The Department of Defense yesterday announced the award of a $2.5 billion combined firm-fixed-price contract to Johnson Controls, Evergreen Fire Alarms and Federal Inc. for “procurement and installation of utility monitoring and control and similar systems.”

The winning bid was selected from 14 internet-submitted solicitations and the estimated completion date is Aug. 21, 2019. The award highlights the growing importance of demand management systems that can reduce power consumption – thus saving money – while increasing reliability. And the US military in particular has made domestic energy security and reliability a priority.

According to a recent American Council on Renewable Energy report:

“…99% of the over 500 military bases on U.S. soil rely on the commercial grid, a reliance that, according to the Defense Science Board, represents a ‘primary energy challenge.’ And this reliance has had real consequences: in 2012 alone, the Department of Defense reported 87 power outages of eight hours or more at its bases.”

In addition to potential national security concerns associated with losing power at military bases, back-up power systems are traditionally powered by diesel-fired generators that are expensive to run – US diesel prices are currently around $3.50 per gallon – and release harmful emissions. As a result the military is looking to generate more of its own power via renewables and manage loads more efficiently which can reduce consumption.