DHS Coast Guard Awards $33M ESPC to NORESCO, LLC for Alaska Facility Upgrades
Contract Overview
Contract Amount: $33,049,635 ($33.0M)
Contractor: Noresco, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2007-04-11
End Date: 2021-01-31
Contract Duration: 5,044 days
Daily Burn Rate: $6.6K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUPER ESPC DELIVERY ORDER WITH NORESCO, LLC
Place of Performance
Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615
State: Alaska Government Spending
Plain-Language Summary
Department of Homeland Security obligated $33.0 million to NORESCO, LLC for work described as: SUPER ESPC DELIVERY ORDER WITH NORESCO, LLC Key points: 1. Significant investment in energy efficiency for federal facilities. 2. NORESCO, LLC is a major player in the energy services market. 3. Potential for long-term cost savings and reduced environmental impact. 4. Limited competition raises questions about optimal pricing and value.
Value Assessment
Rating: fair
The contract value of $33 million over nearly 14 years suggests a substantial project. Without specific performance metrics or benchmarks for similar ESPC projects, assessing the pricing's true value is difficult. The firm-fixed-price structure provides cost certainty but may limit flexibility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, indicating a sole-source award. While sole-source awards can be justified for specific expertise or existing infrastructure, they limit price discovery and competitive pressure, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The long-term nature of the contract and the significant value mean that any inefficiencies in pricing or execution could result in substantial taxpayer expense over the contract's life.
Public Impact
Modernization of critical infrastructure at a U.S. Coast Guard facility in Alaska. Potential for significant energy and operational cost reductions for the government. Contribution to federal sustainability goals through energy efficiency improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long contract duration may obscure initial cost-effectiveness.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Addresses critical infrastructure needs.
- Focus on energy efficiency aligns with sustainability goals.
- Potential for long-term operational cost savings.
Sector Analysis
This contract falls under Other Scientific and Technical Consulting Services, specifically related to energy conservation and facility upgrades through an Energy Savings Performance Contract (ESPC). ESPCs are common for federal agencies seeking to improve energy efficiency without upfront capital investment, with savings often paying for the project.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Federal agencies are generally encouraged to award a portion of their contracts to small businesses, and this contract does not appear to meet that objective.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure NORESCO, LLC is meeting performance obligations and delivering the projected energy savings. Regular reviews of performance data and cost-effectiveness are essential for accountability.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long-term contract duration requires sustained oversight.
- Potential for contractor lock-in.
- Performance verification is critical for realizing value.
Tags
other-scientific-and-technical-consultin, department-of-homeland-security, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.0 million to NORESCO, LLC. SUPER ESPC DELIVERY ORDER WITH NORESCO, LLC
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2007-04-11. End: 2021-01-31.
What specific energy-saving measures are included in this ESPC, and what are the projected savings for each?
The provided data does not detail the specific energy-saving measures implemented under this ESPC. A comprehensive analysis would require access to the contract's scope of work, which typically outlines upgrades like HVAC modernization, lighting retrofits, and building envelope improvements, along with projected savings calculations for each.
How does the firm-fixed-price structure impact the government's ability to ensure cost-effectiveness over the contract's long duration?
A firm-fixed-price contract provides cost certainty for the government, meaning the price is set regardless of the contractor's actual costs. However, for a long-duration ESPC, this structure can be a double-edged sword. While it protects against cost overruns, it might also mean the government pays a premium upfront if the contractor's cost estimates are conservative, potentially reducing the net savings realized over time.
What mechanisms are in place to verify the actual energy savings achieved by NORESCO, LLC?
Effective ESPCs include robust Measurement and Verification (M&V) plans. These plans outline the methodologies and reporting requirements for tracking energy consumption before and after the upgrades. The government should have a process to independently review these M&V reports to ensure the savings claimed by NORESCO, LLC are accurate and attributable to the implemented measures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1 RESEARCH DR STE 400 C, WESTBOROUGH, MA, 01581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,049,635
Exercised Options: $33,049,635
Current Obligation: $33,049,635
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3697EE73566
IDV Type: IDC
Timeline
Start Date: 2007-04-11
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2024-09-10
More Contracts from Noresco, LLC
- - Closely Associated - These Requirements Have Been Developed for VA Visn 11 to PUT Forth Government Identified ECM Projects AT Visn 11 Facilities to Reduce Energy Consumption, Water Consumption and Associated Utility Costs, and Energy-Related Operations and Maintenance Costs — $121.8M (Department of Veterans Affairs)
- Espc Projects for FCI Fort DIX and FDC Philadelphia — $73.6M (Department of Justice)
- 200311!190367!1700!C7408 !naval Facilities Engineering Com!deam3699ee73680!c!n! !N!N4740803F5272 !20030825!20080825!606727402!606727402!007915663!n!noresco, LLC !ONE Research Drive !westborough !ma!01581!57000!710!51!norfolk !norfolk (city) !virginia !+000003000000!n!n!000000000000!r799!other Management Support Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A! !J! !030!A! !C! ! ! ! ! !C!N! ! ! !z!z!a!a!000! !C!N! ! ! ! ! ! !0001! ! — $61.4M (Department of Defense)
- De-Am36-09g0229039/Gs-P-05-14-Ga-0004,GSA National Deep Energy Retrofit (nder), Energy Savings Performance Contract (espc) Task Order, for Region 5, Noresco, LLC, Metcalfe Federal Building, 536 S. Clark Federal Building, U.S. Custom House, Federal Archives&records Center, Everett M. Dirksen U.S. Courthouse, John C. Kluczynski Federal Building, and U.S. Post Office/Loop Station, Chicago, IL — $53.7M (General Services Administration)
- Utility Monitoring Control System — $49.0M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)