GSA's $10.4M Gas Distribution Contract with Washington Gas Light Company Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $10,367,462 ($10.4M)

Contractor: Washington GAS Light Company

Awarding Agency: General Services Administration

Start Date: 2006-02-01

End Date: 2016-01-31

Contract Duration: 3,651 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE GAS DISTRIBUTION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $10.4 million to WASHINGTON GAS LIGHT COMPANY for work described as: PROVIDE GAS DISTRIBUTION SERVICES Key points: 1. The contract awarded to Washington Gas Light Company for gas distribution services represents a significant expenditure of $10.4 million. 2. The absence of competition raises concerns about potential overpricing and the government's ability to secure the best value. 3. The long duration of the contract (2006-2016) and its sole-source nature warrant a closer look at the procurement process. 4. This spending falls within the utility and infrastructure sector, where long-term service agreements are common but competition is still desirable.

Value Assessment

Rating: questionable

The contract's 'NOT AVAILABLE FOR COMPETITION' status makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $10.4 million price reflects fair market value or if taxpayers paid a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for these essential gas distribution services.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding for essential utility services. The long-term nature of the contract (10 years) locks the government into a single provider, limiting flexibility. Lack of transparency in sole-source procurements can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No small business participation indicated

Positive Signals

Essential service provision
Firm fixed price contract type

Sector Analysis

This contract falls under the utility services sector, specifically natural gas distribution. Spending in this area is often characterized by long-term infrastructure needs and established service providers, but competitive procurement is still crucial for cost efficiency.

Small Business Impact

There is no indication that small businesses were involved in providing these gas distribution services, which is common for utility infrastructure contracts that often require specialized capabilities and established networks.

Oversight & Accountability

The sole-source nature of this contract suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why competition was deemed unavailable and if this decision was adequately justified.

Related Government Programs

Natural Gas Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Long contract duration (10 years) reduces flexibility.
No clear indication of small business participation.
Lack of detailed justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.4 million to WASHINGTON GAS LIGHT COMPANY. PROVIDE GAS DISTRIBUTION SERVICES

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2006-02-01. End: 2016-01-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require examining the specific justification documented by the General Services Administration (GSA) at the time of award. This might include reasons like unique capabilities of the sole provider, urgent needs, or lack of viable alternatives. Without this documentation, it's impossible to fully assess the validity of the sole-source decision and its impact on value for money.

How does the $10.4 million price compare to market rates for similar gas distribution services during the contract period (2006-2016)?

Benchmarking the $10.4 million cost against similar contracts or market rates for natural gas distribution services between 2006 and 2016 is challenging without access to detailed service level agreements and regional pricing data. The sole-source nature further complicates this, as there's no direct competitive baseline. A comprehensive analysis would involve comparing unit costs (e.g., per therm, per service call) with publicly available utility rate filings or other government contracts for comparable services in the District of Columbia.

What was the process for ensuring accountability and performance from Washington Gas Light Company over the 10-year contract duration?

Accountability for a 10-year firm fixed-price contract typically involves performance monitoring, service level agreements, and regular reporting. The General Services Administration's Public Buildings Service would be responsible for overseeing contract performance. Key aspects to review would include any documented performance reviews, dispute resolution processes, and mechanisms for addressing service failures or deviations from the contract terms during its lifespan.

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: ALTERNATIVE SOURCES

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WGL Holdings Inc. (UEI: 153776278)

Address: 101 CONSTITUTION AVENUE NW, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,367,462

Exercised Options: $10,367,462

Current Obligation: $10,367,462

Timeline