Fort Bragg Natural Gas Utility System Contract Awarded to Piedmont Natural Gas for $17.2M
Contract Overview
Contract Amount: $17,199,750 ($17.2M)
Contractor: Piedmont Natural GAS Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-26
End Date: 2069-01-14
Contract Duration: 20,199 days
Daily Burn Rate: $852/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::CT::IGF PIEDMONT NATURAL GAS COMPANY (PNG/CONTRACTOR) SHALL ASSUME OWNERSHIP, OPERATIONS, AND MAINTENANCE OF THE NATURAL GAS UTILITY SYSTEM (UTILITY SYSTEM) AT FORT BRAGG/POPE AAF, NC (THE INSTALLATION). THE CONTRACTOR SHALL FURNISH ALL NECESSARY LABOR, MANAGEMENT, SUPERVISION, PERMITS, EQUIPMENT, SUPPLIES, MATERIALS, TRANSPORTATION, AND ANY OTHER INCIDENTAL SERVICES REQUIRED FOR THE COMPLETE OWNERSHIP, OPERATION, MAINTENANCE, REPAIR, UPGRADE, AND IMPROVEMENT OF THE NATURAL GAS UTILITY SYSTEM.
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $17.2 million to PIEDMONT NATURAL GAS COMPANY, INC. for work described as: IGF::CT::IGF PIEDMONT NATURAL GAS COMPANY (PNG/CONTRACTOR) SHALL ASSUME OWNERSHIP, OPERATIONS, AND MAINTENANCE OF THE NATURAL GAS UTILITY SYSTEM (UTILITY SYSTEM) AT FORT BRAGG/POPE AAF, NC (THE INSTALLATION). THE CONTRACTOR SHALL FURNISH ALL NECESSARY LABOR, MANAGEMENT, SUPERVISI… Key points: 1. This contract involves the long-term ownership, operation, and maintenance of the natural gas utility system at Fort Bragg/Pope AAF. 2. The contractor is responsible for all aspects of the system, including repairs, upgrades, and improvements. 3. The contract is a firm-fixed-price type, indicating a set price for the services. 4. The duration of the contract is exceptionally long, spanning over 56 years.
Value Assessment
Rating: questionable
The contract value of $17.2 million over a 56-year term suggests a very low annual cost. However, without comparable contracts for utility system operations and maintenance, it is difficult to assess if this pricing is competitive or reflects the full scope of services required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The long-term nature and sole-source award raise concerns about potential overspending by taxpayers due to a lack of competitive pressure on pricing.
Public Impact
Ensures continuous natural gas service for military personnel and operations at Fort Bragg/Pope AAF. Long-term commitment provides stability for utility infrastructure management. Potential for taxpayer funds to be used inefficiently due to sole-source award and extended duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extremely long contract duration (56 years)
- Sole-source award limits competition
- Lack of clear performance metrics or service level agreements
Positive Signals
- Ensures essential utility service for a major military installation
- Single point of accountability for the natural gas system
Sector Analysis
This contract falls within the Utilities and Energy sector, specifically focusing on natural gas distribution and management. Long-term utility contracts are common for government installations to ensure reliable service, but the duration here is unusually extensive.
Small Business Impact
There is no indication in the provided data whether small businesses are involved as subcontractors or partners in this contract. The award is to a single, likely large, utility company.
Oversight & Accountability
The extensive duration of this contract warrants significant oversight to ensure the government is receiving fair value and that the contractor is meeting all operational and maintenance obligations throughout the 56-year term.
Related Government Programs
- Natural Gas Distribution
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Excessive contract duration
- Lack of competition
- Potential for cost overruns due to sole-source award
- Unclear performance metrics for long-term maintenance and upgrades
- Limited transparency on justification for sole-source and duration
Tags
natural-gas-distribution, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to PIEDMONT NATURAL GAS COMPANY, INC.. IGF::CT::IGF PIEDMONT NATURAL GAS COMPANY (PNG/CONTRACTOR) SHALL ASSUME OWNERSHIP, OPERATIONS, AND MAINTENANCE OF THE NATURAL GAS UTILITY SYSTEM (UTILITY SYSTEM) AT FORT BRAGG/POPE AAF, NC (THE INSTALLATION). THE CONTRACTOR SHALL FURNISH ALL NECESSARY LABOR, MANAGEMENT, SUPERVISION, PERMITS, EQUIPMENT, SUPPLIES, MATERIALS, TRANSPORTATION, AND ANY OTHER INCIDENTAL SERVICES REQUIRED FOR THE COMPLETE OWNERSHIP, OPERATION, MAINTENANCE, REPAIR, UPGRADE, AND IMPROVEMENT OF THE NATURAL GAS UTILITY SYST
Who is the contractor on this award?
The obligated recipient is PIEDMONT NATURAL GAS COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2013-09-26. End: 2069-01-14.
What is the justification for the sole-source award and the exceptionally long contract duration of 56 years for natural gas utility services at Fort Bragg?
The justification for a sole-source award and the extended duration is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required service. Long durations might be justified by the need for significant capital investment by the contractor in infrastructure upgrades or by specific long-term utility market conditions. However, without further details, the rationale remains unclear and raises questions about potential lack of competition and long-term value.
How does the annual cost of this contract compare to industry benchmarks for similar natural gas utility operations and maintenance services?
The provided data does not include sufficient detail to perform a robust cost comparison. The total contract value of $17.2 million spread over 56 years results in an average annual cost of approximately $307,000. This figure needs to be evaluated against the size and complexity of the Fort Bragg/Pope AAF natural gas system, including the volume of gas distributed, the extent of the distribution network, and the required maintenance and upgrade activities. Benchmarking would require detailed operational data and comparison with similar military bases or large industrial facilities.
What mechanisms are in place to ensure the contractor maintains and upgrades the natural gas utility system effectively over the 56-year contract period?
The contract mandates the contractor to perform ownership, operations, and maintenance, including repair, upgrade, and improvement. However, the provided data lacks specifics on performance standards, key performance indicators (KPIs), or scheduled upgrade cycles. Effective oversight would require regular audits, performance reviews, and potentially independent assessments of the utility system's condition to ensure long-term reliability and safety, and to verify that the contractor is fulfilling its obligations beyond basic operational requirements.
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
Solicitation ID: SP060011R0801
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Duke Energy Corporation
Address: 4720 PIEDMONT ROW DR STE 100, CHARLOTTE, NC, 28210
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $277,703,658
Exercised Options: $277,703,658
Current Obligation: $17,199,750
Actual Outlays: $1,639,503
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-26
Current End Date: 2069-01-14
Potential End Date: 2069-01-14 00:00:00
Last Modified: 2026-01-15
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