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 Services › Architectural, Engineering, and Related Services › Engineering 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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