VA Awards $6.4M Energy Savings Contract to AMERESCO INC for NJ Facilities

Contract Overview

Contract Amount: $6,404,056 ($6.4M)

Contractor: Ameresco Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-12-28

End Date: 2027-01-01

Contract Duration: 3,291 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 LYONS AND EAST ORANGE, NJ

Place of Performance

Location: LYONS, SOMERSET County, NEW JERSEY, 07939

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.4 million to AMERESCO INC for work described as: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 LYONS AND EAST ORANGE, NJ Key points: 1. Contract focuses on energy efficiency upgrades, potentially reducing long-term operational costs. 2. AMERESCO INC, a known energy services provider, secured the contract. 3. The contract duration is over 9 years, indicating a long-term commitment to energy performance. 4. Competition was full and open, suggesting a competitive bidding process. 5. The contract type is Firm Fixed Price, providing cost certainty for the VA.

Value Assessment

Rating: good

The contract value of $6.4M over 9 years appears reasonable for an Energy Savings Performance Contract (ESPC) of this scope. Benchmarking against similar ESPCs would provide a more precise assessment, but the fixed-price nature offers cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The award was a delivery order against a multiple-award contract.

Taxpayer Impact: The primary taxpayer impact is the initial investment, offset by projected long-term energy cost savings and improved facility efficiency.

Public Impact

Improved energy efficiency at VA facilities in Lyons and East Orange, NJ. Potential for reduced greenhouse gas emissions and a smaller environmental footprint. Modernization of critical infrastructure supporting veteran healthcare services. Creation of jobs in the energy services and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may require ongoing performance monitoring.
Reliance on a single contractor for a significant period.
Potential for scope creep or unforeseen technical challenges.

Positive Signals

Focus on energy savings aligns with sustainability goals.
Firm Fixed Price contract provides budget predictability.
Awarded through a competitive process.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to energy efficiency and performance contracting. ESPCs are common in government to finance energy upgrades through guaranteed savings, often benchmarked against historical energy usage.

Small Business Impact

While the prime contractor is AMERESCO INC, the contract details do not specify the extent of small business participation. Further analysis would be needed to determine if small businesses were subcontracted for specific services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The IG's office may conduct audits to ensure performance and financial accountability, especially given the long-term nature of the savings agreement.

Related Government Programs

Engineering Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Performance risk: Ensuring projected energy savings are achieved.
Contract duration risk: Long-term commitment may outlast facility needs or technology relevance.
Verification risk: Accuracy and independence of energy savings measurement.
Cost overrun risk: Potential for unforeseen issues impacting fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.4 million to AMERESCO INC. IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR VISN 2 LYONS AND EAST ORANGE, NJ

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

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 $6.4 million.

What is the period of performance?

Start: 2017-12-28. End: 2027-01-01.

What are the projected energy savings and how are they verified?

The contract's success hinges on the projected energy savings being realized and independently verified. ESPCs typically include detailed measurement and verification (M&V) plans. The VA should ensure robust M&V procedures are in place to confirm savings and justify the contract's value to taxpayers.

What are the specific energy conservation measures being implemented?

Understanding the specific measures (e.g., HVAC upgrades, lighting retrofits, building envelope improvements) is crucial for assessing the technical approach and potential risks. This information would clarify the scope of work and allow for comparison with industry best practices for similar facilities.

How does the contract account for potential changes in energy prices or usage patterns over the 9-year term?

Long-term contracts like this face risks from fluctuating energy markets and changes in facility operations. The contract's structure should ideally include mechanisms to adjust savings calculations based on verifiable changes in energy prices or usage, ensuring fairness to both parties.

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: 3

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: $6,404,057

Exercised Options: $6,404,057

Current Obligation: $6,404,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29029

IDV Type: IDC

Timeline