DoD Awards $48.1M Energy Project to Johnson Controls for Steam System Upgrades
Contract Overview
Contract Amount: $48,110,100 ($48.1M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2014-07-31
End Date: 2034-12-01
Contract Duration: 7,428 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ESPC - APG PROJECT 8. THIS TASK ORDER PROCURES ENERGY SAVINGS AND FACILITY IMPROVEMENTS WITH NO UP-FRONT CAPITAL COSTS. THIS PROJECT PROVIDES ENERGY CONSERVATION MEASURES THAT INCLUDE STEAM SYSTEM IMPROVEMENTS AND OPERATIONAL CHANGES FOR THE EDGEWOOD AREA STEAM SUPPLY AND DISTRIBUTION SYSTEM.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $48.1 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: IGF::OT::IGF ESPC - APG PROJECT 8. THIS TASK ORDER PROCURES ENERGY SAVINGS AND FACILITY IMPROVEMENTS WITH NO UP-FRONT CAPITAL COSTS. THIS PROJECT PROVIDES ENERGY CONSERVATION MEASURES THAT INCLUDE STEAM SYSTEM IMPROVEMENTS AND OPERATIONAL CHANGES FOR THE EDGEWOOD AREA STEAM SUP… Key points: 1. Project focuses on energy conservation measures for steam systems. 2. Long-term contract duration of over 18 years. 3. No upfront capital costs for the government. 4. Engineering services sector, NAICS 541330.
Value Assessment
Rating: good
The contract value of $48.1M over 18 years suggests a significant investment in energy infrastructure. Benchmarking against similar large-scale energy performance contracts is difficult without more granular cost data, but the 'no upfront capital costs' structure is a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing, though the long-term nature of the contract may introduce some price escalation risks.
Taxpayer Impact: Taxpayers benefit from energy cost savings and facility improvements without immediate capital outlay, with potential long-term operational cost reductions.
Public Impact
Improved energy efficiency at Edgewood Area. Modernized steam supply and distribution systems. Long-term operational cost savings for the Army. Potential for reduced environmental impact through energy conservation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation.
- Lack of specific performance metrics makes assessing savings difficult.
- No small business participation noted.
Positive Signals
- No upfront capital costs.
- Awarded through full and open competition.
- Focus on critical infrastructure improvements.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy infrastructure and facility improvements. Spending in this area is often driven by mandates for energy efficiency and modernization of aging government facilities.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award, as the prime contractor is Johnson Controls Government Systems, LLC. Opportunities for small business subcontracting were not explicitly detailed.
Oversight & Accountability
The long duration of the contract necessitates ongoing oversight to ensure performance targets are met and costs remain justified. The IG's role in auditing and monitoring such contracts is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (18+ years)
- Potential for price escalation
- Lack of detailed performance metrics
- No small business participation noted
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.1 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. IGF::OT::IGF ESPC - APG PROJECT 8. THIS TASK ORDER PROCURES ENERGY SAVINGS AND FACILITY IMPROVEMENTS WITH NO UP-FRONT CAPITAL COSTS. THIS PROJECT PROVIDES ENERGY CONSERVATION MEASURES THAT INCLUDE STEAM SYSTEM IMPROVEMENTS AND OPERATIONAL CHANGES FOR THE EDGEWOOD AREA STEAM SUPPLY AND DISTRIBUTION SYSTEM.
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 $48.1 million.
What is the period of performance?
Start: 2014-07-31. End: 2034-12-01.
What are the projected energy savings and how will they be measured over the contract's lifespan?
The projected energy savings are not explicitly detailed in the provided data. Typically, Energy Savings Performance Contracts (ESPCs) outline specific energy conservation measures and their expected savings. Measurement and verification (M&V) plans are crucial to track actual savings against projections and ensure the government receives the agreed-upon benefits over the contract's 18-year term.
What are the specific risks associated with a fixed-price contract for such a long-duration energy project?
A firm fixed-price contract for an 18-year project carries risks of price escalation due to inflation, material cost fluctuations, and unforeseen technological obsolescence. While it protects the government from cost overruns, it could lead to the contractor absorbing losses if costs significantly exceed projections, potentially impacting contractor performance or future bidding.
How does the 'no upfront capital costs' structure truly benefit the government beyond immediate cash flow?
The 'no upfront capital costs' structure allows the government to implement critical infrastructure upgrades without depleting immediate budgets. The financing is typically repaid through the energy and operational cost savings generated by the project itself. This structure enables modernization that might otherwise be deferred due to capital constraints, leading to long-term operational efficiencies and reduced lifecycle costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
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: $84,776,912
Exercised Options: $84,776,912
Current Obligation: $48,110,100
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: 2014-07-31
Current End Date: 2034-12-01
Potential End Date: 2034-12-01 00:00:00
Last Modified: 2025-05-02
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