NIH Infrastructure Upgrades Awarded $16.7M to NORESCO, LLC for Long-Term Energy Services
Contract Overview
Contract Amount: $16,764,867 ($16.8M)
Contractor: Noresco, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-12-20
End Date: 2034-01-31
Contract Duration: 7,347 days
Daily Burn Rate: $2.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF INFRASTRUCTURE UPGRADES AT THE NIH BETHESDA CAMPUS, POOLESVILLE CAMPUS, RESEARCH TRIANGLE PARK, AND ROCKY MOUNTAIN LABORATORIES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.8 million to NORESCO, LLC for work described as: IGF::OT::IGF INFRASTRUCTURE UPGRADES AT THE NIH BETHESDA CAMPUS, POOLESVILLE CAMPUS, RESEARCH TRIANGLE PARK, AND ROCKY MOUNTAIN LABORATORIES Key points: 1. Contract awarded to NORESCO, LLC for extensive infrastructure upgrades across multiple NIH facilities. 2. The contract spans over 10 years, indicating a long-term commitment to facility modernization. 3. Focus on energy services suggests potential for significant utility cost savings and environmental benefits. 4. The broad scope across four major NIH locations implies a complex and large-scale project.
Value Assessment
Rating: good
The contract value of $16.7M over 10 years appears reasonable for large-scale infrastructure upgrades. Benchmarking against similar multi-year energy service contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The long-term nature and focus on energy efficiency may lead to significant taxpayer savings through reduced operational costs over the contract's duration.
Public Impact
Modernized facilities will support critical biomedical research and public health initiatives. Potential for reduced energy consumption and environmental impact across NIH campuses. Long-term contract ensures continuity of essential facility maintenance and upgrades. Investment in infrastructure supports the operational readiness of vital government research centers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) may present risks if technology or needs change significantly.
- Reliance on a single contractor for extensive upgrades could pose risks if performance issues arise.
Positive Signals
- Awarded via full and open competition.
- Focus on energy efficiency and infrastructure upgrades.
- Long-term commitment suggests strategic planning for facility needs.
Sector Analysis
This contract falls under Engineering Services, specifically related to infrastructure and energy efficiency upgrades. Spending in this sector is crucial for maintaining government facilities and ensuring operational continuity, with benchmarks varying widely based on project scope and duration.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to NORESCO, LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The long duration and significant value of this contract warrant ongoing oversight to ensure performance, cost control, and adherence to contract terms. Regular reviews by the contracting agency are essential.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration (over 10 years)
- Potential for technological obsolescence
- Dependency on a single contractor
- Complexity of managing upgrades across multiple sites
Tags
engineering-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.8 million to NORESCO, LLC. IGF::OT::IGF INFRASTRUCTURE UPGRADES AT THE NIH BETHESDA CAMPUS, POOLESVILLE CAMPUS, RESEARCH TRIANGLE PARK, AND ROCKY MOUNTAIN LABORATORIES
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2013-12-20. End: 2034-01-31.
What specific energy efficiency improvements are included in the scope of work, and what are the projected energy savings?
The provided data does not detail the specific energy efficiency improvements. A thorough review of the contract's statement of work and associated performance metrics would be necessary to identify these and quantify projected energy savings. This information is crucial for assessing the contract's value and effectiveness in achieving its intended goals.
What mechanisms are in place to manage potential cost overruns or scope creep over the 10+ year contract duration?
Given the long-term nature of the contract, robust change management procedures and regular performance reviews are critical. The contract type (Firm Fixed Price) helps mitigate cost overrun risks for the government, but careful monitoring of scope changes and adherence to the original agreement are essential to prevent unforeseen expenses.
How will the success of the infrastructure upgrades be measured, and what are the key performance indicators (KPIs)?
Success measurement and KPIs are typically detailed in the contract's performance work statement. For infrastructure and energy upgrades, KPIs often include energy reduction targets (e.g., kWh saved), system uptime, maintenance cost reductions, and compliance with environmental standards. Regular reporting and verification of these metrics are vital.
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
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: $45,507,664
Exercised Options: $17,249,441
Current Obligation: $16,764,867
Actual Outlays: $7,639,747
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $4,214,047
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29039
IDV Type: IDC
Timeline
Start Date: 2013-12-20
Current End Date: 2034-01-31
Potential End Date: 2034-01-31 00:00:00
Last Modified: 2026-04-13
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