VA's VISN 7 ESPC with Ameresco Inc. reaches $94.7M, awarded via full and open competition
Contract Overview
Contract Amount: $94,696,011 ($94.7M)
Contractor: Ameresco Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-11-29
End Date: 2026-03-01
Contract Duration: 2,284 days
Daily Burn Rate: $41.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: VETERANS INTEGRATED SERVICE NETWORK (VISN) 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC)
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36109
State: Alabama Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $94.7 million to AMERESCO INC for work described as: VETERANS INTEGRATED SERVICE NETWORK (VISN) 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) Key points: 1. Significant investment in energy efficiency for VA facilities. 2. Ameresco Inc. is a key player in the energy services market. 3. Potential for long-term cost savings and operational improvements. 4. Contract duration extends through March 2026.
Value Assessment
Rating: good
The contract value of $94.7M is substantial for an ESPC. Benchmarking against similar large-scale ESPCs is difficult without specific project details, but the firm fixed price structure suggests defined cost expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: Taxpayers benefit from potential long-term energy cost reductions and improved facility efficiency, offsetting the initial investment.
Public Impact
Improved energy efficiency in VA facilities across VISN 7. Potential for reduced operational costs for the Department of Veterans Affairs. Supports government goals for sustainability and energy conservation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (over 6 years).
- No specific small business participation noted.
Positive Signals
- Energy Savings Performance Contract (ESPC) model.
- Full and open competition.
- Firm fixed price contract.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on energy efficiency projects for government facilities. ESPCs are common tools for agencies to upgrade infrastructure with minimal upfront capital.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses or their participation in this contract. Further investigation may be needed to understand small business involvement.
Oversight & Accountability
The contract's performance will be monitored by the Department of Veterans Affairs to ensure energy savings are realized as per the ESPC agreement. Oversight is crucial for validating the effectiveness of the implemented measures.
Related Government Programs
- Engineering Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long contract duration.
- No explicit small business participation mentioned.
- Potential for performance under-delivery.
- Reliance on energy price fluctuations for savings realization.
Tags
engineering-services, department-of-veterans-affairs, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $94.7 million to AMERESCO INC. VETERANS INTEGRATED SERVICE NETWORK (VISN) 7 ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC)
Who is the contractor on this award?
The obligated recipient is AMERESCO INC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $94.7 million.
What is the period of performance?
Start: 2019-11-29. End: 2026-03-01.
What is the projected return on investment (ROI) for this ESPC, and how is it being measured?
The projected ROI is typically calculated based on the anticipated energy cost savings over the contract's lifespan compared to the total project cost. Measurement involves comparing actual energy consumption and costs against a baseline established before the project's implementation, often verified by third-party measurement and verification (M&V) protocols.
What are the specific energy conservation measures being implemented under this contract, and what are the associated risks?
Specific measures could include HVAC upgrades, lighting retrofits, building envelope improvements, and renewable energy installations. Risks include potential underperformance of technologies, unforeseen construction challenges, changes in energy prices impacting savings calculations, and contractor performance issues.
How does the $94.7M contract value compare to typical ESPC investments for a network of this size?
The $94.7M value is significant and suggests a comprehensive scope of work across multiple facilities within VISN 7. ESPC investments vary widely based on facility age, size, climate, and existing infrastructure. This figure likely represents a substantial upgrade effort.
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 111 SPEEN ST STE 410, FRAMINGHAM, MA, 01701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $150,969,241
Exercised Options: $150,969,241
Current Obligation: $94,696,011
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29029
IDV Type: IDC
Timeline
Start Date: 2019-11-29
Current End Date: 2026-03-01
Potential End Date: 2026-03-01 00:00:00
Last Modified: 2026-02-03
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