National Archives awards $2.1M for gas distribution, highlighting sole-source procurement for essential services

Contract Overview

Contract Amount: $2,105,807 ($2.1M)

Contractor: Washington GAS Light Company

Awarding Agency: National Archives and Records Administration

Start Date: 2015-09-25

End Date: 2026-03-31

Contract Duration: 3,840 days

Daily Burn Rate: $548/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GAS DISTRIBUTION SERVICES AT ARCHIVES II. IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $2.1 million to WASHINGTON GAS LIGHT COMPANY for work described as: GAS DISTRIBUTION SERVICES AT ARCHIVES II. IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract awarded on a sole-source basis, indicating limited competition for essential utility services. 2. Long-term contract duration suggests a need for sustained, reliable gas distribution. 3. Fixed-price contract type provides cost certainty for the government. 4. Geographic focus on Maryland for services at the Archives II facility. 5. Contractor has a long-standing relationship with the agency for these services. 6. No small business set-aside, suggesting the primary contractor is a larger entity.

Value Assessment

Rating: fair

The contract value of $2.1 million over its period of performance appears reasonable for essential gas distribution services to a large federal facility. Benchmarking against similar utility contracts is challenging due to the specialized nature of federal facility support and the sole-source award. However, the fixed-price structure helps manage cost overruns. The absence of competitive bidding means direct price comparison is not possible, making a definitive value-for-money assessment difficult without further market data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required service, often due to unique capabilities, geographic necessity, or existing infrastructure. The lack of competition limits price discovery and may result in higher costs than a competitively bid contract. The justification for sole-source procurement would need to demonstrate why other vendors could not meet the requirements.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government is receiving the best possible price for these essential gas distribution services.

Public Impact

The primary beneficiary is the National Archives and Records Administration, ensuring continuous operation of the Archives II facility. Services include the reliable distribution of natural gas, essential for heating, cooling, and other operational needs of the facility. The geographic impact is localized to the College Park, Maryland area where Archives II is located. Workforce implications are likely minimal for the government, with the contractor responsible for the distribution infrastructure and related labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration without clear performance metrics in the provided data raises concerns about ongoing value.
Lack of small business participation noted, potentially missing opportunities to engage smaller, specialized firms.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Contractor is likely experienced in providing these essential services to the specific facility.
Ensures continuity of essential utility services for a critical federal facility.

Sector Analysis

Natural gas distribution is a critical utility service, essential for the operation of many facilities, including federal buildings. The market for such services is typically localized and often dominated by established utility providers. Federal contracts for these services, especially for large facilities, can represent significant long-term commitments. While specific market size data for federal gas distribution is not readily available, it is a necessary component of infrastructure support across various government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further suggests that opportunities for small business subcontracting may be limited, depending on the primary contractor's own subcontracting plans and capabilities. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, but it is likely minimal in this instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Archives and Records Administration's contracting officer and program managers. Accountability measures would be defined by the contract terms, including performance standards and payment schedules. Transparency is limited by the sole-source nature of the award, as the justification and selection process are not publicly scrutinized through a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Utility Contracts
Government Facility Operations Support
Natural Gas Supply Contracts
National Archives and Records Administration Contracts

Risk Flags

Sole-source procurement limits competition.
Potential for higher costs due to lack of competitive bidding.
Long contract duration may reduce flexibility.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $2.1 million to WASHINGTON GAS LIGHT COMPANY. GAS DISTRIBUTION SERVICES AT ARCHIVES II. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is WASHINGTON GAS LIGHT COMPANY.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2015-09-25. End: 2026-03-31.

What is the historical spending pattern for natural gas distribution services at the National Archives II facility?

The provided data indicates this is a delivery order under a larger contract, with an award date of 2015-09-25 and an estimated end date of 2026-03-31, spanning over a decade. The total value of this specific delivery order is $2,105,807.23. Without access to the base contract or prior delivery orders, it's difficult to establish a precise historical spending pattern. However, the long duration and the nature of utility services suggest consistent, ongoing expenditure. To fully understand the historical spending, one would need to examine all prior awards and modifications under the base contract, if available, and compare them to the current expenditure to identify trends in cost, volume, and service scope.

How does the pricing of this contract compare to market rates for similar gas distribution services?

Directly comparing the pricing of this contract to market rates is challenging due to its sole-source nature and the specific context of supporting a federal facility. Sole-source awards often lack the competitive pressure that drives prices down to market lows. While the contract is firm fixed-price, which offers cost certainty, it doesn't inherently guarantee the best value. To benchmark effectively, one would need access to pricing data from other utility providers serving comparable large commercial or government facilities in the Maryland region, considering factors like volume, service level agreements, and infrastructure requirements. Without such comparative data, assessing whether the $2.1 million represents a fair market price is speculative.

What are the specific risks associated with a sole-source award for essential utility services?

The primary risk of a sole-source award for essential utility services is the potential for inflated costs due to the lack of competition. The government may not be achieving the most economical price. Another risk is vendor lock-in; if the sole provider faces operational issues or decides to discontinue service, finding a replacement for essential utilities can be complex and disruptive. Furthermore, without competitive pressure, there might be less incentive for the contractor to innovate or improve service efficiency beyond the contractual minimums. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks and ensure continued reliable service at a reasonable cost.

What is the track record of Washington Gas Light Company in serving federal government contracts?

Washington Gas Light Company (WGL) has a significant history of providing natural gas distribution services, including to government entities. While specific details on their performance across all federal contracts are not provided here, their long-standing role as a utility provider in the Washington D.C. metropolitan area suggests established infrastructure and operational experience. For this particular contract with the National Archives and Records Administration (NARA), the award is a delivery order under a base contract, implying a continuation of service. A thorough assessment of WGL's track record would involve reviewing past performance evaluations (e.g., CPARS reports) for this and similar federal contracts, looking for any history of service disruptions, cost overruns, or contractual disputes.

How does the duration of this contract (ending 2026) impact the government's flexibility?

The contract's duration, extending to March 31, 2026, provides the National Archives and Records Administration with a degree of stability and predictability for essential gas distribution services. This long-term commitment ensures continuity of operations for the Archives II facility without the need for frequent re-procurement. However, it also reduces the government's flexibility to switch providers or renegotiate terms if market conditions change significantly or if a better alternative service becomes available before the contract's end date. The government's ability to exit or modify the contract early would be governed by the specific terms and conditions outlined within the contract itself, potentially involving termination clauses and associated costs.

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

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: $2,445,807

Exercised Options: $2,445,807

Current Obligation: $2,105,807

Actual Outlays: $1,185,264

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P06BSD0393

IDV Type: IDC

Timeline