DOJ's $5.8M ESPC with AMERESCO INC for Engineering Services faces potential value concerns

Contract Overview

Contract Amount: $5,822,413 ($5.8M)

Contractor: Ameresco Inc

Awarding Agency: Department of Justice

Start Date: 2017-05-30

End Date: 2026-09-30

Contract Duration: 3,410 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AUSP THOMSON ESPC

Place of Performance

Location: FRAMINGHAM, MIDDLESEX County, MASSACHUSETTS, 01701

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $5.8 million to AMERESCO INC for work described as: IGF::OT::IGF AUSP THOMSON ESPC Key points: 1. The contract's value of $5.8M over 9 years warrants scrutiny for energy efficiency project ROI. 2. AMERESCO INC is a significant player in the energy services sector, but competition details are limited. 3. Potential risks include performance underestimation and long-term contract viability. 4. The Engineering Services sector sees varied contract values; this falls within a moderate range.

Value Assessment

Rating: questionable

The contract value of $5.8M spread over 9 years suggests a significant investment in energy efficiency. Without detailed performance metrics and energy savings data, it's difficult to assess if this pricing is competitive or offers excellent value compared to similar ESPC projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to fully assess the competitive pressure on pricing.

Taxpayer Impact: The long duration and significant value of this contract mean taxpayer funds are committed over an extended period. Ensuring maximum efficiency and savings is crucial for a positive taxpayer impact.

Public Impact

Federal Prison System's energy infrastructure upgrades could lead to long-term operational cost savings. The project's success hinges on accurate energy savings projections and actual performance. Transparency in reporting energy savings and project outcomes is vital for public trust. Potential for job creation in engineering and construction sectors related to the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) may not align with evolving energy technologies.
Lack of detailed performance metrics makes value assessment difficult.
Potential for cost overruns if energy savings are overestimated.
Limited information on specific energy conservation measures implemented.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Focus on energy efficiency aligns with federal sustainability goals.
Experienced contractor (AMERESCO INC) in the energy services sector.

Sector Analysis

This contract falls under Engineering Services, often related to infrastructure improvements and energy efficiency projects. Spending in this sector can vary widely based on project scope and duration. The $5.8M value over 9 years is a substantial commitment for a single energy performance contract.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While the primary contractor is AMERESCO INC, it's unclear if they utilized small business subcontractors for any portion of the work.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets performance obligations and delivers the projected energy savings. Regular reporting and verification of savings are essential for accountability and to justify the taxpayer investment.

Related Government Programs

Engineering Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Long contract duration potentially leading to outdated technology.
Lack of transparency on specific energy savings measures and projections.
Difficulty in assessing true value without performance data.
Potential for cost overruns if savings are not realized.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.8 million to AMERESCO INC. IGF::OT::IGF AUSP THOMSON ESPC

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

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 $5.8 million.

What is the period of performance?

Start: 2017-05-30. End: 2026-09-30.

What specific energy conservation measures are included in this ESPC, and what are the projected savings for each?

The provided data does not detail the specific energy conservation measures (ECMs) included in the ESPC. To assess value, a breakdown of ECMs such as lighting retrofits, HVAC upgrades, or building envelope improvements, along with their projected energy and cost savings, is necessary. This information is crucial for understanding the project's scope and validating the $5.8M investment.

How does the actual energy savings performance compare to the projections made during the bidding process?

Actual performance data against projections is not available in the provided dataset. Continuous monitoring and third-party verification of energy savings are essential to ensure the contract delivers the promised financial benefits. A significant variance between projected and actual savings would raise concerns about the initial assessment and contractor performance.

What is the process for verifying energy savings and ensuring accountability throughout the 9-year contract term?

The contract's long duration necessitates a robust verification process. Typically, ESPCs involve annual measurement and verification (M&V) of energy savings, often conducted by independent third parties. Accountability is maintained through performance guarantees and potential remedies if savings targets are not met, ensuring taxpayer funds are used effectively.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 SPEEN ST STE 410, FRAMINGHAM, MA, 01701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,333,209

Exercised Options: $32,333,209

Current Obligation: $5,822,413

Actual Outlays: $5,837,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29029

IDV Type: IDC

Timeline