Pentagon Awards Massive $7 Billion Solar Power Contract

On Tuesday, the U.S. Department of Defense announced a total of 22 new defense contracts worth a combined $7.59 billion. Notwithstanding the large headline number, one single contract accounted for 92% of the funds on offer.

This contract, a massive $7 billion deal to supply solar energy "from renewable and alternative energy production facilities that are designed, financed, constructed, operated and maintained by private sector entities," involves some 22 separate companies. Taking the form of a multiple-vendor, indefinite-delivery/indefinite-quantity, firm-fixed-price, non-option, non-multiyear contract, vendors will bid against each other to sell solar energy to the U.S. Army in response to individual "task orders" issued by the U.S. Army Corps of Engineers.

Once won, a task order will be funded out of the $7 billion "pot" of funds allocated under this master Power Purchase Agreement. Bidders who won the right to compete for these task orders number 22, out of a total of 114 bids submitted. Most of the winners are either small, privately held concerns or small subsidiaries of foreign energy utilities whose stocks are not listed in the U.S. The few exceptions include U.S. listed major energy companies:

  • Dominion Resources (NYSE: D  )
  • Johnson Controls (NYSE: JCI  )
  • NRG Energy (NYSE: NRG  )
  • Sunpower  (NASDAQ: SPWR  )
  • Siemens
  • And also the Apex Wind Energy Holdings subsidiary of BP (NYSE: BP  ) .

Read/Post Comments (1) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 10, 2013, at 9:38 AM, FoolTheRest wrote:

    Hi, Rich. A point of clarification: Apex is not a subsidiary of nor tied to BP. The founder of Greenlight Energy sold to BP in 2006, then later founded Apex.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2612918, ~/Articles/ArticleHandler.aspx, 10/25/2014 10:24:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement