HHS awards $29.5M non-competitive engineering contract to NORESCO, LLC for 13 years
Contract Overview
Contract Amount: $29,525,089 ($29.5M)
Contractor: Noresco, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2008-02-28
End Date: 2035-01-31
Contract Duration: 9,834 days
Daily Burn Rate: $3.0K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: Other
Official Description: ENGINEERING (ENGINEERING)
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $29.5 million to NORESCO, LLC for work described as: ENGINEERING (ENGINEERING) Key points: 1. Significant long-term commitment of over a decade. 2. Sole-source award raises questions about price discovery and competition. 3. High dollar value for engineering services. 4. Contract duration extends well beyond typical project lifecycles.
Value Assessment
Rating: questionable
The contract's long duration and non-competitive nature make a direct pricing assessment difficult without comparable sole-source awards. The total award value of $29.5M over 13 years suggests a substantial, ongoing need for engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was awarded as a non-competitive delivery order, indicating a sole-source justification. This method bypasses competitive bidding, potentially leading to higher costs and limiting opportunities for other qualified firms.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these engineering services compared to what could be achieved through a competitive process.
Public Impact
Long-term reliance on a single vendor for critical engineering services. Potential for cost overruns due to lack of competitive pressure. Limited transparency in the procurement process. Impact on small business participation in this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in price justification
Positive Signals
- Potential for specialized expertise from a single vendor
Sector Analysis
The engineering services sector is broad, encompassing design, planning, and oversight. This contract's value and duration are significant, especially for a sole-source award, suggesting a highly specialized or critical need within NIH.
Small Business Impact
The sole-source nature of this award likely limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included in the vendor's plan.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure the government is receiving fair value and that the sole-source justification remains valid throughout the contract's extended term.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award
- Long contract duration (13 years)
- Lack of competitive bidding
- Potential for price creep
- Limited transparency on justification
Tags
engineering-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.5 million to NORESCO, LLC. ENGINEERING (ENGINEERING)
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2008-02-28. End: 2035-01-31.
What is the specific justification for awarding this contract on a sole-source basis, and how does it ensure value for money?
The justification for a sole-source award typically involves unique capabilities, critical infrastructure needs, or a lack of available competition. For this contract, understanding the specific technical requirements and market landscape is crucial to assessing if the chosen vendor provides the best value despite the absence of competition. Without this information, it's difficult to confirm taxpayer value.
What are the risks associated with a 13-year sole-source engineering contract for the NIH?
The primary risks include potential cost escalation due to lack of competitive pressure, vendor lock-in limiting flexibility, and the possibility of technological obsolescence if the vendor's solutions are not continuously updated. There's also a risk that the initial justification for sole-sourcing may become outdated, leading to continued suboptimal pricing or service delivery.
How effective is this contract in meeting the long-term engineering needs of the NIH, given its structure?
The effectiveness hinges on the vendor's performance and the NIH's ability to manage the relationship and ensure evolving needs are met. While a long-term contract can provide stability, the sole-source aspect raises concerns about adaptability and innovation. Regular performance reviews and potential renegotiations would be critical to maintaining effectiveness over the 13-year period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
Evaluated Preference: NONE
Contractor Details
Address: ONE RESEARCH DRIVE, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,525,089
Exercised Options: $29,525,089
Current Obligation: $29,525,089
Actual Outlays: $3,531,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3699EE73680
IDV Type: IDC
Timeline
Start Date: 2008-02-28
Current End Date: 2035-01-31
Potential End Date: 2035-01-31 00:00:00
Last Modified: 2026-04-03
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