Interior Department Awards $56.6M for Building Retrofit to Achieve Net Zero Energy Goals

Contract Overview

Contract Amount: $56,662,448 ($56.7M)

Contractor: Ameresco Inc

Awarding Agency: Department of the Interior

Start Date: 2015-03-20

End Date: 2039-03-31

Contract Duration: 8,777 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF UPGRADE AND RETROFIT MAIN INTERIOR BUILDING TO PROVIDE ENERGY SAVINGS AND WORK TOWARD BEING A NET ZERO BUILDING.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20240

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $56.7 million to AMERESCO INC for work described as: IGF::OT::IGF UPGRADE AND RETROFIT MAIN INTERIOR BUILDING TO PROVIDE ENERGY SAVINGS AND WORK TOWARD BEING A NET ZERO BUILDING. Key points: 1. Significant investment in energy efficiency and sustainability for a key federal building. 2. Long-term contract duration (24 years) suggests a focus on sustained performance and lifecycle value. 3. Potential for substantial energy cost savings and environmental impact reduction. 4. Engineering services sector is competitive, but long-term nature may limit new entrants. 5. Risk associated with long-term performance guarantees and technological obsolescence.

Value Assessment

Rating: good

The contract value of $56.6M over 24 years averages approximately $2.36M annually. This appears reasonable for a major building retrofit project aimed at significant energy savings and net-zero compliance, though specific benchmarks for similar large-scale federal retrofits would provide a more precise comparison.

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 likely ensured competitive pricing for the engineering services and energy-saving solutions provided by AMERESCO INC.

Taxpayer Impact: Taxpayer funds are being invested in a project expected to yield long-term operational cost savings through reduced energy consumption, potentially offsetting the initial expenditure over the contract's lifespan.

Public Impact

Improved energy efficiency in a federal building, contributing to national energy conservation goals. Potential for reduced greenhouse gas emissions and a smaller environmental footprint for the Department of the Interior. Modernization of building infrastructure, enhancing operational resilience and occupant comfort. Creation of jobs in the engineering and construction sectors related to green building technologies.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long contract duration (24 years) increases risk of technological obsolescence.
Performance metrics and verification for net-zero goals need rigorous oversight.
Potential for cost overruns if unforeseen issues arise during retrofit.

Positive Signals

Commitment to sustainability and energy independence.
Utilizes full and open competition for potentially competitive pricing.
Long-term contract ensures sustained focus on energy savings.
Addresses critical infrastructure needs for energy efficiency.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which includes firms providing engineering consulting and design services. Spending in this sector is often driven by infrastructure upgrades, modernization projects, and specialized technical requirements, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The data indicates this contract was awarded to AMERESCO INC. and does not specify any subcontracting goals for small businesses. Further investigation would be needed to determine if small businesses are participating in this project.

Oversight & Accountability

The long duration of this contract necessitates robust oversight mechanisms to ensure performance milestones are met and taxpayer funds are used effectively. Regular reviews and audits by the Department of the Interior's IG and relevant program offices will be crucial.

Related Government Programs

Engineering Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Long contract duration (24 years)
Potential for technological obsolescence
Need for rigorous performance monitoring and verification
Reliance on contractor's long-term financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $56.7 million to AMERESCO INC. IGF::OT::IGF UPGRADE AND RETROFIT MAIN INTERIOR BUILDING TO PROVIDE ENERGY SAVINGS AND WORK TOWARD BEING A NET ZERO BUILDING.

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $56.7 million.

What is the period of performance?

Start: 2015-03-20. End: 2039-03-31.

What are the projected energy savings and payback period for this $56.6M investment?

The projected energy savings and payback period are critical metrics for evaluating the value of this contract. While the contract aims for energy savings and net-zero compliance, specific financial projections detailing anticipated reductions in energy costs and the timeline for recouping the investment are not provided. A detailed analysis of these projections is necessary to confirm the long-term financial viability and taxpayer benefit.

How will the long-term performance of the energy-saving technologies be monitored and guaranteed over 24 years?

Monitoring and guaranteeing performance over a 24-year contract requires a comprehensive plan. This should include clearly defined performance standards, regular energy audits, independent verification processes, and contractual remedies for underperformance. The Department of the Interior must establish a robust system to track energy usage and ensure the retrofitted systems consistently meet the net-zero objectives throughout the contract's extended duration.

What is the risk of technological obsolescence for energy-saving systems over a 24-year contract lifespan?

The risk of technological obsolescence is significant for a 24-year contract. Energy efficiency and net-zero technologies are rapidly evolving. The contract should ideally include provisions for technology upgrades or incorporate performance-based specifications that allow for adaptation to newer, more efficient solutions. Without such provisions, the government might be locked into using less efficient or outdated systems towards the end of the contract term.

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

Offers Received: 8

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: $162,723,255

Exercised Options: $56,662,448

Current Obligation: $56,662,448

Actual Outlays: $33,506,001

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