DoD Awards $37.3M Energy ESPC to Energy Systems Group LLC for Marine Corps Logistics Base Albany
Contract Overview
Contract Amount: $37,305,075 ($37.3M)
Contractor: Energy Systems Group LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-18
End Date: 2033-04-30
Contract Duration: 8,534 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ESPC AT MCLB ALBANY
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31704
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to ENERGY SYSTEMS GROUP LLC for work described as: ESPC AT MCLB ALBANY Key points: 1. Significant long-term contract ($37.3M) for energy efficiency upgrades. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the long duration and fixed-price nature. 4. Sector is Energy/Facilities Management, a common area for ESPCs.
Value Assessment
Rating: good
The contract value of $37.3M over approximately 14 years suggests a substantial project. Benchmarking against similar large-scale ESPCs would be needed for a precise assessment, but the fixed-price structure implies a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and allows a wide range of qualified contractors to bid. This method is generally favorable for achieving fair market value.
Taxpayer Impact: Taxpayers benefit from potential energy cost savings and improved infrastructure resilience, funded through a competitive process.
Public Impact
Improved energy efficiency at a major military installation. Potential for reduced operational costs for the Department of the Navy. Supports federal goals for energy sustainability and modernization. Long-term commitment indicates a strategic investment in infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (14+ years) could lead to scope creep or unforeseen cost increases if not managed tightly.
- Fixed-price contract may limit flexibility if energy prices or technology needs change significantly.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Focus on energy efficiency aligns with sustainability goals.
- Delivery order structure allows for phased implementation and payment.
Sector Analysis
This contract falls within the Energy Services and Facilities Management sector, specifically for Energy Savings Performance Contracts (ESPCs). ESPCs are common within government agencies to finance energy efficiency upgrades through guaranteed savings.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further review would be needed to determine if small businesses are participating in the execution of this ESPC.
Oversight & Accountability
The long duration and fixed-price nature necessitate robust oversight from the Department of the Navy to ensure performance standards are met and savings are realized as projected. Regular performance reviews and audits are crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of cost escalation or scope creep.
- Fixed-price contract may not adapt well to unforeseen market changes.
- Reliance on contractor's projections for energy savings requires diligent verification.
- Potential for performance issues if contractor lacks expertise or resources.
Tags
engineering-services, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to ENERGY SYSTEMS GROUP LLC. ESPC AT MCLB ALBANY
Who is the contractor on this award?
The obligated recipient is ENERGY SYSTEMS GROUP 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 $37.3 million.
What is the period of performance?
Start: 2009-12-18. End: 2033-04-30.
What are the projected energy savings and how are they guaranteed?
The projected energy savings are the core of an ESPC. The contract likely details specific energy conservation measures and the methodology for calculating and verifying savings. The contractor typically guarantees these savings, and if they fall short, the contractor may owe the agency the difference, ensuring taxpayer value.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators would likely focus on the actual energy savings achieved against baseline measurements, the reliability and uptime of installed systems, and adherence to project schedules. Compliance with environmental regulations and safety standards during implementation would also be critical KPIs.
How will the fixed-price structure impact the contractor's incentive to innovate or exceed savings targets?
A fixed-price structure incentivizes the contractor to control costs and deliver the agreed-upon scope efficiently. While it ensures a predictable cost for the government, it might reduce the contractor's motivation to pursue innovative solutions that could yield significantly higher savings beyond the contract's scope, as the upside is capped.
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)
Contractor Details
Parent Company: Energy Systems Group, LLC
Address: 4655 ROSEBUD LN, NEWBURGH, IN, 47630
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,877,110
Exercised Options: $63,877,110
Current Obligation: $37,305,075
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698OR22646
IDV Type: IDC
Timeline
Start Date: 2009-12-18
Current End Date: 2033-04-30
Potential End Date: 2033-04-30 00:00:00
Last Modified: 2025-08-06
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