DHS Customs & Border Protection Awards $3.79M Energy Savings Contract to San Diego Gas & Electric

Contract Overview

Contract Amount: $3,786,855 ($3.8M)

Contractor: SAN Diego GAS & Electric Company

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-15

End Date: 2026-06-30

Contract Duration: 3,941 days

Daily Burn Rate: $961/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF UTILITY ENERGY SAVINGS CONTRACT FOR INSTALLATION OF ENERGY CONSERVATION MEASURES INCLUDING HVACS AND CONTROLS, INTERIOR AND EXTERIOR LED LIGHTING AND CONTROLS, PHOTOVOLTAIC SYSTEMS AT TWO LOCATIONS, PERFORMANCE ASSURANCE. EFFORT WILL BE PARTIALLY THIRD-PARTY FINANCED.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.8 million to SAN DIEGO GAS & ELECTRIC COMPANY for work described as: IGF::OT::IGF UTILITY ENERGY SAVINGS CONTRACT FOR INSTALLATION OF ENERGY CONSERVATION MEASURES INCLUDING HVACS AND CONTROLS, INTERIOR AND EXTERIOR LED LIGHTING AND CONTROLS, PHOTOVOLTAIC SYSTEMS AT TWO LOCATIONS, PERFORMANCE ASSURANCE. EFFORT WILL BE PARTIALLY THIRD-PARTY FINANCED… Key points: 1. Contract focuses on energy conservation measures including HVAC, LED lighting, and solar power. 2. Performance assurance and third-party financing are key components of the contract. 3. The contract is not available for competition, raising potential value concerns. 4. Sector: Energy efficiency and utility services within government facilities.

Value Assessment

Rating: questionable

The contract value of $3.79M for energy savings measures is difficult to benchmark without specific project details and performance metrics. The lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds may be used inefficiently due to the absence of competitive bidding, potentially leading to higher overall costs for the energy savings achieved.

Public Impact

Potential for significant energy cost reductions for Customs and Border Protection facilities. Modernization of infrastructure with energy-efficient technologies like LED lighting and solar. Job creation in the energy efficiency and installation sectors. Environmental benefits through reduced energy consumption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Reliance on third-party financing introduces complexity

Positive Signals

Focus on energy efficiency aligns with sustainability goals
Performance assurance clause incentivizes contractor delivery
Potential for long-term operational cost savings

Sector Analysis

This contract falls within the energy sector, specifically focusing on energy conservation measures and renewable energy installations for government facilities. Benchmarks for similar energy savings contracts vary widely based on scope and technology.

Small Business Impact

The awardee, San Diego Gas & Electric Company, is a large utility provider, suggesting limited direct opportunity for small businesses in this specific contract, unless they are subcontractors.

Oversight & Accountability

Oversight will be crucial to ensure the performance assurance clause is effectively monitored and that the energy savings targets are met. The use of third-party financing requires careful review of financial arrangements.

Related Government Programs

Electric Power Distribution
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award may lead to inflated costs.
Lack of transparency in pricing and negotiation.
Potential for performance shortfalls if not rigorously monitored.
Complexity introduced by third-party financing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.8 million to SAN DIEGO GAS & ELECTRIC COMPANY. IGF::OT::IGF UTILITY ENERGY SAVINGS CONTRACT FOR INSTALLATION OF ENERGY CONSERVATION MEASURES INCLUDING HVACS AND CONTROLS, INTERIOR AND EXTERIOR LED LIGHTING AND CONTROLS, PHOTOVOLTAIC SYSTEMS AT TWO LOCATIONS, PERFORMANCE ASSURANCE. EFFORT WILL BE PARTIALLY THIRD-PARTY FINANCED.

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 $3.8 million.

What is the period of performance?

Start: 2015-09-15. End: 2026-06-30.

What is the projected return on investment for the energy conservation measures, and how does it compare to industry standards for similar projects?

The projected ROI is not explicitly detailed in the provided data. A thorough analysis would require comparing the contract's total cost against the estimated energy savings over the contract's lifespan. Industry standards vary, but typically, such projects aim for a payback period of 5-10 years, depending on the technologies implemented and energy prices.

What are the specific risks associated with the 'performance assurance' clause, and how will they be mitigated?

Risks include the potential for the contractor to underperform, failing to achieve the guaranteed energy savings. Mitigation strategies typically involve clear, measurable performance metrics, regular monitoring by the agency, and financial penalties or remedies if savings targets are not met. The specifics of these mitigation efforts are not detailed here.

How will the effectiveness of the installed energy conservation measures be independently verified, especially given the sole-source nature of the award?

Independent verification is critical. This could involve third-party energy auditors or commissioning agents who are not affiliated with the contractor. The contract should outline a clear verification process, including baseline energy usage data, measurement and verification (M&V) protocols, and reporting requirements to ensure the effectiveness of measures like HVAC upgrades and LED lighting.

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: $3,913,583

Exercised Options: $3,786,855

Current Obligation: $3,786,855

Actual Outlays: $1,195,840

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