Scope
Description
The British Embassy in Washington DC wishes to renew its current contract for Natural Gas (Firm & Interruptible) and utilities for the British Embassy Compound and residential properties in the DC metro area. This new contract will be effective for a period of four (4) years starting from September 01 2025 until August 31 2029. Rates are subject to change from month to month (±5-15%), they will be locked subsequent to contract signature.
Contract 1. CPG/12792/2025 - Provision of Natural Gas for the British Embassy in Washington
Supplier
Contract value
- £88,166.28 excluding VAT
- £88,166.28 including VAT
Above the relevant threshold
Date signed
3 September 2025
Contract dates
- 1 October 2025 to 30 September 2026
- 1 year
Main procurement category
Services
CPV classifications
- 79993000 - Building and facilities management services
Contract locations
- US - United States
Key performance indicators
| Name | Description | Reporting frequency |
|---|---|---|
| KPI- Natural gas rate monthly | Measure the supplier's reliability and punctuality in delivering gas as scheduled. |
1 months |
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
Single supplier - unique work of art or performance
The Washington DC area is serviced by only one distributor of natural gas, a company called Washington
Gas. The market requires the use of a broker who is able to negotiate rates that we would otherwise not
be privy to. They control and monitor our usage advising the Embassy when to switch to alternative
energy to maximize savings and avoid fines charged by the government.
In order to ensure this Direct Award is in compliance with FCDO's policy and offers VfM, the Regional
Procurement Hub (RPH) carried out a research in 2019 to understand how the market works and
compare rates and options available. The RPH approached a list of a gas companies, the findings
showed some suppliers were only brokers and others were actual gas companies but did not serve our
area. As part of the reassessment process, the market was reviewed again in 2022 and 2025, and no
substantial changes were identified. Therefore, the continued use of the current supplier remains the
most viable and cost-effective option.
In this business, the services of a broker is essential as they provide services such as: weekly energy
updates including new legislation or change in law with impact cost analysis, review invoices and billing
resolutions, hedge strategies that minimize risk during periods of weak market fundamentals or major
event disruption, observes the market to find peaks and lows on rates and recommends contract renewal
according to predictions. The services of the broker are provided at no cost to the Embassy.
Beyond the services previously described, the Embassy's choice to partner with Open Market Energy is
largely driven by the broker's designation as a Certified Energy Procurement Professional. This
qualification sets OME apart from standard brokers by confirming its proven expertise in navigating
energy markets, adhering to regulatory standards, and executing strategic procurement. Given the
sector's volatility and regulatory complexity, collaborating with a certified expert offers confidence that
procurement decisions are well-informed, justifiable, and aligned with industry best practices.
OME works in partnership with WGL Energy Services and is compensated directly by the Supplier, Open
Market Energy, under a Channel Partnership Agreement. This arrangement-standard in the industry-
allows the broker to earn a margin from the negotiated energy rate, with no direct cost to the Embassy.
All payments are managed by WGL Energy Services, ensuring transparency and efficient procurement.
The Recommendation of Award (RoA) received formal support in 2022 from Graeme Kemp,
Procurement Head of Hub, and Laura Jones, Head of Procurement Delivery. This endorsement
represented the official approval at that time. This was then approved by CAB on 1st September 2022,
with CABs comments being "Happy for this to be handled through hub/post until there is competition in
the market to carry out a re-tender exercise."
The market was reassessed in 2025, confirming that conditions remain unchanged since the initial
research conducted by the Regional Procurement Hub (RPH) in 2019. No new suppliers or competitive
alternatives have emerged in the Washington, D.C. area. As such, the current arrangement remains
valid and necessary, providing the best value for money within the existing market structure.
Supplier
WGL Energy Services
- Public Procurement Organisation Number: PWGW-4962-JZBQ
8614 Westwood Center Drive Suite 1200 Veinna
Washington
22182
United States
Email: pio@openmarketenergy.net
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1
Contracting authority
Foreign, Commonwealth and Development Office
- Public Procurement Organisation Number: PXRR-8771-PHVX
King Charles Street
London
SW1A 2AH
United Kingdom
Email: commercial.smi@fcdo.gov.uk
Website: https://www.gov.uk/government/organisations/foreign-commonwealth-development-office
Region: UKI32 - Westminster
Organisation type: Public authority - central government