GSA awards $3.5M energy savings contract for 10 federal facilities across three states

Contract Overview

Contract Amount: $3,490,970 ($3.5M)

Contractor: Energy Systems Group LLC

Awarding Agency: General Services Administration

Start Date: 2022-09-10

End Date: 2046-03-31

Contract Duration: 8,603 days

Daily Burn Rate: $406/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: REGION 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) ENABLE HYBRID TASK ORDER ISSUED AGAINST GSA SCHEDULE FOR ENERGY CONSERVATION MEASURE IMPLEMENTATION AT 10 FEDERAL FACILITIES IN ARKANSAS, OKLAHOMA AND TEXARKANA

Place of Performance

Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72201

State: Arkansas Government Spending

Plain-Language Summary

General Services Administration obligated $3.5 million to ENERGY SYSTEMS GROUP LLC for work described as: REGION 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) ENABLE HYBRID TASK ORDER ISSUED AGAINST GSA SCHEDULE FOR ENERGY CONSERVATION MEASURE IMPLEMENTATION AT 10 FEDERAL FACILITIES IN ARKANSAS, OKLAHOMA AND TEXARKANA Key points: 1. The contract focuses on energy conservation measures, aiming for long-term operational efficiencies. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The duration of the contract extends over 14 years, indicating a long-term investment in facility upgrades. 5. The contract is a task order against a GSA Schedule, leveraging existing procurement vehicles. 6. The scope includes implementation at multiple federal facilities, suggesting a standardized approach to energy efficiency.

Value Assessment

Rating: good

The contract value of $3.5 million for energy conservation measure implementation across 10 federal facilities appears reasonable given the long-term nature of the project and the scope of work. Benchmarking against similar ESPC task orders would provide a more precise value assessment, but the fixed-price structure and the use of a GSA Schedule suggest a degree of pre-negotiated value. The focus on energy savings implies a potential for return on investment over the contract's lifespan.

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 use of a GSA Schedule further suggests a broad base of potential bidders. The specific number of bidders is not provided, but full and open competition generally fosters price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the value received for public funds.

Public Impact

Federal facilities in Arkansas, Oklahoma, and Texarkana, Texas will benefit from improved energy efficiency and reduced operational costs. The project aims to implement energy conservation measures, potentially leading to a more sustainable federal footprint. The contract supports the modernization of federal infrastructure through energy-saving technologies. The geographic scope covers multiple states, indicating a regional approach to energy management within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 14 years) could lead to potential cost overruns if not managed effectively.
Reliance on a single task order against a GSA schedule might limit the ability to leverage broader market competition for specific technologies.
Performance monitoring and verification of energy savings over such an extended period will be critical.

Positive Signals

Focus on energy savings aligns with federal sustainability goals and potential long-term cost reductions.
Use of GSA Schedule streamlines procurement and leverages pre-vetted contractors.
Fixed-price contract shifts risk to the contractor for cost overruns.

Sector Analysis

This contract falls within the Energy Services sector, specifically focusing on Energy Savings Performance Contracts (ESPCs). ESPCs are a mechanism used by federal agencies to implement energy efficiency projects without upfront capital costs, with repayment coming from the energy savings achieved. The market for ESPCs is significant, driven by federal mandates for energy reduction and sustainability. This contract, issued against a GSA Schedule, is a common procurement method for such services, indicating a standardized approach to accessing energy efficiency solutions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, ENERGY SYSTEMS GROUP LLC, is likely a larger entity, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), specifically the Public Buildings Service. As a task order against a GSA Schedule, it benefits from GSA's established procurement and contract management processes. Accountability will be driven by the firm fixed-price terms and the performance requirements related to energy conservation measure implementation. Transparency is generally facilitated through GSA's contract award databases. Inspector General jurisdiction would typically fall under the GSA OIG.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
GSA Federal Supply Schedule
Federal Facility Energy Management
Energy Conservation Measures

Risk Flags

Long contract duration requires sustained oversight.
Verification of energy savings over time is critical.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.5 million to ENERGY SYSTEMS GROUP LLC. REGION 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) ENABLE HYBRID TASK ORDER ISSUED AGAINST GSA SCHEDULE FOR ENERGY CONSERVATION MEASURE IMPLEMENTATION AT 10 FEDERAL FACILITIES IN ARKANSAS, OKLAHOMA AND TEXARKANA

Who is the contractor on this award?

The obligated recipient is ENERGY SYSTEMS GROUP LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2022-09-10. End: 2046-03-31.

What is the track record of ENERGY SYSTEMS GROUP LLC in delivering similar energy savings projects for federal agencies?

ENERGY SYSTEMS GROUP LLC has a history of performing energy efficiency projects for federal agencies. While specific details on past performance for similar ESPC task orders are not provided in this data snippet, their ability to secure this contract through GSA Schedule indicates they meet certain qualifications. A deeper dive into their contract history, past performance evaluations, and any reported issues or successes on previous federal energy projects would be necessary for a comprehensive assessment. Reviewing their portfolio of completed ESPCs, including the types of measures implemented and the documented savings achieved, would offer further insight into their capabilities and reliability.

How does the $3.5 million contract value compare to similar energy savings projects for federal facilities of comparable size and scope?

Benchmarking the $3.5 million contract value requires comparing it against similar Energy Savings Performance Contracts (ESPCs) for federal facilities with comparable numbers of buildings, geographic spread, and types of energy conservation measures. Without specific details on the technologies to be implemented (e.g., HVAC upgrades, lighting retrofits, building controls) and the baseline energy usage of the 10 facilities, a precise comparison is difficult. However, the value appears to be in line with medium-sized ESPC task orders. The long duration (over 14 years) suggests that the annual investment is relatively modest, focusing on phased implementation and long-term savings realization rather than a large upfront capital expenditure.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential under-delivery of projected energy savings, cost overruns if project scope expands beyond initial estimates, and contractor performance issues over the long contract duration. Mitigation strategies are embedded in the contract structure: the firm fixed-price (FFP) nature shifts cost overrun risk to the contractor. The use of a GSA Schedule implies the contractor has met certain pre-qualification standards. Robust performance monitoring and verification (M&V) protocols, typically standard in ESPCs, will be crucial for ensuring savings are realized and holding the contractor accountable. The long duration also necessitates strong contract management from GSA to ensure ongoing compliance and performance.

How effective is the GSA Schedule procurement mechanism in ensuring value for money for energy efficiency projects?

The GSA Schedule is designed to provide value for money by offering pre-negotiated pricing and terms, streamlining the procurement process, and ensuring contractors meet specific qualifications. For energy efficiency projects, this means agencies can access a pool of vetted providers without lengthy individual solicitations. However, the 'value for money' ultimately depends on the specific task order competition and the effectiveness of the negotiated terms. While the schedule provides a baseline, agencies still need to ensure the task order itself is well-defined and competitively priced. The full and open competition for this task order suggests a good opportunity for price discovery within the GSA Schedule framework.

What is the historical spending trend for ESPC task orders issued by the General Services Administration?

The General Services Administration (GSA) is a significant issuer of Energy Savings Performance Contracts (ESPCs) and other energy-related task orders, reflecting its role in managing federal building energy efficiency. Historical spending data indicates a consistent and often increasing trend in ESPC awards over the past decade, driven by federal mandates for energy reduction and sustainability. GSA's utilization of ESPCs, often through its Multiple Award Schedules (MAS) or specific ESPC Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, represents a substantial portion of federal energy efficiency investments. Analyzing GSA's annual reports and budget data would reveal specific dollar amounts and trends, showing a commitment to leveraging ESPCs as a primary tool for achieving energy savings across the federal portfolio.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PH1122Q0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Energy Systems Group, LLC

Address: 9877 EASTGATE CT, NEWBURGH, IN, 47630

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

Financial Breakdown

Contract Ceiling: $10,494,356

Exercised Options: $3,490,970

Current Obligation: $3,490,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA21D001J

IDV Type: FSS

Timeline