DoD's $205M ESPC at NAS Key West awarded to NORESCO, LLC, runs through 2025
Contract Overview
Contract Amount: $20,541,225 ($20.5M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2025-06-30
Contract Duration: 6,117 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC AT NAS KEY WEST
Place of Performance
Location: KEY WEST, MONROE County, FLORIDA, 33040
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to NORESCO, LLC for work described as: ESPC AT NAS KEY WEST Key points: 1. Significant investment in energy efficiency for a major naval installation. 2. NORESCO, LLC, a known energy services provider, is the contractor. 3. Contract duration extends over 15 years, indicating long-term commitment. 4. Potential for substantial energy cost savings and operational improvements.
Value Assessment
Rating: good
The contract's value of $205.4M over its lifespan suggests a substantial project. Benchmarking against similar large-scale Energy Savings Performance Contracts (ESPCs) is difficult without specific project scope, but the duration and scale indicate a significant investment typical for major facility upgrades.
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 allows multiple qualified contractors to bid, fostering competition and potentially leading to more favorable pricing for the government.
Taxpayer Impact: The primary taxpayer benefit is expected through reduced energy consumption and operational costs at NAS Key West, with potential for long-term savings.
Public Impact
Enhances energy security and resilience at a critical naval base. Contributes to federal sustainability goals through energy efficiency upgrades. Potential for job creation in the energy services and construction sectors. Modernizes infrastructure at NAS Key West, improving operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or changing technology needs.
- Performance metrics and savings verification are crucial for realizing full value.
- Dependence on a single contractor for a long-term project.
Positive Signals
- Significant investment in energy efficiency at a key military installation.
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term commitment to sustainability and operational improvements.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy efficiency and facility modernization. ESPCs are common in government for improving energy performance and reducing utility costs, often involving significant capital investment.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large ESPC projects are often dominated by major energy service companies, potentially limiting direct opportunities for smaller firms unless they are subcontractors.
Oversight & Accountability
Oversight will be critical to ensure NORESCO, LLC meets performance milestones and delivers the projected energy savings. The Department of the Navy's contracting officers and technical representatives will monitor progress and verify outcomes.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (17 years).
- Potential for technological obsolescence.
- Reliance on contractor's performance verification.
- Complexity of measuring and verifying savings over time.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to NORESCO, LLC. ESPC AT NAS KEY WEST
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 $20.5 million.
What is the period of performance?
Start: 2008-09-30. End: 2025-06-30.
What specific energy conservation measures are included in this ESPC, and what are the projected savings for each?
The provided data does not detail the specific energy conservation measures (ECMs) included in the ESPC. A comprehensive analysis would require access to the contract's scope of work, which typically outlines measures like HVAC upgrades, lighting retrofits, renewable energy installations, and building envelope improvements. Projected savings are usually itemized per ECM and aggregated for the total contract value.
How will the effectiveness of the energy savings be measured and verified throughout the contract's duration?
Effectiveness is typically measured through a Measurement and Verification (M&V) plan, often based on the International Performance Measurement and Verification Protocol (IPMVP). This involves establishing baseline energy consumption, tracking post-installation usage, and accounting for variables like weather and occupancy. Independent verification by the government or a third party ensures that savings are real and attributable to the implemented measures.
What is the risk of cost overruns or performance shortfalls given the long duration and fixed-price nature of the contract?
The risk of cost overruns is generally mitigated by the firm-fixed-price structure, shifting much of that risk to the contractor. However, performance shortfalls remain a concern. Long durations can introduce risks related to unforeseen technological obsolescence or changes in facility usage. Robust oversight and clear performance metrics are essential to manage these risks and ensure the government receives the contracted benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 1
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: $20,541,225
Exercised Options: $20,541,225
Current Obligation: $20,541,225
Actual Outlays: $1,664,244
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698OR22586
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-10-29
More Contracts from Noresco, LLC
- - Closely Associated - These Requirements Have Been Developed for VA Visn 11 to PUT Forth Government Identified ECM Projects AT Visn 11 Facilities to Reduce Energy Consumption, Water Consumption and Associated Utility Costs, and Energy-Related Operations and Maintenance Costs — $121.8M (Department of Veterans Affairs)
- Espc Projects for FCI Fort DIX and FDC Philadelphia — $73.6M (Department of Justice)
- 200311!190367!1700!C7408 !naval Facilities Engineering Com!deam3699ee73680!c!n! !N!N4740803F5272 !20030825!20080825!606727402!606727402!007915663!n!noresco, LLC !ONE Research Drive !westborough !ma!01581!57000!710!51!norfolk !norfolk (city) !virginia !+000003000000!n!n!000000000000!r799!other Management Support Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A! !J! !030!A! !C! ! ! ! ! !C!N! ! ! !z!z!a!a!000! !C!N! ! ! ! ! ! !0001! ! — $61.4M (Department of Defense)
- De-Am36-09g0229039/Gs-P-05-14-Ga-0004,GSA National Deep Energy Retrofit (nder), Energy Savings Performance Contract (espc) Task Order, for Region 5, Noresco, LLC, Metcalfe Federal Building, 536 S. Clark Federal Building, U.S. Custom House, Federal Archives&records Center, Everett M. Dirksen U.S. Courthouse, John C. Kluczynski Federal Building, and U.S. Post Office/Loop Station, Chicago, IL — $53.7M (General Services Administration)
- Utility Monitoring Control System — $49.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)