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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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

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