DoD Awards $62.8M ESPC for Naval Station Norfolk Co-Generation Plant to Johnson Controls
Contract Overview
Contract Amount: $62,833,288 ($62.8M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-30
End Date: 2039-09-30
Contract Duration: 8,584 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ESPC AT NAVAL STATION NORFOLK. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR DISTRIBUTED GENERATION (CO-GENERATION PLANT).
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: IGF::OT::IGF ESPC AT NAVAL STATION NORFOLK. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR DISTRIBUTED GENERATION (CO-GENERATION PLANT). Key points: 1. Significant investment in energy infrastructure at a major naval base. 2. Johnson Controls, a large established firm, secured the contract. 3. Long contract duration (23+ years) suggests a focus on long-term performance and savings. 4. The project falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $62.8M over 23 years suggests a substantial project. Benchmarking is difficult without specific performance metrics, but the firm-fixed-price structure indicates a defined cost for the services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: The project aims to improve energy efficiency and potentially reduce long-term energy costs for the Navy, representing a positive taxpayer impact through operational savings.
Public Impact
Enhances energy resilience and efficiency at a critical military installation. Potential for significant long-term cost savings in energy consumption for the Department of Defense. Supports the transition to more sustainable energy solutions within federal facilities.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long-term contract duration could lead to vendor lock-in if not managed effectively.
- Reliance on a single contractor for construction and performance period services.
Positive Signals
- Awarded through full and open competition.
- Focus on energy efficiency and renewable generation.
- Long-term performance period suggests commitment to sustained results.
Sector Analysis
This contract is within the Engineering Services sector, specifically focusing on energy infrastructure. Federal spending in this area is driven by mandates for energy efficiency and resilience, with benchmarks varying widely based on project scope and technology.
Small Business Impact
The contract was awarded to Johnson Controls Government Systems, LLC, a large business. There is no indication of specific small business subcontracting goals or participation in this award notice.
Oversight & Accountability
The long duration and performance-based nature of the contract will require ongoing oversight from the Department of the Navy to ensure contractor performance and verify cost savings. Delivery orders under IDIQs are common oversight mechanisms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (23+ years)
- Potential for cost overruns if performance targets are not met
- Dependence on a single contractor for extended period
- Lack of specific small business participation noted
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. IGF::OT::IGF ESPC AT NAVAL STATION NORFOLK. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR DISTRIBUTED GENERATION (CO-GENERATION PLANT).
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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $62.8 million.
What is the period of performance?
Start: 2016-03-30. End: 2039-09-30.
What are the projected energy savings and payback period for this ESPC?
The specific projected energy savings and payback period are not detailed in this award notice. Energy Savings Performance Contracts (ESPCs) are designed to generate savings that cover the project costs over time. A thorough review of the contract's technical and financial exhibits would be necessary to determine these figures and assess the true value proposition for the government.
What are the key performance indicators (KPIs) for the co-generation plant's performance?
Key performance indicators would typically include energy output (kW/kWh), fuel efficiency, emissions levels, and operational uptime. The contract likely specifies these metrics, along with remedies or adjustments if performance falls short. Verification of these KPIs is crucial for ensuring the government receives the expected benefits and cost savings.
How does the cost of this co-generation plant compare to similar projects at other federal facilities?
Direct cost comparison is challenging without detailed project specifications, installed capacity, and specific technologies used. However, the $62.8M cost over 23 years for a co-generation plant at a large naval station suggests a significant investment. Benchmarking would require analyzing the cost per kW or MWh generated, factoring in the complexity and scope of the installation.
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: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 E. MICHIGAN ST., MILWAUKEE, WI, 53202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $203,362,214
Exercised Options: $203,362,214
Current Obligation: $62,833,288
Actual Outlays: $24,141,965
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29036
IDV Type: IDC
Timeline
Start Date: 2016-03-30
Current End Date: 2039-09-30
Potential End Date: 2039-09-30 00:00:00
Last Modified: 2025-07-22
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