Trane U.S. Inc. awarded $75.2M for energy conservation measures by the Department of the Army
Contract Overview
Contract Amount: $75,201,328 ($75.2M)
Contractor: Trane U.S. Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-30
End Date: 2021-09-14
Contract Duration: 4,276 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ENERGY CONSERVATION MEASURES
Place of Performance
Location: WHITE HALL, JEFFERSON County, ARKANSAS, 71602
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $75.2 million to TRANE U.S. INC. for work described as: ENERGY CONSERVATION MEASURES Key points: 1. Contract awarded for energy conservation measures, indicating a focus on operational efficiency and sustainability. 2. The contract duration of 4276 days (over 11 years) suggests a long-term commitment to energy infrastructure improvements. 3. A single award indicates this specific delivery order was competed, but the overall contract vehicle's competition level is not detailed. 4. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of large-scale infrastructure projects. 6. The contract was awarded in late 2009 and completed in late 2021, spanning a significant period of federal energy policy evolution.
Value Assessment
Rating: good
The contract value of $75.2 million for energy conservation measures over an 11-year period appears reasonable for a large-scale Department of Defense project. Benchmarking against similar large-scale energy efficiency upgrades for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure generally offers good cost control for the government, assuming the scope was well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. A single award for this delivery order implies that Trane U.S. Inc. was the most advantageous offer received during the competitive process for this specific task.
Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of bids.
Public Impact
The Department of the Army benefits from improved energy efficiency, leading to reduced operational costs and enhanced facility sustainability. Services delivered include engineering and implementation of energy conservation measures, likely involving upgrades to HVAC, lighting, and building controls. The geographic impact is primarily within Arkansas, where the contract was performed. Workforce implications may include specialized engineering and construction jobs related to energy infrastructure modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-duration contracts if not managed effectively.
- Reliance on a single contractor for an extended period could limit future flexibility.
- Ensuring ongoing technological relevance of energy conservation measures over an 11-year span.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm-fixed-price contract type shifts cost risk to the contractor.
- Long contract duration indicates a strategic, long-term investment in facility modernization.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy infrastructure and conservation. The federal government is a significant investor in energy efficiency projects across its vast portfolio of buildings and facilities. Comparable spending benchmarks would involve looking at other large-scale energy performance contracts awarded to federal agencies, which often run for many years and involve substantial capital investment for long-term operational savings.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans or performance. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized services.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and the Department of the Army's facilities and engineering commands. Transparency is facilitated by contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.
Related Government Programs
- Federal Energy Management Program (FEMP)
- Energy Savings Performance Contracts (ESPCs)
- Department of Defense Facilities Management
- Energy Conservation Initiatives
Risk Flags
- Long contract duration may pose risks of technological obsolescence.
- Performance metrics and verification details are not specified in the award data.
Tags
energy-conservation, department-of-defense, department-of-the-army, engineering-services, firm-fixed-price, full-and-open-competition, delivery-order, arkansas, long-term-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.2 million to TRANE U.S. INC.. ENERGY CONSERVATION MEASURES
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $75.2 million.
What is the period of performance?
Start: 2009-12-30. End: 2021-09-14.
What was the specific scope of 'energy conservation measures' implemented under this contract?
The provided data does not detail the specific energy conservation measures implemented. However, typical measures under such contracts for federal facilities include upgrades to HVAC systems, lighting retrofits (e.g., LED conversions), building envelope improvements (insulation, windows), water conservation measures, and the installation of energy management systems. These projects aim to reduce energy consumption, lower utility costs, and improve the overall operational efficiency and environmental performance of the facilities.
How did Trane U.S. Inc.'s pricing compare to other potential bidders during the competition?
The data indicates the contract was awarded under 'full and open competition,' suggesting multiple bids were received. However, specific pricing details of competing offers are not publicly available. The award to Trane U.S. Inc. implies their proposal was deemed the most advantageous, considering factors such as price, technical approach, past performance, and other evaluation criteria outlined in the solicitation. Without access to the source selection decision document, a direct comparison of pricing is not possible.
What were the key performance indicators (KPIs) used to measure the success of these energy conservation measures?
The provided data does not specify the key performance indicators (KPIs) used to measure the success of the energy conservation measures. Typically, for Energy Savings Performance Contracts (ESPCs) and similar agreements, KPIs focus on measurable reductions in energy and water consumption, cost savings achieved, and improvements in facility operational efficiency. Performance is often verified through energy audits, utility bill analysis, and post-implementation monitoring to ensure the projected savings are realized over the contract's life.
What is the historical spending trend for energy conservation measures by the Department of the Army?
The provided data focuses on a single contract award of $75.2 million to Trane U.S. Inc. for energy conservation measures. To understand the historical spending trend for the Department of the Army in this category, one would need to analyze aggregate spending data across multiple years and contracts. This would involve examining federal procurement databases for similar NAICS codes (e.g., 541330, 561210) and contract types (e.g., ESPCs) awarded by the Army. Such an analysis would reveal patterns in investment, agency priorities, and the overall scale of energy efficiency initiatives.
Were there any significant risks identified during the performance of this contract, and how were they mitigated?
The provided data does not contain information regarding specific risks identified during the performance of this contract or their mitigation strategies. Long-duration contracts, especially those involving infrastructure and technology, can face risks such as technological obsolescence, unforeseen site conditions, changes in regulatory requirements, or contractor performance issues. Effective risk mitigation typically involves robust contract management, regular performance reviews, clear communication channels, and contingency planning by both the government and the contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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)
Contractor Details
Parent Company: Trane Technologies Public Limited Company
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
Financial Breakdown
Contract Ceiling: $173,150,332
Exercised Options: $75,201,328
Current Obligation: $75,201,328
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3699OR22704
IDV Type: IDC
Timeline
Start Date: 2009-12-30
Current End Date: 2021-09-14
Potential End Date: 2023-11-15 00:00:00
Last Modified: 2023-11-30
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