Army Awards $25.3M for Boiler Upgrades, Long-Term Contract Through 2040
Contract Overview
Contract Amount: $25,339,286 ($25.3M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2040-09-01
Contract Duration: 8,737 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BOILER UPGRADES IGF::OT::IGF
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $25.3 million to NORESCO, LLC for work described as: BOILER UPGRADES IGF::OT::IGF Key points: 1. Significant long-term contract value of $25.3M. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Risk is moderate due to the long duration (8737 days) and fixed-price nature. 4. Engineering services sector, with a focus on facility upgrades.
Value Assessment
Rating: good
The contract value of $25.3M for boiler upgrades appears reasonable given the extensive 24-year duration. Benchmarking against similar large-scale facility modernization projects would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The long-term nature of the contract, while potentially offering stable pricing, means taxpayers will be committed to this expenditure over two decades.
Public Impact
Ensures operational readiness and efficiency of critical infrastructure at the specified Army installation. Potential for energy savings and reduced environmental impact through modern boiler systems. Long-term commitment may limit flexibility for future technological advancements or alternative solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (24 years) increases risk of obsolescence or changing needs.
- Fixed-price contract may not fully account for unforeseen cost escalations.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Focus on infrastructure upgrades can lead to long-term operational efficiencies.
- Clear end date provides budget certainty for the specified period.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to facility maintenance and upgrades. Spending in this area is crucial for maintaining government infrastructure, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates that small businesses were not specifically involved in this contract award (ss: false, sb: false). Future contracts of this nature should explore opportunities for small business participation to foster economic growth.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure performance standards are met and costs remain aligned with the initial agreement. Regular performance reviews and milestone tracking are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (24 years)
- Fixed-price contract risk
- Lack of small business participation
- Potential for technological obsolescence
- Limited flexibility for future upgrades
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.3 million to NORESCO, LLC. BOILER UPGRADES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $25.3 million.
What is the period of performance?
Start: 2016-09-30. End: 2040-09-01.
What is the projected energy savings or efficiency improvement expected from these boiler upgrades?
The provided data does not specify the projected energy savings or efficiency improvements. Quantifying these benefits would be crucial for a comprehensive value assessment. Understanding the expected return on investment beyond just the operational cost reduction is important for justifying the long-term expenditure.
How will the Army ensure the technology remains current and effective over the 24-year contract period?
Ensuring technological currency over a 24-year period is a significant challenge. The contract may include provisions for periodic technology reviews, upgrade clauses, or performance-based metrics that incentivize modernization. However, without explicit details, the risk of technological obsolescence remains a concern.
What is the process for addressing potential cost overruns or scope creep in this fixed-price contract?
In a firm fixed-price contract, the contractor generally assumes the risk of cost overruns. However, mechanisms for addressing scope creep typically involve formal change order processes. Any modifications to the original scope would require negotiation and potentially a contract modification, impacting the overall cost and timeline.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DY12R0046
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $64,888,137
Exercised Options: $64,888,137
Current Obligation: $25,339,286
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $15,592,617
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15D0047
IDV Type: IDC
Timeline
Start Date: 2016-09-30
Current End Date: 2040-09-01
Potential End Date: 2040-09-01 00:00:00
Last Modified: 2024-12-18
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