Energy savings contract for SSA yields $19.9M, with a focus on engineering services

Contract Overview

Contract Amount: $19,980,852 ($20.0M)

Contractor: Constellation Newenergy Inc

Awarding Agency: Social Security Administration

Start Date: 2013-09-18

End Date: 2018-10-29

Contract Duration: 1,867 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) FPDS FUNCTION: IGF::OT::IGF

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $20.0 million to CONSTELLATION NEWENERGY INC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) FPDS FUNCTION: IGF::OT::IGF Key points: 1. The contract focused on engineering services to achieve energy savings, indicating a performance-based approach. 2. The firm fixed-price structure suggests that the contractor bore the primary risk for cost overruns. 3. The duration of the contract (1867 days) allowed for sustained implementation and measurement of energy efficiency improvements. 4. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-existing agreement. 5. The absence of small business set-aside flags suggests the competition was likely aimed at larger, established firms. 6. The contract's value of approximately $20 million positions it as a significant investment in facility modernization.

Value Assessment

Rating: good

The contract value of $19.9 million for engineering services related to energy savings is substantial. Without specific benchmarks for similar ESPC projects at the Social Security Administration (SSA), a direct value-for-money assessment is challenging. However, the firm fixed-price nature suggests a defined cost ceiling. The duration of over five years allows for potential long-term savings realization, which is a key indicator of value in energy performance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This competitive process is generally expected to drive better pricing and innovation. The fact that it was a delivery order suggests it might have been competed as part of a broader IDIQ vehicle, which can streamline future procurements but also requires careful initial competition.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value through a wide range of available solutions.

Public Impact

The primary beneficiaries are the Social Security Administration facilities, which are expected to see reduced energy consumption and operational costs. The services delivered likely included energy audits, design of energy conservation measures, and potentially implementation and verification of savings. The geographic impact is concentrated at SSA facilities within Maryland, as indicated by the 'MD' state code. The contract supported engineering and technical roles, contributing to the workforce in the energy services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, though mitigated by firm-fixed-price.
Dependence on the contractor's expertise for accurate savings projections and realization.
Risk of vendor lock-in if follow-on services are required and not competitively procured.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust selection process.
Long contract duration allows for comprehensive energy efficiency implementation and measurement.
Focus on engineering services indicates a strategic approach to facility modernization.

Sector Analysis

This contract falls within the Energy sector, specifically focusing on Energy Savings Performance Contracts (ESPCs). ESPCs are a mechanism used by federal agencies to finance energy efficiency upgrades without upfront capital investment. The market for ESPCs is driven by federal mandates for energy reduction and sustainability. Comparable spending benchmarks would involve looking at other ESPC awards across federal agencies for similar facility types and scopes of work.

Small Business Impact

The contract does not indicate any specific small business set-aside. As it was awarded under full and open competition, it is likely that larger prime contractors were the primary participants. There is no direct information on subcontracting plans for small businesses, but typically, larger ESPC projects may involve small businesses for specialized services or local implementation tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Social Security Administration. Performance would be monitored against the contract's technical requirements and energy savings goals. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
Federal Energy Management Program (FEMP)
General Services Administration (GSA) Schedules
Engineering Services Contracts

Risk Flags

Potential for cost overruns if savings projections are overly optimistic.
Contract duration may limit flexibility if technology or agency needs change rapidly.
Dependence on contractor's expertise for accurate performance measurement.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $20.0 million to CONSTELLATION NEWENERGY INC. ENERGY SAVINGS PERFORMANCE CONTRACTING (ESPC) FPDS FUNCTION: IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CONSTELLATION NEWENERGY INC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2013-09-18. End: 2018-10-29.

What specific energy conservation measures were implemented under this contract?

The provided data does not detail the specific energy conservation measures (ECMs) implemented. However, typical ESPC projects involve upgrades such as high-efficiency lighting, HVAC system improvements, building envelope enhancements (insulation, windows), water conservation measures, and the installation of energy management systems. The 'Engineering Services' function suggests that the contractor was responsible for identifying, designing, and potentially overseeing the implementation of these measures to achieve guaranteed energy savings for the Social Security Administration facilities in Maryland.

How does the $19.9 million contract value compare to other ESPC awards for similar agencies?

The $19.9 million value for this ESPC contract with the Social Security Administration is a significant investment. Benchmarking requires comparing it to ESPC awards of similar duration and scope across federal agencies, particularly those with comparable facility portfolios. While specific data for SSA's ESPC history isn't provided, this amount suggests a comprehensive project aimed at substantial energy efficiency improvements. Larger agencies like the Department of Defense or Department of Veterans Affairs often award larger ESPCs, but this value is in line with substantial projects for mid-sized agencies or specific large facility upgrades.

What were the projected energy savings, and have they been realized?

The provided data does not include information on projected or realized energy savings. ESPC contracts are performance-based, meaning the contractor guarantees a certain level of savings. The 'firm fixed price' structure implies the contractor is responsible for delivering these savings within the agreed-upon cost. Verification of savings typically occurs over the contract period, often involving measurement and verification (M&V) protocols. Without post-award reports or final acceptance documentation, it's impossible to confirm the savings achieved.

What is the significance of the contract being a 'Delivery Order'?

The contract being a 'Delivery Order' (DO) indicates that it was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. This procurement method allows agencies to order specific goods or services as needed, up to a certain ceiling. For ESPCs, a DO might be used to fund a specific project phase or a particular facility upgrade under a broader framework contract that has already undergone initial competition. This streamlines the process for subsequent task orders but relies on the initial IDIQ competition being robust.

What is the track record of Constellation NewEnergy Inc. in federal ESPC contracts?

Constellation NewEnergy Inc. is a known entity in the energy services sector, including federal ESPCs. While the provided data confirms them as the awardee for this specific SSA contract, a comprehensive assessment of their track record would require reviewing their performance across multiple federal contracts. This would involve examining past project successes, client satisfaction, adherence to schedules and budgets, and the accuracy of their energy savings guarantees in other ESPC awards. Their presence as a prime contractor suggests they have met federal procurement requirements and demonstrated capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $19,980,852

Exercised Options: $19,980,852

Current Obligation: $19,980,852

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29033

IDV Type: IDC

Timeline