DOE Awards $11.6M for ARRA Funding Dispersal to NORESCO, LLC

Contract Overview

Contract Amount: $42,102,549 ($42.1M)

Contractor: Noresco, LLC

Awarding Agency: Department of Energy

Start Date: 2009-12-31

End Date: 2032-12-31

Contract Duration: 8,401 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::89 0331::TAS RECOVERY OBLIGATE FY 10 ARRA FUNDING IN THE AMOUNT OF $11,587,200.00. THE $11,587,200 ARE FUNDS ASSOCIATED WITH THE CONSTRUCTION PERIOD AND WILL BE DISPERSED IN ACCORDANCE WITH THE PAYMENT SCHEDULE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $42.1 million to NORESCO, LLC for work described as: TAS::89 0331::TAS RECOVERY OBLIGATE FY 10 ARRA FUNDING IN THE AMOUNT OF $11,587,200.00. THE $11,587,200 ARE FUNDS ASSOCIATED WITH THE CONSTRUCTION PERIOD AND WILL BE DISPERSED IN ACCORDANCE WITH THE PAYMENT SCHEDULE. Key points: 1. Spending focuses on ARRA funding dispersal for construction, spanning over a decade. 2. NORESCO, LLC is the contractor, with the Department of Energy as the agency. 3. The contract type is a Delivery Order under Firm Fixed Price. 4. The data indicates a long-term commitment for fund management and dispersal.

Value Assessment

Rating: fair

The contract value is $11,587,200.00, dispersed over a long period. Benchmarking is difficult without specific service details, but the duration suggests a significant, ongoing financial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. The firm fixed price structure aims to control costs, but the long duration may introduce price risks.

Taxpayer Impact: Taxpayer funds are being utilized for the dispersal of ARRA funding, requiring careful oversight to ensure efficient and effective management.

Public Impact

Ensures ARRA funds are managed and disbursed according to schedule. Supports economic recovery efforts through the planned distribution of stimulus funds. Long-term contract duration implies sustained government need for fund management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Engineering Services, related to the management and dispersal of government funds. Benchmarks for such specific fund management contracts are not readily available, but the scale and duration are notable.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract. Further investigation would be needed to determine subcontracting opportunities.

Oversight & Accountability

The Department of Energy is responsible for oversight. The long duration necessitates continuous monitoring to ensure funds are dispersed appropriately and efficiently, and that the contractor meets all obligations.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-energy, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $42.1 million to NORESCO, LLC. TAS::89 0331::TAS RECOVERY OBLIGATE FY 10 ARRA FUNDING IN THE AMOUNT OF $11,587,200.00. THE $11,587,200 ARE FUNDS ASSOCIATED WITH THE CONSTRUCTION PERIOD AND WILL BE DISPERSED IN ACCORDANCE WITH THE PAYMENT SCHEDULE.

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 $42.1 million.

What is the period of performance?

Start: 2009-12-31. End: 2032-12-31.

What specific services does NORESCO, LLC provide for the dispersal of ARRA funds, and how does this justify the $11.6 million allocation over 23 years?

The provided data indicates the funds are associated with the construction period and will be dispersed according to a payment schedule. Specific services likely involve financial management, tracking, and disbursement of these ARRA funds. The significant allocation over 23 years suggests a complex, long-term financial management role, potentially involving extensive reporting, compliance checks, and coordination across various entities or projects funded by ARRA.

What are the primary risks associated with a firm fixed price contract for fund dispersal lasting over two decades, and how are they mitigated?

The primary risks include potential inflation eroding the value of fixed payments, changes in regulatory requirements impacting dispersal, and the contractor potentially losing efficiency or focus over such an extended period. Mitigation strategies might involve periodic reviews, clear performance metrics, and contract clauses allowing for adjustments under specific, predefined circumstances, though the firm fixed price nature limits flexibility.

How effectively is the Department of Energy ensuring that the dispersal of these ARRA funds through NORESCO, LLC is contributing to the intended economic recovery goals?

Effectiveness hinges on the DOE's oversight mechanisms. This includes verifying that funds are disbursed promptly and accurately according to the ARRA program's objectives, monitoring the impact of these disbursements on targeted sectors or projects, and ensuring compliance with all relevant regulations. Regular performance reviews and audits of NORESCO's activities are crucial for assessing the program's success.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: ONE RESEARCH DRIVE, WESTBOROUGH, MA, 01581

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,554,057

Exercised Options: $61,554,057

Current Obligation: $42,102,549

Actual Outlays: $13,930,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM3699EE73680

IDV Type: IDC

Timeline

Start Date: 2009-12-31

Current End Date: 2032-12-31

Potential End Date: 2032-12-31 00:00:00

Last Modified: 2025-12-30

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