DoD Army's $13.5M Natural Gas Contract Awarded Under Full and Open Competition for FY25
Contract Overview
Contract Amount: $13,485,743 ($13.5M)
Contractor: Foreign Utility Consolidated Reporting
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $37.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: CONSOLIDATED REPORT FOR UTILITY SERVICES (NATURAL GAS COMPETED) FY25 OCTOBER THROUGH AUGUST.
Plain-Language Summary
Department of Defense obligated $13.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING for work described as: CONSOLIDATED REPORT FOR UTILITY SERVICES (NATURAL GAS COMPETED) FY25 OCTOBER THROUGH AUGUST. Key points: 1. The Department of the Army awarded a $13.5 million contract for natural gas utility services. 2. The contract was awarded using full and open competition, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, providing cost certainty for the government. 4. This spending falls under the broader utility services sector, essential for operational support.
Value Assessment
Rating: good
The contract value of $13.5 million for a 364-day period appears reasonable for natural gas utility services, especially given it was competitively bid. Benchmarking against similar large-scale utility contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method is expected to drive competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The competitive nature of this award is likely to result in cost savings for taxpayers compared to a non-competitive procurement.
Public Impact
Ensures reliable energy supply for Department of Defense operations. Supports military readiness and infrastructure maintenance. Potential for cost savings passed on to taxpayers due to competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Firm Fixed Price contract type
- Clear contract duration and scope
Sector Analysis
This contract for natural gas distribution falls within the broader utility services sector, which is critical for government operations. Spending benchmarks for utility services can vary significantly based on location, volume, and market fluctuations.
Small Business Impact
The provided data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to assess small business inclusion.
Oversight & Accountability
The contract was awarded by the Department of the Army, suggesting standard federal procurement oversight. The use of full and open competition implies a structured process designed to ensure accountability.
Related Government Programs
- Natural Gas Distribution
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price volatility not fully mitigated by FFP if market shifts dramatically.
- Dependence on a single provider for a full year could lead to supply chain risks.
- Lack of specific small business participation data.
Tags
natural-gas-distribution, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to FOREIGN UTILITY CONSOLIDATED REPORTING. CONSOLIDATED REPORT FOR UTILITY SERVICES (NATURAL GAS COMPETED) FY25 OCTOBER THROUGH AUGUST.
Who is the contractor on this award?
The obligated recipient is FOREIGN UTILITY CONSOLIDATED REPORTING.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical spending trend for natural gas services by the Department of the Army?
Analyzing historical spending data for natural gas services by the Department of the Army would provide valuable context. Understanding past expenditures, contract durations, and competition levels can help determine if the current $13.5 million award represents an increase, decrease, or stable spending pattern. This trend analysis is crucial for assessing long-term value and identifying potential cost efficiencies or escalations.
What are the specific risks associated with relying on a single natural gas provider for a 364-day period?
While competitively bid, relying on a single provider for 364 days carries inherent risks. These include potential supply disruptions due to unforeseen events (e.g., infrastructure failures, extreme weather), price volatility if market conditions change significantly, and limited recourse if performance issues arise. Mitigation strategies might involve robust contract clauses for service level agreements and contingency planning.
How effectively does the Firm Fixed Price contract structure manage price fluctuations in the natural gas market?
A Firm Fixed Price (FFP) contract aims to lock in the price, shielding the government from market volatility. However, in a rapidly fluctuating market like natural gas, the initial FFP might be set higher to account for anticipated risks by the contractor. This can lead to the government potentially overpaying if prices drop significantly. Conversely, if prices rise unexpectedly, the FFP protects the government from cost increases.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 F ST NW, WASHINGTON, DC, 20405
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,485,743
Exercised Options: $13,485,743
Current Obligation: $13,485,743
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-11-26
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