Army awards $22M microgrid contract to AMERESCO INC for enhanced energy security at Ft. Hunter Liggett
Contract Overview
Contract Amount: $21,961,884 ($22.0M)
Contractor: Ameresco Inc
Awarding Agency: Department of Defense
Start Date: 2019-04-12
End Date: 2025-05-31
Contract Duration: 2,241 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE EFFORT INCLUDES DESIGN, CONSTRUCTION, COMMISSIONING, VALIDATION, TRAINING AND TRANSITION OF A FULLY USABLE AND COMPLETE MICROGRID SYSTEM DESIGNED TO PROVIDE CONTINGENCY ELECTRIC POWER TO FT. HUNTER LIGGETT W HEN ELECTRICITY PROVIDED BY PACIFIC GAS AND ELECTRIC (PG&E) IS UNSTABLE OR UNAVAILABLE. THE FINAL SYSTEM DESIGN SHALL ADVANCE DEPARTMENT OF ARMY ENERGY SECURITY AND SUSTAINABILITY STRATEGY (E2S) AND OTHER ENERGY POLICY OBJECTIVES INCLUDING CONTINUITY OF OPERATION, ADAPTABLE POWER DELIVERY ENERGY, ENERGY INFORMED OPERATIONS, OPTIMIZED ENERGY USE, ASSURED ACCESS, ENERGY RESILIENCY, AND ARMY CYBERSECURITY AND RISK MANAGEMENT REQUIREMENTS. IGF::OT::IGF
Place of Performance
Location: JOLON, MONTEREY County, CALIFORNIA, 93928
Plain-Language Summary
Department of Defense obligated $22.0 million to AMERESCO INC for work described as: THE EFFORT INCLUDES DESIGN, CONSTRUCTION, COMMISSIONING, VALIDATION, TRAINING AND TRANSITION OF A FULLY USABLE AND COMPLETE MICROGRID SYSTEM DESIGNED TO PROVIDE CONTINGENCY ELECTRIC POWER TO FT. HUNTER LIGGETT W HEN ELECTRICITY PROVIDED BY PACIFIC GAS AND ELECTRIC (PG&E) IS UNSTA… Key points: 1. Contract aims to bolster energy resilience and operational continuity for the Army. 2. Focus on advancing Department of the Army's energy security and sustainability strategy. 3. Includes comprehensive services from design to commissioning and training. 4. Addresses critical need for stable power during grid instability or outages. 5. Emphasizes cybersecurity and risk management in energy system design. 6. Project aligns with broader Army goals for optimized energy use and assured access.
Value Assessment
Rating: good
The contract value of approximately $22 million for a comprehensive microgrid system appears reasonable given the scope of services, which include design, construction, commissioning, validation, training, and transition. Benchmarking against similar large-scale military energy resilience projects suggests this pricing is within expected ranges. The firm-fixed-price nature of the contract provides cost certainty for the government, although it places more risk on the contractor to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and encourage innovative solutions. The presence of 11 bidders suggests a healthy level of market interest and capability for this type of specialized infrastructure project.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for money. It ensures that the government is not limited to a single provider, increasing the likelihood of securing the most cost-effective and technically sound solution.
Public Impact
The primary beneficiary is the Department of the Army, specifically Ft. Hunter Liggett, ensuring uninterrupted power supply. Services delivered include the design, construction, and operationalization of a critical microgrid system. Geographic impact is localized to Ft. Hunter Liggett, California, enhancing its operational readiness. Workforce implications include potential job creation in construction, engineering, and specialized energy system maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
- Dependence on contractor expertise for long-term system reliability and maintenance.
- Integration complexities with existing power infrastructure and cybersecurity protocols.
Positive Signals
- Clear alignment with strategic Army energy security and sustainability goals.
- Firm-fixed-price contract provides budget predictability.
- Extensive scope of work ensures a comprehensive and integrated solution.
- Full and open competition suggests a robust selection process.
- Contract duration allows for thorough project execution and validation.
Sector Analysis
The defense sector is increasingly investing in microgrids and renewable energy solutions to enhance operational resilience and reduce reliance on traditional utility grids. This contract fits within the broader trend of military installations seeking energy independence and sustainability. The market for microgrid solutions is growing, driven by both government and commercial demand for reliable and secure power, with significant spending allocated to infrastructure modernization and energy security initiatives.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside component for this specific award, as the prime contractor is AMERESCO INC, a larger entity. However, the prime contractor may engage small businesses for subcontracting opportunities related to construction, specialized equipment, or support services. The impact on the small business ecosystem will depend on the extent of subcontracting planned by AMERESCO INC.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program management personnel within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of a fully functional microgrid system. Transparency is facilitated through contract award data and reporting requirements. While no specific Inspector General (IG) jurisdiction is mentioned, the Department of Defense IG has broad authority over defense contracts.
Related Government Programs
- Army Energy Security and Sustainability Strategy
- Military Base Resilience Projects
- Contingency Power Systems
- Department of Defense Energy Modernization
Risk Flags
- Potential for cost overruns if scope changes significantly.
- Cybersecurity vulnerabilities in critical infrastructure.
- Long-term operational and maintenance costs.
- Integration challenges with existing power infrastructure.
Tags
construction, department-of-defense, department-of-the-army, california, firm-fixed-price, definitive-contract, full-and-open-competition, energy-security, microgrid, resilience, infrastructure, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to AMERESCO INC. THE EFFORT INCLUDES DESIGN, CONSTRUCTION, COMMISSIONING, VALIDATION, TRAINING AND TRANSITION OF A FULLY USABLE AND COMPLETE MICROGRID SYSTEM DESIGNED TO PROVIDE CONTINGENCY ELECTRIC POWER TO FT. HUNTER LIGGETT W HEN ELECTRICITY PROVIDED BY PACIFIC GAS AND ELECTRIC (PG&E) IS UNSTABLE OR UNAVAILABLE. THE FINAL SYSTEM DESIGN SHALL ADVANCE DEPARTMENT OF ARMY ENERGY SECURITY AND SUSTAINABILITY STRATEGY (E2S) AND OTHER ENERGY POLICY OBJECTIVES INCLUDING CONTINUITY OF OPERATION, ADAPTABLE POWER DELIVER
Who is the contractor on this award?
The obligated recipient is AMERESCO 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 $22.0 million.
What is the period of performance?
Start: 2019-04-12. End: 2025-05-31.
What is AMERESCO INC's track record with similar large-scale energy infrastructure projects for the federal government?
AMERESCO INC has a significant track record in designing, constructing, and operating energy efficiency and renewable energy projects for various federal agencies, including the Department of Defense. They have been involved in numerous microgrid projects, energy savings performance contracts (ESPCs), and facility upgrades aimed at improving energy resilience and reducing operational costs. Their experience often includes complex integration with existing infrastructure and adherence to stringent government requirements. Past performance reviews and contract databases would provide more granular detail on the success and scale of their previous federal engagements, including any challenges encountered and their resolution.
How does the awarded price compare to similar microgrid projects for military installations?
The awarded price of approximately $22 million for a comprehensive microgrid system at Ft. Hunter Liggett is in line with, and potentially on the lower end of, costs for similar projects at military installations. Large-scale microgrids, especially those requiring advanced features like energy storage, integration with existing grids, and robust cybersecurity, can range from tens to hundreds of millions of dollars depending on size, complexity, and location. Factors such as the specific energy generation sources (e.g., solar, natural gas), storage capacity, grid interconnection requirements, and the duration of the contract influence the overall cost. Given the 2241-day duration and the full scope of services, this contract appears to represent a competitive valuation for the required capabilities.
What are the primary risks associated with the successful implementation of this microgrid project?
Key risks include potential construction delays due to unforeseen site conditions or supply chain disruptions, which could impact the project timeline and potentially lead to cost increases if not managed effectively within the firm-fixed-price structure. Technical risks involve the successful integration of diverse energy sources, storage systems, and control technologies, ensuring seamless operation during grid instability. Cybersecurity risks are also significant, requiring robust measures to protect the microgrid's control systems from cyber threats. Furthermore, ensuring long-term operational reliability and maintainability post-commissioning presents an ongoing risk that depends heavily on the quality of the initial design and training.
How effective is a firm-fixed-price contract in managing costs for a project of this complexity and duration?
A firm-fixed-price (FFP) contract is generally preferred by the government for projects where the scope of work is well-defined, as it shifts the risk of cost overruns to the contractor. For a complex, multi-year project like this microgrid, an FFP contract provides significant budget certainty for the Army. However, it requires meticulous upfront planning and a thorough understanding of all potential requirements. The contractor bears the burden of managing all costs associated with performance, including labor, materials, and overhead. If unforeseen issues arise that significantly deviate from the original scope or require extensive change orders, the FFP structure can become contentious or lead to contractor claims, potentially negating some of the cost-saving benefits if not managed proactively through contract administration.
What are the historical spending patterns for microgrid and energy resilience projects within the Department of the Army?
The Department of the Army has been progressively increasing its investment in microgrids and energy resilience projects over the past decade. This trend is driven by strategic imperatives to enhance operational readiness, reduce vulnerability to grid outages, and meet federal energy sustainability mandates. Historical spending data would likely show a growing number of contracts awarded for microgrid feasibility studies, design, construction, and upgrades across various installations. These investments are often part of larger modernization efforts and are influenced by funding availability, evolving energy technologies, and specific installation needs. Analyzing past spending can reveal patterns in contract values, types of technologies prioritized, and the geographic distribution of these resilience initiatives.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9123818R0050
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 111 SPEEN ST STE 410, FRAMINGHAM, MA, 01701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,363,040
Exercised Options: $21,961,884
Current Obligation: $21,961,884
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-04-12
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-06-18
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