DOE's $1.02B Energy Management Services Task Order to NORESCO, LLC awarded under ESPC contract
Contract Overview
Contract Amount: $10,200,095 ($10.2M)
Contractor: Noresco, LLC
Awarding Agency: Department of Energy
Start Date: 2005-12-23
End Date: 2023-10-30
Contract Duration: 6,520 days
Daily Burn Rate: $1.6K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENERGY MANAGEMENT SERVICES TASK ORDER UNDER A SUPER ENERGY SAVINGS PERFORMANCE (ESPC) CONTRACT
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79120
State: Texas Government Spending
Plain-Language Summary
Department of Energy obligated $10.2 million to NORESCO, LLC for work described as: ENERGY MANAGEMENT SERVICES TASK ORDER UNDER A SUPER ENERGY SAVINGS PERFORMANCE (ESPC) CONTRACT Key points: 1. Significant contract value of $1.02 billion highlights a major investment in energy efficiency. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long duration (2005-2023) suggests a sustained need for energy management services. 4. The Engineering Services sector (NAICS 541330) is critical for government efficiency initiatives.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar energy management services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order under an existing ESPC contract. Sole-source awards can limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the services were procured through a competitive process.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts federal energy spending over nearly two decades. Government's reliance on a single vendor for critical energy management services could pose a risk if performance falters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Addresses critical energy management needs
- Potential for significant energy cost savings
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government agencies seeking to improve energy efficiency and reduce operational costs. Benchmarks for similar large-scale energy management contracts are often influenced by the specific technologies and scope of services.
Small Business Impact
The data does not indicate any specific allocation or benefit to small businesses under this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of Energy, suggesting internal oversight. However, the sole-source nature warrants scrutiny to ensure fair pricing and effective service delivery.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competitive pricing
- Long contract duration may obscure current market value
- Potential for cost overruns without competitive oversight
- Limited transparency on specific performance metrics and savings
Tags
engineering-services, department-of-energy, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.2 million to NORESCO, LLC. ENERGY MANAGEMENT SERVICES TASK ORDER UNDER A SUPER ENERGY SAVINGS PERFORMANCE (ESPC) CONTRACT
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 $10.2 million.
What is the period of performance?
Start: 2005-12-23. End: 2023-10-30.
What specific energy-saving measures were implemented under this contract, and what quantifiable savings have been achieved to justify the $1.02 billion expenditure?
The contract focuses on energy management services, likely encompassing energy audits, retrofitting, and ongoing monitoring to improve efficiency. Quantifiable savings would typically be detailed in performance reports, comparing energy usage and costs before and after the implementation of these measures. Without access to these specific reports, it's challenging to definitively assess the return on investment for the $1.02 billion.
Given the sole-source nature of this award, what mechanisms were in place to ensure the pricing was competitive and represented fair market value for the services provided?
Sole-source awards often rely on pre-negotiated rates within an existing contract vehicle, such as an ESPC. However, the absence of a competitive bidding process for this specific task order means that direct price comparisons are difficult. The Department of Energy would need to demonstrate that the pricing was benchmarked against similar services or that the vendor's pricing structure was previously vetted and deemed fair.
How effective has NORESCO, LLC been in delivering the promised energy management services over the contract's extensive duration, and were there any performance issues or contract modifications?
The contract's long duration (2005-2023) suggests a sustained engagement. Effectiveness would be measured by the achievement of energy reduction goals and the successful implementation of energy conservation measures. Any performance issues or significant contract modifications would typically be documented in contract performance reviews and could impact the overall assessment of effectiveness and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 RESEARCH DR STE 400C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,063,817
Exercised Options: $33,063,817
Current Obligation: $10,200,095
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698GO10326
IDV Type: IDC
Timeline
Start Date: 2005-12-23
Current End Date: 2023-10-30
Potential End Date: 2023-10-30 00:00:00
Last Modified: 2025-04-07
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