DoD Awards $27.6M ESPC to Johnson Controls for Puerto Rico National Guard, Ending 2031
Contract Overview
Contract Amount: $27,615,725 ($27.6M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-26
End Date: 2031-06-01
Contract Duration: 6,092 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC AT PUERTO RICO NATIONAL GUARD
Place of Performance
Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901
Plain-Language Summary
Department of Defense obligated $27.6 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: ESPC AT PUERTO RICO NATIONAL GUARD Key points: 1. Significant investment in energy efficiency for military infrastructure. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Long contract duration (over 15 years) requires careful performance monitoring. 4. Focus on energy savings performance contracts (ESPCs) is a common federal strategy.
Value Assessment
Rating: good
The contract value of $27.6M over 15 years averages approximately $1.84M annually. Benchmarking ESPC projects of this scale and scope would be necessary for a precise value assessment, but the fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust bidding process. This method generally promotes competitive pricing and allows the government to select the most advantageous offer.
Taxpayer Impact: Taxpayer funds are being invested in energy infrastructure upgrades that are intended to yield long-term cost savings through reduced energy consumption.
Public Impact
Modernizes critical energy infrastructure at the Puerto Rico National Guard facilities. Aims to reduce energy consumption and operational costs for the military. Supports federal goals for energy resilience and sustainability. Potential for job creation in the Puerto Rico region during project execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract requires sustained oversight to ensure performance.
- Geographic location in Puerto Rico may present logistical challenges.
- Reliance on fixed-price contract means contractor bears cost overrun risk, but scope creep must be managed.
Positive Signals
- Awarded through full and open competition.
- Focus on energy savings performance contracts aligns with federal efficiency mandates.
- Long contract duration allows for significant, lasting infrastructure improvements.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for infrastructure development and modernization. ESPCs are a common tool used across various federal agencies to finance energy efficiency upgrades, often benchmarked against similar projects in terms of energy savings and payback periods.
Small Business Impact
The contract was awarded to Johnson Controls Government Systems, LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale ESPC projects.
Oversight & Accountability
Oversight will be critical to ensure Johnson Controls meets the energy savings targets outlined in the contract. The Department of the Army's contracting officer and relevant program managers will be responsible for monitoring performance and verifying savings over the contract's extensive duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration requires sustained oversight.
- Potential for technology obsolescence over 15+ years.
- Geographic location may present logistical or environmental challenges.
- Need to verify projected energy savings against actual performance.
- Lack of explicit small business participation noted.
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 $27.6 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. ESPC AT PUERTO RICO NATIONAL GUARD
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 $27.6 million.
What is the period of performance?
Start: 2014-09-26. End: 2031-06-01.
What are the projected energy savings and payback period for this ESPC, and how do they compare to industry benchmarks for similar facilities?
The specific projected energy savings and payback period are not detailed in the provided data. However, ESPCs are designed to be cost-neutral or cost-saving, with savings generated from efficiency measures intended to cover the project costs over time. A thorough review of the contract's baseline energy use and projected savings calculations, compared against similar ESPC projects in comparable climates and facility types, would be necessary to assess value.
What are the key performance indicators (KPIs) for this contract, and what mechanisms are in place to address potential underperformance in energy savings?
Key performance indicators would typically revolve around measurable reductions in energy consumption (electricity, gas, water) and associated costs. Mechanisms for addressing underperformance often include contractually defined remedies, potential renegotiation of savings targets, or penalties if savings guarantees are not met. The fixed-price nature suggests the contractor is incentivized to achieve savings to ensure profitability.
How does the long contract duration (over 15 years) impact the government's flexibility and the technology obsolescence risk for the installed energy efficiency measures?
The extended duration allows for long-term benefits and amortization of upfront costs. However, it necessitates careful contract management to ensure technologies remain effective and relevant. Governments must build in provisions for technology upgrades or ensure the initial installations are adaptable. Flexibility might be limited by the fixed-price nature, requiring potential modifications for significant technological shifts.
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: $27,615,725
Exercised Options: $27,615,725
Current Obligation: $27,615,725
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: 2014-09-26
Current End Date: 2031-06-01
Potential End Date: 2031-06-01 00:00:00
Last Modified: 2025-08-14
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