DOE's $16.9M Hanford Site Energy Savings Contract Awarded to Johnson Controls
Contract Overview
Contract Amount: $16,896,099 ($16.9M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Energy
Start Date: 2008-10-10
End Date: 2033-03-31
Contract Duration: 8,938 days
Daily Burn Rate: $1.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE HANFORD SITE.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $16.9 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE HANFORD SITE. Key points: 1. The contract aims to achieve energy savings at the Hanford Site. 2. Johnson Controls Government Systems, LLC was awarded the contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The contract has a long duration, ending in March 2033. 5. This is a firm-fixed-price contract.
Value Assessment
Rating: fair
The contract value is $16.9 million. Benchmarking against similar energy savings performance contracts is difficult without more detailed scope and performance metrics. The long duration suggests significant potential for savings, but also carries risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, specific sources may have been excluded, potentially limiting the breadth of competition and impacting price discovery.
Taxpayer Impact: The primary taxpayer impact is the investment in energy efficiency, which is expected to yield long-term cost savings and environmental benefits.
Public Impact
Potential for significant energy cost reductions at a major federal facility. Contributes to federal goals for energy efficiency and sustainability. Long-term commitment may provide stable work for the contractor. Environmental benefits through reduced energy consumption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns or performance degradation.
- Limited competition method could lead to suboptimal pricing.
- Reliance on contractor performance for savings realization.
Positive Signals
- Focus on energy efficiency aligns with sustainability goals.
- Potential for substantial long-term cost savings.
- Experienced contractor likely to deliver on performance.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy efficiency and performance contracting for federal facilities. Spending benchmarks for ESPCs vary widely based on facility size, scope, and energy prices.
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 the provided data.
Oversight & Accountability
Oversight will be crucial to ensure Johnson Controls meets performance targets and achieves the projected energy savings throughout the contract's long duration. The Department of Energy is both the agency and the awarding agency, suggesting internal oversight.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Long contract duration (15 years) increases risk.
- Limited competition method may affect price.
- Performance verification over extended period is challenging.
- Dependence on contractor's ability to deliver projected savings.
- Potential for scope creep or changes in energy prices impacting savings calculations.
Tags
engineering-services, department-of-energy, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.9 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. ENERGY SAVINGS PERFORMANCE CONTRACT FOR THE HANFORD SITE.
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 Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2008-10-10. End: 2033-03-31.
What specific energy-saving measures are included in this contract, and what are the projected savings for each?
The provided data does not detail the specific energy-saving measures. A comprehensive understanding of the contract's value requires a breakdown of proposed upgrades (e.g., HVAC, lighting, building controls) and their individually projected savings. This information is critical for verifying the $16.9M investment's justification and potential return.
How does the 'exclusion of sources' in the competition process impact the final price and potential for innovation?
Excluding sources, even in a full and open competition context, can limit the pool of potential bidders. This may reduce competitive pressure, potentially leading to a higher price than if all qualified vendors could participate. It could also stifle innovation if excluded firms offered unique or more cost-effective solutions.
What mechanisms are in place to ensure sustained energy savings and contractor performance over the 15-year contract duration?
Effective oversight, regular performance reviews, and clear performance metrics tied to payment are essential. The contract likely includes provisions for monitoring energy usage and savings, with potential penalties for non-performance or adjustments for unforeseen circumstances. The long duration necessitates robust, ongoing management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 E. MICHIGAN STREET, MILWAUKEE, WI, 53201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,643,912
Exercised Options: $19,643,912
Current Obligation: $16,896,099
Actual Outlays: $2,824,031
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3697EE73568
IDV Type: IDC
Timeline
Start Date: 2008-10-10
Current End Date: 2033-03-31
Potential End Date: 2033-03-31 00:00:00
Last Modified: 2026-03-18
More Contracts from Johnson Controls Government Systems, LLC
- 200112!076614!1700!C7408 !naval Facilities Engineering Com!daca8797d0069 !a!n!*!n!ejp3 !20010927!20070630!076020440!076020440!006092860!n!johnson Controls Government SY!507 E Michigan Street !milwaukee !wi!53201!58310!111!06!port Hueneme Naval C!ventura !california!+000003192000!n!n!000000000000!r499!other Professional Services !S1 !services !2000!NOT Discernable or Classified !541330!*!*!5!A!S! !*!*!*!B!*!*!A! !A !U!J!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !z!a!a!a!000!a!b!n! ! ! ! ! ! !0001! — $175.8M (Department of Defense)
- Energy Savings Performance Contract for Hanford 200 and 200 Area — $130.5M (Department of Energy)
- Espc for the OAK Ridge National Laboratory — $75.7M (Department of Energy)
- National Capital Region 11 Energy Savings Performance Contract for the Installation of Energy Conservation Measures and Long Term Measurement and Verification Services — $64.8M (General Services Administration)
- Espc AT Naval Station Norfolk. Construction and Performance Period Services for Distributed Generation (co-Generation Plant) — $62.8M (Department of Defense)
View all Johnson Controls Government Systems, LLC federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)