NASA's $19M energy savings contract with Energy Systems Group LLC shows potential for long-term value
Contract Overview
Contract Amount: $19,062,242 ($19.1M)
Contractor: Energy Systems Group LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-09-30
End Date: 2031-02-28
Contract Duration: 5,630 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE UPGRADES FOR THE NASA/GLENN RESEARCH CENTER
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44135
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $19.1 million to ENERGY SYSTEMS GROUP LLC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE UPGRADES FOR THE NASA/GLENN RESEARCH CENTER Key points: 1. The contract's long duration (over 15 years) suggests a focus on sustained energy efficiency improvements. 2. The firm-fixed-price structure shifts performance risk to the contractor, potentially benefiting the government. 3. With 8 bidders, the competition level indicates a healthy market for energy performance contracting. 4. The contract is positioned within the broader energy services sector, supporting federal sustainability goals. 5. Performance context is crucial, as actual savings will determine the ultimate value for money. 6. The absence of small business set-aside suggests larger prime contractors are likely involved.
Value Assessment
Rating: good
The contract's total value of approximately $19 million over its 15-year term suggests a significant investment in energy infrastructure upgrades. Benchmarking this against similar energy savings performance contracts (ESPCs) is challenging without specific project details, but the duration implies a comprehensive scope. The firm-fixed-price (FFP) award type is generally favorable for the government, as it caps costs and incentivizes the contractor to manage expenses effectively to achieve savings. The ultimate value will depend on the realized energy savings compared to the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with 8 bidders vying for the opportunity. This level of competition is generally positive, suggesting that multiple capable firms were interested and that the solicitation was accessible. A robust bidding process typically leads to more competitive pricing and a wider range of technical solutions. The presence of 8 bidders indicates a healthy market for these types of energy services.
Taxpayer Impact: The strong competition for this contract likely resulted in a more favorable price for taxpayers. It also suggests that the government received proposals from multiple qualified vendors, increasing the likelihood of selecting the best value option.
Public Impact
The primary beneficiaries are NASA/Glenn Research Center, which will see reduced energy consumption and operational costs. The contract aims to deliver energy efficiency upgrades, potentially including lighting, HVAC, and building controls. The geographic impact is localized to the NASA/Glenn Research Center facilities in Ohio. The contract may indirectly support the local workforce through the contractor's project execution and potential subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term nature of the contract requires ongoing monitoring to ensure sustained performance and savings.
- Reliance on contractor-generated savings projections necessitates rigorous verification mechanisms.
- Potential for scope creep or unforeseen technical challenges over the extended performance period.
Positive Signals
- Firm-fixed-price award structure aligns contractor incentives with government savings goals.
- Full and open competition with 8 bidders suggests a competitive pricing environment.
- The contract supports federal mandates for energy efficiency and sustainability.
Sector Analysis
This contract falls within the Engineering Services (NAICS 541330) and broader energy services sector. The energy services market, particularly for government facilities, is driven by mandates for energy efficiency and cost reduction. ESPCs are a key mechanism for federal agencies to achieve these goals without upfront capital investment. Comparable spending benchmarks would involve analyzing other ESPCs awarded to federal agencies for similar facility upgrades.
Small Business Impact
The contract does not appear to have a small business set-aside component, as indicated by 'sb': false. This suggests that the primary award was made to a large business. However, the contractor may engage small businesses for subcontracting opportunities during project execution, depending on the scope and nature of the work required. Analysis of subcontracting plans would be necessary to determine the specific impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the NASA contracting officer and technical representatives. The firm-fixed-price nature means the contractor bears the cost risk, but performance must still meet contractual requirements. Transparency is generally facilitated through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on whether the IG's office has oversight authority over NASA's energy programs or contract management.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Federal Energy Management Program (FEMP)
- NASA Facilities Modernization Projects
- Government Building Energy Efficiency Initiatives
Risk Flags
- Long contract duration requires sustained monitoring.
- Savings verification is critical for value assessment.
- Technology obsolescence risk over 15 years.
Tags
energy-savings-performance-contract, nasa, engineering-services, full-and-open-competition, firm-fixed-price, ohio, long-term-contract, energy-efficiency, federal-spending, nasa-glenn-research-center
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $19.1 million to ENERGY SYSTEMS GROUP LLC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE UPGRADES FOR THE NASA/GLENN RESEARCH CENTER
Who is the contractor on this award?
The obligated recipient is ENERGY SYSTEMS GROUP LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $19.1 million.
What is the period of performance?
Start: 2015-09-30. End: 2031-02-28.
What specific energy conservation measures are included in this contract?
The provided data does not detail the specific energy conservation measures (ECMs) to be implemented under this contract. Energy Savings Performance Contracts typically encompass a range of upgrades such as lighting retrofits, HVAC system modernization, building envelope improvements, water conservation measures, and the integration of renewable energy sources. To understand the full scope, one would need to review the contract's statement of work (SOW) or associated technical exhibits. These ECMs are designed to reduce energy and water consumption, improve facility operations, and lower utility costs for the NASA/Glenn Research Center.
How does the projected savings compare to the contract value and duration?
The provided data does not include projected savings figures for this contract. Energy Savings Performance Contracts operate on a model where the contractor guarantees a certain level of savings, and the government pays for the project through these guaranteed savings. The total contract value is $19,062,241.69, with an end date of February 28, 2031, resulting in a duration of approximately 15.4 years (5630 days). A thorough analysis would require comparing the contractor's projected annual savings against the annual cost of the contract (which is implicitly tied to the total value spread over the duration) to assess the return on investment and the contractor's confidence in achieving the guaranteed savings.
What is the track record of Energy Systems Group LLC with federal ESPCs?
Information on the specific track record of Energy Systems Group LLC with federal ESPCs is not detailed in the provided data. However, as a participant in a full and open competition with 8 bidders for a significant NASA contract, it suggests they are an established player in the energy services market. A comprehensive assessment of their track record would involve reviewing their past performance on similar government contracts, including the types of projects undertaken, the scale of savings achieved, client satisfaction, and any history of performance issues or disputes. Databases like the Federal Procurement Data System (FPDS) or agency-specific performance management systems could offer further insights.
What are the key performance indicators (KPIs) for this contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. In Energy Savings Performance Contracts, KPIs typically revolve around the actual measured and verified energy savings achieved (e.g., kilowatt-hours reduced, gallons of water saved), operational cost reductions, and compliance with environmental standards. Performance is usually measured against a baseline established before the upgrades. The contract's success hinges on the contractor's ability to meet or exceed these savings guarantees, which are often subject to measurement and verification (M&V) protocols outlined in the contract.
How does this contract's value compare to other NASA energy efficiency investments?
The contract value of approximately $19 million represents a substantial investment in energy efficiency for NASA. To compare it with other NASA energy efficiency investments, one would need to analyze historical spending data for similar ESPCs or other energy-related capital improvement projects across NASA centers. Factors such as the size and type of facility, the scope of upgrades, and the specific energy challenges faced by each center would influence project costs. This contract appears to be a significant undertaking, likely addressing major energy consumption areas at the Glenn Research Center.
What are the potential risks associated with a 15-year performance period?
A 15-year performance period for an ESPC presents several potential risks. Firstly, technology obsolescence is a concern; energy-efficient technologies deployed early in the contract might become outdated before the contract concludes. Secondly, changes in energy prices or usage patterns over such a long period could impact the accuracy of savings calculations and the realization of financial benefits. Thirdly, maintaining consistent performance and ensuring the long-term reliability of installed equipment requires robust ongoing maintenance and monitoring, which could be a challenge. Finally, shifts in federal energy policy or agency priorities could affect the contract's ongoing relevance or funding.
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 BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $26,793,735
Exercised Options: $26,793,735
Current Obligation: $19,062,242
Actual Outlays: $9,495,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29030
IDV Type: IDC
Timeline
Start Date: 2015-09-30
Current End Date: 2031-02-28
Potential End Date: 2031-02-28 00:00:00
Last Modified: 2025-06-03
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