DOT's FAA awards $5.37M ESPC to NORESCO, LLC for engineering services over 24 years
Contract Overview
Contract Amount: $5,370,965 ($5.4M)
Contractor: Noresco, LLC
Awarding Agency: Department of Transportation
Start Date: 2018-08-21
End Date: 2042-08-21
Contract Duration: 8,766 days
Daily Burn Rate: $613/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 697DCK-18-F-00055 WSA ESPC
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $5.4 million to NORESCO, LLC for work described as: 697DCK-18-F-00055 WSA ESPC Key points: 1. The contract value is $5.37 million, awarded via a delivery order. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The long duration (24 years) may introduce risks related to technology obsolescence and changing needs. 4. Engineering services (NAICS 541330) are critical for infrastructure projects.
Value Assessment
Rating: fair
The contract is a firm-fixed-price delivery order. Benchmarking against similar long-term engineering service contracts is difficult due to the extended duration and specific nature of ESPCs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential offerors and can lead to better price discovery. The delivery order mechanism suggests this is part of a larger framework agreement.
Taxpayer Impact: The long-term nature of the contract means taxpayer funds are committed over an extended period. The success of this investment hinges on the actual energy savings and operational efficiencies achieved.
Public Impact
Long-term commitment of taxpayer funds for energy efficiency projects. Potential for significant cost savings through improved energy performance. Impact on the Federal Aviation Administration's operational efficiency and sustainability goals. Contractor's performance will be crucial for realizing projected benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (24 years) increases risk of obsolescence and changing requirements.
- Firm Fixed Price may not adapt well to unforeseen technological advancements.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Potential for significant energy savings and operational improvements.
- Long-term commitment to sustainability goals.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is generally tied to infrastructure development and maintenance. ESPCs are a specialized form of contracting focused on energy efficiency improvements.
Small Business Impact
The data indicates that small business participation (sb) was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in the engineering services sector.
Oversight & Accountability
The long duration of the contract necessitates robust oversight to ensure performance standards are met and that the agency is receiving the expected value. Regular reviews of energy savings and operational metrics are essential.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration (24 years)
- Potential for technology obsolescence
- Firm Fixed Price may limit adaptability to new tech
- No explicit small business set-aside or participation noted
Tags
engineering-services, department-of-transportation, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $5.4 million to NORESCO, LLC. 697DCK-18-F-00055 WSA ESPC
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $5.4 million.
What is the period of performance?
Start: 2018-08-21. End: 2042-08-21.
What are the projected energy savings and how are they verified over the 24-year contract period?
Projected energy savings are typically detailed in the contract's scope of work and performance work statement. Verification mechanisms, such as Measurement and Verification (M&V) plans, are crucial for ensuring that actual savings are realized and accurately reported. These plans often involve baseline data collection, ongoing monitoring, and periodic reporting to confirm performance against agreed-upon metrics.
How does the firm-fixed-price structure account for potential technological advancements in energy efficiency over two decades?
A firm-fixed-price contract locks in the price, which can be advantageous for budget certainty but poses a risk if new, more cost-effective technologies emerge. The contract might include provisions for modifications or performance-based adjustments, but these are not guaranteed. The agency must carefully evaluate if the chosen technologies are likely to remain state-of-the-art or if the pricing adequately reflects the risk of obsolescence.
What is the specific nature of the 'engineering services' and how do they contribute to the FAA's mission?
The engineering services likely encompass design, analysis, and potentially implementation support for energy conservation measures within FAA facilities. This could include HVAC upgrades, lighting retrofits, building envelope improvements, or renewable energy integration. These services contribute to the FAA's mission by reducing operational costs, enhancing facility sustainability, and potentially improving the reliability and efficiency of critical infrastructure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 697DCK-18-R-00354
Offers Received: 1
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: $29,161,747
Exercised Options: $5,370,965
Current Obligation: $5,370,965
Actual Outlays: $5,067,302
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: 2018-08-21
Current End Date: 2042-08-21
Potential End Date: 2042-08-21 00:00:00
Last Modified: 2026-01-26
More Contracts from Noresco, LLC
- - Closely Associated - These Requirements Have Been Developed for VA Visn 11 to PUT Forth Government Identified ECM Projects AT Visn 11 Facilities to Reduce Energy Consumption, Water Consumption and Associated Utility Costs, and Energy-Related Operations and Maintenance Costs — $121.8M (Department of Veterans Affairs)
- Espc Projects for FCI Fort DIX and FDC Philadelphia — $73.6M (Department of Justice)
- 200311!190367!1700!C7408 !naval Facilities Engineering Com!deam3699ee73680!c!n! !N!N4740803F5272 !20030825!20080825!606727402!606727402!007915663!n!noresco, LLC !ONE Research Drive !westborough !ma!01581!57000!710!51!norfolk !norfolk (city) !virginia !+000003000000!n!n!000000000000!r799!other Management Support Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A! !J! !030!A! !C! ! ! ! ! !C!N! ! ! !z!z!a!a!000! !C!N! ! ! ! ! ! !0001! ! — $61.4M (Department of Defense)
- De-Am36-09g0229039/Gs-P-05-14-Ga-0004,GSA National Deep Energy Retrofit (nder), Energy Savings Performance Contract (espc) Task Order, for Region 5, Noresco, LLC, Metcalfe Federal Building, 536 S. Clark Federal Building, U.S. Custom House, Federal Archives&records Center, Everett M. Dirksen U.S. Courthouse, John C. Kluczynski Federal Building, and U.S. Post Office/Loop Station, Chicago, IL — $53.7M (General Services Administration)
- Utility Monitoring Control System — $49.0M (Department of Defense)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)