Siemens has received a potential $37 million contract modification from the U.S. Army to carry out upgrades at the Lima, Ohio-based Joint Systems Manufacturing Center to help reduce the facility's energy consumption.
The Army Corps of Engineers made the award as a modification to a previously awarded contract in March worth approximately $11.8 million and expects the upgrades at JSMC to result in approximately $85.6 million in cost savings over a performance period of 19 years, the company said Thursday.
General Dynamics' land systems business operates the Army-owned JSMC facility that accommodates repair and restoration work on the service branch's M1A2 Abrams battle tanks and other armored vehicles.
Barbara Humpton, president and CEO of Siemens Government Technologies, said the modification seeks to reflect the military branch's trust in the company and the services it provides.
“We are honored to be the first energy service company to perform at a government-owned and contractor-operated Army site, and we consider the opportunity to continue this partnership as a vote of confidence,“ Humpton added.
Work under the energy savings performance contract includes the installation of the company's APOGEE controls, natural gas boilers and LED lights; utilization of a propane backup system; replacement and repair of steam traps and insulation; and updates to exterior infrastructure to extend roof life.