Johnson Controls, Sunpower and 20 other solar companies have been awarded $7 billion in Multiple Award Task Order Contracts (MATOC), according to a recent announcement.Some of the other winning companies include NRG Energy, Borrego Solar, Washington Gas Energy Systems and Energy Matters.The announcement says MATOC is a way for the Department of Defense (DOD) to get multiple similar construction projects done by different companies in different locations quickly and easily by assigning base line prices for specific project tasks.
Johnson Controls, Sunpower and 20 other solar companies have been awarded $7 billion in Multiple Award Task Order Contracts (MATOC), according to a recent announcement.
Some of the other winning companies include NRG Energy, Borrego Solar, Washington Gas Energy Systems and Energy Matters.
The announcement says MATOC is a way for the Department of Defense (DOD) to get multiple similar construction projects done by different companies in different locations quickly and easily by assigning base line prices for specific project tasks.
The 22 winning companies were chosen from 114 firms that submitted bids for the contracts and will now bid against one another to sell solar energy to the U.S. Army on a project-by-project basis. While the projects will be designed, financed, constructed, operated and maintained by the winning firms, the U.S. Army will purchase the generated energy through Power Purchase Agreements (PPA). The monetary value of each project will be based on the PPA spanning up to 30 years.
The Air Force, Army and Navy have each announced plans to install one gigawatt of renewable energy by 2025 to increase energy security. The Army is the first branch of the Armed Forces to award renewable energy companies contracts under the MATOC structure.
“The MATOC represents a major step forward in the procurement of renewable energy for the Army and the other Services that will significantly reduce timelines by streamlining acquisition processes,” said John Lushetsky, Executive Director of the Army Energy Initiatives Task Force.
Increased interest in renewable energy from all branches of the military is leading to more efficient award processes, which is expected to lead to more sizable contracts in solar, wind, geothermal and biomass.
As the world’s largest consumer of energy, the DOD’s actions are sure to have major positive reverberations in terms of stifling climate change. The U.S. Military also is setting an example and leading the way on renewable energy and climate change solutions from clean energy investments and projects.
In 2012, the DOD, along with Coca-Cola, Nike, Shell, UPS and several other firms, joined “Future of Fuels,” an initiative led by consulting firm BSR aimed at giving companies information about the sustainability impacts of their transportation fuel choices, from climate change to human rights to economic development.
Published Aug 29, 2013 2am EDT / 11pm PDT / 7am BST / 8am CEST
Managing Director, Sustainability & Social Impact
Deutsche Bank
Mike Hower is a sustainability communicator and connector committed to helping purpose-driven businesses and people unlock their full potential for positive impact. As founder and principal consultant at Hower Impact, he works with companies to translate sustainability strategy into stories that inform, engage and inspire investors, customers, employees, regulators and other stakeholders in the service of social, environmental and business goals. Through his Impact Hired initiative, he works to connect and engage corporate sustainability professionals at all stages of their careers.
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