Coast Guard awards $4.3M energy savings contract to Siemens Government Technologies

Contract Overview

Contract Amount: $4,322,263 ($4.3M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Homeland Security

Start Date: 2012-07-24

End Date: 2027-11-03

Contract Duration: 5,580 days

Daily Burn Rate: $775/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT, U.S. COAST GUARD YORKTOWN TRAINING CENTER

Place of Performance

Location: YORKTOWN, YORK County, VIRGINIA, 23690

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.3 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT, U.S. COAST GUARD YORKTOWN TRAINING CENTER Key points: 1. Contract aims to improve energy efficiency at Coast Guard training center. 2. Siemens Government Technologies, a large defense contractor, secured this award. 3. The contract was awarded under full and open competition. 4. Performance period spans over five years, indicating a long-term commitment. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. This award falls under engineering services, a broad category with diverse applications.

Value Assessment

Rating: fair

The contract value of $4.3 million for energy savings performance over approximately five years appears moderate for a federal facility. Benchmarking against similar energy efficiency projects is challenging without specific details on the scope of work and expected savings. However, the fixed-price structure suggests an attempt to control costs, but the ultimate value-for-money will depend on the realized energy savings and the contractor's efficiency in implementation. The absence of detailed performance metrics makes a definitive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 10 bids received, this suggests a reasonably competitive environment. A higher number of bids generally leads to better price discovery and potentially lower costs for the government. The presence of multiple bidders implies that the market for such services is robust enough to support competition.

Taxpayer Impact: The full and open competition process, with 10 bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process helps ensure that the government is not overpaying for the services rendered.

Public Impact

The U.S. Coast Guard training center in Yorktown, Virginia, will benefit from improved energy infrastructure. The project is expected to deliver energy efficiency upgrades, potentially reducing operational costs. The primary beneficiaries are the Coast Guard personnel and operations at the training facility. The contract supports the federal government's broader goals of energy conservation and sustainability. Workforce implications may include specialized technicians for installation and maintenance of energy systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during implementation.
The long-term effectiveness of energy savings relies heavily on the contractor's expertise and ongoing monitoring.
Dependence on a single contractor for a significant period could limit future flexibility.
The fixed-price contract might disincentivize the contractor from exceeding initial savings targets if not structured carefully.
Ensuring actual energy savings meet or exceed projections requires robust verification mechanisms.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The fixed-price contract structure transfers some performance risk to the contractor.
The contract duration of over five years allows for sustained implementation and potential long-term benefits.
Siemens Government Technologies is a known entity in government contracting, implying some level of established capability.
The focus on energy savings aligns with federal sustainability initiatives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to energy efficiency and facility upgrades. The market for energy savings performance contracts (ESPCs) is significant within the federal government, driven by mandates for energy reduction and cost savings. Comparable spending benchmarks are difficult to establish without detailed project scope, but ESPCs are a common mechanism for federal agencies to achieve energy goals without upfront capital investment. This contract represents a typical engagement for improving the energy footprint of a government facility.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Siemens Government Technologies is a large corporation, and there is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Siemens voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. As an Energy Savings Performance Contract, there may be specific reporting requirements related to energy usage and savings verification. The Department of Homeland Security's Inspector General could also provide oversight if any issues of fraud, waste, or abuse arise. Transparency is generally facilitated through contract award databases and reporting requirements.

Related Government Programs

Federal Energy Management Program (FGFP)
Energy Independence and Security Act (EISA)
Department of Defense Energy Savings Contracts
General Services Administration (GSA) ESPC Program

Risk Flags

Potential for savings underestimation
Contractor performance risk
Measurement and verification challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.3 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT, U.S. COAST GUARD YORKTOWN TRAINING CENTER

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2012-07-24. End: 2027-11-03.

What is the historical spending pattern of the U.S. Coast Guard on energy efficiency projects?

Analyzing the U.S. Coast Guard's historical spending on energy efficiency projects requires access to detailed budget and contract data over several fiscal years. Federal agencies are mandated to improve energy efficiency, often utilizing mechanisms like Energy Savings Performance Contracts (ESPCs) or direct appropriations for upgrades. Without specific data, it's difficult to provide precise figures. However, agencies like the Coast Guard, operating numerous facilities and vessels, typically allocate significant resources towards energy management and infrastructure modernization. Trends often show increasing investment in renewable energy and efficiency measures driven by legislative mandates and sustainability goals. The $4.3 million awarded here represents one component of a broader, ongoing effort to manage energy consumption and costs across the Coast Guard's extensive operational footprint.

How does the awarded price compare to similar energy savings performance contracts for federal facilities?

Benchmarking the $4.3 million award for this Energy Savings Performance Contract (ESPC) against similar federal projects is challenging without detailed scope and savings projections. ESPCs vary widely in cost based on facility size, type, existing infrastructure, and the specific technologies implemented (e.g., HVAC upgrades, lighting retrofits, renewable energy installations). Generally, ESPCs are structured so that the contractor's payment is tied to the verified energy savings achieved. A contract value of $4.3 million over approximately five years suggests a moderate-sized project. To assess value, one would need to compare the projected energy savings, the payback period, and the level of technological upgrade against other ESPCs awarded to facilities of comparable size and function within the federal government. The fixed-price nature aims to provide cost certainty, but the true value is realized through demonstrable energy and cost reductions.

What is Siemens Government Technologies' track record with federal energy savings performance contracts?

Siemens Government Technologies (SGT) has a substantial track record in delivering energy efficiency solutions and performance-based contracts for federal agencies. As a major player in the energy and infrastructure sector, SGT has been involved in numerous ESPCs across various government departments, including the Department of Defense, Department of Energy, and others. Their experience typically encompasses a wide range of services, from energy audits and system modernizations to the implementation of renewable energy sources and smart building technologies. Reviews of their past performance would likely indicate a history of successful project completions, though like any large contractor, specific project outcomes can vary. Their established presence suggests they possess the technical expertise and financial capacity to manage complex federal ESPCs, including navigating the stringent verification and reporting requirements inherent in these agreements.

What are the primary risks associated with this specific energy savings performance contract?

The primary risks associated with this Energy Savings Performance Contract (ESPC) include potential underperformance in energy savings, cost overruns, and contractor viability. If the implemented energy conservation measures do not achieve the projected savings, the financial benefits for the Coast Guard may be less than anticipated, potentially impacting the return on investment. Cost overruns could occur if unforeseen technical challenges arise during the project's implementation phase, although the firm fixed-price structure aims to mitigate this by placing the risk on the contractor. There's also a risk related to the contractor's long-term financial stability and commitment throughout the contract duration, although Siemens is a large, established company. Ensuring robust measurement and verification (M&V) protocols are in place is crucial to accurately track savings and hold the contractor accountable.

How effective are Energy Savings Performance Contracts (ESPCs) in achieving long-term energy reduction goals for federal agencies?

Energy Savings Performance Contracts (ESPCs) are generally considered an effective tool for federal agencies to achieve long-term energy reduction goals. They allow agencies to implement energy efficiency upgrades without upfront capital investment, as the project costs are financed through the energy savings realized over time. This performance-based approach incentivizes contractors to deliver measurable results. Numerous studies and government reports indicate that ESPCs have successfully reduced energy consumption and operating costs across federal facilities. However, effectiveness can depend on several factors, including the clarity of contract terms, the accuracy of savings projections, the robustness of the measurement and verification (M&V) process, and the agency's ongoing engagement. When well-structured and managed, ESPCs provide a sustainable pathway for agencies to meet energy mandates and improve facility performance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 2231 CRYSTAL DR STE 700, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $4,322,263

Exercised Options: $4,322,263

Current Obligation: $4,322,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29041

IDV Type: IDC

Timeline