DoD's $23.3M Advanced Metering Infrastructure contract awarded to Schneider Electric USA, Inc. for Japan
Contract Overview
Contract Amount: $23,270,683 ($23.3M)
Contractor: Schneider Electric USA, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-16
End Date: 2016-11-30
Contract Duration: 1,749 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADV METERING INFRASTRUCTURE (AMI) NAVFAC FAR EAST, JAPAN
Plain-Language Summary
Department of Defense obligated $23.3 million to SCHNEIDER ELECTRIC USA, INC. for work described as: ADV METERING INFRASTRUCTURE (AMI) NAVFAC FAR EAST, JAPAN Key points: 1. Contract value represents a significant investment in modernizing utility infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this type of specialized work. 3. Performance period of nearly five years indicates a substantial project timeline. 4. Sector positioning within electrical contracting highlights the need for specialized installation services. 5. Risk indicators may include potential delays in deployment or integration challenges with existing systems.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific per-unit cost data for advanced metering infrastructure deployment in a comparable overseas military installation. The total award amount of $23.3 million over approximately 4.8 years suggests a substantial project. However, without detailed breakdowns of equipment, installation labor, and software components, a precise value-for-money assessment is difficult. Comparing it to similar AMI deployments on other bases or in similar geographic regions would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 3 bids received, the competition level appears moderate, suggesting that while there was interest, it may not have been a highly contested bid. This level of competition can contribute to price discovery, but the ultimate price achieved depends on the specific technical requirements and the bidders' cost structures.
Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to a more cost-effective outcome compared to sole-source or limited competition scenarios.
Public Impact
The primary beneficiaries are the U.S. Navy installations in Japan, which will receive upgraded metering infrastructure. The contract delivers advanced metering infrastructure, enabling more efficient energy management and billing. Geographic impact is concentrated within U.S. Navy facilities in Japan. Workforce implications include the need for skilled electricians and technicians for installation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions or integration issues arise.
- Dependency on timely delivery of specialized metering equipment.
- Risk of performance degradation if maintenance is not adequately planned post-installation.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Long-term performance period allows for phased implementation and learning.
- Focus on advanced metering infrastructure aligns with energy efficiency goals.
Sector Analysis
The Advanced Metering Infrastructure (AMI) market is a growing segment within the broader energy and utilities sector, driven by the need for smart grid technologies. This contract falls under the electrical contractors and other wiring installation contractors industry. The global smart grid market is valued in the tens of billions of dollars, with significant investment in modernization efforts by governments and utilities worldwide. This contract represents a specific application of AMI within a federal defense context.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the specialized nature of advanced metering infrastructure and the large contract value, it is likely that larger, established firms with relevant expertise were the primary bidders. Subcontracting opportunities for small businesses may exist in areas such as general construction support, material supply, or specific installation tasks, but this would depend on the prime contractor's strategy.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures would be defined in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract award databases, though detailed project-specific reporting may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Facilities Engineering Command (NAVFAC) Contracts
- Department of Defense Energy Management Programs
- Advanced Metering Infrastructure Deployments
- Smart Grid Technology Contracts
Risk Flags
- Potential for integration challenges with existing infrastructure.
- Logistical complexities of overseas deployment.
- Cybersecurity vulnerabilities of smart grid systems.
- Dependence on specialized equipment and supply chains.
Tags
defense, department-of-defense, navy, navfac, japan, energy-infrastructure, smart-grid, advanced-metering-infrastructure, ami, firm-fixed-price, full-and-open-competition, schneider-electric
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to SCHNEIDER ELECTRIC USA, INC.. ADV METERING INFRASTRUCTURE (AMI) NAVFAC FAR EAST, JAPAN
Who is the contractor on this award?
The obligated recipient is SCHNEIDER ELECTRIC USA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2012-02-16. End: 2016-11-30.
What was the specific scope of work for the Advanced Metering Infrastructure (AMI) deployment under this contract?
The contract, awarded to Schneider Electric USA, Inc., involved the deployment of Advanced Metering Infrastructure (AMI) for NAVFAC Far East in Japan. While the specific details are not fully elaborated in the provided data, AMI typically encompasses the installation of smart meters at various facilities, a communication network to collect meter data, and a data management system. This infrastructure allows for automated meter reading, real-time energy monitoring, demand response capabilities, and improved billing accuracy. The scope likely included the supply of hardware, software, installation services, system integration, and potentially training for facility personnel on operating and maintaining the new system.
How does the $23.3 million contract value compare to other similar AMI deployments by the Department of Defense?
Direct comparison of the $23.3 million contract value for this specific AMI deployment in Japan to other Department of Defense (DoD) contracts is difficult without access to a comprehensive database of similar projects. However, the figure suggests a significant investment, consistent with the scale of modernizing utility infrastructure across multiple facilities. AMI projects can vary widely in cost based on the number of meters, the complexity of the communication network, the geographic spread of the installation, and the specific technological solutions employed. Larger military bases or installations with extensive infrastructure might see contracts in this range or higher, while smaller deployments would naturally be less expensive.
What are the primary risks associated with deploying AMI in an overseas military installation like those in Japan?
Deploying AMI in an overseas military installation presents several risks. Logistical challenges related to shipping specialized equipment and materials to Japan can lead to delays and increased costs. Integration with existing legacy utility systems and IT infrastructure can be complex, requiring significant technical expertise and potentially encountering compatibility issues. Cybersecurity risks are also paramount, as AMI systems collect sensitive energy usage data and must be protected from unauthorized access or disruption. Furthermore, ensuring adequate training and support for local personnel to manage and maintain the new system effectively is crucial for long-term success and operational continuity.
What is Schneider Electric USA, Inc.'s track record with large federal contracts, particularly in the energy infrastructure sector?
Schneider Electric USA, Inc. is a major global player in energy management and automation, with a significant history of undertaking large-scale projects, including those for government and defense sectors. While specific details of their past federal contract performance are not in the provided data, the company is known for its expertise in smart grid technologies, including AMI. Their involvement in such a substantial contract with NAVFAC suggests they possess the necessary technical capabilities, financial stability, and experience to manage complex projects. Federal procurement databases would likely contain more granular information on their past performance, including contract values, types of services rendered, and any reported issues.
What are the expected benefits of this AMI system for the U.S. Navy in Japan in terms of energy efficiency and cost savings?
The implementation of this Advanced Metering Infrastructure (AMI) system is expected to yield significant benefits for the U.S. Navy in Japan, primarily through enhanced energy efficiency and potential cost savings. Automated meter reading eliminates manual labor costs and reduces errors. Real-time data allows for better identification of energy consumption patterns, enabling targeted conservation efforts and load management strategies. This can lead to reduced overall energy demand. Furthermore, accurate sub-metering can improve billing accuracy and accountability among different facilities or units, potentially incentivizing more responsible energy use. The system also supports demand response programs, allowing the Navy to adjust energy consumption during peak demand periods, which can lead to lower utility rates.
How does the 'FIRM FIXED PRICE' contract type influence the financial risk for both the government and the contractor?
A 'FIRM FIXED PRICE' (FFP) contract type places the primary risk of cost overruns on the contractor, Schneider Electric USA, Inc. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government (the U.S. Navy), this offers budget certainty and protection against unexpected price increases. However, it can also mean that the contractor may build in a higher contingency into their initial price to account for potential risks, potentially leading to a higher overall cost than a cost-reimbursable contract if the project proceeds smoothly. The contractor bears the risk of unforeseen difficulties, material cost increases, or labor shortages impacting their profitability.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Schneider Electric SE (UEI: 275136398)
Address: 1415 SOUTH ROSELLE RD, PALATINE, IL, 60067
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $23,270,683
Exercised Options: $23,270,683
Current Obligation: $23,270,683
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6258308D0137
IDV Type: IDC
Timeline
Start Date: 2012-02-16
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 00:00:00
Last Modified: 2021-08-05
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