Naval Submarine Base New London ESPC Awarded to NORESCO for $34.7M, Aiming for Energy Savings Over 15 Years
Contract Overview
Contract Amount: $34,694,104 ($34.7M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-13
End Date: 2040-12-12
Contract Duration: 7,670 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NAVAL SUBMARINE BASE NEW LONDON, GROTON, CT
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06349
Plain-Language Summary
Department of Defense obligated $34.7 million to NORESCO, LLC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NAVAL SUBMARINE BASE NEW LONDON, GROTON, CT Key points: 1. The contract focuses on energy efficiency upgrades, a critical area for government sustainability and cost reduction. 2. NORESCO, LLC, a known energy services company, is the awardee, suggesting established capabilities. 3. The primary risk lies in achieving the projected energy savings and ensuring the firm fixed price remains advantageous. 4. The sector is energy services, supporting federal sustainability goals and infrastructure modernization.
Value Assessment
Rating: good
The contract value of $34.7M over 15 years appears reasonable for a large-scale ESPC. Benchmarking against similar ESPCs for military bases 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, which generally promotes competitive pricing. The delivery order mechanism suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, but the specific price discovery for this order is not detailed.
Taxpayer Impact: The primary taxpayer benefit is through guaranteed energy cost savings, which should offset the contract's value over its lifespan.
Public Impact
Potential for significant long-term reduction in energy consumption and utility costs for the Naval Submarine Base. Modernization of aging infrastructure at the base, improving operational efficiency and resilience. Contribution to federal sustainability targets and reduction of greenhouse gas emissions. Creation of jobs in the energy services sector through the execution of the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of not achieving projected energy savings.
- Potential for cost overruns if unforeseen issues arise.
- Dependence on contractor performance for realizing benefits.
Positive Signals
- Awarded through full and open competition.
- Long-term contract duration allows for sustained savings.
- Focus on energy efficiency aligns with federal mandates.
Sector Analysis
This contract falls within the energy services sector, specifically Energy Savings Performance Contracts (ESPCs). These contracts are designed to achieve energy savings and facility improvements without upfront capital investment from the government. Benchmarks for ESPCs vary widely based on scope and facility type.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's performance will likely be overseen by the Department of the Navy, with specific metrics for energy savings and project milestones. Accountability is tied to the firm fixed price and guaranteed savings clauses.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for savings not being realized.
- Contract performance risk by NORESCO, LLC.
- Long-term commitment exposes government to potential changes in energy markets or technology.
- Complexity of M&V for large-scale projects.
Tags
engineering-services, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.7 million to NORESCO, LLC. ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NAVAL SUBMARINE BASE NEW LONDON, GROTON, CT
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $34.7 million.
What is the period of performance?
Start: 2019-12-13. End: 2040-12-12.
What is the projected annual energy cost saving, and how does it compare to the contract value and duration?
The contract value is $34.7 million over approximately 15 years (2019-2040). While specific annual savings are not provided, the total value suggests an average annual cost reduction of roughly $2.3 million. This needs to be compared against the baseline energy costs of the base to assess the magnitude of savings and the contract's overall financial effectiveness.
What are the specific energy conservation measures included in the ESPC, and what is the risk associated with their implementation?
The provided data does not detail the specific energy conservation measures (ECMs). Typical ESPC ECMs include lighting upgrades, HVAC improvements, and building envelope enhancements. Risks associated with implementation can include unforeseen site conditions, technology performance issues, and integration challenges with existing systems, potentially impacting the guaranteed savings.
How will the effectiveness of the energy savings be measured and verified throughout the contract's lifecycle?
ESPCs typically include a Measurement and Verification (M&V) plan, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). The effectiveness is measured by comparing post-project energy consumption against a baseline, with savings verified by an independent third party or through agreed-upon methodologies to ensure the government only pays for achieved savings.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
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: $184,243,560
Exercised Options: $184,243,560
Current Obligation: $34,694,104
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $10,907,296
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: 2019-12-13
Current End Date: 2040-12-12
Potential End Date: 2040-12-12 00:00:00
Last Modified: 2025-12-03
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