DoD Awards $18.77M for Energy Conservation Measures, Including Solar Thermal, Over 23 Years
Contract Overview
Contract Amount: $18,769,447 ($18.8M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-30
End Date: 2034-04-30
Contract Duration: 8,887 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: THE CONTRACTOR WILL COMPLETE A COMPREHENSIVE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES (ECMS) IN ACCORDANCE WITH (IAW) THE REFERENCED DEPARTMENT OF ENERGY (DOE) SUPER ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) INDEFINITE DELIVERY / INDEFINITE QUANTITY (IDIQ) VEHICLE. SPECIFIC ECMS TO BE IMPLEMENTED UNDER THIS DESC DELIVERY ORDER (DO) SP0600-10-F-8250 INCLUDE: ECM 3.1 - UTILITY MONITORING CONTROL SYSTEM (UMCS) UPGRADE; ECM 5.1 - ENERGY-EFFICIENT LIGHTING UPGRADE; AND ECM 11.1 - SOLAR THERMAL WATER HEATING. THE PERFORMANCE PERIOD OF 23 YEARS WILL COMMENCE AT THE END OF THE CONSTRUCTION PERIOD. THE CONSTRUCTION PERIOD WILL BE IDENTIFIED AS "YEAR ZERO", AND PRE-PERFORMANCE PAYMENTS WILL BE MADE TO THE CONTRACTOR FOR ENERGY SAVINGS AND COST SAVINGS ACCRUED DURING YEAR ZERO. PRE-PERFORMANCE PERIOD PAYMENTS REMAINING AT THE END OF YEAR ZERO, TO INCLUDE CONSTRUCTION PERIOD SAVINGS, WILL BE PAYABLE AT THE TIME OF THE FIRST PERFORMANCE PERIOD CONTRACTOR PAYMENT. BY THE EXPRESS TERMS OF THE SP0600-10-F-8250 CONTRACTUAL AGREEMENT, "ANNUAL COST SAVINGS" ARE "GUARANTEED". THEREFORE, ANNUAL COST SAVINGS MUST EXCEED "ANNUAL CONTRACTOR PAYMENTS" FOR EACH YEAR OF THE DELIVERY ORDER (DO) PERFORMANCE PERIOD. THE CONTRACT AWARD VALUE IS THE TOTAL AMOUNT OF ALL ANNUAL CONTRACTOR PAYMENTS TO BE MADE UNDER THIS DELIVERY ORDER. PURSUANT TO DESC CONTRACTING INSTRUCTION (CI) 09-01 DEPI 4.6 "CONTRACT REPORTING (FPDS-NG)", TOTAL ESTIMATED DOLLARS AWARDED UNDER SP0600-10-F-8250 IS $33,460,247.50. CONSISTENT WITH "REPORTING DATA" AT 4.606(A)(2)(III) OF THE AFOREMENTIONED CI, AT THE TIME OF THIS ESPC AWARD A "ZERO" DOLLAR AMOUNT IS ENTERED INTO FPDS FOR THE INSTANT ACTION OBLIGATION. CONSISTENT WITH CI 09-01A "ADDITIONAL GUIDANCE - FEDERAL PROCUREMENT DATA SYSTEM (FPDS) AND CONTRACT ACTION REPORT (CAR)", THE TOTAL ESTIMATED CONTRACT VALUE OF $33,460,247.50 IS ENTERED AT THE "BASE AND ALL OPTIONS VALUE" BLOCK IN THE "AMOUNTS" SECTION OF THIS TRANSACTION.
Place of Performance
Location: FORT HOOD, CORYELL County, TEXAS, 76544
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: THE CONTRACTOR WILL COMPLETE A COMPREHENSIVE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES (ECMS) IN ACCORDANCE WITH (IAW) THE REFERENCED DEPARTMENT OF ENERGY (DOE) SUPER ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) INDEFINITE DELIVERY / INDEFINITE QUANTITY (IDIQ)… Key points: 1. Significant investment in energy efficiency upgrades across multiple facilities. 2. Long-term contract (23 years) indicates a focus on sustained performance and savings. 3. Inclusion of solar thermal heating suggests a commitment to renewable energy integration. 4. Potential for substantial taxpayer savings through energy conservation measures.
Value Assessment
Rating: good
The contract value of $18.77 million for a 23-year performance period appears reasonable for comprehensive energy conservation measures. Benchmarking against similar large-scale ESPC projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely resulted in favorable pricing. The use of an IDIQ vehicle allows for flexibility in task orders.
Taxpayer Impact: The long-term nature of the contract and the focus on energy savings are intended to yield significant cost reductions for taxpayers over the contract's duration.
Public Impact
Modernization of critical infrastructure with energy-efficient technologies. Potential for reduced operational costs for the Department of Defense. Contribution to government sustainability goals through reduced energy consumption. Creation of jobs in the energy conservation and renewable energy sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long performance period (23 years) may present risks related to technology obsolescence or contractor performance over time.
- Reliance on estimated energy savings for payment requires robust monitoring and verification.
Positive Signals
- Awarded under full and open competition.
- Focus on proven energy conservation measures.
- Use of a Department of Energy IDIQ vehicle ensures adherence to established standards.
Sector Analysis
This contract falls within the Energy sector, specifically focusing on energy conservation and efficiency improvements for government facilities. ESPC projects are common across federal agencies to reduce energy costs and meet sustainability mandates.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific delivery order. Large ESPC projects often involve multiple subcontractors, which could include small businesses.
Oversight & Accountability
The Department of Energy's ESPC program typically includes robust oversight mechanisms to ensure performance and savings are realized. The Defense Logistics Agency's oversight will be crucial for this delivery order.
Related Government Programs
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (23 years).
- Performance-based payments tied to energy savings.
- Potential for technology obsolescence.
- Complexity of managing multiple ECMs over an extended period.
Tags
department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. THE CONTRACTOR WILL COMPLETE A COMPREHENSIVE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES (ECMS) IN ACCORDANCE WITH (IAW) THE REFERENCED DEPARTMENT OF ENERGY (DOE) SUPER ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) INDEFINITE DELIVERY / INDEFINITE QUANTITY (IDIQ) VEHICLE. SPECIFIC ECMS TO BE IMPLEMENTED UNDER THIS DESC DELIVERY ORDER (DO) SP0600-10-F-8250 INCLUDE: ECM 3.1 - UTILITY MONITORING CONTROL SYSTEM (UMCS) UPGRADE; ECM 5.1 - ENERGY-EFFICIENT LIGHTING UPGRADE; AND ECM 11.
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2009-12-30. End: 2034-04-30.
What is the projected annual energy cost savings, and how will these savings be verified over the 23-year performance period?
The projected annual energy cost savings are not explicitly detailed in the provided data. However, ESPC contracts are structured such that savings are measured against a baseline. Verification typically involves ongoing measurement and verification (M&V) protocols outlined in the contract, often conducted by the contractor and reviewed by the agency. The effectiveness of savings realization hinges on the accuracy of the baseline and the rigor of the M&V process.
What are the specific risks associated with a 23-year performance period for energy conservation measures, and how are they mitigated?
Risks over a 23-year period include technological obsolescence, changes in energy prices, and potential degradation of installed equipment. Mitigation strategies often involve performance guarantees, warranties, and clauses for technology refresh or upgrades. The contractor bears the risk of ensuring the measures remain effective and deliver the projected savings throughout the contract term.
How does the inclusion of solar thermal water heating align with the overall energy conservation goals and the agency's broader sustainability objectives?
Integrating solar thermal water heating directly supports energy conservation by utilizing a renewable resource to offset traditional energy consumption for water heating. This aligns with broader government sustainability objectives to reduce reliance on fossil fuels and decrease greenhouse gas emissions. It demonstrates a commitment to a diversified energy strategy beyond just efficiency upgrades.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP060008R0811
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 507 E MICHIGAN ST, MILWAUKEE, WI, 53202
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,472,657
Exercised Options: $33,472,657
Current Obligation: $18,769,447
Actual Outlays: $1,676,891
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698G010329
IDV Type: IDC
Timeline
Start Date: 2009-12-30
Current End Date: 2034-04-30
Potential End Date: 2034-04-30 00:00:00
Last Modified: 2025-12-18
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