DoD's $44.5M Battery Storage Project Awarded to City Light & Power, Inc. for MCAGCC Twentynine Palms

Contract Overview

Contract Amount: $44,511,436 ($44.5M)

Contractor: City Light & Power, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2028-03-19

Contract Duration: 913 days

Daily Burn Rate: $48.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD MILCON PROJECT P-1238 CONSTRUCTION OF GRID STABILITY AND RESILIENCY 10 MW BATTERY ENERGY STORAGE, VARIOUS BUILDINGS AT MARINE CORPS AIR GROUND COMBAT CENTER (MCAGCC), TWENTYNINE PALMS, CA

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $44.5 million to CITY LIGHT & POWER, INC. for work described as: DESIGN-BUILD MILCON PROJECT P-1238 CONSTRUCTION OF GRID STABILITY AND RESILIENCY 10 MW BATTERY ENERGY STORAGE, VARIOUS BUILDINGS AT MARINE CORPS AIR GROUND COMBAT CENTER (MCAGCC), TWENTYNINE PALMS, CA Key points: 1. The contract focuses on enhancing grid stability and resiliency through a 10 MW battery energy storage system. 2. This project addresses critical infrastructure needs for the Marine Corps Air Ground Combat Center. 3. The firm-fixed-price contract type suggests a defined scope and cost structure. 4. The duration of the contract is approximately 2.5 years, indicating a significant construction and implementation phase. 5. The award is part of a broader trend in military infrastructure modernization to support energy independence and operational readiness. 6. The project's success hinges on timely completion and integration with existing power infrastructure.

Value Assessment

Rating: good

The contract value of $44.5 million for a 10 MW battery energy storage system appears reasonable given the scope of a design-build military construction project. Benchmarking against similar large-scale energy storage installations, especially those within federal or military contexts, would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the ultimate value will depend on the efficiency of execution and the long-term performance of the installed system.

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 had the opportunity to submit proposals. With two bids received, the competition level suggests a moderate degree of market interest. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of two bidders suggests that the market is engaged, but further competition could have potentially yielded even greater savings.

Public Impact

The primary beneficiaries are the U.S. Marine Corps personnel and operations at MCAGCC Twentynine Palms, ensuring reliable power supply. The project will deliver a 10 MW battery energy storage system, enhancing the base's energy resilience and grid stability. The geographic impact is localized to Twentynine Palms, California, but the operational improvements have broader implications for military readiness. The construction and implementation phases will likely involve a workforce of skilled trades, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of delays in project completion impacting operational readiness.
Dependence on the contractor's ability to integrate new technology with existing infrastructure.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting market viability.
Focus on energy resilience aligns with strategic military objectives.

Sector Analysis

This contract falls within the construction and energy sectors, specifically focusing on critical infrastructure upgrades for military installations. The market for battery energy storage systems is rapidly growing, driven by renewable energy integration, grid modernization, and demand for reliable power. Military construction (MILCON) projects often involve large capital investments and complex integration requirements, making them a significant segment of the construction industry. Comparable spending benchmarks would typically be found in large-scale utility or industrial energy storage projects, though military-specific requirements can influence costs.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, City Light & Power, Inc., is likely a larger entity. There is no explicit mention of subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem will depend on whether the prime contractor engages small businesses for specialized services or materials, which is not detailed here.

Oversight & Accountability

Oversight for this Department of Defense contract will likely be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified system within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Energy Resilience and Security
Battery Energy Storage Systems
Department of Defense Infrastructure Modernization
Marine Corps Base Operations Support

Risk Flags

Potential for construction delays
Integration complexity with existing grid infrastructure
Long-term battery performance and degradation
Cybersecurity vulnerabilities of energy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.5 million to CITY LIGHT & POWER, INC.. DESIGN-BUILD MILCON PROJECT P-1238 CONSTRUCTION OF GRID STABILITY AND RESILIENCY 10 MW BATTERY ENERGY STORAGE, VARIOUS BUILDINGS AT MARINE CORPS AIR GROUND COMBAT CENTER (MCAGCC), TWENTYNINE PALMS, CA

Who is the contractor on this award?

The obligated recipient is CITY LIGHT & POWER, 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 $44.5 million.

What is the period of performance?

Start: 2025-09-18. End: 2028-03-19.

What is the track record of City Light & Power, Inc. in executing similar large-scale energy infrastructure projects for the federal government?

A comprehensive review of City Light & Power, Inc.'s past performance would involve examining their contract history with federal agencies, particularly the Department of Defense and Department of the Navy. Key indicators would include successful completion of projects of similar scale and complexity, adherence to schedules and budgets, and any history of contract disputes or performance issues. Analyzing past performance on design-build projects, specifically those involving energy storage or critical infrastructure, would provide the most relevant context for assessing their capability to deliver on this $44.5 million contract. Without specific historical data on their project execution, it is difficult to definitively assess their track record.

How does the awarded price of $44.5 million compare to market rates for similar 10 MW battery energy storage systems?

Benchmarking the $44.5 million award against market rates for a 10 MW battery energy storage system requires detailed cost breakdowns, which are not publicly available. However, general industry trends suggest that large-scale battery storage projects can range significantly in cost per megawatt-hour (MWh) or per megawatt (MW), influenced by factors such as battery chemistry, system integration complexity, installation site, and warranty terms. For a 10 MW system, costs could potentially range from tens of millions to over fifty million dollars. The firm-fixed-price nature of this contract implies that the government has secured a defined cost, but a detailed comparison would necessitate access to industry cost reports and potentially proprietary pricing data for similar government contracts.

What are the primary risks associated with the construction and implementation of this battery energy storage system at MCAGCC Twentynine Palms?

The primary risks associated with this project include construction-related challenges such as unforeseen site conditions, material availability, and labor shortages, which could lead to cost overruns or schedule delays. Technical risks involve the successful integration of the new battery system with the existing power grid at MCAGCC, ensuring compatibility and reliability. Cybersecurity risks are also pertinent, as energy infrastructure is a potential target. Furthermore, the long-term performance and degradation of the battery technology itself present a risk that needs to be managed through robust warranties and maintenance plans. The remote location of Twentynine Palms could also pose logistical challenges.

What is the expected impact of this battery energy storage system on the operational effectiveness and energy resilience of MCAGCC Twentynine Palms?

The installation of a 10 MW battery energy storage system is expected to significantly enhance the operational effectiveness and energy resilience of MCAGCC Twentynine Palms. It will provide a critical backup power source, ensuring continuity of operations during grid outages or disruptions, which is vital for military readiness. The system can also help stabilize the local grid, manage peak demand, and potentially integrate with renewable energy sources, reducing reliance on external power and lowering energy costs. This improved energy security contributes directly to the base's ability to maintain essential functions and support its mission-critical activities under various conditions.

How does the historical spending on similar energy infrastructure projects at military bases compare to this $44.5 million award?

Historical spending on similar energy infrastructure projects at military bases varies widely depending on the scope, technology, and location. Projects focused on grid modernization, renewable energy integration, and energy resilience have seen substantial investment across the Department of Defense. For instance, large-scale solar installations with battery storage, microgrid development, or upgrades to critical power distribution systems can easily run into tens of millions of dollars. The $44.5 million for a 10 MW battery storage system at a major base like MCAGCC aligns with the scale of investments seen in comparable MILCON energy projects aimed at enhancing self-sufficiency and operational continuity. Specific comparisons would require analyzing project databases for similar MW capacities and system types.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N6247324R5227

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amber Infrastructure LLC

Address: 6312 S FIDDLERS GREEN CIR STE 200E, GREENWOOD VILLAGE, CO, 80111

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

Financial Breakdown

Contract Ceiling: $44,511,436

Exercised Options: $44,511,436

Current Obligation: $44,511,436

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $98,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline