GSA's $31.4M Energy Savings Contract with Siemens Government Technologies Shows Long-Term Performance

Contract Overview

Contract Amount: $31,376,104 ($31.4M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: General Services Administration

Start Date: 2010-08-31

End Date: 2016-03-16

Contract Duration: 2,024 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: RECOVERY -ARRA: ENERGY SAVINGS PERFORMANCE CONTRACT WITH IMPLEMENATION OF ENERGY CONSERVATION MEASURES IN FEDERALLY OWNED BUILDINGS THROUGHOUT REGION 7.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $31.4 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: RECOVERY -ARRA: ENERGY SAVINGS PERFORMANCE CONTRACT WITH IMPLEMENATION OF ENERGY CONSERVATION MEASURES IN FEDERALLY OWNED BUILDINGS THROUGHOUT REGION 7. Key points: 1. Contract focused on energy conservation measures in federally owned buildings, aligning with ARRA goals. 2. Siemens Government Technologies, a large established firm, was awarded the contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract (over 5 years) allowed for sustained implementation and potential for significant energy savings. 5. Fixed-price contract type suggests cost certainty for the government, though it may limit flexibility. 6. The contract's performance period extended well beyond its award date, indicating ongoing project execution.

Value Assessment

Rating: good

Benchmarking the value of this specific Energy Savings Performance Contract (ESPC) is challenging without detailed performance data on energy savings achieved. However, the total award amount of $31.4 million over its lifespan suggests a substantial investment in energy efficiency. ESPCs are designed to be cost-neutral or cost-saving, with savings generated from reduced energy consumption paying for the project. Comparing this to other large-scale ESPCs, the price appears within a reasonable range for comprehensive energy conservation measures in a significant portfolio of federal buildings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the open competition framework suggests that multiple firms likely vied for the contract, fostering a competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value available.

Public Impact

Federal agencies occupying buildings in GSA Region 7 benefited from improved energy efficiency and reduced utility costs. The contract facilitated the implementation of energy conservation measures, contributing to federal sustainability goals. The geographic impact was concentrated within GSA Region 7, encompassing federally owned buildings in that area. The project likely involved engineering and construction workforces, potentially creating or sustaining jobs in those sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
Fixed-price contracts can sometimes disincentivize innovation or additional cost-saving measures by the contractor.
Performance verification and measurement of actual energy savings are critical to ensure value for money.

Positive Signals

Focus on energy savings aligns with federal mandates for sustainability and reduced operational costs.
The use of an ESPC structure means savings are intended to fund the project, reducing upfront government expenditure.
Awarding under full and open competition suggests a competitive process that should yield favorable terms.

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 expertise and financing, with repayment coming from the energy and cost savings achieved. The market for ESPCs is significant, driven by federal mandates and the long-term benefits of reduced energy consumption. This contract fits within the broader energy services sector, specifically focusing on building retrofits and efficiency upgrades.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Siemens Government Technologies, it is possible that small businesses could be involved as subcontractors. However, without specific subcontracting plans or reporting, the direct impact on the small business ecosystem is unclear. Large ESPCs often require specialized expertise that may or may not be readily available from small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. GSA has established procedures for managing ESPCs, including performance monitoring and verification of energy savings. The Inspector General of the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases and reporting requirements.

Related Government Programs

ARRA - Energy Efficiency and Conservation Block Grants
Federal Energy Management Program (FEMP)
Energy Independence and Security Act (EISA)
GSA Public Buildings Service Operations

Risk Flags

Long contract duration requires sustained oversight.
Performance verification is crucial for realizing intended savings.
Fixed-price nature may limit flexibility in scope adjustments.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.4 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. RECOVERY -ARRA: ENERGY SAVINGS PERFORMANCE CONTRACT WITH IMPLEMENATION OF ENERGY CONSERVATION MEASURES IN FEDERALLY OWNED BUILDINGS THROUGHOUT REGION 7.

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2010-08-31. End: 2016-03-16.

What was the specific breakdown of energy conservation measures implemented under this contract?

The provided data does not detail the specific energy conservation measures (ECMs) implemented. Typically, ESPCs involve a range of upgrades such as HVAC system modernization, lighting retrofits (e.g., LED conversions), building envelope improvements (insulation, window upgrades), installation of energy-efficient equipment, and implementation of building automation systems. The exact measures would have been determined during the project development phase based on energy audits and feasibility studies conducted for the targeted federal buildings within GSA Region 7.

How were the energy savings measured and verified to ensure the contract's value proposition?

Energy Savings Performance Contracts (ESPCs) rely on a Measurement and Verification (M&V) plan, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). For this contract, savings would have been calculated by comparing post-retrofit energy consumption to a baseline established before the project's commencement. This typically involves tracking utility bills, meter data, and potentially using specialized monitoring equipment. The GSA, as the contracting agency, would have overseen the M&V process to ensure that the achieved savings met the contractually obligated levels, thereby justifying the investment and ensuring the contractor was compensated based on verified performance.

What is Siemens Government Technologies' track record with similar large-scale federal ESPCs?

Siemens Government Technologies is a major player in the energy services and building technology sector, with a significant history of executing large-scale projects for government clients, including ESPCs. They have been involved in numerous federal energy efficiency initiatives across various agencies and military branches. While specific details on all their past ESPCs are not in this dataset, their long-standing presence and the award of this substantial GSA contract suggest a proven capability in delivering complex energy conservation projects and meeting performance requirements. Their track record generally indicates experience with diverse building types and a capacity to manage multi-year, multi-million dollar contracts.

How does the $31.4 million award compare to other federal ESPCs of similar scope and duration?

The $31.4 million award for this GSA ESPC, spanning over five years of performance, appears to be a substantial but not extraordinary figure within the realm of federal energy efficiency projects. ESPCs can range widely in value depending on the size and number of facilities, the complexity of the required upgrades, and the potential for savings. Larger ESPCs, particularly those involving extensive retrofits across multiple large federal buildings or campuses, can easily reach tens or even hundreds of millions of dollars. This contract's value suggests a significant scope of work, likely encompassing a considerable portfolio of buildings within GSA Region 7, and aligns with the typical investment scale for comprehensive energy efficiency overhauls.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for an ESPC like this include: 1) Performance Risk: The risk that actual energy savings might not meet projections, impacting the contractor's payment and the government's return on investment. Mitigation involves robust M&V plans and performance-based payment structures. 2) Cost Overruns: Despite being fixed-price, unforeseen issues during implementation could arise. Mitigation includes thorough upfront planning, contingency allowances, and strong project management. 3) Technology Obsolescence: The risk that installed technologies become outdated quickly. Mitigation involves selecting proven, reliable technologies and potentially incorporating flexibility for future upgrades. 4) Contractor Viability: The risk of the contractor facing financial difficulties. Mitigation involves pre-qualification of contractors and performance bonds. The full and open competition likely mitigated some risk by selecting a capable firm.

What is the historical spending trend for GSA ESPCs in Region 7 or similar regions?

The provided data focuses on a single contract and does not offer historical spending trends for GSA ESPCs in Region 7 or other regions. However, federal spending on ESPCs has generally increased over the years, driven by legislative mandates like ARRA and subsequent energy reduction goals. GSA, as a major owner and manager of federal buildings, is a significant issuer of ESPCs. Trends would likely show a pattern of consistent investment in energy efficiency, with fluctuations based on available funding, agency priorities, and economic conditions. Analyzing broader GSA or federal energy spending data would be necessary to establish specific historical trends for ESPCs in Region 7.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft (UEI: 316067164)

Address: 1881 CAMPUS COMMONS DR, RESTON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,376,104

Exercised Options: $31,376,104

Current Obligation: $31,376,104

Parent Contract

Parent Award PIID: DEAM3609GO29041

IDV Type: IDC

Timeline