Marine Corps Base Hawaii ESPC Awarded to NORESCO, LLC for $21.8M, Spanning 12 Years
Contract Overview
Contract Amount: $21,776,754 ($21.8M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2008-03-04
End Date: 2030-07-31
Contract Duration: 8,184 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MARINE CORPS BASE HAWAII - ESPC
Place of Performance
Location: M C B H KANEOHE BAY, HONOLULU County, HAWAII, 96863
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to NORESCO, LLC for work described as: MARINE CORPS BASE HAWAII - ESPC Key points: 1. Significant investment in energy efficiency for a major military installation. 2. NORESCO, LLC is a known player in the Energy Savings Performance Contract (ESPC) market. 3. Long contract duration presents potential for price escalation and evolving technology risks. 4. Focus on 'Other Scientific and Technical Consulting Services' suggests a broad scope beyond simple energy retrofits.
Value Assessment
Rating: fair
The total award amount of $21.8M over 12 years is substantial. Benchmarking is difficult without specific project details, but ESPCs are typically structured to ensure cost savings meet or exceed investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being invested in energy efficiency, which can lead to long-term operational cost savings for the base and potentially reduce reliance on fluctuating energy markets.
Public Impact
Enhances energy security and resilience at a critical military base. Potential for reduced environmental impact through energy conservation measures. Supports modernization of infrastructure at Marine Corps Base Hawaii. Long-term commitment may lock in current technology, potentially missing future innovations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12 years) may not adapt to rapidly changing energy technologies.
- Firm Fixed Price contract could lead to contractor risk if costs escalate unexpectedly.
- Lack of specific details on the 'Other Scientific and Technical Consulting Services' makes full assessment difficult.
Positive Signals
- Awarded via full and open competition, suggesting competitive pricing.
- Focus on energy efficiency aligns with sustainability goals.
- Long-term contract provides budget certainty for energy projects.
Sector Analysis
This contract falls under 'Other Scientific and Technical Consulting Services' and relates to energy efficiency projects, often categorized within the broader energy or facilities management sectors. ESPCs are common in government for infrastructure upgrades.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The long-term nature of the contract necessitates ongoing oversight to ensure performance milestones are met and that the projected energy savings are realized. Regular reviews by the Department of the Navy are crucial.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration
- Potential for technological obsolescence
- Firm Fixed Price risk
- Lack of specific ECM details
Tags
other-scientific-and-technical-consultin, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to NORESCO, LLC. MARINE CORPS BASE HAWAII - ESPC
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 $21.8 million.
What is the period of performance?
Start: 2008-03-04. End: 2030-07-31.
What specific energy conservation measures are included in this ESPC, and what are the projected savings?
The provided data lacks specifics on the energy conservation measures (ECMs) and projected savings. A comprehensive review would require access to the contract's technical exhibits and financial projections. Understanding the baseline energy consumption and the expected reductions from measures like HVAC upgrades, lighting retrofits, or renewable energy integration is key to assessing value.
What are the risks associated with a 12-year firm-fixed-price contract for energy services in a dynamic market?
A 12-year firm-fixed-price contract carries risks of technological obsolescence and market price fluctuations. If energy prices decrease significantly or new, more efficient technologies emerge, the government might be locked into a less advantageous price or suboptimal performance. Conversely, unforeseen cost increases for the contractor could lead to performance issues if not managed proactively.
How effectively does this ESPC align with the Department of Defense's broader energy resilience and sustainability goals?
This ESPC likely aligns with broader goals by improving energy efficiency and potentially incorporating renewable energy sources, thereby reducing the base's carbon footprint and enhancing energy resilience. However, the degree of alignment depends on the specific technologies implemented and their contribution to overall energy security and sustainability targets beyond simple cost savings.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 30
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,780,424
Exercised Options: $27,780,424
Current Obligation: $21,776,754
Actual Outlays: $6,848,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3697EE73566
IDV Type: IDC
Timeline
Start Date: 2008-03-04
Current End Date: 2030-07-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2025-06-12
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