Army awards $32.5M for engineering services, with a significant portion for construction, to Ameresco Solutions Inc

Contract Overview

Contract Amount: $32,512,005 ($32.5M)

Contractor: Ameresco Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2005-03-07

End Date: 2012-08-16

Contract Duration: 2,719 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200506!500584!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !DACA8703D0007 !A!N! !Y!0013 ! !20050307!20050328!162009369!162009369!603439428!N!AMERESCOSOLUTIONS, INC !128 S TRYON ST STE 2200 !CHARLOTTE !NC!28202!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000019873!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!M! !A! !20200930!B! ! !A! !A!U!J!2!028!B! !C!N!C! ! !N!C!N! ! ! !D!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to AMERESCO SOLUTIONS INC for work described as: 200506!500584!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !DACA8703D0007 !A!N! !Y!0013 ! !20050307!20050328!162009369!162009369!603439428!N!AMERESCOSOLUTIONS, INC !128 S TRYON ST STE 2200 !CHARLOTTE !NC!28202!22690!020!02!ELMENDORF AFB !ANCH… Key points: 1. Contract awarded for engineering technical services and construction, indicating a broad scope of work. 2. The contract duration of over 7 years suggests a long-term need for these services. 3. Ameresco Solutions Inc. has secured a substantial award, highlighting their role in supporting military infrastructure. 4. The award falls under commercial and institutional building construction, a key sector for facility upgrades and maintenance. 5. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor. 6. The contract was awarded under full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The total award of $32.5 million for engineering and construction services over approximately 7.5 years appears reasonable given the scope. Benchmarking against similar large-scale military construction and engineering contracts would provide a more precise value assessment. The firm fixed-price nature of the contract shifts cost overrun risks to the contractor, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of 28 bids suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors strive to offer the most competitive prices and innovative solutions, ultimately driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at Elmendorf AFB, Alaska, who will receive improved facilities and infrastructure. Services delivered include engineering technical services and construction, likely encompassing upgrades, repairs, or new builds of institutional buildings. The geographic impact is focused on Elmendorf AFB in Anchorage, Alaska, supporting regional military readiness and operations. Workforce implications may include job creation for engineers, construction workers, and support staff employed by Ameresco Solutions Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates, despite the firm fixed-price structure.
Ensuring the quality of construction and engineering services meets stringent military standards throughout the contract's long duration.
Managing the logistical challenges of construction projects in a remote location like Alaska.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Full and open competition with 28 bids suggests a competitive pricing environment.
The long contract duration allows for sustained support and potential economies of scale.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry focused on non-residential structures. The Department of Defense is a major client in this sector, awarding numerous contracts for facility maintenance, upgrades, and new construction to support military operations globally. Spending in this area is often driven by modernization efforts, infrastructure resilience, and operational requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if Ameresco Solutions Inc. has a robust small business subcontracting plan in place to ensure opportunities for smaller firms within the ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Base Operations Support (BOS)
Facilities Engineering Services
Architectural and Engineering Services

Risk Flags

Potential for scope creep given the long duration and construction component.
Logistical challenges associated with performing construction in Alaska.
Ensuring consistent quality control over a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to AMERESCO SOLUTIONS INC. 200506!500584!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !DACA8703D0007 !A!N! !Y!0013 ! !20050307!20050328!162009369!162009369!603439428!N!AMERESCOSOLUTIONS, INC !128 S TRYON ST STE 2200 !CHARLOTTE !NC!28202!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000019873!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!M! !A! !202

Who is the contractor on this award?

The obligated recipient is AMERESCO SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.5 million.

What is the period of performance?

Start: 2005-03-07. End: 2012-08-16.

What is Ameresco Solutions Inc.'s track record with similar large-scale federal construction and engineering contracts?

Ameresco Solutions Inc. has a history of performing large federal contracts, often focusing on energy efficiency, infrastructure upgrades, and renewable energy solutions. While this specific award is for general engineering and construction, the company's broader experience suggests a capacity to handle complex projects. A review of their past performance on similar Department of Defense or other federal agency contracts would reveal their success rates, any past performance issues, and their ability to deliver on time and within budget. Examining contract close-out data and any debriefings from previous awards could provide further insight into their reliability and quality of work.

How does the awarded price of $32.5 million compare to market rates for similar engineering and construction services in Alaska?

Benchmarking the $32.5 million award against market rates for comparable engineering and construction services in Alaska is crucial for assessing value. Factors such as the specific scope of work (e.g., types of buildings, complexity of engineering), prevailing labor costs in Alaska (which are often higher than the continental US), material costs, and the duration of the contract (over 7 years) must be considered. Without detailed cost breakdowns or access to market surveys specific to Alaskan military construction, a precise comparison is difficult. However, the firm fixed-price nature suggests the contractor has factored these costs and risks into their bid. The number of bidders (28) also implies that the price was competitive within the market.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns if the scope expands, delays due to logistical challenges in Alaska, and ensuring the quality of work meets stringent military standards over a long performance period. The firm fixed-price (FFP) contract structure mitigates cost overrun risk for the government by placing it on the contractor. However, scope creep remains a risk that requires diligent contract management and change order control. Mitigation strategies for logistical and quality risks would involve robust project management, clear performance standards, regular site inspections, and potentially performance bonds. The long duration also presents a risk of contractor performance degradation, which necessitates ongoing oversight and performance evaluations.

How effective is the firm fixed-price contract type in ensuring value for money for this specific project?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For this contract, it provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage costs efficiently and complete the work within budget. However, if the project scope is complex or subject to unforeseen conditions, an FFP contract could lead to the contractor cutting corners on quality to maintain profitability, or extensive change order negotiations if scope adjustments are necessary. Given the long duration and construction component, careful scope definition and management are critical to realizing the full value-for-money benefits of the FFP structure.

What is the historical spending pattern for engineering and construction services at Elmendorf AFB or similar Army installations?

Historical spending patterns for engineering and construction services at Elmendorf AFB and similar Army installations typically show significant investment in maintaining and upgrading infrastructure to support operational readiness. This includes routine maintenance, major renovations, new construction for barracks, training facilities, and support buildings, as well as energy-related projects. Spending can fluctuate based on military priorities, budget allocations, and the lifecycle of existing facilities. Analyzing past awards for similar services at Elmendorf AFB would reveal the typical contract values, durations, and types of services procured, providing context for the current $32.5 million award. Understanding these patterns helps assess whether the current award is consistent with historical needs and investment levels.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameresco Inc (UEI: 603439428)

Address: 128 SOUTH TRYON STREET, SU, CHARLOTTE, NC, 12

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DACA8703D0007

IDV Type: IDC

Timeline