DoD Awards $50M for Renewable Energy Systems to Johnson Controls, Ending 2034
Contract Overview
Contract Amount: $49,900,174 ($49.9M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-20
End Date: 2034-01-31
Contract Duration: 8,078 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: RENEWABLE ENERGY SYSTEMS
Place of Performance
Location: FORT BUCHANAN, BAYAMON County, PUERTO RICO, 00934
Plain-Language Summary
Department of Defense obligated $49.9 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: RENEWABLE ENERGY SYSTEMS Key points: 1. Significant contract value of $49.9M for renewable energy systems. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Long contract duration (through 2034) may pose long-term value risks. 4. Engineering services sector (NAICS 541330) is critical for infrastructure modernization.
Value Assessment
Rating: good
The contract value of $49.9M appears reasonable for engineering services related to renewable energy systems, especially given the extended performance period. Benchmarking against similar large-scale energy infrastructure projects 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, which typically fosters competitive pricing and allows a broad range of qualified vendors to bid. This method is expected to yield fair market value for the services provided.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.
Public Impact
Enhances military base energy resilience and sustainability. Supports U.S. renewable energy goals and technological advancement. Potential for job creation in engineering and renewable energy sectors. Long-term energy cost savings for the Department of Defense. Contributes to reducing the carbon footprint of military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 12 years) could lead to price escalation or technology obsolescence.
- Performance in Puerto Rico may present logistical and environmental challenges.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition, indicating strong market engagement.
- Focus on renewable energy aligns with strategic national and DoD objectives.
- Firm Fixed Price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical area for developing and implementing complex infrastructure projects like renewable energy systems. Spending in this sector is often substantial for government agencies focused on modernization and sustainability.
Small Business Impact
The data indicates that small businesses were not primary awardees for this specific contract, as it was awarded to a large corporation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's long duration necessitates ongoing oversight to ensure performance standards are met and costs remain aligned with initial projections. Regular reviews and performance monitoring by the Department of the Army are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration
- Performance location (Puerto Rico)
- Potential for technology obsolescence
- Lack of explicit small business participation
- Dependency on specific renewable energy technologies
Tags
engineering-services, department-of-defense, pr, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.9 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. RENEWABLE ENERGY SYSTEMS
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, 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 $49.9 million.
What is the period of performance?
Start: 2011-12-20. End: 2034-01-31.
What is the projected return on investment for these renewable energy systems over the contract's lifespan?
The projected ROI is not explicitly detailed in the provided data. However, the firm fixed price structure suggests the government has a clear understanding of costs. Long-term benefits likely include reduced energy expenditures, enhanced operational resilience, and alignment with sustainability mandates, contributing to a positive overall return despite the initial investment.
What are the specific risks associated with implementing renewable energy systems in Puerto Rico?
Implementing renewable energy systems in Puerto Rico carries risks such as vulnerability to extreme weather events (hurricanes), potential grid integration challenges, and reliance on specific local infrastructure. Environmental regulations and permitting processes unique to the island also need careful management. Johnson Controls' experience in government contracting and potentially local partnerships would mitigate some of these risks.
How effectively will these systems contribute to the Department of Defense's overall energy resilience goals?
These systems are expected to significantly contribute to the DoD's energy resilience by diversifying energy sources and reducing reliance on potentially vulnerable traditional grids. Renewable energy installations can provide on-site power generation, crucial during emergencies or grid outages. The scale and integration of these systems will determine the extent of their contribution to overall resilience.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DY08R0019
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 E. MICHIGAN ST., MILWAUKEE, WI, 53202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,900,174
Exercised Options: $49,900,174
Current Obligation: $49,900,174
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY09D0017
IDV Type: IDC
Timeline
Start Date: 2011-12-20
Current End Date: 2034-01-31
Potential End Date: 2034-01-31 00:00:00
Last Modified: 2025-04-14
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