DoD's $25M Fort Meade ESPC O&M contract awarded to DE ASSET OPERATIONS, LLC shows fair value

Contract Overview

Contract Amount: $24,952,576 ($25.0M)

Contractor: DE Asset Operations, LLC

Awarding Agency: Department of Defense

Start Date: 2016-12-20

End Date: 2018-08-31

Contract Duration: 619 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: "IGF::OT::IGF", FORT MEADE ESPC O&M REQUIREMENTS

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to DE ASSET OPERATIONS, LLC for work described as: "IGF::OT::IGF", FORT MEADE ESPC O&M REQUIREMENTS Key points: 1. The contract's value appears reasonable when benchmarked against similar energy performance contracts. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of approximately 2 years is standard for O&M requirements. 4. Performance is situated in Maryland, a region with significant federal installations. 5. The services provided fall under Other Scientific and Technical Consulting Services. 6. No small business set-aside was applied, indicating a focus on prime contractor capabilities.

Value Assessment

Rating: good

The contract value of approximately $25 million over roughly two years for Energy Savings Performance Contract (ESPC) Operations & Maintenance (O&M) requirements appears to be within a reasonable range. Benchmarking against similar ESPC O&M contracts, particularly those managed by the Department of Defense, suggests that the pricing is competitive. The firm-fixed-price structure provides cost certainty for the government. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but initial indicators suggest fair pricing.

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 offers. The specific number of bidders is not provided, but the use of full and open competition generally fosters a robust bidding environment, which can lead to more competitive pricing and better value for the government. This approach maximizes the pool of potential contractors and encourages innovation.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives the best possible services at a competitive price.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Fort Meade installation, through improved energy efficiency and operational reliability. The contract ensures the continued operation and maintenance of energy-related systems, contributing to the facility's overall functionality. The geographic impact is localized to Fort Meade, Maryland, supporting federal infrastructure in that region. Workforce implications may include employment opportunities for skilled technicians and engineers involved in O&M services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess the effectiveness of the O&M services.
The specific energy savings achieved through this contract are not explicitly detailed, hindering a complete value assessment.
Limited information on the contractor's specific track record for this type of ESPC O&M work.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration is aligned with typical O&M requirements for such facilities.

Sector Analysis

This contract falls within the broader energy services sector, specifically focusing on Operations & Maintenance (O&M) for Energy Savings Performance Contracts (ESPCs). ESPCs are a tool used by federal agencies to finance energy efficiency improvements and renewable energy projects. The market for ESPC O&M services is driven by federal mandates for energy reduction and facility modernization. Comparable spending benchmarks would typically involve analyzing other ESPC O&M contracts awarded by agencies like the Department of Energy or other military branches for similar facility types and sizes.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to DE ASSET OPERATIONS, LLC suggests a focus on the prime contractor's capabilities. This means that opportunities for small businesses would likely be through subcontracting directly with DE ASSET OPERATIONS, LLC, rather than through a formal set-aside program for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
Federal Energy Management Program (FMP)
Department of Defense Facilities Management
Operations and Maintenance Services

Risk Flags

Lack of detailed performance metrics.
Limited information on specific energy savings achieved.
Contractor's specific ESPC O&M track record not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to DE ASSET OPERATIONS, LLC. "IGF::OT::IGF", FORT MEADE ESPC O&M REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is DE ASSET OPERATIONS, 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 $25.0 million.

What is the period of performance?

Start: 2016-12-20. End: 2018-08-31.

What is the specific track record of DE ASSET OPERATIONS, LLC in managing ESPC O&M requirements for federal facilities?

Information regarding the specific track record of DE ASSET OPERATIONS, LLC in managing ESPC O&M requirements for federal facilities is not detailed in the provided data. While the company was awarded this contract, further research into their past performance, client testimonials, and experience with similar projects would be necessary to fully assess their capabilities. Federal procurement databases and past performance reviews could offer more insight into their history with ESPC O&M services. Understanding their success rate on previous contracts, any performance issues encountered, and their ability to meet energy savings goals would provide a clearer picture of their expertise in this specialized area.

How does the awarded amount of approximately $25 million compare to similar ESPC O&M contracts for facilities of comparable size and complexity?

The awarded amount of approximately $25 million for a roughly two-year ESPC O&M contract at Fort Meade appears to be within a reasonable range when compared to similar federal contracts. ESPC O&M costs can vary significantly based on the size and complexity of the facility, the scope of services required, and the specific energy conservation measures in place. Contracts for large military installations often involve substantial O&M budgets. Benchmarking against other ESPC O&M contracts awarded by the Department of Defense or other agencies for similar installations would provide a more precise comparison. Factors such as the age of the facility, the types of energy systems maintained, and the level of preventative maintenance required all influence the overall cost.

What are the key performance indicators (KPIs) used to measure the success of this contract, and what were the results?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract, nor does it detail the results achieved. Typically, ESPC O&M contracts would include KPIs related to energy consumption reduction, system uptime and reliability, response times for maintenance requests, and adherence to maintenance schedules. Without this information, it is difficult to definitively assess the contractor's performance and the overall value delivered. Further analysis would require access to the contract's statement of work and any performance reports generated during its execution.

What is the historical spending pattern for ESPC O&M at Fort Meade or similar Department of Defense installations?

Historical spending patterns for ESPC O&M at Fort Meade or similar Department of Defense (DoD) installations are not detailed in the provided data. However, federal agencies are mandated to improve energy efficiency and reduce energy consumption, often leading to sustained or increasing investment in ESPC programs. Spending on O&M for energy infrastructure is a critical component of facility management. Analyzing historical budgets for Fort Meade's energy systems and comparing them to national DoD trends for ESPC O&M would provide context. Factors such as infrastructure upgrades, energy price fluctuations, and evolving energy efficiency standards can influence historical spending.

What are the potential risks associated with this contract, and how were they mitigated?

Potential risks associated with this contract could include contractor underperformance, cost overruns (though mitigated by firm-fixed-price), unforeseen technical issues with energy systems, or changes in energy prices impacting savings calculations. The firm-fixed-price contract type helps mitigate financial risks for the government. Mitigation strategies for performance risks would typically involve robust contract oversight, clear performance standards in the statement of work, and regular performance reviews. The full and open competition process also helps mitigate risks by selecting a contractor deemed most capable. However, specific risk mitigation plans are not detailed in the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exelon Corporation

Address: 5001 FORBES BLVD STE H, LANHAM, MD, 20706

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

Financial Breakdown

Contract Ceiling: $24,952,576

Exercised Options: $24,952,576

Current Obligation: $24,952,576

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060099D8003

IDV Type: IDC

Timeline