VA Awards $6.2M Energy Savings Contract to NORESCO, LLC for Northport VAMC
Contract Overview
Contract Amount: $6,226,282 ($6.2M)
Contractor: Noresco, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2017-10-06
End Date: 2042-10-01
Contract Duration: 9,126 days
Daily Burn Rate: $682/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 NORTHPORT, NY VAMC
Place of Performance
Location: NORTHPORT, SUFFOLK County, NEW YORK, 11768
State: New York Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $6.2 million to NORESCO, LLC for work described as: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 NORTHPORT, NY VAMC Key points: 1. Contract awarded for energy savings performance at a VA medical center. 2. NORESCO, LLC is a significant player in the energy services sector. 3. The contract spans over 25 years, indicating a long-term investment. 4. Engineering services (NAICS 541330) are central to this project.
Value Assessment
Rating: good
The contract value of $6.2M appears reasonable for a 25-year energy savings performance contract, considering the scope of facility upgrades and ongoing energy management services. Benchmarking against similar ESPCs would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely resulted in a fair price discovery. This method maximizes opportunities for qualified contractors.
Taxpayer Impact: This contract aims to reduce energy costs for the VA, leading to long-term taxpayer savings through improved energy efficiency and reduced utility bills.
Public Impact
Improved energy efficiency at a major VA facility. Potential for significant long-term utility cost reductions. Modernization of building systems for better performance and sustainability. Supports VA's commitment to environmental stewardship and operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 68 / 10
Warning Flags
- Long contract duration (25 years) may require ongoing performance monitoring.
- Reliance on a single contractor for an extended period.
- Potential for scope creep or unforeseen maintenance needs over time.
Positive Signals
- Awarded through full and open competition.
- Focus on energy savings, aligning with federal sustainability goals.
- Contractor has a strong track record in ESPCs.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on energy efficiency and building modernization. ESPCs are common in federal agencies to achieve energy savings without upfront capital investment.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses. Further analysis would be needed to determine the extent of small business involvement in this contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The long duration necessitates robust performance management and verification of energy savings to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long-term contract duration
- Potential for performance degradation over time
- Dependence on contractor's expertise for savings realization
- Need for robust VA oversight and verification mechanisms
Tags
engineering-services, department-of-veterans-affairs, ny, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $6.2 million to NORESCO, LLC. IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 NORTHPORT, NY VAMC
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $6.2 million.
What is the period of performance?
Start: 2017-10-06. End: 2042-10-01.
What is the projected annual energy savings and how does it compare to the contract cost?
The contract value is $6.2M over approximately 25 years. Projected annual savings are not explicitly stated in the provided data. A detailed analysis would require the specific savings projections outlined in the ESPC proposal to determine the return on investment and validate the value proposition for taxpayers.
What are the key performance indicators (KPIs) for measuring the success of this energy savings contract?
Key performance indicators would likely include measured energy consumption reduction (electricity, gas, water), cost savings achieved against baseline usage, system uptime and reliability of new equipment, and compliance with environmental standards. Regular audits and reporting by NORESCO, LLC, verified by the VA, are crucial.
How will the VA ensure the long-term effectiveness and maintenance of the upgraded systems beyond the initial performance period?
The ESPC structure typically includes provisions for ongoing measurement and verification of savings. The VA should have internal teams or engage third-party experts to monitor system performance and maintenance needs throughout the contract's 25-year duration, ensuring sustained efficiency and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $72,163,728
Exercised Options: $6,226,282
Current Obligation: $6,226,282
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $20,183,397
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
Start Date: 2017-10-06
Current End Date: 2042-10-01
Potential End Date: 2042-10-01 00:00:00
Last Modified: 2026-03-03
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