therm or per MMBtu) is not explicitly stated, making precise benchmarking difficult. To compare effectively, one would need to know the expected natural gas volume consumption for the NASA facilities covered. If this volume were known, it could be divided into the total contract value to derive a per-unit cost. This derived cost could then be compared against publicly available market indices for natural gas prices in Texas during the contract period and against per-unit costs from similar natural gas supply contracts awarded to other federal agencies.
What is the track record of Gas South, LLC as a federal contractor, particularly for energy supply?
Gas South, LLC is a known provider of natural gas services. Information regarding their track record as a federal contractor can be found in the Federal Procurement Data System (FPDS) or other government contract databases. A review of these systems would reveal the number and types of contracts Gas South has held with federal agencies, their performance history (if documented), and any past issues or accolades. For this specific NASA contract, the award suggests they met the agency's requirements. However, a deeper dive into their broader federal contracting history would provide a more comprehensive understanding of their reliability, pricing competitiveness, and overall performance in serving government clients.
What are the potential risks associated with this natural gas supply contract, and how are they mitigated?
Potential risks for a natural gas supply contract include price volatility in the energy market, supply disruptions (though less common for natural gas in established distribution networks), and contractor performance issues. This contract mitigates price volatility through its firm fixed-price (FFP) structure, locking in the cost for the duration. Supply disruptions are generally low risk due to the nature of natural gas infrastructure, but could theoretically arise from extreme weather or infrastructure failures. Contractor performance risk is managed through the contract's terms and conditions, including delivery requirements and potential penalties. NASA's oversight and the competitive nature of the award also serve as risk mitigation factors, ensuring a reliable and cost-effective service.
How does this contract align with NASA's broader energy management and sustainability goals?
This contract for natural gas supply directly supports NASA's operational needs, ensuring facilities have the energy required for essential functions like heating and power. While natural gas is a fossil fuel, its use is often part of a broader energy portfolio that may include renewable sources. Agencies like NASA are tasked with managing energy consumption efficiently and exploring sustainable alternatives. This contract's alignment with sustainability goals would depend on whether natural gas is being used as a transitional fuel, if the agency is pursuing efficiency measures alongside its use, or if there are plans to integrate renewable natural gas or other cleaner energy sources in the future. The contract itself focuses on reliable supply, with broader sustainability strategies likely addressed in separate agency-wide initiatives.
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: Cobb Electric Membership Corporation
Address: 3625 CUMBERLAND BLVD SE STE 1500, ATLANTA, GA, 30339
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,759,943
Exercised Options: $10,759,943
Current Obligation: $10,759,943
Actual Outlays: $10,759,943
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PA0723D0013
IDV Type: IDC
Timeline
Start Date: 2023-11-01
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2026-02-26
More Contracts from GAS South, LLC
- Natural GAS Service for FY 26 — $241.0K (Department of Justice)
- GAS South Services - FY25 - FCI Miami — $21.5K (Department of Justice)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →