DoD's $95.9M ESPC at NAS Oceana awarded to Trane U.S. Inc. under full and open competition
Contract Overview
Contract Amount: $95,874,938 ($95.9M)
Contractor: Trane U.S. Inc.
Awarding Agency: Department of Defense
Start Date: 2009-08-07
End Date: 2029-07-06
Contract Duration: 7,273 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC AT NAS OCEANA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $95.9 million to TRANE U.S. INC. for work described as: ESPC AT NAS OCEANA Key points: 1. Significant investment in energy efficiency for naval infrastructure. 2. Trane U.S. Inc. is a major player in the energy services market. 3. Long contract duration (20 years) presents potential for cost overruns or savings. 4. Engineering Services sector sees substantial contract awards for infrastructure upgrades.
Value Assessment
Rating: good
The contract value of $95.9M over 20 years suggests a substantial project. Benchmarking against similar ESPC projects would be necessary to fully assess value, but the long-term nature implies significant energy savings are anticipated.
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 generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Taxpayers benefit from potential long-term energy cost savings and improved facility performance, funded through energy savings.
Public Impact
Modernized energy infrastructure at NAS Oceana, improving operational efficiency. Potential for reduced environmental impact through energy conservation measures. Supports the Navy's sustainability goals and reduces reliance on traditional energy sources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases.
- Reliance on energy savings to fund the project introduces performance risk.
- Potential for technology obsolescence over the 20-year term.
Positive Signals
- Significant investment in energy efficiency infrastructure.
- Awarded through a competitive process, suggesting fair pricing.
- Long-term commitment to sustainability and operational resilience.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy conservation projects. Benchmarks for similar large-scale ESPCs can vary widely based on scope and technology, but this award represents a substantial commitment to infrastructure modernization.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation from small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The long duration of the contract necessitates ongoing oversight to ensure performance targets are met and funds are used effectively. Regular reviews of energy savings and project milestones are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (20 years) increases risk of cost escalation and technological obsolescence.
- Performance is tied to energy savings, introducing risk if savings targets are not met.
- Lack of detail on specific energy conservation measures and projected savings.
- Potential for scope creep over the extended contract period.
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 $95.9 million to TRANE U.S. INC.. ESPC AT NAS OCEANA
Who is the contractor on this award?
The obligated recipient is TRANE U.S. INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $95.9 million.
What is the period of performance?
Start: 2009-08-07. End: 2029-07-06.
What specific energy conservation measures are included in this ESPC, and what are the projected savings?
The specific energy conservation measures (ECMs) are not detailed in the provided data. However, ESPCs typically include upgrades to lighting, HVAC systems, building envelopes, and renewable energy generation. Projected savings are usually tied to the specific ECMs implemented and are crucial for justifying the contract's financial viability and ensuring it meets its performance-based objectives.
How is the performance of Trane U.S. Inc. being monitored throughout the 20-year contract to ensure taxpayer value?
Performance monitoring likely involves regular energy audits, measurement and verification (M&V) of energy savings against baseline data, and milestone reviews. The contract structure, often involving a firm-fixed-price component for installation and performance-based payments for savings, incentivizes the contractor to meet targets. The Department of the Navy's contracting officers and technical representatives are responsible for overseeing these aspects.
What is the risk associated with the long 20-year term regarding technological advancements and potential obsolescence?
A 20-year term presents a significant risk of technological obsolescence, especially in rapidly evolving fields like energy efficiency and smart building technology. While initial installations aim for current best practices, unforeseen advancements could render them less efficient or effective over time. Contractual clauses for potential upgrades or modifications, though potentially costly, might mitigate this risk, but require careful management.
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: 20
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 3600 PAMMEL CREEK RD, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $124,463,877
Exercised Options: $124,463,877
Current Obligation: $95,874,938
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3699OR22704
IDV Type: IDC
Timeline
Start Date: 2009-08-07
Current End Date: 2029-07-06
Potential End Date: 2029-07-06 00:00:00
Last Modified: 2025-05-06
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