DoD's $10.9M Energy Savings Contract with Constellation NewEnergy Inc. Faces Scrutiny
Contract Overview
Contract Amount: $10,891,036 ($10.9M)
Contractor: Constellation Newenergy Inc
Awarding Agency: Department of Defense
Start Date: 2001-09-14
End Date: 2021-09-30
Contract Duration: 7,321 days
Daily Burn Rate: $1.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to CONSTELLATION NEWENERGY INC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT Key points: 1. Contract value of $10.9M for energy savings performance. 2. Competition was full and open, indicating a competitive bidding process. 3. Potential risks include performance verification and long-term cost-effectiveness. 4. Sector is Energy, specifically energy efficiency and performance contracting.
Value Assessment
Rating: fair
The contract value of $10.9M appears reasonable for an Energy Savings Performance Contract (ESPC) of this duration. However, without specific performance metrics and actual savings realized, a definitive pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are encouraged to bid.
Taxpayer Impact: The primary taxpayer impact is the investment in energy efficiency, which should ideally lead to long-term cost savings for the Department of Defense.
Public Impact
Potential for significant long-term energy cost reductions for the DoD. Supports government sustainability goals and reduces reliance on fossil fuels. Ensures infrastructure modernization and improved energy resilience for military facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (20 years) may obscure actual savings.
- Lack of detailed performance data makes independent verification challenging.
- Potential for scope creep or changes in energy usage patterns over time.
Positive Signals
- Awarded through full and open competition.
- Focus on energy efficiency aligns with federal sustainability mandates.
- Contract aims to reduce operational costs for the DoD.
Sector Analysis
This contract falls within the Energy sector, specifically focusing on Energy Savings Performance Contracts (ESPCs). ESPCs are a mechanism for federal agencies to achieve energy efficiency improvements without upfront capital costs, with savings funding the project. Benchmarks vary widely based on project scope and technology.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the Department of Defense to ensure Constellation NewEnergy Inc. is meeting the agreed-upon energy savings targets and contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration may obscure actual savings.
- Performance verification mechanisms are not detailed.
- Potential for market fluctuations impacting savings calculations.
- Lack of transparency on specific technologies deployed.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to CONSTELLATION NEWENERGY INC. ENERGY SAVINGS PERFORMANCE CONTRACT
Who is the contractor on this award?
The obligated recipient is CONSTELLATION NEWENERGY INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2001-09-14. End: 2021-09-30.
What are the projected vs. actual energy savings achieved under this contract?
Projected energy savings are the basis for the contract's financial structure, but actual savings are crucial for determining its success. Without access to performance reports and verified energy consumption data, it's impossible to assess if the contract is delivering the expected financial benefits to the DoD. This requires ongoing monitoring and independent verification.
What are the risks associated with a 20-year contract for energy savings?
A 20-year term presents risks such as technological obsolescence, changes in energy markets, and potential shifts in the agency's operational needs. It also makes it harder to accurately forecast savings over the entire period. Ensuring flexibility and clear performance metrics are key to mitigating these long-term risks.
How effectively does this ESPC align with the DoD's broader energy resilience and sustainability goals?
ESPCs like this one can significantly contribute to energy resilience and sustainability by reducing reliance on traditional energy sources and improving infrastructure efficiency. However, its effectiveness depends on how well the implemented technologies integrate with the DoD's overall energy strategy and whether it complements other initiatives aimed at achieving climate resilience and energy independence.
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
Solicitation ID: SP060002F8255
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Exelon Corporation (UEI: 001807150)
Address: 100 CONSTELLATION WAY STE 1200C, BALTIMORE, MD, 21202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,238,902
Exercised Options: $15,212,372
Current Obligation: $10,891,036
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3699OR22587
IDV Type: IDC
Timeline
Start Date: 2001-09-14
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2019-08-23
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