GSA Awards $64.8M Energy Savings Contract to Johnson Controls for NCR Building Upgrades

Contract Overview

Contract Amount: $64,776,041 ($64.8M)

Contractor: Johnson Controls Government Systems, LLC

Awarding Agency: General Services Administration

Start Date: 2021-05-01

End Date: 2046-04-30

Contract Duration: 9,130 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: NATIONAL CAPITAL REGION 11 ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE INSTALLATION OF ENERGY CONSERVATION MEASURES AND LONG TERM MEASUREMENT AND VERIFICATION SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $64.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: NATIONAL CAPITAL REGION 11 ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE INSTALLATION OF ENERGY CONSERVATION MEASURES AND LONG TERM MEASUREMENT AND VERIFICATION SERVICES. Key points: 1. Contract focuses on energy conservation measures and long-term verification. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the long duration and fixed-price structure. 4. Sector is Engineering Services, supporting federal building efficiency goals.

Value Assessment

Rating: good

The contract value of $64.8 million over 25 years suggests a significant investment in energy efficiency. Benchmarking against similar large-scale ESPCs is difficult without more granular cost data, but the fixed-price nature aims to control costs.

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 bidding and can lead to better pricing for the government. The General Services Administration (GSA) likely used a robust evaluation process to select the best value.

Taxpayer Impact: This contract aims to reduce energy consumption in federal buildings, leading to long-term cost savings for taxpayers and reduced environmental impact.

Public Impact

Federal buildings in the National Capital Region will see energy efficiency improvements. Long-term savings are expected through reduced energy usage and operational costs. The project supports government sustainability and climate change mitigation goals. Taxpayers benefit from reduced utility expenditures over the contract's lifespan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (25 years) increases risk of cost escalation or performance issues.
Fixed-price contract may limit flexibility if unforeseen technical challenges arise.
No small business participation noted, potentially missing opportunities for economic inclusion.

Positive Signals

Focus on energy savings aligns with federal sustainability mandates.
Full and open competition suggests a competitive award process.
Measurement and verification services ensure accountability for performance.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to energy efficiency and building modernization. Federal spending in this area is driven by mandates for sustainability and cost reduction in government operations.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award, as the 'sb' field is false. This represents a missed opportunity to engage small businesses in federal energy efficiency projects.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. The long duration and performance-based nature necessitate robust oversight to ensure energy savings are realized and taxpayer funds are used effectively.

Related Government Programs

Engineering Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration (25 years)
Fixed-price contract
No small business participation
Potential for performance degradation over time
Reliance on contractor's long-term expertise

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $64.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. NATIONAL CAPITAL REGION 11 ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE INSTALLATION OF ENERGY CONSERVATION MEASURES AND LONG TERM MEASUREMENT AND VERIFICATION SERVICES.

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $64.8 million.

What is the period of performance?

Start: 2021-05-01. End: 2046-04-30.

What is the projected annual energy cost savings expected from this contract, and how does it compare to similar projects?

The provided data does not specify projected annual energy cost savings. To assess value, a comparison would require detailed breakdowns of the proposed energy conservation measures and their estimated savings, benchmarked against similar ESPC projects in federal buildings of comparable size and type.

What are the specific risks associated with a 25-year fixed-price contract for energy conservation measures, and how are they mitigated?

Risks include technological obsolescence, unforeseen maintenance needs, and contractor performance degradation over time. Mitigation strategies typically involve clear performance standards, robust measurement and verification protocols, and contract clauses allowing for adjustments or termination under specific conditions.

How effectively does the measurement and verification (M&V) component ensure that the promised energy savings are actually achieved and sustained?

The effectiveness of the M&V component is crucial. It relies on standardized methodologies (like IPMVP) to track energy consumption and savings post-installation. Regular reporting, independent audits, and performance-based payment structures tied to verified savings are key to ensuring effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 GAITHER RD STE 400, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $241,752,328

Exercised Options: $64,776,041

Current Obligation: $64,776,041

Actual Outlays: $3,369,288

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $79,767,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEEE0008032

IDV Type: IDC

Timeline