Department of Justice Awarded a Contract to PUBLIC SERVICE COMPANY OF NORTH CAROLINA INC. for $212,400.00

Summary of Award

The awarded contract in question is a purchase order bore the identification number 15B10624P00000111 and was issued by the Department of Justice (DOJ), specifically through its Federal Prison System/Bureau of Prisons agency. This contract's primary aim, as noted by its description, is to provide "FCC Butner Natural Gas Transportation (LDC) Service.” This indicates a need for natural gas delivery services to the Federal Correctional Complex in Butner.

The Public Service Company of North Carolina Inc., a subsidiary of Dominion Energy, Inc., serves as the recipient of this contract. Dominion Energy is well-known for its utilities and energy services, with a focus on natural gas and electricity distribution. The company operates primarily in the state of North Carolina with its headquarters located in Gastonia. This proximity likely offers logistical advantages, making it a suitable candidate for this local service contract.

This specific contract is described as a purchase order, a common form of short-term contract often used for straightforward procurement needs where requirements and quantities are known upfront. The contract type is designated as "B" and detailed as "Purchase Order," reflecting a simple acquisition mechanism. In terms of financial specifics, the total value of the contract obligation is recorded as $212,400. Interestingly, the contract was fully obligated upon issuance, with no subawards being counted or anticipated as part of this arrangement. Furthermore, the total outlay amount comes to $167,330.57, as captured under DEFC (Disaster Emergency Fund Code) "Q." The account obligates a slightly higher amount of $240,000. The period of performance for this contract runs from October 1, 2023, through September 30, 2024. Transactions have been logged throughout this timeline, recording the financial exchanges between the Federal Government and the company, marking various fiscal movements and adjustments. Examining the transaction history, the contract cycles through five main transactions: 1. **Initial Funding (December 20, 2023):** The contract's inception saw a transaction amounting to $80,000. This foundational funding transaction underpins the primary operations and initial service commencement covered under the purchase order. 2. **First Modification (March 18, 2024):** A follow-up transaction occurred on March 18, 2024, featuring an additional $40,000. This added value likely addressed operational adjustments, increased service demands, or unforeseen cost adjustments post-initial evaluation. 3. **Second Modification (May 28, 2024):** On May 28, 2024, a significant transaction of $120,000 further equipped the service provider to fulfill ongoing obligations. This represents the largest transaction in the sequence, reflecting possible increased service provisions or escalations in operational scope, potentially attributable to higher utility demands or seasonal adjustments. 4. **Third Modification (July 16, 2024):** A reduction transaction was logged for -$27,600 on July 16, 2024. This negative adjustment might reflect an error correction, over-commitment, or reconciliation against earlier forecasts. 5. **Final Adjustment (April 10, 2025):** Another decrease in obligations through a transaction of -$45,148.76 was recorded. The timing may be indicative of contract closure activities or reimbursement against previous over-expenditures. During the contract term, the number of competitive offers was minimal, with only two received. The procurement was categorized under "Only One Source," indicating a limited competitive environment, likely because of specialized service requirements or geographic monopolies. The contract did not rely on any small business considerations, nor was there a set-aside specifically for such entities. The procurement falls under North American Industry Classification System (NAICS) code 221210, denoting "Natural Gas Distribution," clearly fitting the contract's operational requirements. This categorization signifies a commercial acquisition for utilities – gas services, serving an essential infrastructure need for the federal corrections facility. As for compliance and labor regulations, the contract is straightforward with no noteworthy labor standards or construction wage rates applicable; as such, it follows routine commercial transaction norms without additional wage or labor complexities. Thus, this contract represents a critical logistical link between the federal prison system and its utility supplier, ensuring continued natural gas supply essential for operations. The relationship typifies a streamlined procurement process, ensuring strict financial oversight via detailed transaction tracking that allows for timely adjustments and compliance with fiscal legislation and necessary corrections.