U.S. Mint's $7.6M Energy Contract with NORESCO Aims for Treasury Energy Goals

Contract Overview

Contract Amount: $7,665,720 ($7.7M)

Contractor: Noresco, LLC

Awarding Agency: Department of the Treasury

Start Date: 2013-12-13

End Date: 2036-08-31

Contract Duration: 8,297 days

Daily Burn Rate: $924/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF -THROUGH THE IMPLEMENTATION OF THIS COMPREHENSIVE ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC), THE U.S. MINT WILL BE MAKING A SOUND INVESTMENT IN THE PHILADELPHIA MINT AND REALIZE SIGNIFICANT PROGRESS TOWARD MEETING THE TREASURY DEPARTMENT S ENERGY REDUCTION GOALS.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $7.7 million to NORESCO, LLC for work described as: IGF::OT::IGF -THROUGH THE IMPLEMENTATION OF THIS COMPREHENSIVE ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC), THE U.S. MINT WILL BE MAKING A SOUND INVESTMENT IN THE PHILADELPHIA MINT AND REALIZE SIGNIFICANT PROGRESS TOWARD MEETING THE TREASURY DEPARTMENT S ENERGY REDUCTION GOALS. Key points: 1. Investment in Philadelphia Mint infrastructure to achieve energy reduction targets. 2. Contract awarded via full and open competition, suggesting market availability of services. 3. Potential for significant energy savings and progress towards departmental goals. 4. Fixed Price Award Fee contract type implies performance-based incentives. 5. Long contract duration (2013-2036) requires ongoing monitoring for sustained value.

Value Assessment

Rating: good

The contract value of $7.6M over its term suggests a substantial investment in energy efficiency. Benchmarking against similar ESPCs would be necessary to fully assess pricing, but the fixed-price award fee structure indicates an attempt to align cost with performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The primary taxpayer impact is the upfront investment, offset by anticipated long-term energy cost savings and progress towards federal energy reduction mandates.

Public Impact

Modernization of the Philadelphia Mint facility for improved energy efficiency. Contribution to the Treasury Department's broader energy reduction and sustainability goals. Potential for reduced operational costs for the U.S. Mint through energy savings. Demonstration of government commitment to energy performance contracting.

Waste & Efficiency Indicators

Waste Risk Score: 92 / 10

Warning Flags

Long contract duration may lead to performance degradation if not actively managed.
Award Fee structure requires clear performance metrics and oversight to ensure value.
Reliance on a single contractor (NORESCO) for the entire duration.

Positive Signals

Clear alignment with federal energy reduction goals.
Awarded through full and open competition.
Potential for significant, measurable energy savings.
Investment in critical infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on energy savings performance contracts (ESPCs). ESPCs are a common mechanism for federal agencies to finance energy efficiency upgrades with no upfront capital costs, with repayment coming from the realized energy savings.

Small Business Impact

The data does not indicate any specific provisions or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the U.S. Mint and potentially the IG to ensure performance standards are met and that the award fee structure is applied fairly and effectively. Regular audits and performance reviews are crucial.

Related Government Programs

Engineering Services
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Long contract duration increases risk of performance decline or technological obsolescence.
Effectiveness of award fee structure depends heavily on clear metrics and diligent oversight.
Potential for cost overruns if energy savings projections are not met.
Lack of specific small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $7.7 million to NORESCO, LLC. IGF::OT::IGF -THROUGH THE IMPLEMENTATION OF THIS COMPREHENSIVE ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC), THE U.S. MINT WILL BE MAKING A SOUND INVESTMENT IN THE PHILADELPHIA MINT AND REALIZE SIGNIFICANT PROGRESS TOWARD MEETING THE TREASURY DEPARTMENT S ENERGY REDUCTION GOALS.

Who is the contractor on this award?

The obligated recipient is NORESCO, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2013-12-13. End: 2036-08-31.

What are the projected energy savings and payback period for this ESPC?

The provided data does not specify the projected energy savings or the expected payback period for this Energy Savings Performance Contract. To assess the full value, detailed projections from the contract documentation, including baseline energy usage and anticipated reductions, would be required. This information is critical for verifying the financial viability and effectiveness of the investment.

How will the performance of NORESCO be monitored and evaluated throughout the contract's 23-year term?

Monitoring and evaluation will likely involve regular energy audits, performance data collection, and comparison against baseline measurements. The 'Award Fee' component suggests specific performance metrics tied to energy savings, operational efficiency, and system reliability. The U.S. Mint must have a dedicated team or process to track these metrics and ensure NORESCO meets its contractual obligations.

What is the risk of technological obsolescence or changes in energy efficiency standards over the contract's long duration?

There is a moderate risk of technological obsolescence given the contract's 23-year term. Energy-efficient technologies evolve rapidly. The contract should ideally include provisions for incorporating updated technologies or performance standards. Regular reviews and potential contract modifications might be necessary to ensure the upgrades remain state-of-the-art and cost-effective throughout the period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIXED PRICE AWARD FEE (M)

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: $7,665,721

Exercised Options: $7,665,720

Current Obligation: $7,665,720

Actual Outlays: $5,159,791

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