DOJ Awards $46M Energy Savings Contract to Ameresco Inc. for California Facilities
Contract Overview
Contract Amount: $46,041,752 ($46.0M)
Contractor: Ameresco Inc
Awarding Agency: Department of Justice
Start Date: 2018-01-11
End Date: 2019-05-29
Contract Duration: 503 days
Daily Burn Rate: $91.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR BOTH MDC LOS ANGELES AND MCC SAN DIEGO, CALIFORNIA. THIS ESPC SHALL REDUCE ENERGY, UTILITY COST, MAINTENANCE COST, AND WATER RELATED OPERATIONS AT BOTH FACILITIES.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101
Plain-Language Summary
Department of Justice obligated $46.0 million to AMERESCO INC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR BOTH MDC LOS ANGELES AND MCC SAN DIEGO, CALIFORNIA. THIS ESPC SHALL REDUCE ENERGY, UTILITY COST, MAINTENANCE COST, AND WATER RELATED OPERATIONS AT BOTH FACILITIES. Key points: 1. Contract aims to reduce energy, utility, maintenance, and water costs. 2. Ameresco Inc. is the sole contractor for this specific delivery order. 3. Potential risk lies in achieving projected savings and long-term performance. 4. The Engineering Services sector sees significant investment in efficiency upgrades.
Value Assessment
Rating: good
The contract value of $46M for a 503-day duration appears reasonable for an Energy Savings Performance Contract (ESPC) of this scope. Benchmarking against similar ESPCs would provide a more precise assessment, but the inclusion of multiple cost reduction areas suggests a comprehensive approach.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing for the services rendered.
Taxpayer Impact: Taxpayers benefit from reduced operational costs at federal facilities, leading to more efficient use of public funds.
Public Impact
Reduced energy consumption at federal prisons can lead to significant long-term cost savings. Improved facility infrastructure through energy efficiency upgrades enhances operational reliability. Potential for environmental benefits through decreased energy usage and carbon footprint.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of not meeting projected energy savings targets.
- Dependence on contractor's expertise for accurate performance measurement.
- Potential for unforeseen maintenance issues impacting savings.
Positive Signals
- Focus on multiple cost reduction areas (energy, water, maintenance).
- Awarded through full and open competition.
- Clear objective to improve facility operational efficiency.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on energy efficiency and performance contracting. ESPCs are a common mechanism for federal agencies to upgrade infrastructure and reduce operating costs without upfront capital investment.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular delivery order. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Bureau of Prisons, under the Department of Justice, is responsible for overseeing this contract. Performance monitoring and verification of energy savings are crucial for accountability and ensuring taxpayer value.
Related Government Programs
- Engineering Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for cost overruns if savings are not realized.
- Risk of contractor underperformance or failure to meet savings guarantees.
- Dependency on accurate baseline data for savings calculations.
- Technological obsolescence of installed systems over time.
Tags
engineering-services, department-of-justice, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $46.0 million to AMERESCO INC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR BOTH MDC LOS ANGELES AND MCC SAN DIEGO, CALIFORNIA. THIS ESPC SHALL REDUCE ENERGY, UTILITY COST, MAINTENANCE COST, AND WATER RELATED OPERATIONS AT BOTH FACILITIES.
Who is the contractor on this award?
The obligated recipient is AMERESCO INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $46.0 million.
What is the period of performance?
Start: 2018-01-11. End: 2019-05-29.
What is the projected return on investment (ROI) for this ESPC, and how is it calculated?
The projected ROI is typically calculated based on the total contract cost divided by the annual energy and operational cost savings. ESPCs often have a guaranteed savings clause, meaning the contractor is responsible for delivering the projected savings. The specific ROI calculation methodology and targets should be detailed within the contract's performance work statement.
What are the key performance indicators (KPIs) used to measure the success of this energy savings contract?
Key performance indicators likely include measured reductions in kilowatt-hours (kWh) consumed, cubic feet of natural gas used, gallons of water consumed, and associated utility costs. Maintenance cost reductions and operational efficiency improvements would also be tracked. Regular energy audits and performance verification reports are essential.
How will the long-term effectiveness of the implemented energy conservation measures be ensured beyond the contract period?
Long-term effectiveness is ensured through the selection of durable and proven technologies, proper installation and commissioning, and often includes training for facility staff on operating and maintaining the new systems. The contract may also include provisions for post-performance verification or warranties on installed equipment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 111 SPEEN ST STE 410, FRAMINGHAM, MA, 01701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,041,752
Exercised Options: $46,041,752
Current Obligation: $46,041,752
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29029
IDV Type: IDC
Timeline
Start Date: 2018-01-11
Current End Date: 2019-05-29
Potential End Date: 2019-06-10 00:00:00
Last Modified: 2019-05-01
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