Army Signs 27-Year, $14.6M Solar Power Agreement with Redstone Solar I, LLC
Contract Overview
Contract Amount: $14,614,224 ($14.6M)
Contractor: Redstone Solar I, LLC
Awarding Agency: Department of Defense
Start Date: 2016-04-27
End Date: 2043-11-30
Contract Duration: 10,078 days
Daily Burn Rate: $1.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF RSA POWER PURCHASE AGREEMENT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to REDSTONE SOLAR I, LLC for work described as: IGF::OT::IGF RSA POWER PURCHASE AGREEMENT Key points: 1. Long-term contract for renewable energy generation. 2. Sole provider identified for this specific power purchase. 3. Potential for price volatility over the contract's 27-year duration. 4. Sector: Energy - Renewable Power Generation.
Value Assessment
Rating: good
The $14.6 million price tag over 27 years suggests a stable, predictable cost for electricity. Benchmarking against similar long-term power purchase agreements is difficult due to unique site-specific factors and fluctuating energy market conditions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a favorable price for the government.
Taxpayer Impact: This agreement locks in energy costs for the Department of the Army, potentially shielding taxpayers from future energy market price spikes and supporting renewable energy initiatives.
Public Impact
Provides a stable and predictable source of renewable energy for a military installation. Contributes to the Department of Defense's goals for energy resilience and sustainability. Supports the growth of the renewable energy sector in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration introduces long-term price risk.
- Reliance on a single provider for electricity supply.
- Potential for technological obsolescence in solar generation over 27 years.
Positive Signals
- Secures long-term renewable energy at a fixed price.
- Supports national energy independence and sustainability goals.
- Leverages private sector investment for government infrastructure.
Sector Analysis
This contract falls within the energy sector, specifically focusing on renewable power generation through solar energy. Long-term power purchase agreements (PPAs) are common for large-scale renewable projects, providing financial certainty for developers and stable energy prices for off-takers.
Small Business Impact
The contract was awarded to REDSTONE SOLAR I, LLC. Analysis of the small business participation or subcontracting opportunities is not provided in the data.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting it has undergone initial review. Ongoing oversight would focus on performance, adherence to terms, and potential contract modifications over its extensive duration.
Related Government Programs
- Other Electric Power Generation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (27 years) increases exposure to market and technological changes.
- Potential for provider financial instability over the contract term.
- Dependence on a single supplier for a critical utility.
- Lack of detailed cost breakdown for unit pricing analysis.
Tags
other-electric-power-generation, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to REDSTONE SOLAR I, LLC. IGF::OT::IGF RSA POWER PURCHASE AGREEMENT
Who is the contractor on this award?
The obligated recipient is REDSTONE SOLAR I, 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 $14.6 million.
What is the period of performance?
Start: 2016-04-27. End: 2043-11-30.
What is the projected levelized cost of energy (LCOE) for this agreement compared to other solar PPAs of similar scale and duration?
The provided data does not include the specific energy output or detailed financial breakdowns necessary to calculate a Levelized Cost of Energy (LCOE). Benchmarking would require comparing the total contract value against the total expected energy production over the contract's lifespan and contrasting this with industry averages for similar solar projects.
What are the specific risks associated with the long-term nature of this power purchase agreement, beyond price fluctuations?
Beyond price risk, long-term PPAs face risks such as technological advancements making current solar technology less efficient, potential degradation of solar panels over time impacting output, and the financial stability of the provider over a 27-year period. Regulatory changes in energy policy or environmental standards could also pose unforeseen challenges.
How does this agreement contribute to the Army's overall energy resilience and sustainability goals?
This agreement directly supports the Army's goals by securing a long-term, fixed-price source of renewable energy, reducing reliance on volatile fossil fuel markets and decreasing the carbon footprint of the installation. It enhances energy resilience by diversifying the energy supply and potentially providing a more stable power source.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DY11R0036
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5298 REDSTONE ARSENAL GATE 1 SOLAR CR1 MAGAZINE RD, HUNTSVILLE, AL, 35808
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $81,266,919
Exercised Options: $81,266,919
Current Obligation: $14,614,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13D0047
IDV Type: IDC
Timeline
Start Date: 2016-04-27
Current End Date: 2043-11-30
Potential End Date: 2043-11-30 00:00:00
Last Modified: 2025-12-08
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