VA awards $26.2M ESPC task order to Utility Systems Solutions for energy upgrades in Oklahoma

Contract Overview

Contract Amount: $26,216,371 ($26.2M)

Contractor: Utility Systems Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-15

End Date: 2026-12-31

Contract Duration: 472 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER (TO) FOR OKLAHOMA CITY & MUSKOGEE.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.2 million to UTILITY SYSTEMS SOLUTIONS, INC. for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER (TO) FOR OKLAHOMA CITY & MUSKOGEE. Key points: 1. The contract aims to improve energy efficiency and reduce utility costs at VA facilities. 2. The task order is part of a larger Energy Savings Performance Contract (ESPC) vehicle. 3. Competition was full and open, suggesting a competitive bidding process. 4. The fixed-price contract type provides cost certainty for the government. 5. Performance is expected to yield measurable energy savings over the contract period. 6. The contract duration of 472 days aligns with typical project timelines for facility upgrades.

Value Assessment

Rating: good

The contract value of $26.2 million for an ESPC task order appears reasonable given the scope of facility upgrades. Benchmarking against similar ESPC task orders would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps manage cost risks for the Department of Veterans Affairs. The contract's success will ultimately be measured by the realized energy savings compared to the projected baseline.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A competitive bidding process for this task order likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Veterans and VA staff will benefit from improved facility conditions and potentially more reliable utility services. The contract will deliver energy efficiency upgrades, reducing the VA's operational footprint and utility expenditures. The geographic impact is focused on Oklahoma City and Muskogee, Oklahoma. The project will likely involve skilled labor in construction and energy management, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Ensuring actual energy savings meet or exceed projections requires diligent monitoring.
Coordination between the contractor and VA facility management is critical for successful implementation.

Positive Signals

The use of an ESPC vehicle leverages private sector expertise and financing for energy efficiency projects.
Fixed-price contract type offers budget certainty.
Full and open competition suggests a competitive market for these services.

Sector Analysis

Energy Savings Performance Contracts (ESPCs) are a key mechanism for federal agencies to improve energy efficiency and reduce utility costs without upfront capital investment. These contracts leverage private sector financing and expertise. The market for ESPC services is robust, with numerous qualified Energy Service Companies (ESCOs) capable of performing such work. This task order fits within the broader construction and energy services sector, focusing on building infrastructure modernization.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Utility Systems Solutions, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific task order, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this task order will likely be managed by the Department of Veterans Affairs contracting and program officials. The ESPC framework itself includes performance metrics and verification processes to ensure savings are realized. The contract's fixed-price nature provides a degree of financial oversight. Transparency will depend on the VA's reporting practices regarding energy savings and project milestones.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
Department of Veterans Affairs Facility Management
Commercial and Institutional Building Construction
Federal Energy Management Program (FEMP)

Risk Flags

Potential for savings not meeting projections
Contractor performance risk
Adequacy of government oversight resources

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.2 million to UTILITY SYSTEMS SOLUTIONS, INC.. ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER (TO) FOR OKLAHOMA CITY & MUSKOGEE.

Who is the contractor on this award?

The obligated recipient is UTILITY SYSTEMS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-12-31.

What is the historical spending pattern of the Department of Veterans Affairs on Energy Savings Performance Contracts?

The Department of Veterans Affairs (VA) has consistently utilized Energy Savings Performance Contracts (ESPCs) as a significant tool for modernizing its facilities and reducing energy consumption. While specific annual spending figures fluctuate, the VA has historically been one of the largest federal agencies in terms of ESPC investment. These contracts are crucial for the VA given its vast portfolio of aging infrastructure across numerous medical centers and administrative buildings nationwide. The agency often leverages ESPCs to address deferred maintenance and implement energy conservation measures that improve operational efficiency and reduce utility bills. Data from the Department of Energy indicates that federal agencies, including the VA, have cumulatively obligated billions of dollars through ESPCs over the past two decades, with ESPC task orders like this one representing a substantial portion of that investment. The trend shows a continued reliance on ESPCs to meet federal energy reduction mandates and sustainability goals.

How does the awarded amount of $26.2 million compare to other ESPC task orders awarded by the VA or other federal agencies?

An ESPC task order valued at $26.2 million is a significant award, falling within the mid-to-large range for such projects. ESPC task orders can vary widely in cost, from a few million dollars for smaller facility upgrades to tens or even hundreds of millions for comprehensive overhauls of large complexes. The Department of Veterans Affairs, managing a vast real estate portfolio, frequently awards ESPC task orders in the multi-million dollar range. For context, other federal agencies like the General Services Administration (GSA) or the Department of Defense also award ESPC task orders of similar or larger magnitudes. The specific scope of work, the number and type of facilities involved, and the complexity of the energy conservation measures (ECMs) implemented are key drivers of cost. Without detailed project specifications, a direct comparison is challenging, but $26.2 million suggests a substantial project scope likely encompassing multiple buildings or significant system upgrades.

What are the primary risks associated with this type of ESPC task order for the VA?

Several primary risks are associated with this ESPC task order for the VA. Firstly, there's the risk of **performance shortfall**, where the actual energy savings achieved may not meet the projected savings guaranteed by the contractor, leading to a failure to recoup the investment or achieve desired cost reductions. Secondly, **scope creep** or unforeseen site conditions could lead to cost increases or delays, although the fixed-price nature of this task order aims to mitigate direct cost overruns for the VA. Thirdly, **contract administration and oversight** require dedicated resources to ensure the contractor adheres to the performance work statement, manages the project effectively, and accurately reports savings. Finally, there's a **dependency risk** on the contractor's expertise and financial stability throughout the project lifecycle and the measurement and verification (M&V) period.

What is Utility Systems Solutions, Inc.'s track record with federal ESPC contracts?

Utility Systems Solutions, Inc. (USS) has a documented history of performing work under federal contracts, including those related to energy efficiency and facility services. While specific details on their ESPC portfolio require deeper database searches, their presence as an awardee suggests they possess the necessary qualifications and experience. Federal contracting databases often show awards for various construction, utility, and energy-related services. To fully assess their track record specifically for ESPCs, one would need to examine past performance evaluations, the size and complexity of previous ESPC projects they have managed, and client satisfaction ratings. Their ability to win a full and open competition task order of this magnitude from the VA indicates a level of established capability and competitiveness within the federal contracting space.

How will the success of this $26.2 million task order be measured and verified?

The success of this $26.2 million ESPC task order will be measured and verified through a rigorous Measurement and Verification (M&V) process, as is standard for ESPC contracts. The contractor, Utility Systems Solutions, Inc., is obligated to implement energy conservation measures (ECMs) designed to achieve specific, quantifiable energy savings. The M&V plan, typically developed in conjunction with the agency and often adhering to established protocols like the International Performance Measurement and Verification Protocol (IPMVP), will define how savings are calculated. This involves establishing a baseline of energy consumption before the upgrades and then monitoring consumption post-implementation. Savings are typically verified through utility bill analysis, sub-metering data, and engineering calculations. The VA will likely have designated personnel to oversee this M&V process, ensuring the contractor's reported savings are accurate and justifiable before accepting them as achieved.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14330 MIDWAY ROAD SUITE 200, DALLAS, TX, 75244

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $119,903,165

Exercised Options: $119,903,165

Current Obligation: $26,216,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36E77620D0006

IDV Type: IDC

Timeline