DoD awards $19.8M for ESPC Services to Energy Systems Group LLC under full and open competition
Contract Overview
Contract Amount: $19,805,108 ($19.8M)
Contractor: Energy Systems Group LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-01
End Date: 2021-03-25
Contract Duration: 5,381 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ESPC SERVICES
Place of Performance
Location: CORPUS CHRISTI, NUECES County, TEXAS, 78401
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.8 million to ENERGY SYSTEMS GROUP LLC for work described as: ESPC SERVICES Key points: 1. Significant contract value of $19.8 million for energy efficiency services. 2. Energy Systems Group LLC is the sole awardee for this delivery order. 3. The contract spans over 14 years, indicating a long-term service agreement. 4. The sector is Commercial and Institutional Building Construction, focusing on energy solutions.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit cost data or benchmarks for ESPC services, a precise value assessment is difficult. The duration suggests potential for significant long-term savings if implemented effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The taxpayer impact is tied to the effectiveness of the energy efficiency measures implemented. Successful projects should lead to cost savings in energy consumption over the contract's life.
Public Impact
Potential for reduced energy consumption and associated cost savings for the Department of Defense. Supports government initiatives for energy efficiency and sustainability in federal facilities. The long duration of the contract implies ongoing performance monitoring and management are crucial for realizing benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may obscure initial performance effectiveness.
- Lack of specific performance metrics in provided data.
- Sole awardee for this specific delivery order, though competition was full and open initially.
Positive Signals
- Awarded under full and open competition.
- Focus on energy efficiency services aligns with sustainability goals.
- Significant contract value suggests a comprehensive project.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on Energy Savings Performance Contracts (ESPC). ESPCs are a mechanism for federal agencies to achieve energy efficiency upgrades without upfront capital investment, with savings from reduced energy costs repaying the investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, large businesses likely dominated the bidding and execution of this contract.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure performance targets are met and that the energy savings are realized as projected. Regular reviews and audits would be essential for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may lead to performance degradation or outdated technology if not managed.
- Lack of specific performance metrics makes it difficult to assess value and effectiveness.
- Potential for cost overruns if energy savings projections are overly optimistic.
- Sole awardee for this specific delivery order, raising questions about ongoing competition for subsequent phases or related services.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to ENERGY SYSTEMS GROUP LLC. ESPC SERVICES
Who is the contractor on this award?
The obligated recipient is ENERGY SYSTEMS GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.8 million.
What is the period of performance?
Start: 2006-07-01. End: 2021-03-25.
What specific energy efficiency measures are included in this ESPC, and what are the projected savings for each?
The provided data does not detail the specific energy efficiency measures or their projected savings. ESPC contracts typically include a range of upgrades such as lighting retrofits, HVAC improvements, and building envelope enhancements. A thorough review of the contract's performance work statement (PWS) would be necessary to identify these measures and their anticipated financial and energy benefits.
How does the awarded price compare to industry benchmarks for similar ESPC projects of this scale and duration?
Without access to a comprehensive database of ESPC project costs and specific performance metrics, a direct benchmark comparison is challenging. However, the $19.8 million value over 14 years suggests a significant undertaking. Factors like the types of upgrades, facility condition, and regional energy costs would influence pricing, making direct comparisons difficult without detailed project scope.
What mechanisms are in place to ensure the contractor, Energy Systems Group LLC, delivers the promised energy savings and maintains performance over the contract's 14-year term?
ESPC contracts typically include detailed measurement and verification (M&V) plans to track energy savings. Performance guarantees and payment schedules are often tied to achieved savings. The Department of Defense would likely have contract officers and technical representatives responsible for monitoring performance, reviewing M&V reports, and ensuring compliance with the contract terms throughout its duration.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Centerpoint Energy, Inc.
Address: 4655 ROSEBUD LN, NEWBURGH, IN, 47630
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,905,107
Exercised Options: $19,905,107
Current Obligation: $19,805,108
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8797D0073
IDV Type: IDC
Timeline
Start Date: 2006-07-01
Current End Date: 2021-03-25
Potential End Date: 2021-03-25 00:00:00
Last Modified: 2022-10-28
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