DoD Awards $17.3M ESPC to Trane U.S. Inc. for South Korea Base Energy Services
Contract Overview
Contract Amount: $17,314,590 ($17.3M)
Contractor: Trane U.S. Inc.
Awarding Agency: Department of Defense
Start Date: 2019-10-31
End Date: 2044-10-30
Contract Duration: 9,131 days
Daily Burn Rate: $1.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AWARD ESPC OSAN AB SOUTH KOREA
Plain-Language Summary
Department of Defense obligated $17.3 million to TRANE U.S. INC. for work described as: AWARD ESPC OSAN AB SOUTH KOREA Key points: 1. Significant contract value for energy efficiency improvements. 2. Trane U.S. Inc. is a major player in the energy services market. 3. Long contract duration (25 years) presents long-term performance risk. 4. Engineering Services sector sees substantial investment in facility upgrades.
Value Assessment
Rating: good
The $17.3M award for a 25-year ESPC appears reasonable given the scope of energy conservation measures and potential long-term savings. Benchmarking against similar large-scale ESPCs is difficult without specific project details, but the firm-fixed-price structure provides cost certainty.
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 should drive favorable pricing. The delivery order structure within a larger IDIQ or similar vehicle allows for task-specific pricing.
Taxpayer Impact: Taxpayer funds are being invested in energy efficiency, which can lead to long-term cost savings for the government and reduced environmental impact.
Public Impact
Enhances energy security and operational resilience at a key overseas military installation. Potential for significant reductions in utility costs over the contract's 25-year lifespan. Contributes to U.S. government sustainability goals through energy conservation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract risk (25 years)
- Performance monitoring complexity
- Potential for scope creep
Positive Signals
- Energy cost savings potential
- Modernization of infrastructure
- Environmental benefits
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on energy conservation projects for federal facilities. Spending in this area is driven by mandates for energy efficiency and infrastructure modernization, with ESPCs being a common procurement vehicle.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Trane U.S. Inc., a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Defense Logistics Agency to ensure Trane U.S. Inc. meets performance requirements and delivers projected energy savings. Regular performance reviews and audits will be critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration
- Potential for technology obsolescence
- Reliance on contractor performance for savings
- Complexity of measuring energy savings over time
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to TRANE U.S. INC.. AWARD ESPC OSAN AB SOUTH KOREA
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 $17.3 million.
What is the period of performance?
Start: 2019-10-31. End: 2044-10-30.
What are the projected energy savings and payback period for this $17.3M investment?
The projected energy savings and payback period are critical metrics for evaluating the value of this ESPC. While the contract is for 25 years, a detailed analysis of the proposed energy conservation measures and their expected performance is needed to confirm if the investment will yield sufficient savings to justify the expenditure and meet government efficiency targets within a reasonable timeframe.
What are the specific risks associated with a 25-year energy performance contract?
A 25-year contract introduces risks such as technological obsolescence, changes in energy prices and usage patterns, and potential degradation of installed equipment. Ensuring the contract includes provisions for performance verification, maintenance, and adaptation to future technologies is crucial to mitigate these long-term risks and guarantee sustained energy savings.
How effectively will the Defense Logistics Agency monitor performance and ensure accountability over the contract's lifespan?
Effective oversight is paramount for a contract of this length. The agency must establish clear performance metrics, conduct regular site visits and audits, and maintain open communication channels with the contractor. Proactive management and a structured approach to performance tracking will be essential to ensure the contractor fulfills its obligations and taxpayer funds are used efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP060017R0414
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: $100,131,200
Exercised Options: $100,131,200
Current Obligation: $17,314,590
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: 2019-10-31
Current End Date: 2044-10-30
Potential End Date: 2044-10-30 00:00:00
Last Modified: 2025-12-17
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