GSA's $18.8M Energy Retrofit Contract Awarded to Ameresco Inc. for Louisiana and Texas Facilities

Contract Overview

Contract Amount: $18,831,685 ($18.8M)

Contractor: Ameresco Inc

Awarding Agency: General Services Administration

Start Date: 2022-12-16

End Date: 2043-02-28

Contract Duration: 7,379 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 5, REGION 7 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES MULTIPLE LOCATIONS IN LOUISIANA AND TEXAS.

Place of Performance

Location: LAFAYETTE, LAFAYETTE County, LOUISIANA, 70501

State: Louisiana Government Spending

Plain-Language Summary

General Services Administration obligated $18.8 million to AMERESCO INC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 5, REGION 7 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES MULTIPLE LOCATIONS IN LOUISIANA AND TEXAS. Key points: 1. Contract aims to achieve significant energy and water savings through deep energy retrofits. 2. Ameresco Inc. has a track record in energy performance contracting. 3. The contract duration of over 20 years suggests a long-term investment in facility upgrades. 4. Full and open competition was utilized, indicating a potentially competitive bidding process. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. Performance is benchmarked against established energy conservation measures. 7. The contract supports the government's broader goals for energy efficiency and sustainability.

Value Assessment

Rating: good

The contract value of $18.8 million for a deep energy retrofit program over 20 years appears reasonable, especially considering the scope of multiple locations across Louisiana and Texas. While specific performance metrics and projected savings are not detailed here, energy savings performance contracts (ESPCs) are designed to be cost-neutral, with savings funding the project. Benchmarking against similar large-scale federal ESPCs would provide a more precise value assessment, but the long-term nature and comprehensive approach suggest a potentially good return on investment if savings targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 9 bidders indicates a healthy level of competition for this significant energy retrofit project. A competitive process generally leads to better pricing and more innovative solutions for the government, as contractors vie to win the award by offering the most advantageous terms.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by driving down costs through bidding. It also ensures that the government is receiving the best value available in the market for these specialized energy services.

Public Impact

Federal facilities in Louisiana and Texas will benefit from modernized, energy-efficient infrastructure. The project is expected to deliver substantial reductions in energy and water consumption. Improved building performance can lead to enhanced comfort and operational efficiency for federal employees. The contract supports the government's commitment to reducing its environmental footprint. Implementation of energy conservation measures may involve local labor and subcontractors, providing economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 20 years) could present challenges in adapting to future technological advancements or changing energy landscapes.
Reliance on projected energy savings to fund the project carries inherent risk if actual savings fall short.
The complexity of retrofitting multiple diverse facilities could lead to unforeseen cost overruns or delays.

Positive Signals

Ameresco Inc. is an experienced Energy Services Company (ESCO) with a history of delivering ESPC projects.
The contract is structured as Firm Fixed Price, providing cost certainty for the government.
The project aligns with federal mandates and goals for energy efficiency and greenhouse gas reduction.
Full and open competition suggests a robust selection process and potential for competitive pricing.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on energy conservation and facility retrofitting. The market for energy performance contracting is substantial, driven by government mandates and private sector sustainability initiatives. Federal agencies, particularly those managing large real property portfolios like GSA, are significant players in this market. This contract represents a substantial investment in deep energy retrofits, aiming for significant long-term operational cost reductions and environmental benefits, aligning with broader trends in sustainable infrastructure development.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Ameresco Inc., may engage small businesses for subcontracting opportunities during the implementation phase. The scale of the project suggests potential for significant subcontracting work in areas like construction, installation, and specialized services. The government's overall goals often include encouraging small business participation, and the success of this contract could indirectly benefit small businesses through Ameresco's procurement practices.

Oversight & Accountability

The General Services Administration (GSA) Public Buildings Service is responsible for overseeing this contract. Oversight mechanisms likely include regular progress reports from Ameresco, site inspections, and performance reviews to ensure compliance with the contract terms and achievement of energy savings goals. The contract's long duration necessitates ongoing monitoring. Transparency is generally maintained through federal contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Energy Savings Performance Contracts (ESPCs)
Federal Energy Management Program (FEMP)
GSA Public Buildings Service
National Deep Energy Retrofit Program
Energy Conservation Measures

Risk Flags

Long-term performance risk
Accuracy of energy savings projections
Technological obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.8 million to AMERESCO INC. ENERGY SAVINGS PERFORMANCE CONTRACT, NATIONAL DEEP ENERGY RETROFIT PROGRAM ROUND 5, REGION 7 FOR IMPLEMENTATION OF ENERGY CONSERVATION MEASURES MULTIPLE LOCATIONS IN LOUISIANA AND TEXAS.

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2022-12-16. End: 2043-02-28.

What is Ameresco Inc.'s track record with similar large-scale federal energy performance contracts?

Ameresco Inc. has a significant history of executing Energy Savings Performance Contracts (ESPCs) for federal agencies. They have completed numerous projects involving deep energy retrofits, renewable energy installations, and water conservation measures across various government facilities. Their experience includes managing complex, multi-site projects with long-term performance guarantees. While specific financial details and success rates for all past federal contracts are not publicly itemized in a single source, their consistent presence and awards in this sector suggest a capable performance history. Prospective analysis would involve reviewing their portfolio of completed federal ESPCs, including project scope, duration, and reported savings, to assess their capacity and reliability for the current GSA contract.

How does the $18.8 million cost compare to the projected energy savings over the contract's 20-year duration?

The contract value of $18.8 million represents the total investment for implementing energy conservation measures across multiple federal facilities. Energy Savings Performance Contracts (ESPCs) are designed such that the realized energy and operational cost savings are intended to fund the project's capital investment over time. Therefore, the projected savings must exceed $18.8 million over the contract's life to demonstrate value. Without the specific savings projections detailed in the contract, a direct comparison is not possible. However, the structure of an ESPC implies that the contractor (Ameresco) has guaranteed a certain level of savings, and the government typically only pays for the project from these savings. A successful contract would see savings significantly outpacing the $18.8 million investment, providing a net positive financial outcome and environmental benefit.

What are the primary energy conservation measures being implemented under this contract?

This contract focuses on 'deep energy retrofits,' which implies a comprehensive approach to upgrading building systems for maximum energy efficiency. While the specific measures are not itemized in the provided data, typical deep energy retrofit projects under ESPCs include upgrades to HVAC systems (heating, ventilation, and air conditioning), building envelope improvements (insulation, windows, roofing), lighting retrofits (LED conversions, controls), installation of energy-efficient equipment, and potentially renewable energy generation systems (like solar). Water conservation measures are also often included. The goal is to significantly reduce the overall energy and water consumption of the targeted federal facilities, leading to substantial operational cost savings and reduced environmental impact.

What is the risk associated with the long contract duration of over 20 years?

The long contract duration of over 20 years presents several potential risks. Firstly, technological advancements in energy efficiency could outpace the implemented solutions, potentially making the retrofits less optimal over time compared to newer technologies. Secondly, changes in energy markets, utility rates, or government energy policies could affect the accuracy of the original savings calculations. Thirdly, the long-term performance of installed equipment needs to be reliably guaranteed. To mitigate these risks, ESPC contracts often include provisions for performance verification, potential technology refresh clauses, and clear definitions of how savings are calculated and adjusted. The contractor bears significant risk for long-term performance guarantees.

How does this contract align with the General Services Administration's (GSA) broader sustainability and energy efficiency goals?

This contract directly aligns with the GSA's strategic goals and federal mandates to improve energy efficiency, reduce greenhouse gas emissions, and promote sustainability across its vast real estate portfolio. GSA manages a significant portion of the federal government's building inventory, and initiatives like the National Deep Energy Retrofit Program are crucial for meeting targets set by executive orders and legislative acts. By investing in deep energy retrofits, GSA aims to lower the operational costs of its facilities, enhance their resilience, and reduce their environmental footprint. This specific contract, by targeting facilities in Louisiana and Texas, contributes to the agency's nationwide efforts to modernize federal infrastructure and achieve ambitious energy reduction goals.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GSANDER52021

Offers Received: 9

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: $45,519,079

Exercised Options: $18,831,685

Current Obligation: $18,831,685

Actual Outlays: $33,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEEE0008027

IDV Type: IDC

Timeline