DoD's $49M Utility Monitoring System Contract Awarded to NORESCO, LLC for Engineering Services
Contract Overview
Contract Amount: $48,960,104 ($49.0M)
Contractor: Noresco, LLC
Awarding Agency: Department of Defense
Start Date: 2011-07-20
End Date: 2031-03-01
Contract Duration: 7,164 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UTILITY MONITORING CONTROL SYSTEM
Place of Performance
Location: WEST POINT, ORANGE County, NEW YORK, 10996
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $49.0 million to NORESCO, LLC for work described as: UTILITY MONITORING CONTROL SYSTEM Key points: 1. Contract focuses on engineering services for a utility monitoring control system, indicating a need for specialized technical expertise. 2. The long duration of the contract (over 19 years) suggests a strategic, long-term investment in infrastructure management. 3. Awarded under full and open competition, this suggests a robust market for these services. 4. The contract's value of approximately $49 million over its lifespan points to a significant investment in facility operations. 5. The fixed-price nature of the contract shifts performance risk to the contractor, potentially stabilizing costs. 6. The contract is geographically located in New York, suggesting a focus on facilities within that region.
Value Assessment
Rating: good
The contract value of $48.96 million over nearly 20 years averages to roughly $2.58 million per year. Benchmarking this against similar large-scale engineering service contracts for federal facilities is challenging without more specific details on the scope of the utility monitoring system. However, the fixed-price structure suggests an attempt to control costs. The long duration implies a stable, ongoing need for these services, which can sometimes lead to better long-term value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 19 bids received, this suggests a healthy level of interest and a competitive marketplace for utility monitoring and engineering services. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among potential contractors.
Public Impact
The Department of Defense benefits from improved operational efficiency and potentially reduced energy costs through the implemented utility monitoring system. Engineering services delivered will likely enhance the functionality and reliability of critical infrastructure at military installations. The geographic impact is concentrated in New York, where the facilities managed under this contract are located. The contract supports specialized engineering roles, potentially creating or sustaining jobs in the engineering and technical services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency or reduced urgency if not actively managed.
- Reliance on a single contractor for nearly two decades may limit opportunities for adopting newer technologies or approaches.
- Potential for scope creep over the extended period, which could increase costs beyond initial projections if not carefully controlled.
Positive Signals
- Awarded through full and open competition, ensuring a competitive process.
- Fixed-price contract type shifts risk to the contractor, promoting cost control.
- Long-term nature allows for sustained focus on optimizing utility systems and achieving long-term savings.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and design services. The market for federal engineering services is substantial, driven by the need to maintain and upgrade vast government infrastructure. This specific contract for a utility monitoring control system addresses a critical aspect of facility management, aiming to improve efficiency and reduce operational costs. Comparable spending benchmarks would depend on the specific scale and complexity of the utility systems being monitored.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless NORESCO, LLC actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Energy Management Program
- Department of Defense Facilities Engineering
- Military Base Infrastructure Modernization
- Government Building Operations and Maintenance
Risk Flags
- Long contract duration increases risk of technological obsolescence.
- Potential for cost overruns if scope is not tightly managed over 19 years.
- Limited visibility into specific performance metrics and achieved savings without further reporting.
Tags
department-of-defense, engineering-services, utility-monitoring, control-system, full-and-open-competition, firm-fixed-price, delivery-order, long-term-contract, new-york, infrastructure, energy-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.0 million to NORESCO, LLC. UTILITY MONITORING CONTROL SYSTEM
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 Army).
What is the total obligated amount?
The obligated amount is $49.0 million.
What is the period of performance?
Start: 2011-07-20. End: 2031-03-01.
What is the specific scope of the 'Utility Monitoring Control System' and what types of utilities does it cover?
The provided data does not detail the specific scope of the 'Utility Monitoring Control System.' However, such systems typically encompass the monitoring and control of essential building utilities like electricity, water, natural gas, and HVAC (heating, ventilation, and air conditioning). For a Department of Defense contract, this could include managing energy consumption, detecting leaks or faults, optimizing resource allocation, and ensuring the reliable operation of these systems across one or more military installations. The engineering services component suggests that the contract may involve the design, implementation, integration, and ongoing maintenance or upgrades of this complex system.
How does the $48.96 million contract value compare to similar federal contracts for utility monitoring systems?
Direct comparison of the $48.96 million contract value is difficult without knowing the exact scope, duration, and specific technologies involved. However, federal agencies frequently invest in energy and utility management systems to achieve cost savings and operational efficiencies. Large-scale projects can easily run into tens of millions of dollars, especially when they involve extensive infrastructure, advanced sensor networks, sophisticated control software, and long-term support. The nearly 20-year duration of this contract suggests a comprehensive, long-term solution rather than a simple technology purchase, which justifies a significant overall investment.
What are the primary risks associated with a fixed-price contract of this duration?
The primary risks with a fixed-price contract of this nearly 20-year duration include potential contractor underestimation of long-term costs, leading to reduced profit margins or quality compromises. Conversely, if the contractor significantly overestimates, the government may pay a premium. Technological obsolescence is another risk; the system's technology could become outdated long before the contract ends, requiring costly modifications or workarounds. Furthermore, the long timeframe increases the possibility of unforeseen external factors (e.g., regulatory changes, major economic shifts) impacting the contractor's ability to deliver as initially scoped, potentially leading to disputes or requests for contract modification.
What is NORESCO, LLC's track record with federal contracts, particularly in engineering services and utility management?
NORESCO, LLC, a subsidiary of Energy Systems Group (ESG), has a significant track record with federal agencies, particularly in energy efficiency and infrastructure upgrades. They specialize in performance contracting, which aligns with the goals of utility monitoring and management. While specific details on their past performance for this exact type of system are not provided, their general expertise in large-scale energy projects suggests they are well-positioned for this contract. Federal procurement databases would likely show other contracts awarded to NORESCO for similar services, providing a basis for assessing their experience and reliability.
How might the 'Engineering Services' component of this contract differ from a standard 'Information Technology' or 'Maintenance' contract?
The 'Engineering Services' designation (NAICS 541330) implies a focus on the design, development, analysis, and potentially the oversight of the utility monitoring control system's architecture and functionality. This goes beyond routine IT support or basic maintenance. It suggests that NORESCO is responsible for the technical integrity of the system, potentially including system design, integration of various components, performance analysis, and ensuring the system meets specific engineering standards and operational requirements. This contrasts with IT contracts that might focus on software deployment or hardware installation, or maintenance contracts that emphasize routine upkeep and repair.
What are the potential long-term cost savings or efficiencies expected from this contract for the Department of Defense?
The primary expectation from a utility monitoring control system is significant long-term cost savings and operational efficiencies. By providing real-time data on energy and resource consumption, the system allows for the identification of waste, optimization of usage patterns (e.g., adjusting HVAC based on occupancy or time of day), and predictive maintenance to prevent costly breakdowns. For the DoD, this can translate into reduced utility bills, lower maintenance expenditures, extended equipment lifespan, and improved environmental performance. The long duration of the contract suggests these benefits are anticipated to accrue over many years.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DY08R0019
Offers Received: 19
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
Financial Breakdown
Contract Ceiling: $77,877,403
Exercised Options: $77,877,403
Current Obligation: $48,960,104
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $13,970,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY09D0018
IDV Type: IDC
Timeline
Start Date: 2011-07-20
Current End Date: 2031-03-01
Potential End Date: 2031-03-01 00:00:00
Last Modified: 2025-11-10
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)
- Marion and Milan Espc Project — $46.0M (Department of Justice)
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)