NASA's $44M energy contract with Energy Systems Group LLC awarded via full and open competition
Contract Overview
Contract Amount: $44,042,444 ($44.0M)
Contractor: Energy Systems Group LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-08-05
End Date: 2039-06-09
Contract Duration: 8,709 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER NASA JSC COMBINED HEAT AND POWER (CHP) PROJECT
Place of Performance
Location: NEWBURGH, WARRICK County, INDIANA, 47630
State: Indiana Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $44.0 million to ENERGY SYSTEMS GROUP LLC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER NASA JSC COMBINED HEAT AND POWER (CHP) PROJECT Key points: 1. Contract aims to improve energy efficiency and reduce operational costs at NASA JSC. 2. Long duration suggests a significant, multi-year commitment to energy infrastructure upgrades. 3. Firm Fixed Price contract type shifts performance risk to the contractor. 4. The contract is a task order under a larger Energy Savings Performance Contract (ESPC) vehicle. 5. Focus on Combined Heat and Power (CHP) indicates a strategy for integrated energy solutions. 6. The contract's value is substantial, reflecting the scale of the energy infrastructure involved.
Value Assessment
Rating: good
The contract's value of approximately $44 million over its 15-year duration appears reasonable for a large-scale energy infrastructure project. Benchmarking against similar ESPC projects would provide more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government, ensuring cost certainty. However, without detailed breakdowns of energy savings projections and project scope, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive favorable pricing and innovative solutions. The presence of 5 bidders suggests a healthy level of interest and competition within the market for such specialized energy services.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among contractors.
Public Impact
NASA's Johnson Space Center (JSC) will benefit from reduced energy consumption and operational costs. The project will deliver modernized energy infrastructure, potentially improving reliability and sustainability. The geographic impact is localized to NASA JSC facilities in Indiana. Workforce implications may include specialized engineering and construction roles for project implementation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential cost overruns if not managed effectively.
- Reliance on a single task order under a larger vehicle might limit flexibility for future energy needs.
- Ensuring actual energy savings meet or exceed projections will be critical for value realization.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Full and open competition suggests a robust market and potentially competitive pricing.
- The focus on ESPC and CHP aligns with federal goals for energy efficiency and sustainability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy infrastructure and efficiency projects. The market for Energy Savings Performance Contracts (ESPCs) is significant, driven by government mandates and the potential for cost savings. Comparable spending benchmarks would involve analyzing other large-scale ESPC awards across federal agencies for similar facilities.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large-scale energy project, it is possible that prime contractors may engage small businesses for specialized services, but this is not explicitly detailed. Further analysis of the contract's subcontracting plan would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would likely be managed by the National Aeronautics and Space Administration (NASA), potentially involving its Inspector General's office for audits and investigations. Transparency is facilitated through contract award databases. Accountability measures are inherent in the firm-fixed-price structure, with performance tied to achieving energy savings.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Combined Heat and Power (CHP) Initiatives
- Federal Energy Management Program (FEMP)
- NASA Facilities Management
- Department of Energy (DOE) Energy Programs
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Accuracy of energy savings projections is critical for value realization.
- Performance monitoring over a 15-year period requires sustained oversight.
Tags
energy-savings-performance-contract, combined-heat-and-power, nasa, johnson-space-center, engineering-services, firm-fixed-price, full-and-open-competition, indiana, federal-agency, infrastructure-project, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $44.0 million to ENERGY SYSTEMS GROUP LLC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) TASK ORDER NASA JSC COMBINED HEAT AND POWER (CHP) PROJECT
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 $44.0 million.
What is the period of performance?
Start: 2015-08-05. End: 2039-06-09.
What is the historical spending pattern for Energy Systems Group LLC with NASA?
Analyzing historical spending patterns for Energy Systems Group LLC with NASA requires access to detailed contract databases. Without specific query capabilities, it's difficult to provide a precise historical spending figure. However, the award of this significant task order suggests a prior relationship or demonstrated capability that NASA found valuable. Further investigation into NASA's contract award history, filtering by contractor name and agency, would reveal the extent and nature of their previous engagements, including the types of services provided and their associated values. This context is crucial for understanding the contractor's track record and the agency's confidence in their performance.
How does the per-unit cost of energy savings compare to industry benchmarks for similar ESPC projects?
Determining the per-unit cost of energy savings for this specific contract is challenging without detailed financial breakdowns and energy savings projections. ESPC projects typically measure value based on the total cost of the project against the projected lifecycle energy and operational cost savings. Benchmarking would involve comparing the project's total cost and expected savings against similar ESPC projects at federal facilities of comparable size and complexity. Factors like the type of energy conservation measures implemented, the baseline energy consumption, and regional energy costs significantly influence these metrics. A comprehensive analysis would require access to the contractor's proposal and NASA's evaluation criteria to assess if the projected savings justify the investment relative to market standards.
What are the primary risks associated with the long duration of this contract?
The long duration of this contract (approximately 15 years) presents several potential risks. Firstly, technological advancements in energy efficiency could render the implemented solutions obsolete before the contract term ends, potentially leading to suboptimal performance or the need for costly upgrades. Secondly, changes in energy markets, such as significant fluctuations in fuel prices or electricity rates, could impact the accuracy of the initial energy savings calculations, potentially affecting the project's financial viability. Thirdly, long-term contracts increase the risk of contractor performance degradation over time, requiring robust monitoring and management from NASA to ensure continued adherence to performance standards. Finally, unforeseen regulatory changes related to energy production or environmental standards could necessitate contract modifications, adding complexity and potential cost.
What is the projected return on investment (ROI) for NASA based on the energy savings?
The projected Return on Investment (ROI) for NASA based on this Energy Savings Performance Contract (ESPC) is directly tied to the contractor's ability to achieve the guaranteed energy savings. While the specific ROI figures are not publicly detailed in the provided data, ESPC projects are structured such that the cost savings generated by the energy conservation measures are intended to cover the project's financing costs and provide a net financial benefit to the agency over the contract's life. NASA would have evaluated the contractor's proposed savings calculations and financial model during the procurement process. The success of the ROI hinges on the accuracy of these projections and the effective implementation and maintenance of the energy-saving technologies by Energy Systems Group LLC throughout the contract term.
How does this contract align with broader federal energy efficiency and sustainability goals?
This contract strongly aligns with broader federal energy efficiency and sustainability goals. Energy Savings Performance Contracts (ESPCs) are a key mechanism encouraged by the federal government, particularly through the Department of Energy, to achieve significant energy and water savings without upfront capital investment from the agency. The focus on Combined Heat and Power (CHP) also supports goals for improving energy efficiency and reducing greenhouse gas emissions by utilizing waste heat. By investing in infrastructure upgrades that reduce energy consumption, NASA JSC is directly contributing to the federal government's mandates for reducing its environmental footprint and operating more sustainably, as outlined in various executive orders and legislative acts promoting energy conservation.
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: 5
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: $139,064,383
Exercised Options: $139,064,383
Current Obligation: $44,042,444
Actual Outlays: $29,770,327
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $30,590,324
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: 2015-08-05
Current End Date: 2039-06-09
Potential End Date: 2039-06-09 00:00:00
Last Modified: 2026-03-04
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