DoD's $55.5M Energy Savings Contract for Misawa AB: Trane U.S. Inc. Awarded
Contract Overview
Contract Amount: $55,535,444 ($55.5M)
Contractor: Trane U.S. Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-20
End Date: 2041-05-20
Contract Duration: 8,187 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Engineering Services
Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT FOR MISAWA AB, JAPAN
Plain-Language Summary
Department of Defense obligated $55.5 million to TRANE U.S. INC. for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT FOR MISAWA AB, JAPAN Key points: 1. Significant investment in energy efficiency for a key military installation. 2. Trane U.S. Inc. secured the contract, indicating strong capabilities in this sector. 3. Potential risks include long-term performance and cost overruns over the 23-year duration. 4. The contract falls under Engineering Services, a critical support sector for government operations.
Value Assessment
Rating: good
The contract value of $55.5M over 23 years suggests a substantial investment in energy infrastructure. Benchmarking against similar large-scale ESPCs is difficult without more granular data, but the firm fixed price structure aims to control costs.
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 for the government.
Taxpayer Impact: This contract aims to reduce energy costs and improve infrastructure resilience, ultimately benefiting taxpayers through long-term operational savings and reduced environmental impact.
Public Impact
Enhances energy security and operational readiness at Misawa Air Base. Contributes to U.S. government sustainability goals through energy efficiency improvements. Potential for job creation in engineering, construction, and maintenance related to the project. Long-term contract duration requires ongoing monitoring for performance and value.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Long contract duration (23 years) increases risk of performance degradation or changing technology.
- Reliance on a single contractor for an extended period.
- Potential for scope creep or unforeseen cost increases despite firm fixed price.
Positive Signals
- Focus on energy savings aligns with government sustainability objectives.
- Full and open competition likely yielded competitive pricing.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This Energy Savings Performance Contract (ESPC) falls within the Engineering Services sector, specifically focusing on energy infrastructure upgrades. Government ESPCs are common for improving facility efficiency and reducing utility costs, with values varying widely based on project scope and duration.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses. Large ESPCs often involve prime contractors who may or may not utilize small businesses for specialized services.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Defense Logistics Agency to ensure Trane U.S. Inc. meets performance milestones and delivers projected energy savings.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long-term performance risk over 23 years.
- Potential for technological obsolescence.
- Contractor dependency and potential for reduced competition in future upgrades.
- Complexity of verifying savings over an extended period.
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.5 million to TRANE U.S. INC.. ENERGY SAVINGS PERFORMANCE CONTRACT FOR MISAWA AB, JAPAN
Who is the contractor on this award?
The obligated recipient is TRANE U.S. INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $55.5 million.
What is the period of performance?
Start: 2018-12-20. End: 2041-05-20.
What are the projected annual energy savings, and how do they compare to industry benchmarks for similar facilities?
The total contract value is $55.5M over 23 years, averaging approximately $2.4M annually. Without specific details on the energy baseline and projected savings, a direct comparison to industry benchmarks is challenging. However, ESPCs are designed to achieve significant savings, often paying for themselves through utility cost reductions.
What are the key performance indicators (KPIs) for this contract, and what are the penalties for non-performance?
Specific KPIs are not detailed in the provided data. Typically, ESPCs include metrics related to energy reduction (e.g., kWh saved), water conservation, and operational uptime. Penalties usually involve the contractor forfeiting payment or being required to rectify performance issues, especially under a firm fixed-price agreement.
How will the effectiveness of the energy-saving measures be verified over the 23-year contract period?
Effectiveness is usually verified through Measurement and Verification (M&V) plans, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). This involves baseline data collection, ongoing monitoring of energy consumption, and periodic reporting to confirm savings against the baseline.
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: SP060016R0409
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3600 PAMMEL CREEK RD, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $532,289,724
Exercised Options: $532,289,724
Current Obligation: $55,535,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29044
IDV Type: IDC
Timeline
Start Date: 2018-12-20
Current End Date: 2041-05-20
Potential End Date: 2041-05-20 00:00:00
Last Modified: 2025-06-06
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