DOJ Awards $73.6M ESPC Contract to NORESCO, LLC for Federal Prisons
Contract Overview
Contract Amount: $73,627,886 ($73.6M)
Contractor: Noresco, LLC
Awarding Agency: Department of Justice
Start Date: 2016-04-12
End Date: 2039-01-01
Contract Duration: 8,299 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ESPC PROJECTS FOR FCI FORT DIX AND FDC PHILADELPHIA
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534
Plain-Language Summary
Department of Justice obligated $73.6 million to NORESCO, LLC for work described as: IGF::OT::IGF ESPC PROJECTS FOR FCI FORT DIX AND FDC PHILADELPHIA Key points: 1. Significant contract value for energy efficiency projects. 2. NORESCO, LLC is a major player in the energy services sector. 3. Long contract duration (23 years) presents long-term performance risk. 4. Focus on energy efficiency aligns with government sustainability goals.
Value Assessment
Rating: good
The contract value of $73.6M over 23 years suggests a substantial investment in energy conservation measures. Benchmarking against similar large-scale ESPC projects would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The long-term nature of the contract means taxpayer funds are committed over many years, but the aim is to offset these costs through energy savings.
Public Impact
Potential for significant energy cost savings for federal facilities. Modernization of infrastructure at FCI Fort Dix and FDC Philadelphia. Contribution to federal sustainability and climate change mitigation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Long contract duration could lead to performance issues or changing technology needs.
- Reliance on a single contractor for an extended period.
- Potential for cost overruns if energy savings are not realized as projected.
Positive Signals
- Awarded through full and open competition.
- Focus on energy efficiency and sustainability.
- Experienced contractor (NORESCO, LLC).
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy conservation projects. Spending in this area is driven by federal mandates for energy efficiency and infrastructure upgrades.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the contractor, NORESCO, LLC, is a large entity. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract is a Delivery Order under an existing IDIQ or similar vehicle, suggesting some level of pre-qualification. Oversight will be crucial to ensure performance and verify energy savings over the contract's long term.
Related Government Programs
- Engineering Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Long contract duration (23 years)
- Potential for technological obsolescence
- Reliance on contractor performance for savings realization
- Firm Fixed Price contract may limit flexibility
- No explicit mention of small business subcontracting goals
Tags
engineering-services, department-of-justice, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $73.6 million to NORESCO, LLC. IGF::OT::IGF ESPC PROJECTS FOR FCI FORT DIX AND FDC PHILADELPHIA
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $73.6 million.
What is the period of performance?
Start: 2016-04-12. End: 2039-01-01.
How will the realized energy savings be verified and reported to ensure the firm fixed price is justified over the contract's lifespan?
Verification of energy savings typically involves detailed measurement and verification (M&V) plans outlined in the contract. Independent third-party audits or government agency reviews will likely be employed to confirm savings against baseline energy consumption. Regular reporting requirements will ensure transparency and accountability for the contractor's performance and the achievement of financial objectives.
What are the specific risks associated with a 23-year contract for energy efficiency projects, considering technological advancements?
A 23-year contract for energy efficiency projects carries risks related to technological obsolescence, as newer, more efficient technologies may emerge. There's also a risk of contractor performance degradation over such a long period, or changes in facility needs. Furthermore, fluctuating energy prices could impact the projected savings, potentially affecting the contract's financial viability if not structured with appropriate safeguards.
What is the estimated return on investment (ROI) for taxpayers, considering the upfront investment and projected long-term savings?
The ROI for taxpayers depends heavily on the accuracy of the energy savings projections and the stability of energy costs over the contract's 23-year term. While ESPC projects are designed to be cost-neutral or cost-saving, the initial investment is significant. A thorough analysis of the contract's baseline energy use, the proposed efficiency measures, and the guaranteed savings against the total contract cost is needed to determine the net financial benefit to the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,627,886
Exercised Options: $73,627,886
Current Obligation: $73,627,886
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $25,574,381
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29039
IDV Type: IDC
Timeline
Start Date: 2016-04-12
Current End Date: 2039-01-01
Potential End Date: 2039-01-01 00:00:00
Last Modified: 2019-12-30
More Contracts from Noresco, LLC
- - Closely Associated - These Requirements Have Been Developed for VA Visn 11 to PUT Forth Government Identified ECM Projects AT Visn 11 Facilities to Reduce Energy Consumption, Water Consumption and Associated Utility Costs, and Energy-Related Operations and Maintenance Costs — $121.8M (Department of Veterans Affairs)
- 200311!190367!1700!C7408 !naval Facilities Engineering Com!deam3699ee73680!c!n! !N!N4740803F5272 !20030825!20080825!606727402!606727402!007915663!n!noresco, LLC !ONE Research Drive !westborough !ma!01581!57000!710!51!norfolk !norfolk (city) !virginia !+000003000000!n!n!000000000000!r799!other Management Support Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A! !J! !030!A! !C! ! ! ! ! !C!N! ! ! !z!z!a!a!000! !C!N! ! ! ! ! ! !0001! ! — $61.4M (Department of Defense)
- De-Am36-09g0229039/Gs-P-05-14-Ga-0004,GSA National Deep Energy Retrofit (nder), Energy Savings Performance Contract (espc) Task Order, for Region 5, Noresco, LLC, Metcalfe Federal Building, 536 S. Clark Federal Building, U.S. Custom House, Federal Archives&records Center, Everett M. Dirksen U.S. Courthouse, John C. Kluczynski Federal Building, and U.S. Post Office/Loop Station, Chicago, IL — $53.7M (General Services Administration)
- Utility Monitoring Control System — $49.0M (Department of Defense)
- Marion and Milan Espc Project — $46.0M (Department of Justice)
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)