DOE Awards $34.4M Energy Savings Contract to NORESCO, LLC for INL Materials Fuels Complex
Contract Overview
Contract Amount: $34,439,892 ($34.4M)
Contractor: Noresco, LLC
Awarding Agency: Department of Energy
Start Date: 2008-07-23
End Date: 2028-04-01
Contract Duration: 7,192 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: DELIVERY ORDER FOR AN ENERGY SAVINGS PERFORMANCE CONTRACT AT THE MATERIALS FUELS COMPLEXT AT INL
Place of Performance
Location: WESTBOROUGH, WORCESTER County, MASSACHUSETTS, 01581
Plain-Language Summary
Department of Energy obligated $34.4 million to NORESCO, LLC for work described as: DELIVERY ORDER FOR AN ENERGY SAVINGS PERFORMANCE CONTRACT AT THE MATERIALS FUELS COMPLEXT AT INL Key points: 1. Significant investment in energy efficiency at a critical federal facility. 2. NORESCO, LLC, a known energy services provider, is the awardee. 3. Potential for long-term cost savings and reduced environmental impact. 4. Contract duration extends over 19 years, indicating a long-term commitment.
Value Assessment
Rating: good
The contract value of $34.4 million over nearly 20 years suggests a substantial project. Benchmarking against similar large-scale Energy Savings Performance Contracts (ESPCs) is difficult without specific performance metrics and energy reduction guarantees, but the duration and scope indicate a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified contractors to bid, potentially leading to more competitive pricing and better value for the government.
Taxpayer Impact: This contract aims to reduce energy consumption and costs at the INL, leading to taxpayer savings through improved operational efficiency and reduced utility bills over the long term.
Public Impact
Enhanced energy efficiency at a key federal research and development site. Potential for reduced greenhouse gas emissions and improved environmental sustainability. Long-term operational cost savings for the Department of Energy. Investment in modernizing energy infrastructure at the Materials Fuels Complex. Creation of jobs related to energy efficiency upgrades and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or changing technology needs.
- Performance metrics and verification of energy savings are crucial for value realization.
Positive Signals
- Full and open competition likely ensured competitive pricing.
- Focus on energy savings aligns with federal sustainability goals.
- Experienced contractor selected for a complex facility.
Sector Analysis
This contract falls within the 'Other Scientific and Technical Consulting Services' NAICS code, specifically related to energy efficiency projects. ESPCs are a common mechanism for federal agencies to finance energy upgrades without upfront capital, leveraging private sector expertise and investment.
Small Business Impact
While the awardee is NORESCO, LLC, a large entity, the contract may involve subcontracting opportunities for small businesses in areas such as installation, maintenance, or specialized services related to the energy efficiency upgrades.
Oversight & Accountability
The long duration of the contract necessitates ongoing oversight by the Department of Energy to ensure performance standards are met, energy savings are realized, and the contract remains aligned with agency objectives.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Long contract duration (19+ years)
- Potential for technology obsolescence
- Reliance on contractor's performance metrics
- Complexity of federal facility energy systems
Tags
other-scientific-and-technical-consultin, department-of-energy, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $34.4 million to NORESCO, LLC. DELIVERY ORDER FOR AN ENERGY SAVINGS PERFORMANCE CONTRACT AT THE MATERIALS FUELS COMPLEXT AT INL
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $34.4 million.
What is the period of performance?
Start: 2008-07-23. End: 2028-04-01.
What are the specific energy-saving measures to be implemented and their projected impact on utility costs?
The contract details should outline specific upgrades such as HVAC improvements, lighting retrofits, and building envelope enhancements. Projected impacts would include quantifiable reductions in electricity, natural gas, and water consumption, translating into estimated dollar savings over the contract's lifespan. Verification mechanisms are key to ensuring these savings are achieved.
How will the government ensure the long-term effectiveness and adaptability of the energy-saving technologies over the 19-year contract period?
Effective oversight, regular performance reviews, and clear contract clauses for technology updates or adjustments are crucial. The government should establish performance metrics that allow for recalibration if technologies become obsolete or energy usage patterns change significantly. Periodic renegotiation points or performance-based incentives can ensure continued value.
What is the baseline energy consumption and the guaranteed percentage of savings expected from this contract?
A comprehensive baseline energy consumption study of the Materials Fuels Complex is essential. The contract should specify a guaranteed percentage of energy savings, often tied to a baseline established before the project begins. This guarantee is typically verified through measurement and verification (M&V) protocols throughout the contract term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
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)
Contractor Details
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $83,439,804
Exercised Options: $83,439,804
Current Obligation: $34,439,892
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3697EE73566
IDV Type: IDC
Timeline
Start Date: 2008-07-23
Current End Date: 2028-04-01
Potential End Date: 2028-04-01 00:00:00
Last Modified: 2025-04-17
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