Fort Knox Energy Conservation Project Awarded to CEG Solutions LLC for $23.16M

Contract Overview

Contract Amount: $23,158,999 ($23.2M)

Contractor: CEG Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-10

End Date: 2040-08-08

Contract Duration: 8,552 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENERGY CONSERVATION MEASURES AT FORT KNOX, KY IGF::OT::IGF

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to CEG SOLUTIONS LLC for work described as: ENERGY CONSERVATION MEASURES AT FORT KNOX, KY IGF::OT::IGF Key points: 1. The Department of the Army awarded a significant contract for energy conservation measures at Fort Knox. 2. CEG Solutions LLC secured the contract through full and open competition. 3. The contract spans over 17 years, indicating a long-term commitment to energy efficiency. 4. The total value of $23.16 million suggests a substantial investment in infrastructure upgrades.

Value Assessment

Rating: good

The contract value of $23.16 million for engineering services appears reasonable given the long duration and scope of energy conservation measures. Benchmarking against similar large-scale infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The investment in energy conservation is expected to yield long-term cost savings for taxpayers through reduced utility expenses at Fort Knox.

Public Impact

Enhances energy efficiency and sustainability at a major military installation. Potential for significant long-term cost savings on utilities for the Department of Defense. Supports modernization of infrastructure and operational resilience. Creates jobs in the engineering and construction sectors related to energy efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (over 17 years) may present risks if technology or needs change significantly.
  • Firm Fixed Price contract could lead to cost overruns if unforeseen issues arise during implementation.

Positive Signals

  • Awarded through full and open competition, indicating competitive pricing.
  • Focus on energy conservation aligns with government sustainability goals.
  • Significant investment suggests a commitment to long-term operational efficiency.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to energy infrastructure. Spending benchmarks for similar large-scale energy conservation projects at federal facilities can vary widely based on scope and location.

Small Business Impact

The data indicates the prime contractor is CEG SOLUTIONS LLC. There is no specific information provided regarding subcontracting opportunities for small businesses on this contract.

Oversight & Accountability

The Department of the Army, as the contracting agency, is responsible for oversight. The long duration of the contract necessitates ongoing monitoring to ensure performance and adherence to terms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long contract duration (over 17 years)
  • Firm Fixed Price contract type
  • Potential for technological obsolescence in energy conservation measures
  • Dependency on contractor performance over an extended period

Tags

engineering-services, department-of-defense, ky, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to CEG SOLUTIONS LLC. ENERGY CONSERVATION MEASURES AT FORT KNOX, KY IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CEG SOLUTIONS 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 $23.2 million.

What is the period of performance?

Start: 2017-03-10. End: 2040-08-08.

What specific energy conservation measures are included in this contract, and what are the projected energy savings?

The contract details do not specify the exact energy conservation measures. However, typical measures include upgrades to HVAC systems, lighting, insulation, and renewable energy installations. Projected savings would depend on the specific measures implemented and baseline energy consumption at Fort Knox. A detailed breakdown would be available in the contract's statement of work.

What is the potential risk associated with the long contract duration of over 17 years for energy technology?

The primary risk with a long duration is technological obsolescence. Energy technologies evolve rapidly, and measures implemented today might be less efficient or outdated by the end of the contract. There's also a risk that the initial energy savings projections may not be fully realized over such an extended period due to unforeseen operational changes or maintenance issues.

How does the firm fixed price contract structure impact the government's risk and potential for cost savings?

A firm fixed price contract shifts most of the cost risk to the contractor. This incentivizes the contractor to manage costs efficiently. For the government, it provides budget certainty. However, if unforeseen issues arise that significantly increase costs beyond the contractor's control, the government might not benefit from potential savings if the contractor is unable to absorb them.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0046

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1005 NORTH GLEBE RD STE 620, ARLINGTON, VA, 22201

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,557,352

Exercised Options: $49,558,999

Current Obligation: $23,158,999

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0042

IDV Type: IDC

Timeline

Start Date: 2017-03-10

Current End Date: 2040-08-08

Potential End Date: 2040-08-08 00:00:00

Last Modified: 2025-09-23

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