NASA Spends $25.7M on Gas Services with Washington Gas Light Company
Contract Overview
Contract Amount: $25,711,636 ($25.7M)
Contractor: Washington GAS Light Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-11-15
End Date: 2013-02-28
Contract Duration: 4,123 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GAS SERVICES
Place of Performance
Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $25.7 million to WASHINGTON GAS LIGHT COMPANY for work described as: GAS SERVICES Key points: 1. Significant contract value of $25.7 million for essential gas services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Long contract duration of over 11 years indicates a sustained need. 4. No specific mention of small business participation, warranting further investigation.
Value Assessment
Rating: fair
The contract value of $25.7 million over 11 years is substantial. Without specific per-unit cost data or benchmarks for similar NASA facilities, it's difficult to definitively assess pricing efficiency. However, the duration suggests potential for bulk discounts or negotiated rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. This method suggests that multiple vendors had the opportunity to submit proposals.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces, though the long duration might obscure year-over-year price fluctuations.
Public Impact
Ensures reliable natural gas supply for NASA operations in Maryland. Supports critical infrastructure maintenance and utility services for a federal agency. The long-term nature of the contract impacts budget predictability for NASA's utility expenses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may obscure current market pricing.
- No specific performance metrics provided.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
- Essential service for agency operations.
Sector Analysis
This contract falls under utility services, specifically natural gas distribution, which is a common and essential expenditure for large federal facilities. Benchmarks for such services can vary widely based on location, volume, and contract terms.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the nature of the service inherently limited small business participation.
Oversight & Accountability
The contract was awarded by NASA, a federal agency with established procurement oversight. The long duration and firm fixed price suggest a structured approach, but ongoing monitoring would be necessary to ensure continued value.
Related Government Programs
- Natural Gas Distribution
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for overpayment due to long fixed-price duration if market prices fall.
- Lack of small business participation.
- Absence of specific performance metrics or service level agreements.
- Limited transparency on year-over-year cost adjustments.
Tags
natural-gas-distribution, national-aeronautics-and-space-administr, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $25.7 million to WASHINGTON GAS LIGHT COMPANY. GAS SERVICES
Who is the contractor on this award?
The obligated recipient is WASHINGTON GAS LIGHT COMPANY.
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 $25.7 million.
What is the period of performance?
Start: 2001-11-15. End: 2013-02-28.
What is the average annual cost of these gas services, and how does it compare to similar contracts at other federal facilities?
The total contract value is $25.7 million over approximately 11.3 years (4123 days). This averages to roughly $2.27 million per year. Comparing this to similar contracts at other federal facilities would require access to a broader dataset of utility contracts, considering factors like geographic location, volume of gas consumed, and specific service level agreements to ensure a fair comparison.
Given the long contract duration, what mechanisms are in place to mitigate the risk of paying above current market rates for natural gas?
The firm fixed price contract provides cost certainty for the duration. However, it also carries the risk of the government overpaying if market prices for natural gas decrease significantly. Mechanisms to mitigate this could include periodic price reviews or clauses allowing for renegotiation under specific market conditions, though these are not explicitly stated in the provided data.
How effectively does this contract ensure the reliable and uninterrupted supply of natural gas for NASA's operations?
The contract's primary purpose is to ensure a reliable supply of natural gas, a critical utility. The long duration and firm fixed price suggest a commitment to sustained service. However, the effectiveness in practice would depend on the contractor's performance, emergency preparedness, and NASA's own consumption management.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: WGL Holdings Inc. (UEI: 153776278)
Address: 1100 H ST NW, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,711,636
Exercised Options: $25,711,636
Current Obligation: $25,711,636
Timeline
Start Date: 2001-11-15
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2013-05-23
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