DOE's $4.6M Los Alamos ESPC with NORESCO, LLC shows long-term commitment to energy efficiency
Contract Overview
Contract Amount: $4,649,715 ($4.6M)
Contractor: Noresco, LLC
Awarding Agency: Department of Energy
Start Date: 2009-12-28
End Date: 2033-01-30
Contract Duration: 8,434 days
Daily Burn Rate: $551/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: LANL - ENERGY SAVINGS PERFORMANCE CONTRACT - DELIVERY ORDER #2 FOR LOS ALAMOS SITE OFFICE - LASO.
Place of Performance
Location: LOS ALAMOS, LOS ALAMOS County, NEW MEXICO, 87544
Plain-Language Summary
Department of Energy obligated $4.6 million to NORESCO, LLC for work described as: LANL - ENERGY SAVINGS PERFORMANCE CONTRACT - DELIVERY ORDER #2 FOR LOS ALAMOS SITE OFFICE - LASO. Key points: 1. This contract represents a significant, long-term investment in energy infrastructure upgrades. 2. The firm-fixed-price structure provides cost certainty for the government. 3. The extended duration suggests a focus on sustained performance and energy savings. 4. Competition was full and open, indicating a potentially competitive pricing environment. 5. The contract is managed by the Department of Energy, aligning with federal energy mandates. 6. Performance is located in New Mexico, a key region for federal energy initiatives.
Value Assessment
Rating: good
While specific performance metrics and savings are not detailed here, the contract's long duration (over 20 years) suggests a substantial scope of work and expected long-term value. The firm-fixed-price nature helps control costs. Benchmarking against similar large-scale Energy Savings Performance Contracts (ESPCs) would be necessary for a precise value assessment, but the scale and duration are typical for significant facility modernization projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This typically leads to a more competitive pricing environment and allows the government to select the best value proposal. The number of bidders is not specified, but the open competition is a positive indicator for price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and ensuring that the government receives competitive pricing for services rendered.
Public Impact
The Department of Energy benefits through improved energy efficiency and reduced operational costs at the Los Alamos Site Office. The contract facilitates the modernization of federal facilities, potentially leading to enhanced operational resilience. The geographic impact is concentrated in New Mexico, supporting federal infrastructure goals in the region. Workforce implications may include specialized roles in energy efficiency retrofitting and facility management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Potential for scope creep over the extended performance period.
- Reliance on a single contractor for a significant period requires robust oversight.
Positive Signals
- Long-term commitment signals strong government need and potential for significant energy savings.
- Firm-fixed-price contract provides budget predictability.
- Full and open competition suggests a potentially competitive award.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy efficiency and facility management. Energy Savings Performance Contracts (ESPCs) are a common mechanism used by federal agencies to finance energy efficiency upgrades without upfront capital investment. The market for these services is substantial, driven by federal mandates for sustainability and cost reduction. Comparable spending benchmarks would involve looking at other large ESPCs awarded to major energy service companies.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, NORESCO, LLC, may engage small businesses for specific services or supplies as part of their overall project execution, though this is not mandated by the contract type described.
Oversight & Accountability
Oversight for this contract is primarily managed by the Department of Energy, the awarding agency. As a Delivery Order under a larger contract, it likely falls under existing performance monitoring and reporting requirements. Transparency is generally facilitated through contract databases and agency reporting on energy performance. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Federal Energy Management Program (FEMP)
- Department of Energy Facility Modernization
- Los Alamos National Laboratory Operations
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Potential for scope creep over the extended performance period.
- Requires sustained government oversight to ensure performance.
Tags
energy-savings-performance-contract, department-of-energy, los-alamos, new-mexico, engineering-services, facility-modernization, full-and-open-competition, firm-fixed-price, long-term-contract, energy-efficiency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.6 million to NORESCO, LLC. LANL - ENERGY SAVINGS PERFORMANCE CONTRACT - DELIVERY ORDER #2 FOR LOS ALAMOS SITE OFFICE - LASO.
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $4.6 million.
What is the period of performance?
Start: 2009-12-28. End: 2033-01-30.
What is the specific scope of energy efficiency improvements covered by this delivery order?
The provided data identifies this as 'DELIVERY ORDER #2 FOR LOS ALAMOS SITE OFFICE - LASO' under a larger ESPC. While the exact scope of improvements for this specific delivery order is not detailed, ESPCs typically encompass a range of energy conservation measures (ECMs). These can include upgrades to lighting, HVAC systems, building envelope improvements, water conservation measures, and the implementation of renewable energy sources. The long duration of the contract (over 20 years) suggests that the scope is substantial and designed for long-term impact on energy consumption and operational costs at the Los Alamos Site Office facilities.
How does the $4.6 million cost compare to typical ESPC investments for federal facilities of similar size?
The $4.6 million figure represents the value of this specific Delivery Order, not necessarily the total contract value. ESPC investments can vary widely based on the size and condition of the facilities, the scope of ECMs, and the energy prices in the region. For a large federal site like Los Alamos, $4.6 million for a specific phase or set of upgrades could be considered moderate to significant. Larger, comprehensive ESPCs for entire campuses can run into tens or hundreds of millions of dollars. Without knowing the specific ECMs and the baseline energy consumption, a direct comparison is difficult, but the amount suggests a focused set of improvements rather than a complete site overhaul under this particular order.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Specific KPIs for this delivery order are not detailed in the provided data. However, for Energy Savings Performance Contracts, success is typically measured by the actual energy and cost savings achieved compared to a pre-defined baseline. Key performance indicators often include reductions in energy consumption (e.g., kilowatt-hours, British Thermal Units), water usage, and associated utility costs. Performance is usually verified periodically throughout the contract term, often annually, to ensure that the implemented measures are delivering the projected savings. The contractor is typically paid based on verified savings.
What is NORESCO, LLC's track record with similar large-scale federal ESPCs?
NORESCO, LLC is a well-established energy services company with a significant history of performing large-scale Energy Savings Performance Contracts for federal agencies. They have completed numerous projects across various departments, including the Department of Defense, Department of Energy, and others. Their portfolio often includes complex retrofits and infrastructure upgrades aimed at improving energy efficiency, reducing operational costs, and enhancing facility resilience. Their experience generally positions them as a capable provider for long-term federal energy projects like the one at Los Alamos.
Are there any identified risks associated with the long duration (over 20 years) of this contract?
The extended duration of this contract, spanning over 20 years, presents several potential risks. One primary risk is technological obsolescence; energy efficiency technologies can evolve rapidly, and measures installed early in the contract might become outdated or less efficient compared to newer options. Another risk is potential scope creep or changes in facility needs over such a long period, which could necessitate contract modifications. Furthermore, a long-term commitment can lead to vendor lock-in, making it difficult to switch providers if performance issues arise or if market conditions change significantly. Robust contract management, performance monitoring, and flexibility for adjustments are crucial to mitigate these risks.
How does this contract align with the Department of Energy's broader energy efficiency and sustainability goals?
This contract directly aligns with the Department of Energy's (DOE) overarching goals for improving energy efficiency, reducing greenhouse gas emissions, and enhancing the sustainability of federal operations. ESPCs are a cornerstone of the Federal Energy Management Program (FEMP), which DOE administers. By financing energy conservation measures through guaranteed savings, these contracts enable agencies to modernize their infrastructure and reduce their environmental footprint without requiring upfront appropriations. This specific contract at the Los Alamos Site Office contributes to DOE's efforts to achieve ambitious energy reduction targets and promote best practices in facility management across its sites.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1 RESEARCH DR STE 400C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,446,645
Exercised Options: $33,446,645
Current Obligation: $4,649,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698GO10326
IDV Type: IDC
Timeline
Start Date: 2009-12-28
Current End Date: 2033-01-30
Potential End Date: 2033-01-30 00:00:00
Last Modified: 2026-01-21
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