GSA Awards $20.7M Firm Fixed Price Contract for Natural Gas Services to Washington Gas Light Company

Contract Overview

Contract Amount: $20,700,000 ($20.7M)

Contractor: Washington GAS Light Company

Awarding Agency: General Services Administration

Start Date: 2014-04-24

End Date: 2020-07-31

Contract Duration: 2,290 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: SUPPLY NATURAL GAS SERVICES HERE AT GSA, CENTRAL HEATING REFRIGERATION AND CO-GENERATION PLANT, 13TH&C STREETS, SW, WASHINGTON, DC 20407. IGF::CT::IGF

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 $20.7 million to WASHINGTON GAS LIGHT COMPANY for work described as: SUPPLY NATURAL GAS SERVICES HERE AT GSA, CENTRAL HEATING REFRIGERATION AND CO-GENERATION PLANT, 13TH&C STREETS, SW, WASHINGTON, DC 20407. IGF::CT::IGF Key points: 1. Contract awarded for natural gas distribution services at a GSA facility. 2. Washington Gas Light Company is the sole provider for this service. 3. The contract spans over six years, indicating a long-term need. 4. Firm Fixed Price contract type helps manage cost predictability.

Value Assessment

Rating: fair

The contract value of $20.7 million over six years appears reasonable for natural gas supply to a large facility. However, without specific usage data or comparable contract benchmarks, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, likely due to the nature of utility services where a single provider typically serves a geographic area. This limits price discovery and competitive negotiation.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, though the necessity of the service and the firm fixed price offer some cost control.

Public Impact

Ensures continuous heating and cooling for a federal building in Washington D.C. Supports the operational needs of the General Services Administration. Provides essential utility services to government infrastructure. Potential for higher costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Long contract duration may not reflect current market prices.
Lack of detailed usage data hinders precise value analysis.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Ensures essential utility service delivery.
Awarded to an established utility provider.

Sector Analysis

This contract falls under the utility services sector, specifically natural gas distribution. Spending benchmarks for such services are highly localized and dependent on facility size and energy demands. The awarded amount is significant for a single facility's utility needs over six years.

Small Business Impact

The contract was not awarded to a small business. The nature of utility provision often involves large, established companies with extensive infrastructure, making it challenging for small businesses to compete in this specific service area.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight would involve monitoring service delivery, adherence to contract terms, and ensuring the firm fixed price remains appropriate throughout the contract period, especially given the sole-source nature.

Related Government Programs

Natural Gas Distribution
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Sole-source award
Long contract duration
Lack of detailed usage data
Potential for price escalation not fully captured

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.7 million to WASHINGTON GAS LIGHT COMPANY. SUPPLY NATURAL GAS SERVICES HERE AT GSA, CENTRAL HEATING REFRIGERATION AND CO-GENERATION PLANT, 13TH&C STREETS, SW, WASHINGTON, DC 20407. IGF::CT::IGF

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 $20.7 million.

What is the period of performance?

Start: 2014-04-24. End: 2020-07-31.

What is the historical natural gas consumption for this facility to validate the $20.7M award value?

Historical consumption data is crucial for validating the $20.7 million award. Without it, it's difficult to determine if the firm fixed price accurately reflects the expected usage over the six-year period. Analyzing past utility bills and comparing them to the contract's estimated cost would provide a clearer picture of value for money and identify potential over or underestimation.

Were any sole-source justifications thoroughly reviewed to ensure no competitive alternatives existed?

A thorough review of sole-source justifications is essential to ensure taxpayer funds are used efficiently. For utility services, the justification often relies on geographic monopolies. However, agencies should explore if alternative energy sources or different contract structures could have been competitively procured, even if the final delivery method remains sole-source.

How will GSA ensure the firm fixed price remains fair over the six-year duration, given potential market fluctuations?

While a firm fixed price offers predictability, GSA should implement mechanisms to monitor market fluctuations. This could involve periodic reviews of industry pricing trends or incorporating clauses for potential adjustments if extreme market shifts occur, though this might deviate from a strict FFP. Regular performance reviews and communication with the contractor are key.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altagas Ltd (UEI: 206933090)

Address: 101 CONSTITUTION AVE NW, WASHINGTON, DC, 20080

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,700,000

Exercised Options: $20,700,000

Current Obligation: $20,700,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P06BSD0393

IDV Type: IDC

Timeline