HHS awards $11.7M for Energy Savings Project at NIOSH Pittsburgh, with Siemens Government Technologies Inc

Contract Overview

Contract Amount: $11,716,182 ($11.7M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-22

End Date: 2033-09-30

Contract Duration: 6,217 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENERGY SAVINGS PERFORMANCE PROJECT - NIOSH PITTSBURGH [IGF::OT::IGF]

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.7 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: ENERGY SAVINGS PERFORMANCE PROJECT - NIOSH PITTSBURGH [IGF::OT::IGF] Key points: 1. Siemens Government Technologies Inc. secured a significant contract for energy efficiency upgrades. 2. The contract spans over 16 years, indicating a long-term investment in infrastructure. 3. The project aims to achieve energy savings, contributing to environmental and fiscal responsibility. 4. The Engineering Services sector sees substantial investment in facility modernization.

Value Assessment

Rating: good

The contract value of $11.7 million over 16 years suggests a substantial investment in energy efficiency. Benchmarking against similar large-scale energy performance contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The long-term nature of the contract suggests potential for significant taxpayer savings through reduced energy consumption and operational costs.

Public Impact

Improved energy efficiency at a federal research facility. Potential for reduced operational costs for the Centers for Disease Control and Prevention. Contribution to national energy conservation goals. Modernization of critical government infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (16 years) may require ongoing performance monitoring.
Fixed-price contract could pose risks if unforeseen costs arise during implementation.

Positive Signals

Awarded through full and open competition.
Focus on energy savings aligns with sustainability initiatives.
Significant investment in infrastructure modernization.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on energy efficiency upgrades for federal facilities. Spending in this area is often driven by mandates for energy reduction and infrastructure modernization.

Small Business Impact

The data does not indicate any specific involvement or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The contract is managed by the Centers for Disease Control and Prevention, a component of HHS. Oversight would involve ensuring performance milestones are met and energy savings are realized as projected.

Related Government Programs

Engineering Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Long contract duration
Fixed-price contract
Potential for vendor lock-in
Reliance on contractor's projections for savings

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.7 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. ENERGY SAVINGS PERFORMANCE PROJECT - NIOSH PITTSBURGH [IGF::OT::IGF]

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2016-09-22. End: 2033-09-30.

What are the projected energy savings and their financial impact over the contract's lifespan?

The projected energy savings are central to the value proposition of an Energy Savings Performance Contract (ESPC). While the total contract value is $11.7 million, the actual financial benefit to taxpayers depends on the realized reduction in energy consumption and associated costs. A detailed breakdown of projected savings by energy type (electricity, gas, water) and the methodology for calculating these savings would be crucial for assessing the contract's true economic value.

What are the key performance indicators (KPIs) for measuring the success of the energy savings project?

Key performance indicators for this ESPC would likely include measurable reductions in energy consumption (e.g., kilowatt-hours, British Thermal Units), water usage, and associated utility costs. Other KPIs might track the performance and reliability of installed energy conservation measures, such as HVAC system efficiency, lighting retrofits, and building envelope improvements. Regular measurement and verification (M&V) reports are essential to confirm that the contractor is meeting the agreed-upon savings targets.

How will the long contract duration impact the government's flexibility and potential for future technological upgrades?

The 16-year duration of this contract provides Siemens Government Technologies Inc. with a long-term commitment, potentially allowing for more comprehensive and impactful energy conservation measures. However, it also means the government may have less flexibility to adopt newer, more advanced energy technologies that emerge during the contract period. The contract terms should ideally include provisions for incorporating technological advancements or allow for renegotiation if significant innovations become available and cost-effective.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 2015N17133

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft

Address: 2231 CRYSTAL DR STE 700, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $23,712,655

Exercised Options: $23,712,655

Current Obligation: $11,716,182

Actual Outlays: $6,020,926

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $174,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29041

IDV Type: IDC

Timeline