DoD's $42M energy conservation contract with Southland Industries shows long-term commitment to facility upgrades
Contract Overview
Contract Amount: $42,053,138 ($42.1M)
Contractor: Southland Industries
Awarding Agency: Department of Defense
Start Date: 2017-03-23
End Date: 2041-08-01
Contract Duration: 8,897 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF ENERGY CONSERVATION MEASURES AT FT RILEY, KS
Place of Performance
Location: FORT RILEY, GEARY County, KANSAS, 66442
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $42.1 million to SOUTHLAND INDUSTRIES for work described as: IGF::OT::IGF ENERGY CONSERVATION MEASURES AT FT RILEY, KS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration of 8,897 days (approx. 24 years) indicates a significant, long-term investment in energy infrastructure. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Focus on energy conservation measures suggests alignment with federal sustainability goals. 5. The contract's value of over $42 million represents a substantial investment in facility modernization. 6. Engineering services (NAICS 541330) are critical for planning and executing complex infrastructure projects.
Value Assessment
Rating: good
The contract value of $42,053,137.54 for engineering services related to energy conservation measures at Fort Riley, KS, appears reasonable given the long duration and scope. Benchmarking against similar long-term, large-scale facility modernization contracts is challenging without more specific details on the services provided. However, the firm fixed-price nature of the contract suggests that the government has secured a defined cost for the project, which is a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 9 bidders suggests a healthy level of competition for this significant engineering services contract. A competitive process generally leads to better price discovery and potentially more innovative solutions for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential energy conservation measures.
Public Impact
The primary beneficiaries are the Department of the Army and Fort Riley, Kansas, through improved energy efficiency and reduced operational costs. The contract delivers engineering services essential for planning, designing, and potentially overseeing the implementation of energy conservation measures. The geographic impact is localized to Fort Riley, Kansas, but the outcomes contribute to broader federal energy efficiency goals. The contract supports the engineering and construction workforce through the provision of professional services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential cost overruns if not managed effectively.
- Scope creep is a risk in long-term engineering projects if not clearly defined and controlled.
- Dependence on a single contractor for an extended period might limit flexibility.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition suggests a competitive market was leveraged.
- Focus on energy conservation aligns with sustainability objectives and potential long-term cost savings.
Sector Analysis
The engineering services sector, particularly within the defense industry, is characterized by complex projects requiring specialized expertise. This contract falls under the engineering services category (NAICS 541330), which encompasses firms that provide engineering consulting and design services. The market for such services is competitive, with significant government spending allocated to infrastructure modernization and facility upgrades, especially for energy efficiency improvements in military installations.
Small Business Impact
The data indicates that small businesses were not specifically set aside for this contract (ss: false, sb: false). While the primary contractor is Southland Industries, a large entity, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Southland Industries engages small businesses for specialized services or supplies as part of fulfilling this contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Energy Programs
- Army Facility Modernization Projects
- Federal Energy Conservation Initiatives
- Engineering Services Contracts
- Fort Riley Infrastructure Investments
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Potential for scope creep in long-term engineering projects.
- Performance management over extended periods requires robust oversight.
Tags
department-of-defense, department-of-the-army, fort-riley, kansas, engineering-services, energy-conservation, firm-fixed-price, full-and-open-competition, long-term-contract, facility-modernization, sustainability
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.1 million to SOUTHLAND INDUSTRIES. IGF::OT::IGF ENERGY CONSERVATION MEASURES AT FT RILEY, KS
Who is the contractor on this award?
The obligated recipient is SOUTHLAND INDUSTRIES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.1 million.
What is the period of performance?
Start: 2017-03-23. End: 2041-08-01.
What specific energy conservation measures are included in this contract?
The provided data does not specify the exact energy conservation measures (ECMs) covered under this contract. Typically, such measures can include upgrades to HVAC systems, lighting retrofits, building envelope improvements (insulation, windows), renewable energy installations (solar), and advanced energy management systems. The engineering services would involve the design, planning, and potentially oversight of the implementation of these specific ECMs tailored to the needs of Fort Riley. Further details would likely be found in the contract's statement of work or performance work statement.
How does the $42 million contract value compare to similar long-term energy conservation projects at other military bases?
Directly comparing the $42 million value without detailed scope is difficult. However, large-scale energy conservation projects at military installations often run into tens or hundreds of millions of dollars, especially when spanning decades and encompassing multiple facilities. The long duration (nearly 25 years) suggests a comprehensive, phased approach to modernization. Factors influencing cost include the size and age of facilities, the specific technologies implemented, and the level of engineering and project management required. This contract appears to be a significant, long-term investment consistent with the scale of infrastructure needs at major military installations.
What are the key performance indicators (KPIs) or success metrics for this contract?
Specific KPIs are not detailed in the provided data. However, for energy conservation contracts, common success metrics include achieved energy savings (measured in kilowatt-hours, therms, or dollar amounts), reduction in greenhouse gas emissions, improved facility operational efficiency, and compliance with energy performance standards. The engineering services provided would aim to ensure that the implemented measures meet or exceed projected savings and performance targets. Contract performance reviews would likely track these metrics over the contract's lifespan.
What is Southland Industries' track record with similar large-scale federal energy projects?
Southland Industries is a large mechanical, electrical, and plumbing (MEP) contractor with significant experience in complex building projects, including those involving energy efficiency and sustainability. While specific details on their past federal energy conservation contracts are not provided here, their size and scope suggest they are capable of managing large, long-term projects. A deeper dive into their contract history with federal agencies, particularly the Department of Defense, would reveal their performance on similar initiatives, including project completion, budget adherence, and client satisfaction.
What are the potential risks associated with a contract duration of nearly 25 years?
The primary risks associated with such a long contract duration include technological obsolescence, where implemented energy solutions might become outdated before the contract ends; potential changes in federal energy policy or funding priorities; contractor performance degradation over time; and difficulties in managing scope creep or unforeseen project challenges across multiple years. Effective contract management, regular performance reviews, and built-in flexibility or review points are crucial to mitigate these risks.
How does this contract contribute to the Department of Defense's overall sustainability and climate resilience goals?
This contract directly supports the Department of Defense's sustainability and climate resilience goals by investing in energy conservation measures. By improving the energy efficiency of facilities at Fort Riley, the contract helps reduce the military's reliance on fossil fuels, lowers operational carbon footprints, and can enhance the resilience of critical infrastructure against energy disruptions. Such projects are vital for meeting federal mandates for greenhouse gas reduction and promoting the use of efficient, sustainable technologies within government operations.
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: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 22340 DRESDEN ST STE 177, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,784,890
Exercised Options: $110,784,890
Current Obligation: $42,053,138
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15D0051
IDV Type: IDC
Timeline
Start Date: 2017-03-23
Current End Date: 2041-08-01
Potential End Date: 2041-08-01 00:00:00
Last Modified: 2025-07-16
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)