DoD Awards $22.77M for Electrical Peak Shaving Services to Johnson Controls
Contract Overview
Contract Amount: $22,770,100 ($22.8M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-29
End Date: 2037-08-31
Contract Duration: 9,102 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ELECTRICAL PEAK SHAVING/ LOAD SHIFTING
Place of Performance
Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53202
Plain-Language Summary
Department of Defense obligated $22.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: ELECTRICAL PEAK SHAVING/ LOAD SHIFTING Key points: 1. Significant contract value for load shifting technology. 2. Competition method is full and open, suggesting market availability. 3. Long contract duration (15 years) presents potential for price escalation. 4. Engineering services sector, critical for infrastructure modernization.
Value Assessment
Rating: good
The contract value of $22.77M over 15 years averages approximately $1.5M annually. Benchmarking against similar peak shaving and load shifting contracts is difficult without specific scope details, but this appears to be a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and ensures the government obtains the best value.
Taxpayer Impact: The long-term nature of the contract and the significant investment suggest a strategic approach to energy management, potentially leading to long-term cost savings for taxpayers through reduced peak demand charges.
Public Impact
Enhances energy grid stability for military installations. Supports renewable energy integration and reduces reliance on fossil fuels. Potential for cost savings on electricity bills for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (15 years) may lead to price increases.
- Lack of specific performance metrics makes value assessment challenging.
- Potential for vendor lock-in with specialized equipment.
Positive Signals
- Full and open competition promotes cost-effectiveness.
- Addresses critical energy management needs.
- Supports modernization of military infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy management and infrastructure. Spending in this area is crucial for modernizing federal facilities and ensuring operational resilience, with benchmarks varying widely based on project scope and technology.
Small Business Impact
The data indicates the award went to Johnson Controls Government Systems, LLC, a large business. There is no explicit information on small business participation or subcontracting goals within this award notice.
Oversight & Accountability
The long contract duration necessitates ongoing oversight to ensure performance standards are met and costs remain justified. Regular reviews of energy savings and system efficiency will be critical for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (15 years)
- Potential for technological obsolescence
- Lack of specific performance metrics in award notice
- No explicit small business participation noted
Tags
engineering-services, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. ELECTRICAL PEAK SHAVING/ LOAD SHIFTING
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 $22.8 million.
What is the period of performance?
Start: 2012-09-29. End: 2037-08-31.
What are the projected energy savings and return on investment for this $22.77M contract over its 15-year term?
Quantifying the exact ROI is challenging without detailed performance metrics and energy usage data. However, the primary goal of peak shaving and load shifting is to reduce demand charges, which can be substantial for large federal facilities. The projected savings would depend on the facility's energy consumption patterns, electricity rates, and the effectiveness of the implemented technology.
What are the specific risks associated with a 15-year contract for electrical peak shaving technology, and how are they mitigated?
Risks include technological obsolescence, potential for price increases over time, and vendor performance degradation. Mitigation strategies could involve performance-based contract clauses, regular technology reviews, options for contract termination if performance falters, and ensuring competitive pricing is locked in where possible through firm-fixed-price elements.
How effectively does this contract leverage competition to ensure the best value for taxpayers in the long term?
The contract was awarded under full and open competition, which is a strong indicator of efforts to secure the best value. This method allows multiple vendors to bid, fostering a competitive environment. However, long-term effectiveness also depends on robust contract management and potential future re-competitions or adjustments to ensure continued value.
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: $26,738,305
Exercised Options: $26,738,305
Current Obligation: $22,770,100
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: 2012-09-29
Current End Date: 2037-08-31
Potential End Date: 2037-08-31 00:00:00
Last Modified: 2025-09-15
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