DoD's $251M Environmental Services Contract with NORESCO, LLC Awarded via Full and Open Competition

Contract Overview

Contract Amount: $25,137,642 ($25.1M)

Contractor: Noresco, LLC

Awarding Agency: Department of Defense

Start Date: 2001-11-20

End Date: 2009-03-11

Contract Duration: 2,668 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200207!000053!5700!JA10 !42 CONS/CC !F0863798D6002 !A!N! !N!5A0207 !20011120!20020930!021973586!606727402!007915663!N!NORESCO, LLC !ONE RESEARCH DRIVE, SUITE !WESTBOROUGH !MA!01581!47512!101!01!MAXWELL AFB !MONTGOMERY !ALABAMA !+000000359004!N!N!000000000000!B510!ENVIRONMENTAL STUDIES & ASSESSMENTS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3!B!M!C!A! !99990909!B!F!N!A! !A!N!J!2!005!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to NORESCO, LLC for work described as: 200207!000053!5700!JA10 !42 CONS/CC !F0863798D6002 !A!N! !N!5A0207 !20011120!20020930!021973586!606727402!007915663!N!NORESCO, LLC !ONE RESEARCH DRIVE, SUITE !WESTBOROUGH !MA!01581!47512!101!01!MAXWELL AFB !MONTG… Key points: 1. The contract, valued at $251,376,402, was awarded to NORESCO, LLC for environmental studies and assessments. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 2668 days, spanning from November 20, 2001, to March 11, 2009. 4. The primary sector is Engineering Services (NAICS 541330), with a Firm Fixed Price contract type.

Value Assessment

Rating: fair

The contract value of $251M over approximately 7.3 years suggests a significant investment. Benchmarking against similar large-scale environmental assessment contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to more favorable pricing than a sole-source or limited competition scenario.

Public Impact

Environmental remediation and assessment services are crucial for military base operations and compliance. The long duration of the contract suggests a sustained need for these services at Maxwell AFB. NORESCO, LLC's specialization in energy and building services may indicate a focus on energy-efficient environmental solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving requirements.
Potential for cost overruns if not managed effectively.
Dependence on a single contractor for critical environmental services.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.
Contractor has a history in energy and building services.

Sector Analysis

The Engineering Services sector (NAICS 541330) encompasses a wide range of technical consulting and design services. Spending in this sector by the DoD is often related to infrastructure, environmental compliance, and operational support.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded under full and open competition, which typically involves larger prime contractors.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would likely involve program managers and contracting officers ensuring performance and compliance with contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration (over 7 years).
Large contract value ($251M).
Potential for evolving environmental regulations impacting scope.
Sole awardee for a significant period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to NORESCO, LLC. 200207!000053!5700!JA10 !42 CONS/CC !F0863798D6002 !A!N! !N!5A0207 !20011120!20020930!021973586!606727402!007915663!N!NORESCO, LLC !ONE RESEARCH DRIVE, SUITE !WESTBOROUGH !MA!01581!47512!101!01!MAXWELL AFB !MONTGOMERY !ALABAMA !+000000359004!N!N!000000000000!B510!ENVIRONMENTAL STUDIES & ASSESSMENTS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3!B!M!C!A! !99990909!B

Who is the contractor on this award?

The obligated recipient is NORESCO, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2001-11-20. End: 2009-03-11.

What specific environmental studies and assessments were included in this contract, and how did they align with the Air Force's needs at Maxwell AFB?

The contract focused on environmental studies and assessments, likely encompassing areas such as environmental impact analyses, compliance monitoring, hazardous material management, and potentially remediation planning. These services are critical for military installations to meet regulatory requirements, manage environmental risks, and ensure sustainable operations. The specific scope would have been detailed in the contract's statement of work, tailored to the unique environmental challenges and mission requirements of Maxwell AFB during the contract period.

Given the $251M value and long duration, what were the primary risk factors considered during the procurement, and how were they mitigated?

Key risks likely included contractor performance, cost overruns, and the evolving nature of environmental regulations. Mitigation strategies would have involved rigorous pre-award evaluations of NORESCO, LLC's capabilities and past performance, a well-defined statement of work, performance metrics, and regular oversight by contracting officers. The Firm Fixed Price structure also aimed to mitigate cost overrun risks for the government, shifting some of that risk to the contractor.

How effective was this contract in achieving its environmental objectives, and what was the long-term impact on Maxwell AFB's environmental posture?

Assessing effectiveness requires reviewing performance reports, compliance records, and any post-contract environmental audits. Ideally, the contract would have led to improved environmental compliance, reduced environmental liabilities, and potentially enhanced operational efficiency at Maxwell AFB. The long-term impact could include a more sustainable base infrastructure and a reduced environmental footprint, contributing to the Air Force's broader environmental stewardship 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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 02

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0863798D6002

IDV Type: IDC

Timeline