Honeywell (NYSE: HON) today announced a $78-million (CAD) contract with B2L Partnership, which is contracted to the province of Alberta, Canada, to deliver a Total Asset Management program for 10 new kindergarten through 9th-grade schools in Calgary and Edmonton.
Honeywell will be responsible for the performance and maintenance of all the facilities over the next 30 years, as well as design support and installation of climate control, fire and security systems in the schools, which will be built to Leadership in Energy and Environmental Design® (LEED) Silver certification requirements.
The new contract builds on a previous Total Asset Management agreement for the construction and upkeep of 18 new LEED Silver-certified schools -- the first-ever social infrastructure Public-Private Partnership (P3) in Alberta. Honeywell has started to assume maintenance responsibility for several schools, which have been completed ahead of schedule.
The Honeywell program and overarching partnership will provide the Calgary and Edmonton districts 10 additional facilities at a guaranteed cost below what it would take the province to build the schools and maintain them for 30 years. The end result is an affordable, safe and comfortable environment for students and staff.
"The P3 model allows us to focus on our core mission of educational excellence," said John Gibson, project director for the Government of Alberta. "We're able to leverage the facilities expertise of partners like Honeywell, and provide value for money to the province and taxpayers. We look forward to bringing these green, energy-efficient schools online, knowing they will be well-maintained for decades to come and have no deferred maintenance at the end."
Honeywell is part of a consortium responsible for the P3 agreement that includes financier B2L Partnership and builders Bird-Graham Schools A Joint Venture. Up front, Honeywell will help design and install the heating, ventilation and air-conditioning (HVAC), fire and security systems in each school. The company will tie these systems together with its Enterprise Buildings Integrator (EBI) platform, which will help achieve the buildings' LEED Silver certification through sophisticated monitoring of comfort, air quality and energy consumption.
Once the new schools are complete, Honeywell will be responsible for comprehensive facility management over the next three decades. This includes service for all mechanical and automation equipment, building envelope repairs, infrastructure upgrades and replacement, and grounds work. The company will also look for opportunities to improve energy efficiency and reduce related costs. Custodial work and utility expenses are not included.
By having a monthly fixed-price contract for facility services, the province will lower its typical operating costs for schools. In addition, Honeywell guarantees its work through performance indicators outlined in the agreement, including standards for temperature, safety and response times.
"This agreement builds on our long standing record of taking care of buildings in Alberta," said Paul Orzeske, president of Honeywell Building Solutions. "Through Honeywell's ongoing maintenance and building systems optimization, we expect these schools to operate as well after 30 years as they did on day one."
Construction of the schools is expected to be complete by June 2012, and Honeywell will start upkeep and maintenance immediately afterward.