GSA Awards $30M Energy Savings Contract for Federal Building Retrofits

Contract Overview

Contract Amount: $29,950,361 ($30.0M)

Contractor: Ameresco Inc

Awarding Agency: General Services Administration

Start Date: 2013-12-13

End Date: 2038-01-31

Contract Duration: 8,815 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT TASK ORDER ISSUED AS PART OF GSA'S NATIONAL DEEP ENERGY RETROFIT PROGRAM. ESCO IS TO PERFORM ENERGY SAVINGS WORK AT SILVER SPRINGS METRO CENTER 1, LANHAM, MD AND AT THE NEW CARROLLTON FEDERAL BUILDING IN LANHAM, MD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $30.0 million to AMERESCO INC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT TASK ORDER ISSUED AS PART OF GSA'S NATIONAL DEEP ENERGY RETROFIT PROGRAM. ESCO IS TO PERFORM ENERGY SAVINGS WORK AT SILVER SPRINGS METRO CENTER 1, LANHAM, MD AND AT THE NEW CARROLLTON FEDERAL BUILDING IN LANHAM, MD. Key points: 1. Significant investment in energy efficiency for federal facilities. 2. Competition method appears robust, potentially leading to good pricing. 3. Long contract duration (2038) presents long-term performance risk. 4. Focus on engineering services within the energy sector.

Value Assessment

Rating: good

The contract value of $29.95M for 8,815 days (approx. 24 years) suggests a substantial project. Benchmarking against similar large-scale energy retrofit contracts would be needed for a precise per-unit cost assessment, but the firm-fixed-price structure indicates a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The firm-fixed-price structure further supports price discovery by setting clear expectations upfront.

Taxpayer Impact: Taxpayer funds are being invested in energy efficiency, which should lead to long-term cost savings for the government and reduced environmental impact.

Public Impact

Improved energy efficiency in federal buildings, reducing operational costs. Potential for reduced greenhouse gas emissions from federal facilities. Modernization of critical federal infrastructure. Job creation in the engineering and construction sectors. Demonstrates government commitment to sustainability goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term performance risk due to extended contract duration.
Potential for scope creep or unforeseen technical challenges in retrofits.
Dependence on ESCO's ability to deliver projected savings.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.
Focus on energy savings offers long-term financial benefits.
Addresses critical infrastructure modernization.

Sector Analysis

This contract falls within the energy sector, specifically focusing on energy savings performance contracts (ESPCs) for building retrofits. ESPCs are a common mechanism for federal agencies to finance energy efficiency upgrades without upfront capital investment, leveraging future energy savings to pay for the project. Benchmarks for similar large-scale ESPCs would typically consider project scope, building size, and energy reduction targets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor, AMERESCO INC, is a large business, the specific subcontracting opportunities for small businesses are not detailed in this data. Federal regulations typically require large prime contractors to outline plans for small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. As part of the Public Buildings Service, GSA's role includes ensuring efficient and cost-effective management of federal buildings. Oversight would focus on performance monitoring, verification of energy savings, and adherence to contract terms.

Related Government Programs

Engineering Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration increases risk of obsolescence and changing conditions.
Performance verification over 24 years may be challenging.
Potential for unforeseen technical issues during deep energy retrofits.
Reliance on future energy savings for cost recovery.
No explicit small business participation noted in the data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.0 million to AMERESCO INC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT TASK ORDER ISSUED AS PART OF GSA'S NATIONAL DEEP ENERGY RETROFIT PROGRAM. ESCO IS TO PERFORM ENERGY SAVINGS WORK AT SILVER SPRINGS METRO CENTER 1, LANHAM, MD AND AT THE NEW CARROLLTON FEDERAL BUILDING IN LANHAM, MD.

Who is the contractor on this award?

The obligated recipient is AMERESCO INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2013-12-13. End: 2038-01-31.

What is the projected annual energy cost savings, and how does it compare to the annual contract cost?

The projected annual energy cost savings are not explicitly stated in the provided data. However, the contract value of $29.95M over approximately 24 years implies an average annual cost of roughly $1.25M. The effectiveness of the contract hinges on the ESCO's ability to generate savings that exceed this annual cost, thereby providing a net benefit to the government and covering the project's investment.

What are the specific risks associated with the long duration (until 2038) of this energy savings contract?

The extended duration presents risks such as technological obsolescence of installed equipment, potential changes in energy prices making savings projections inaccurate, and difficulties in enforcing performance standards over such a long period. Furthermore, agency needs or building usage patterns might change, impacting the relevance of the original energy-saving measures. Long-term monitoring and adaptation strategies are crucial.

How effectively does the 'full and open competition' method ensure value for money in large energy retrofit projects like this?

Full and open competition generally promotes value for money by allowing multiple qualified contractors to bid, driving down prices through market forces. For large ESPCs, this method can attract specialized firms capable of complex retrofits. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to accurately assess the technical proposals and projected savings offered by competing firms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

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: $81,350,768

Exercised Options: $29,950,361

Current Obligation: $29,950,361

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