DHS awards $17.1M for energy conservation at CBP facilities, with a 3049-day duration

Contract Overview

Contract Amount: $17,102,347 ($17.1M)

Contractor: SAN Diego GAS & Electric Company

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-26

End Date: 2027-01-31

Contract Duration: 3,049 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF IMPLEMENTATION OF ENERGY CONSERVATION MEASURE AT CBP FACILITIES IN SAN DIEGO SECTOR

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.1 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: IGF::OT::IGF IMPLEMENTATION OF ENERGY CONSERVATION MEASURE AT CBP FACILITIES IN SAN DIEGO SECTOR Key points: 1. Contract awarded to San Diego Gas & Electric Company for electric power distribution. 2. Long contract duration of 3049 days suggests a sustained need for services. 3. Firm Fixed Price contract type indicates price certainty for the government. 4. No small business set-aside, raising questions about small business participation. 5. Contract awarded as 'Not Available for Competition', limiting potential cost savings. 6. Focus on energy conservation aligns with broader federal sustainability goals.

Value Assessment

Rating: fair

The contract value of $17.1 million over approximately 8.4 years results in an average annual value of roughly $2 million. Without specific benchmarks for energy conservation projects of this scale and type, it is difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty, but the lack of competition could mean the government did not secure the most competitive pricing available in the market. Further analysis would require benchmarking against similar energy conservation projects in comparable facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' designation, indicating that a competitive bidding process was not utilized. This typically occurs when a specific vendor possesses unique capabilities or when urgent circumstances preclude a full and open competition. The lack of competition means that the government did not benefit from a range of proposals and potential price reductions that a competitive process might have yielded. This approach can sometimes lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, the government could not leverage market forces to drive down the price for these essential energy conservation services.

Public Impact

U.S. Customs and Border Protection (CBP) facilities in the San Diego sector will benefit from improved energy efficiency. The project aims to reduce energy consumption and associated operational costs. This initiative supports the federal government's commitment to environmental sustainability and reduced carbon footprint. Potential for modernization of infrastructure within CBP facilities. Workforce implications may include specialized technicians for installation and maintenance of energy conservation measures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Long contract duration could lead to vendor lock-in and reduced flexibility.
Absence of small business set-aside raises concerns about equitable opportunity.

Positive Signals

Focus on energy conservation aligns with federal sustainability mandates.
Firm Fixed Price contract provides budget certainty.
Long-term contract ensures sustained support for critical infrastructure.

Sector Analysis

This contract falls within the energy sector, specifically focusing on electric power distribution and energy conservation measures. The market for energy services and infrastructure upgrades within federal facilities is substantial, driven by mandates for efficiency and sustainability. San Diego Gas & Electric Company, as a major utility provider, is well-positioned to offer such services in its service territory. Benchmarking would involve comparing the contract's value and scope to similar energy efficiency projects undertaken by other federal agencies or large commercial entities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that opportunities for small businesses in this specific procurement were limited. The absence of a small business focus in this contract could mean that larger, established firms were the primary participants, potentially impacting the broader small business ecosystem that supports federal contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency would be enhanced through regular performance reporting by the contractor and periodic reviews by CBP contracting officers. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Energy Management Program (FEMP)
Department of Homeland Security Sustainability Initiatives
Energy Conservation Measures in Federal Buildings
Electric Power Distribution Contracts

Risk Flags

Sole-source award may lead to higher costs.
Long contract duration could limit flexibility.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.1 million to SAN DIEGO GAS & ELECTRIC COMPANY. IGF::OT::IGF IMPLEMENTATION OF ENERGY CONSERVATION MEASURE AT CBP FACILITIES IN SAN DIEGO SECTOR

Who is the contractor on this award?

The obligated recipient is SAN DIEGO GAS & ELECTRIC COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2018-09-26. End: 2027-01-31.

What is the specific nature of the energy conservation measures being implemented at the CBP facilities?

The provided data indicates the contract is for 'Electric Power Distribution' and 'IGF IMPLEMENTATION OF ENERGY CONSERVATION MEASURE'. While the exact measures are not detailed, this typically involves upgrades to lighting systems (e.g., LED retrofits), HVAC system improvements, building envelope enhancements (insulation, window upgrades), and potentially the integration of renewable energy sources or smart grid technologies. The goal is to reduce overall energy consumption, lower utility bills, and decrease the environmental impact of the facilities. Further details would likely be found in the contract's statement of work.

How does the $17.1 million contract value compare to similar energy conservation projects for federal facilities?

Benchmarking this $17.1 million contract against similar projects is challenging without more specific details on the scope of work and the types of energy conservation measures implemented. However, for large federal facilities or complexes, multi-million dollar investments in energy efficiency are not uncommon, especially when addressing aging infrastructure or aiming for significant operational cost savings and sustainability improvements. The long duration (3049 days) suggests a comprehensive, phased approach rather than a single upgrade. A more precise comparison would require access to a database of similar energy conservation contracts, factoring in facility size, climate zone, and specific technologies deployed.

What are the potential risks associated with a sole-source award for this type of contract?

The primary risk associated with a sole-source award, as indicated by 'NOT AVAILABLE FOR COMPETITION', is the potential for inflated pricing. Without competitive pressure, the contractor may not be incentivized to offer the lowest possible price. Additionally, there's a risk of reduced innovation or service quality, as the government lacks alternative options if performance issues arise. Dependence on a single provider can also create vulnerabilities if that provider faces financial difficulties or operational challenges. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations.

What is the expected impact of this contract on the operational efficiency and cost savings for CBP facilities?

The expected impact is a reduction in energy consumption and associated utility costs for the targeted CBP facilities in the San Diego sector. Energy conservation measures typically lead to lower electricity bills, reduced maintenance needs for older equipment, and improved environmental performance. While the exact savings are not quantified in the provided data, the substantial investment over a long contract period suggests a significant anticipated return on investment through operational efficiencies and cost avoidance. The firm fixed-price structure helps ensure that the budget allocated for these improvements is managed predictably.

What is the track record of San Diego Gas & Electric Company in performing similar federal energy contracts?

San Diego Gas & Electric Company (SDG&E) is a major utility provider in Southern California, with extensive experience in electric power distribution, grid modernization, and energy efficiency programs for residential, commercial, and industrial customers. While their primary focus is regulated utility services, they often engage in public-private partnerships and government contracts related to energy infrastructure and conservation. Their track record with federal agencies, particularly CBP or DHS, would need to be assessed through contract performance databases and agency records. However, as an established utility, they possess the technical expertise and resources typically required for such projects.

How does this contract align with broader federal goals for sustainability and climate resilience?

This contract directly aligns with overarching federal goals to improve energy efficiency, reduce greenhouse gas emissions, and promote sustainability across government operations. Executive Orders and federal agency directives increasingly emphasize the need to modernize infrastructure, transition to cleaner energy sources, and reduce the environmental footprint of federal buildings. By investing in energy conservation measures at CBP facilities, the Department of Homeland Security is contributing to these national objectives, demonstrating a commitment to environmental stewardship and potentially setting a precedent for other border facilities.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sempra Energy

Address: 8326 CENTURY PARK CT, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $17,102,347

Exercised Options: $17,102,347

Current Obligation: $17,102,347

Actual Outlays: $92,591

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00P10BSD0801

IDV Type: IDC

Timeline