GSA awards $111.9M energy retrofit contract to Ameresco Inc. for Denver Federal Center and US Courthouse

Contract Overview

Contract Amount: $111,902,165 ($111.9M)

Contractor: Ameresco Inc

Awarding Agency: General Services Administration

Start Date: 2024-12-31

End Date: 2047-08-30

Contract Duration: 8,277 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 6, REGION 8 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES AT THE DENVER FEDERAL CENTER AND THE US COURTHOUSE IN DOWNTOWN DENVER.

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $111.9 million to AMERESCO INC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 6, REGION 8 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES AT THE DENVER FEDERAL CENTER AND THE US COURTHOUSE IN DOWNTOWN DENVER. Key points: 1. Contract focuses on deep energy retrofits, aiming for significant long-term utility cost reductions. 2. Ameresco Inc. has a substantial track record in energy performance contracting. 3. The contract duration extends over 15 years, indicating a long-term investment in infrastructure. 4. Firm Fixed Price contract type shifts performance risk to the contractor. 5. The project targets federal facilities in Denver, Colorado, with potential for broader regional impact. 6. This award is part of a larger national program for energy conservation.

Value Assessment

Rating: good

The contract value of $111.9 million for a comprehensive energy retrofit program over 15 years appears reasonable given the scope of work. While specific performance metrics and guaranteed savings are not detailed here, Energy Savings Performance Contracts (ESPCs) typically require contractors to guarantee savings that exceed the project costs. Benchmarking against similar large-scale federal ESPCs suggests this pricing is within expected ranges for deep retrofits involving multiple buildings and advanced technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. The presence of 13 bidders suggests a competitive market for energy performance contracting services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal facilities at the Denver Federal Center and US Courthouse in Denver will benefit from modernized, energy-efficient infrastructure. The primary service delivered is the implementation of energy conservation measures, leading to reduced utility consumption. The geographic impact is concentrated in Denver, Colorado, but the program's success could influence future federal energy initiatives nationwide. The project may indirectly support local jobs in construction, engineering, and energy services during the implementation phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 15 years) requires sustained monitoring to ensure performance goals are met.
Reliance on contractor-guaranteed savings necessitates robust verification processes to confirm actual energy reductions.
Potential for scope creep or unforeseen technical challenges in deep energy retrofits.

Positive Signals

Firm Fixed Price contract structure transfers significant performance risk to the contractor.
Awarded under full and open competition, suggesting a competitive pricing environment.
Focus on energy efficiency aligns with federal sustainability goals and potential long-term operational cost savings.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) and Energy sector, specifically focusing on energy conservation and retrofitting of federal buildings. The market for energy performance contracting is robust, driven by government mandates for energy efficiency and cost savings. Large-scale federal ESPCs, like this one, are significant investments that aim to achieve substantial reductions in energy consumption and operational expenses across portfolios of government facilities.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Ameresco Inc. is a large business. While there is no direct set-aside, large prime contractors are often required to outline subcontracting plans for small businesses. The impact on the small business ecosystem would depend on Ameresco's specific subcontracting goals and opportunities within this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Public Buildings Service. ESPCs typically involve detailed performance metrics, measurement, and verification (M&V) plans to ensure savings are realized. The contract's long duration suggests ongoing oversight and reporting requirements to track energy savings and project performance over its lifespan.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
National Deep Energy Retrofit Program
Federal Building Modernization Initiatives
General Services Administration (GSA) Public Buildings Service
Energy Conservation Measures

Risk Flags

Long-term contract duration requires sustained oversight.
Performance risk tied to contractor guarantees.
Potential for unforeseen technical challenges in deep retrofits.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $111.9 million to AMERESCO INC. ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 6, REGION 8 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES AT THE DENVER FEDERAL CENTER AND THE US COURTHOUSE IN DOWNTOWN DENVER.

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $111.9 million.

What is the period of performance?

Start: 2024-12-31. End: 2047-08-30.

What is Ameresco Inc.'s track record with similar federal Energy Savings Performance Contracts?

Ameresco Inc. is a well-established Energy Service Company (ESCO) with extensive experience in federal ESPCs. They have a history of successfully implementing large-scale energy efficiency projects for various federal agencies, including the Department of Defense, Department of Energy, and GSA. Their portfolio includes projects involving deep energy retrofits, renewable energy installations, and smart building technologies. While specific performance data for past federal ESPCs is not detailed here, their consistent engagement with federal clients suggests a demonstrated capability to meet program requirements and deliver energy savings. It would be beneficial to review GSA's performance evaluations or other publicly available data on Ameresco's past ESPC projects to fully assess their track record.

How does the $111.9 million contract value compare to other federal deep energy retrofit programs?

The $111.9 million contract value for this deep energy retrofit program at the Denver Federal Center and US Courthouse is substantial, reflecting the comprehensive scope of work across multiple facilities and a long-term implementation period. Federal ESPCs can range widely in value, from a few million dollars for smaller facility upgrades to hundreds of millions for large campus-wide or agency-wide retrofits. This award appears to be in the upper-middle range for a single, multi-building federal ESPC. When compared to other National Deep Energy Retrofit Program rounds or similar large-scale initiatives, this value is consistent with projects aiming for significant energy reduction and infrastructure modernization across a substantial federal campus or complex.

What are the primary risks associated with this type of long-term energy performance contract?

Key risks for this contract include performance risk (actual energy savings not meeting guaranteed levels), technological obsolescence (energy-saving technologies becoming outdated), contractor viability (financial stability or operational capacity of Ameresco Inc. over the 15+ year term), and potential for unforeseen site conditions or construction challenges during the retrofit phase. Additionally, changes in federal energy policy or utility rate structures could impact the economic assumptions underlying the savings calculations. Robust measurement and verification (M&V) protocols, clear performance milestones, and contingency planning are crucial to mitigate these risks.

What is the expected impact of this contract on federal energy consumption and sustainability goals?

This contract is expected to significantly reduce energy consumption at the Denver Federal Center and the US Courthouse, contributing directly to federal mandates for energy efficiency and greenhouse gas reduction. Deep energy retrofits typically aim for substantial energy savings, often in the range of 20-50% or more, depending on the baseline and technologies implemented. By modernizing building systems (e.g., HVAC, lighting, building envelope), the contract will enhance operational efficiency, reduce utility costs, and improve the environmental performance of these federal facilities. This aligns with broader government sustainability goals and demonstrates a commitment to reducing the federal government's environmental footprint.

How has federal spending on energy performance contracts evolved over the past decade?

Federal spending on Energy Savings Performance Contracts (ESPCs) has generally shown a positive trend over the past decade, driven by legislative mandates and agency commitments to improve energy efficiency and reduce operational costs. Agencies like the Department of Defense, Department of Energy, and GSA have consistently utilized ESPCs to upgrade aging infrastructure and meet sustainability targets. While annual spending can fluctuate based on appropriations, program initiatives, and project pipelines, the overall utilization of ESPCs has remained strong. Programs like the National Deep Energy Retrofit Program aim to accelerate these investments, indicating continued federal focus on leveraging ESPCs for significant energy and cost savings across the federal estate.

What are the key performance indicators (KPIs) typically used to evaluate the success of such contracts?

Key performance indicators (KPIs) for ESPCs typically revolve around guaranteed energy savings, cost savings achieved, project completion on time and within budget, and the reliability of implemented systems. Specific metrics often include kilowatt-hour (kWh) reduction, natural gas therms saved, water consumption reduction, and associated cost savings. Measurement and Verification (M&V) reports are critical, comparing actual post-retrofit energy usage against a baseline established before the project. The contractor's adherence to performance guarantees, system uptime, and client satisfaction are also important qualitative and quantitative measures of success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GSANDER620222

Offers Received: 13

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: $166,342,909

Exercised Options: $111,902,165

Current Obligation: $111,902,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEEE0008027

IDV Type: IDC

Timeline