Navy awards $60.6M contract for energy conservation services to NORESCO LLC
Contract Overview
Contract Amount: $16,824,725 ($16.8M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2005-04-04
End Date: 2013-05-31
Contract Duration: 2,979 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200509!179711!1700!N68711!NAVFAC ENGINEERING FIELD DIVISII!DEAM3697EE73566!C!N! !N!N4740803F5319!P00002!20050404!20080929!606727402!606727402!007915663!N!NORESCO LLC !1 RESEARCH DR STE 400C !WESTBOROUGH !MA!01581!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002638751!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541690!E! !5!B!M!D!A!D!20120403!B! ! !A! !A! !J! !002!B! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !C!N! ! ! ! !1700!N69218!0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $16.8 million to NORESCO, LLC for work described as: 200509!179711!1700!N68711!NAVFAC ENGINEERING FIELD DIVISII!DEAM3697EE73566!C!N! !N!N4740803F5319!P00002!20050404!20080929!606727402!606727402!007915663!N!NORESCO LLC !1 RESEARCH DR STE 400C !WESTBOROUGH !MA!01581!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract focuses on energy conservation measures, aiming for long-term cost savings. 2. Full and open competition suggests a competitive bidding process. 3. The contract duration of nearly 8 years indicates a significant, long-term project. 4. Services fall under 'Other Scientific and Technical Consulting Services,' a broad category. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. Awarded by NAVFAC Engineering Field Divisions, indicating a focus on infrastructure.
Value Assessment
Rating: good
The contract value of $60.6 million over nearly 8 years appears reasonable for comprehensive energy conservation services. Benchmarking against similar large-scale energy efficiency projects for federal agencies would provide further context. The fixed-price structure suggests the government has negotiated a defined cost for the expected outcomes, which is generally a positive indicator for value if the contractor can deliver efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is expected to drive down prices and encourage innovation. The presence of multiple bidders suggests a healthy market for these types of specialized energy services.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and most cost-effective solutions for energy conservation initiatives.
Public Impact
The Department of the Navy benefits from improved energy efficiency and reduced operational costs. Services delivered likely include energy audits, system upgrades, and implementation of conservation measures. Geographic impact is centered in San Diego, California, where the Navy facilities are located. Workforce implications may include specialized technical roles for energy engineers and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during implementation.
- Ensuring the long-term effectiveness and maintenance of implemented energy conservation measures.
- Reliance on a single contractor for a significant duration could pose risks if performance degrades.
Positive Signals
- Focus on energy conservation aligns with federal sustainability goals.
- Fixed-price contract provides cost certainty for the government.
- Long contract duration allows for comprehensive project execution and measurable results.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on energy conservation. The market for energy efficiency services for large institutions, including government facilities, is substantial. This contract represents a significant investment by the Navy in optimizing its energy usage, aligning with broader trends in sustainable infrastructure development.
Small Business Impact
There is no explicit indication of small business set-asides for this contract. However, the prime contractor, NORESCO LLC, may engage small businesses for subcontracting opportunities related to specific services or components required for the energy conservation project.
Oversight & Accountability
Oversight is likely managed by NAVFAC engineering and contracting personnel, with potential involvement from the Navy's energy program managers. Accountability measures would be tied to performance milestones and the achievement of energy savings targets outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements.
Related Government Programs
- Federal Energy Management Program
- Energy Savings Performance Contracts (ESPCs)
- Department of Defense Energy Initiatives
Risk Flags
- Potential for scope creep if initial energy audits reveal unforeseen complexities.
- Risk of contractor underperformance impacting projected energy savings.
- Dependency on specific technologies that may become obsolete.
Tags
energy-conservation, department-of-defense, department-of-the-navy, navfac, california, firm-fixed-price, full-and-open-competition, professional-services, infrastructure, energy-efficiency, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to NORESCO, LLC. 200509!179711!1700!N68711!NAVFAC ENGINEERING FIELD DIVISII!DEAM3697EE73566!C!N! !N!N4740803F5319!P00002!20050404!20080929!606727402!606727402!007915663!N!NORESCO LLC !1 RESEARCH DR STE 400C !WESTBOROUGH !MA!01581!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002638751!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541690!E! !5!B!M!D!A!D!201
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 $16.8 million.
What is the period of performance?
Start: 2005-04-04. End: 2013-05-31.
What specific energy conservation measures are included in this contract?
The provided data does not detail the specific energy conservation measures. However, typical measures under such contracts include upgrades to lighting systems, HVAC optimization, building envelope improvements, water conservation initiatives, and the integration of renewable energy sources. The scope would be defined in the contract's statement of work, likely involving comprehensive energy audits to identify the most impactful and cost-effective solutions for the Navy facilities in San Diego.
How does the $60.6 million contract value compare to similar energy conservation projects for federal agencies?
Without specific comparable contract data, a direct comparison is difficult. However, $60.6 million over nearly eight years for a large-scale energy conservation project at a major federal installation like a Navy base is within a plausible range. Large ESPCs can range from millions to hundreds of millions of dollars, depending on the size and complexity of the facilities, the scope of work, and the projected energy savings. The fixed-price nature suggests a well-defined scope was negotiated.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators for this contract would likely focus on measurable energy savings (e.g., kilowatt-hours reduced, cost savings achieved), project completion timelines, system performance post-implementation, and compliance with environmental and safety standards. The contract would specify the baseline energy consumption and the targets for reduction, with payments potentially tied to verified savings.
What is NORESCO LLC's track record with federal energy contracts?
NORESCO LLC is a well-established energy services company with a significant history of performing Energy Savings Performance Contracts (ESPCs) for federal agencies, including the Department of Defense. They have completed numerous projects aimed at improving energy efficiency and reducing utility costs for government facilities. Their experience suggests a capability to manage complex, large-scale projects and deliver measurable results, although specific performance details for individual contracts would require further investigation.
What is the historical spending trend for energy conservation services by the Department of the Navy?
The Department of the Navy, like other branches of the DoD, has consistently invested in energy conservation and efficiency projects. Historical spending reflects a commitment to meeting federal mandates for energy reduction and sustainability. While specific annual figures fluctuate based on budget allocations and project needs, there has been a sustained focus on leveraging ESPCs and other contracting mechanisms to modernize infrastructure and reduce operational energy costs across its numerous installations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: RTX Corp
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3697EE73566
IDV Type: IDC
Timeline
Start Date: 2005-04-04
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2023-08-09
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