Army's $7.2M ESPC contract with Johnson Controls extended through April 2030, focusing on energy efficiency upgrades
Contract Overview
Contract Amount: $7,223,829 ($7.2M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2030-04-30
Contract Duration: 7,882 days
Daily Burn Rate: $916/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTINUED CONTRACT FOR ESPC ABERDEEN PROVING GROUNDS, MD, PROJECT 3 DACA87-97-D-0069-0008 IS REPLACED WITH CONTINUED CONTRACT PAYMENTS 159-161, POP JULY - SEPTEMBER 2023 FUNDED WITH FY23 FUNDS
Place of Performance
Location: ABINGDON, HARFORD County, MARYLAND, 21009
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: CONTINUED CONTRACT FOR ESPC ABERDEEN PROVING GROUNDS, MD, PROJECT 3 DACA87-97-D-0069-0008 IS REPLACED WITH CONTINUED CONTRACT PAYMENTS 159-161, POP JULY - SEPTEMBER 2023 FUNDED WITH FY23 FUNDS Key points: 1. Contract value represents ongoing investment in facility modernization and energy savings. 2. Sole-source award suggests a specialized need or existing relationship for this specific project. 3. Long contract duration indicates a sustained effort in energy infrastructure improvements. 4. Performance period spans multiple fiscal years, requiring consistent funding and oversight. 5. Focus on energy efficiency aligns with federal sustainability goals and cost reduction initiatives.
Value Assessment
Rating: good
The contract's value of $7.2 million over its extended period appears reasonable for a large-scale energy performance contract. Benchmarking against similar ESPC projects at federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the total expenditure will depend on the actual energy savings realized and the scope of work performed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that the Army identified Johnson Controls Government Systems, LLC as the only capable provider for this specific project. While sole-source awards can be efficient for specialized needs, they limit the potential for competitive bidding, which could otherwise drive down prices and foster innovation.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that could arise from a competitive bidding process.
Public Impact
Benefits the Department of the Army by improving energy efficiency and reducing operational costs at Aberdeen Proving Grounds. Delivers services related to energy infrastructure upgrades and maintenance. Geographic impact is concentrated at the Aberdeen Proving Grounds in Maryland. Workforce implications may include specialized technical roles for installation, maintenance, and energy management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if energy savings targets are not met.
- Reliance on a single contractor may limit flexibility in adopting new technologies.
- Long-term nature of the contract requires sustained oversight to ensure performance.
Positive Signals
- Focus on energy efficiency contributes to federal sustainability goals.
- Firm-fixed-price contract provides cost certainty for the government.
- Extended contract duration allows for comprehensive project completion and long-term benefits.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy infrastructure and facility management. Energy Performance Contracts (ESPCs) are a common mechanism for federal agencies to finance energy efficiency upgrades. The market for ESPC providers is competitive, but specific projects may require specialized expertise, leading to sole-source awards.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a sole-source award to a large government contractor, the direct impact on small businesses may be limited unless Johnson Controls Government Systems, LLC actively engages them as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and technical representatives within the Department of the Army. Accountability measures are inherent in the firm-fixed-price structure and performance metrics tied to energy savings. Transparency is generally maintained through contract databases, though specific performance details may be less public.
Related Government Programs
- Energy Savings Performance Contracts
- Federal Energy Management Program
- Department of Defense Facility Modernization
- Aberdeen Proving Grounds Operations
Risk Flags
- Sole-source award may limit cost-effectiveness.
- Long contract duration requires sustained oversight.
- Performance metrics and energy savings verification are critical.
Tags
engineering-services, department-of-defense, department-of-the-army, maryland, definitive-contract, sole-source, firm-fixed-price, energy-efficiency, facility-management, espcs
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. CONTINUED CONTRACT FOR ESPC ABERDEEN PROVING GROUNDS, MD, PROJECT 3 DACA87-97-D-0069-0008 IS REPLACED WITH CONTINUED CONTRACT PAYMENTS 159-161, POP JULY - SEPTEMBER 2023 FUNDED WITH FY23 FUNDS
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2008-09-30. End: 2030-04-30.
What specific energy efficiency measures are being implemented under this contract at Aberdeen Proving Grounds?
The provided data does not detail the specific energy efficiency measures. However, typical ESPC projects involve upgrades to lighting systems, HVAC (heating, ventilation, and air conditioning), building envelope improvements (insulation, windows), water conservation measures, and the integration of renewable energy sources. The exact scope would be defined in the contract's statement of work, focusing on areas with the highest potential for energy savings and operational cost reductions at the facility.
How does the extended contract end date of April 30, 2030, compare to typical ESPC durations?
ESPCs can have long performance periods, often tied to the payback period of the implemented energy conservation measures. Durations can range from 10 to 25 years or more, depending on the project's scope, financing structure, and the expected lifespan of the upgrades. An end date of April 30, 2030, for a contract initiated in 2008 suggests a performance period of approximately 22 years, which is within the typical range for ESPCs, allowing ample time to realize energy savings and recoup investment.
What are the potential risks associated with a sole-source award for an ESPC?
Sole-source awards for ESPCs carry risks, primarily the potential for higher costs due to the lack of competitive pricing. Taxpayers may not benefit from the most cost-effective solutions available in the market. Additionally, the government might have less leverage in negotiating terms or adopting innovative technologies if the sole provider's offerings are not cutting-edge. It also raises questions about whether a competitive process was adequately explored or if there were genuine justifications for excluding other qualified contractors.
How is the success of this ESPC contract measured, particularly in terms of energy savings?
The success of an ESPC is primarily measured by the actual energy and cost savings achieved compared to a baseline established before the upgrades. This contract likely includes provisions for Measurement and Verification (M&V) to track energy consumption and calculate savings. Performance is typically reviewed periodically, and the contractor is often compensated based on the verified savings. Failure to meet savings targets could result in financial penalties or require the contractor to implement corrective actions.
What is the historical spending trend for ESPC projects at the Department of the Army?
The Department of the Army, like other branches of the DoD and federal agencies, has historically utilized ESPCs as a significant tool for facility modernization and energy efficiency improvements. Spending on ESPCs can fluctuate based on appropriations, agency priorities, and the availability of qualified contractors. While specific historical spending figures for Army ESPCs are not provided here, the consistent use of such contracts indicates a sustained commitment to leveraging private sector expertise and financing for energy-related infrastructure projects.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2101 GAITHER RD STE 400, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $38,519,417
Exercised Options: $7,223,829
Current Obligation: $7,223,829
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2030-04-30
Potential End Date: 2030-06-01 00:00:00
Last Modified: 2025-12-19
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