DOC Awards $318.7M ESPC Project to Veregy LLC for NOAA Facilities
Contract Overview
Contract Amount: $3,187,090 ($3.2M)
Contractor: Veregy LLC
Awarding Agency: Department of Commerce
Start Date: 2025-09-11
End Date: 2050-09-10
Contract Duration: 9,130 days
Daily Burn Rate: $349/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: APPROVAL OR-25-03056 RECEIVED ON AUGUST 11, 2025 FROM DOC TO AWARD SEFSC ESPC PROJECT UNDER AUTHORITY OF 42 USC 8287.
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567
Plain-Language Summary
Department of Commerce obligated $3.2 million to VEREGY LLC for work described as: APPROVAL OR-25-03056 RECEIVED ON AUGUST 11, 2025 FROM DOC TO AWARD SEFSC ESPC PROJECT UNDER AUTHORITY OF 42 USC 8287. Key points: 1. Veregy LLC secured a significant contract for an Energy Savings Performance Contract (ESPC) project. 2. The project falls under the Department of Commerce's authority for energy efficiency. 3. The contract duration is substantial, spanning over 25 years, indicating long-term energy management. 4. The firm fixed-price structure aims to provide cost certainty for the government.
Value Assessment
Rating: good
The contract is a firm fixed price, which provides cost certainty. Benchmarking against similar ESPC projects is difficult without detailed scope and performance metrics, but the total value suggests a significant undertaking.
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 should lead to favorable pricing. The firm fixed-price nature further supports price discovery.
Taxpayer Impact: This ESPC project is intended to generate energy savings, which should ultimately reduce utility costs for taxpayers over the contract's lifespan.
Public Impact
Potential for significant energy cost reductions at NOAA facilities. Long-term commitment to energy efficiency and sustainability. Creation of jobs related to energy infrastructure upgrades and maintenance. Opportunity for technological advancements in facility energy management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may introduce risks related to technology obsolescence or changing energy markets.
- Performance verification and measurement of savings will be critical for realizing value.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Focus on energy efficiency aligns with sustainability goals.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy efficiency projects. ESPC projects are common across federal agencies to improve facility performance and reduce operational costs.
Small Business Impact
The data indicates the prime contractor is Veregy LLC and that small business participation was not a stated factor (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award is made under specific statutory authority (42 USC 8287) for ESPCs, indicating established oversight mechanisms. The long duration will require ongoing monitoring by NOAA to ensure performance and savings.
Related Government Programs
- Engineering Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long contract duration (25 years)
- Potential for technology obsolescence
- Reliance on contractor's performance metrics
- Lack of explicit small business participation noted
Tags
engineering-services, department-of-commerce, ms, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $3.2 million to VEREGY LLC. APPROVAL OR-25-03056 RECEIVED ON AUGUST 11, 2025 FROM DOC TO AWARD SEFSC ESPC PROJECT UNDER AUTHORITY OF 42 USC 8287.
Who is the contractor on this award?
The obligated recipient is VEREGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2025-09-11. End: 2050-09-10.
What specific energy conservation measures are included in this ESPC project, 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 ESPC typically involves a range of upgrades such as HVAC modernization, lighting retrofits, building envelope improvements, and renewable energy installations. Projected savings are usually itemized in the project proposal, detailing expected reductions in energy consumption and associated costs for each ECM.
How will the performance and energy savings be measured and verified over the 25-year contract period to ensure taxpayer value?
Performance and savings are typically verified through a Measurement and Verification (M&V) plan, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). This involves baseline energy use data, ongoing monitoring of consumption post-installation, and regular reporting. NOAA will likely conduct periodic reviews and audits to ensure Veregy LLC meets the guaranteed savings.
What are the potential risks associated with a 25-year firm fixed-price contract for energy performance, and how are they mitigated?
Risks include technology obsolescence, unforeseen changes in energy prices or regulations, and potential underperformance of installed systems. Mitigation strategies often involve contract clauses for adjustments, robust M&V plans to ensure savings, and potentially performance bonds. The firm fixed-price nature shifts some risk to the contractor, incentivizing them to manage costs and deliver savings effectively.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3312 E BROADWAY RD, PHOENIX, AZ, 85040
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,187,090
Exercised Options: $3,187,090
Current Obligation: $3,187,090
Actual Outlays: $406,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-11
Current End Date: 2050-09-10
Potential End Date: 2050-09-10 00:00:00
Last Modified: 2026-03-02
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