VA Awards $43.7M Energy Savings Contract to NORESCO, LLC for VISN 12
Contract Overview
Contract Amount: $43,702,955 ($43.7M)
Contractor: Noresco, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2017-12-21
End Date: 2039-09-20
Contract Duration: 7,943 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) VISN 12
Place of Performance
Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $43.7 million to NORESCO, LLC for work described as: IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) VISN 12 Key points: 1. Significant investment in energy efficiency for Veterans Affairs VISN 12. 2. NORESCO, LLC, a known energy services provider, secured the contract. 3. Full and open competition suggests potential for competitive pricing. 4. Long contract duration (2039) requires ongoing performance monitoring.
Value Assessment
Rating: good
The contract value of $43.7M over its term appears reasonable for a large-scale energy savings performance contract. Benchmarking against similar ESPCs would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process for soliciting bids. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being invested in energy efficiency, which can lead to long-term cost savings for the VA and potentially reduce operational expenses.
Public Impact
Improved energy efficiency at VA facilities in VISN 12. Potential for reduced utility costs for the Department of Veterans Affairs. Supports government goals for sustainability and reduced environmental impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration requires sustained oversight.
- Performance metrics and savings verification are critical.
Positive Signals
- Focus on energy efficiency and cost savings.
- Utilizes a competitive procurement process.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on energy savings performance contracts (ESPCs). ESPCs are a common mechanism for federal agencies to finance energy efficiency upgrades without upfront capital costs.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
The long-term nature of this contract necessitates diligent oversight by the VA to ensure NORESCO, LLC meets performance obligations and achieves projected energy savings throughout the contract period.
Related Government Programs
- Engineering Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long contract duration (nearly 22 years).
- Reliance on contractor performance for savings realization.
- Potential for energy price fluctuations impacting savings calculations.
Tags
engineering-services, department-of-veterans-affairs, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $43.7 million to NORESCO, LLC. IGF::OT::IGF OTHER FUNCTIONS - ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) VISN 12
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 $43.7 million.
What is the period of performance?
Start: 2017-12-21. End: 2039-09-20.
What are the projected energy savings and how will they be verified?
The contract's success hinges on the accurate projection and verification of energy savings. The VA must have robust mechanisms in place to track energy consumption before and after the upgrades, ensuring that the savings achieved justify the contract's cost and meet the agreed-upon performance metrics.
What are the risks associated with a long-term ESPC contract?
Long-term ESPCs carry risks such as technological obsolescence, changes in energy prices, and potential underperformance by the contractor. The VA needs to ensure contract flexibility and establish clear performance standards and remedies to mitigate these risks over the contract's lifespan.
How does this contract align with the VA's broader energy management and sustainability goals?
This ESPC directly supports the VA's commitment to improving energy efficiency and reducing its environmental footprint. By leveraging private sector expertise and financing, the VA can achieve significant upgrades that contribute to its sustainability objectives and operational resilience.
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: 4
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: $175,466,655
Exercised Options: $175,466,655
Current Obligation: $43,702,955
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $65,250,402
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: 2017-12-21
Current End Date: 2039-09-20
Potential End Date: 2039-09-20 00:00:00
Last Modified: 2025-07-22
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