DOJ's $46M energy efficiency contract with NORESCO, LLC awarded under full and open competition
Contract Overview
Contract Amount: $46,002,795 ($46.0M)
Contractor: Noresco, LLC
Awarding Agency: Department of Justice
Start Date: 2016-06-21
End Date: 2020-09-30
Contract Duration: 1,562 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF MARION AND MILAN ESPC PROJECT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534
Plain-Language Summary
Department of Justice obligated $46.0 million to NORESCO, LLC for work described as: IGF::OT::IGF MARION AND MILAN ESPC PROJECT Key points: 1. Contract focused on energy conservation measures, potentially yielding long-term operational savings. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. Performance period of over four years indicates a significant project scope. 5. The contract falls under engineering services, a critical support function for federal facilities. 6. Small business participation was not explicitly mandated, warranting further investigation.
Value Assessment
Rating: good
The contract's value of approximately $46 million for energy efficiency upgrades appears reasonable given the scope and duration. Benchmarking against similar large-scale ESPC projects is challenging without more granular data on specific upgrades. However, the firm-fixed-price structure suggests that the contractor assumed significant risk, which can be a positive indicator of value if performance is met. The absence of detailed performance metrics in the provided data makes a definitive value assessment difficult, but the project's focus on energy savings implies potential for long-term cost reduction for the Bureau of Prisons.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. With five bids received, the competition level appears healthy, suggesting that the Bureau of Prisons likely received competitive pricing. This process generally leads to better price discovery and potentially more innovative solutions compared to sole-source or limited competition awards.
Taxpayer Impact: A competitive award process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the best value proposals.
Public Impact
The Federal Prison System, specifically the Bureau of Prisons, is the primary beneficiary through reduced energy costs and improved facility operations. Services delivered include energy conservation measures, likely encompassing upgrades to lighting, HVAC, and building controls. The geographic impact is concentrated within the District of Columbia, where the facilities are located. The project supports the federal government's broader sustainability goals and may indirectly impact the energy services sector workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of explicit small business set-aside or subcontracting requirements could limit opportunities for small businesses in this significant contract.
- The firm-fixed-price contract type, while managing cost risk for the government, might disincentivize contractor innovation if scope changes are needed.
- Limited public data on the specific energy conservation measures implemented makes it difficult to assess the full impact and potential for replication.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential bidders and competitive pricing.
- The contract's focus on energy efficiency aligns with federal sustainability mandates and offers potential for long-term operational cost savings.
- The firm-fixed-price structure transfers significant performance risk to the contractor, potentially leading to greater accountability.
- A substantial contract value suggests a significant project with the potential for meaningful energy savings and facility improvements.
Sector Analysis
This contract falls within the Engineering Services (NAICS 541330) sector, specifically related to energy efficiency and facility management. The market for Energy Savings Performance Contracts (ESPCs) is substantial, with numerous private sector firms specializing in identifying and implementing energy conservation measures for government and commercial clients. Federal spending in this area is driven by mandates for energy reduction and sustainability. Comparable spending benchmarks are difficult to establish without knowing the specific technologies and scope of work, but ESPCs often represent multi-million dollar investments for large facilities.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention small business subcontracting goals (ss: false). This suggests that the primary award was likely made to a large business (NORESCO, LLC). While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside provisions or reporting requirements means that the direct impact on the small business ecosystem for this particular award is likely limited unless voluntarily pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the Bureau of Prisons. As a delivery order under a larger contract vehicle, oversight might also be influenced by the terms of the base contract. Transparency is moderate, with basic award details available, but specific performance metrics, detailed cost breakdowns, and audit reports are often not publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Federal Building Efficiency Initiatives
- Bureau of Prisons Facility Management
- Department of Justice Procurement
Risk Flags
- Potential for cost overruns if scope changes significantly under fixed-price contract.
- Limited transparency on specific performance metrics and achieved savings.
- Lack of explicit small business subcontracting requirements.
Tags
engineering-services, energy-efficiency, department-of-justice, bureau-of-prisons, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, large-contract, espc
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $46.0 million to NORESCO, LLC. IGF::OT::IGF MARION AND MILAN ESPC PROJECT
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $46.0 million.
What is the period of performance?
Start: 2016-06-21. End: 2020-09-30.
What specific energy conservation measures were implemented under this contract, and what were their projected energy savings?
The provided data does not specify the exact energy conservation measures (ECMs) implemented under this contract, nor does it detail the projected energy savings. Typically, ESPCs involve a range of upgrades such as LED lighting retrofits, HVAC system modernizations, building envelope improvements, and installation of renewable energy sources. NORESCO, LLC, as a specialized energy services company, would have conducted an energy audit to identify opportunities. The projected savings are usually outlined in the contract's technical exhibits and form the basis for the contract's financial structure, often guaranteeing a certain level of savings to the government. Without access to these detailed project documents, a precise assessment of the implemented measures and their savings is not possible.
How does the awarded price of approximately $46 million compare to similar ESPC projects for federal correctional facilities?
Directly comparing the $46 million award to similar ESPC projects for federal correctional facilities is challenging without more specific data on the scope of work, the number and type of facilities involved, and the duration of the performance period. ESPC projects vary significantly based on the age and condition of the facilities, the specific technologies deployed, and the energy savings goals. However, for large-scale ESPCs involving multiple buildings or significant infrastructure upgrades, a $46 million investment over several years is within the expected range for federal agencies. The Bureau of Prisons manages a vast portfolio of facilities, and projects of this magnitude are necessary to achieve substantial energy reductions and operational cost savings across its estate.
What is NORESCO, LLC's track record with federal ESPC contracts, particularly with the Bureau of Prisons or Department of Justice?
NORESCO, LLC, a subsidiary of Energy Systems Group (ESG), has a significant track record in delivering energy efficiency solutions and ESPCs for federal agencies, including the Department of Defense, Department of Energy, and others. While specific details on their past performance exclusively with the Bureau of Prisons or the Department of Justice are not provided in the summary data, their extensive experience in the federal sector suggests a capability to manage complex projects. Federal agencies often award ESPCs to established Energy Service Companies (ESCOs) with proven performance histories. A deeper dive into contract databases and performance evaluations would be needed to fully assess their specific history with the DOJ and BOP.
What are the key performance indicators (KPIs) used to measure the success of this energy efficiency contract?
Key performance indicators (KPIs) for an ESPC like this typically revolve around achieved energy savings, operational cost reductions, and compliance with contract terms. Specific KPIs would likely include measured reductions in electricity, natural gas, and water consumption, translated into dollar savings. The contract may also stipulate performance metrics related to the reliability and maintenance of installed equipment, occupant comfort levels, and adherence to project schedules. Guarantees of savings are a cornerstone of ESPCs, meaning the primary KPI is whether the actual savings meet or exceed the guaranteed amounts, often verified through Measurement and Verification (M&V) protocols.
How has federal spending on energy efficiency projects like this evolved over the past decade, and what are the primary drivers?
Federal spending on energy efficiency projects, including ESPCs, has generally seen an upward trend over the past decade, driven by a combination of legislative mandates, executive orders, and increasing awareness of climate change and operational cost savings. Key drivers include the Energy Policy Act of 2005, which authorized agencies to use ESPCs, and subsequent directives aimed at reducing federal greenhouse gas emissions and energy consumption. Agencies like the Department of Energy (DOE) play a crucial role in facilitating these projects through programs like the ESPC Enable initiative. The desire to reduce reliance on appropriated funds for energy costs and to modernize aging federal infrastructure also contributes significantly to this spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 5
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, 01581
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,002,795
Exercised Options: $46,002,795
Current Obligation: $46,002,795
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29039
IDV Type: IDC
Timeline
Start Date: 2016-06-21
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2020-10-06
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