Siemens Government Technologies Inc. awarded $7.1M for energy conservation measures, with a long performance period extending to 2037

Contract Overview

Contract Amount: $7,122,193 ($7.1M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-05

End Date: 2037-03-15

Contract Duration: 7,619 days

Daily Burn Rate: $935/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THEE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE IDIQ.

Plain-Language Summary

Department of Defense obligated $7.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THEE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE IDIQ. Key points: 1. The contract focuses on energy conservation measures, aligning with federal goals for efficiency and sustainability. 2. A long performance period of over 15 years suggests a significant, long-term project or ongoing service requirement. 3. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 4. The awarding agency is the Defense Logistics Agency, indicating a focus on supporting military operations. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting a technical and design-oriented component. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The total award amount of $7.1 million for engineering services related to energy conservation measures is difficult to benchmark without specific details on the scope of work and the energy savings expected. The long performance period, however, suggests a substantial project. Comparing this to similar energy conservation contracts would require more granular data on the types of measures implemented and their associated costs. The firm-fixed-price nature provides budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment that can lead to better pricing and innovation. This approach allows the government to select the most advantageous offer based on a range of factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services by allowing the widest possible pool of contractors to bid.

Public Impact

The Department of Defense benefits from improved energy efficiency and potential cost savings in its facilities. Services delivered include the installation and performance of energy conservation measures. The geographic impact is likely within facilities managed by the Defense Logistics Agency. The contract supports the federal government's broader energy sustainability and conservation initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period (over 15 years) could introduce risks related to technology obsolescence or changing energy needs.
Lack of specific details on the 'energy conservation measures' makes it difficult to assess the full scope and potential impact.
The contract is a delivery order under an IDIQ, meaning the specific task order details are crucial for a complete understanding.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract provides cost certainty for the government.
Focus on energy conservation aligns with important federal sustainability goals.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape. Energy conservation projects often involve specialized engineering expertise to identify, design, and implement efficiency improvements. The market for energy services within the federal government is substantial, driven by mandates for energy reduction and the desire for operational cost savings. Comparable spending benchmarks would depend on the specific types of energy conservation measures being implemented, such as HVAC upgrades, lighting retrofits, or building envelope improvements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, and small businesses were not given preferential consideration through a set-aside. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award, although the prime contractor may choose to engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Logistics Agency's contracting officers and program managers. As a delivery order under an IDIQ, the specific task order will outline performance requirements and deliverables. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise. Transparency is facilitated by public contract databases, but detailed performance metrics are often internal.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
Department of Defense Energy Initiatives
Federal Energy Management Program (FEMP)
Engineering and Technical Services

Risk Flags

Long contract duration may pose risks of technological obsolescence.
Specific scope of 'energy conservation measures' is not detailed.
Performance metrics and savings verification details are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THEE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE IDIQ.

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $7.1 million.

What is the period of performance?

Start: 2016-05-05. End: 2037-03-15.

What specific energy conservation measures are included in this contract, and what are the projected energy savings?

The provided data does not specify the exact energy conservation measures to be implemented under this contract. It broadly states 'installation and performance of energy conservation measures in accordance with Task Order and the referenced Department of Energy Super Energy Savings Performance IDIQ.' To assess the value and impact, a detailed review of the specific task order is necessary. This would outline the scope of work, the technologies or upgrades involved (e.g., HVAC, lighting, insulation, renewable energy integration), and the projected energy and cost savings. Without this information, it's challenging to determine the effectiveness of the contract beyond its award value and duration.

How does the $7.1 million award compare to typical energy conservation projects of similar scope and duration?

Benchmarking the $7.1 million award requires understanding the specific scope of work and the types of energy conservation measures (ECMs) included. Energy Savings Performance Contracts (ESPCs) vary widely in cost depending on the scale of the facility, the age and condition of existing infrastructure, and the complexity of the ECMs. A 15-year performance period suggests a substantial, long-term project. Without knowing the number and type of ECMs, the size of the facilities involved, and the expected energy savings, a direct comparison is difficult. However, for large federal facilities, multi-million dollar investments in energy efficiency over extended periods are not uncommon, especially when tied to guaranteed savings.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or performance measurement methods for this contract. Typically, for energy conservation measure contracts, KPIs would focus on achieved energy savings (measured in kilowatt-hours, therms, etc.), cost savings realized, system uptime and reliability, and compliance with environmental standards. Performance is usually measured against a baseline established before the improvements are made. The contract's adherence to the Department of Energy's Super Energy Savings Performance IDIQ framework suggests that standardized measurement and verification (M&V) protocols would be employed to track savings.

What is the track record of Siemens Government Technologies Inc. in delivering similar energy conservation projects for the federal government?

Siemens Government Technologies Inc. is a well-established entity with a significant history of providing solutions for government clients, including energy infrastructure and efficiency projects. While specific details on their past performance related to this exact type of contract are not in the provided data, Siemens as a global company has extensive experience in energy management and building technologies. Federal agencies often award contracts to large, experienced companies like Siemens due to their capacity, technical expertise, and established processes. A deeper dive into past performance evaluations and contract history for Siemens Government Technologies would be needed for a comprehensive assessment.

What are the potential risks associated with the long performance period (ending in 2037)?

The extended performance period, ending in March 2037, presents several potential risks. Technological advancements in energy efficiency could render the implemented solutions outdated or less effective before the contract term concludes. Changes in energy markets, utility rates, or federal energy policies could impact the projected savings and the contract's financial viability. Furthermore, the long duration increases the risk of contractor performance degradation, changes in key personnel, or unforeseen operational challenges within the facilities being serviced. Ensuring the contract includes mechanisms for adaptation and review throughout its lifecycle is crucial to mitigate these risks.

How does this contract align with the Department of Defense's broader sustainability and energy resilience goals?

This contract directly supports the Department of Defense's (DoD) overarching goals for sustainability, energy resilience, and reducing its environmental footprint. By investing in energy conservation measures, the DoD aims to decrease its reliance on fossil fuels, lower operational costs, and enhance the energy security of its installations. Projects like this contribute to meeting federal mandates for greenhouse gas reduction and energy efficiency improvements across government facilities. The focus on energy conservation is a key component of building more resilient and sustainable military infrastructure, which is critical for operational readiness.

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: SP060014R0423

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 2231 CRYSTAL DR STE 700, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $151,323,146

Exercised Options: $25,252,169

Current Obligation: $7,122,193

Actual Outlays: $46,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29041

IDV Type: IDC

Timeline