DHS awards $31.7M engineering services contract to NORESCO, LLC for 8-year period
Contract Overview
Contract Amount: $31,713,704 ($31.7M)
Contractor: Noresco, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2011-12-28
End Date: 2030-08-30
Contract Duration: 6,820 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC
Place of Performance
Location: BRUNSWICK, GLYNN County, GEORGIA, 31524
State: Georgia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $31.7 million to NORESCO, LLC for work described as: ESPC Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Long contract duration of 8 years may not reflect current market conditions. 3. Fixed-price contract type offers cost certainty but limits flexibility for scope changes. 4. The contract is for engineering services, a critical but often complex area. 5. Geographic focus on Georgia may indicate specific facility or project needs. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
The contract's value of $31.7 million over eight years averages to approximately $3.96 million annually. Benchmarking this against similar engineering services contracts is challenging without more specific details on the scope of work. However, the long duration and single-award nature suggest a need for careful monitoring to ensure continued value for money. The firm-fixed-price structure provides budget predictability, but potential cost savings from competitive bidding are absent.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the data only specifies one awardee, NORESCO, LLC. The number of bids received is not provided, which would offer further insight into the level of competition. A robust competition typically drives down prices and encourages innovation.
Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the lack of information on the number of bidders makes it difficult to definitively assess the extent of price discovery achieved.
Public Impact
Federal law enforcement training facilities in Georgia will benefit from engineering services. Services delivered will support the maintenance and potentially upgrade of critical infrastructure. The geographic impact is concentrated in Georgia, supporting federal operations within the state. Workforce implications may include specialized engineering roles and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration may lead to vendor complacency or price increases over time.
- Lack of transparency on the number of bidders limits assessment of true competition.
- Fixed-price contracts can be disadvantageous if unforeseen complexities arise, potentially leading to change orders.
Positive Signals
- Awarded under full and open competition, suggesting a broad market search.
- Firm-fixed-price contract provides cost certainty for the agency.
- Long-term award may indicate a stable, ongoing need for these specialized services.
Sector Analysis
Engineering services, categorized under NAICS code 541330, represent a significant sector within federal procurement, encompassing design, consulting, and project management for various infrastructure and technical projects. The federal government is a major consumer of these services across defense, civilian agencies, and research institutions. This contract fits within the broader trend of agencies outsourcing specialized technical expertise to support their missions and facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, unless they are prime contractors themselves or are subcontracted by NORESCO, LLC. Further investigation into subcontracting plans would be needed to assess the full impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Federal Law Enforcement Training Center's leadership would also play a role in monitoring performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics are often internal.
Related Government Programs
- Federal Law Enforcement Training Center Operations
- Department of Homeland Security Facilities Management
- Engineering and Architectural Services Procurement
- Government-wide Engineering Services Contracts
Risk Flags
- Long-term contract duration
- Potential for cost overruns in fixed-price contracts
- Limited visibility into number of bidders
- Lack of small business subcontracting requirements
Tags
engineering-services, department-of-homeland-security, federal-law-enforcement-training-center, delivery-order, firm-fixed-price, full-and-open-competition, georgia, large-contract, norescco-llc, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $31.7 million to NORESCO, LLC. ESPC
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2011-12-28. End: 2030-08-30.
What is the specific scope of engineering services required under this contract?
The provided data identifies the NAICS code as 541330 (Engineering Services), but does not detail the specific tasks. Typically, engineering services for a federal facility like the Federal Law Enforcement Training Center could encompass a wide range of activities. This might include architectural design, structural engineering, mechanical, electrical, and plumbing (MEP) systems design, civil engineering for site development, environmental engineering assessments, and construction management support. The long duration of the contract suggests ongoing or phased projects rather than a single, short-term task. Without access to the contract's statement of work (SOW), the precise nature and scale of the engineering support remain undefined.
How does the $31.7 million contract value compare to similar engineering services contracts awarded by DHS or other agencies?
Benchmarking the $31.7 million contract value requires comparing it to similar engineering services contracts, considering factors like duration, scope, and agency. For an eight-year contract, this averages to roughly $3.96 million per year. Large-scale infrastructure projects or comprehensive facility management contracts can easily reach tens or hundreds of millions of dollars. However, without knowing the specific services (e.g., design-only vs. design-build support, specific facility types, complexity of systems), a direct comparison is difficult. Agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often award large engineering contracts. This value appears moderate for a long-term, agency-wide engineering support contract, but its true value depends heavily on the deliverables.
What are the potential risks associated with a firm-fixed-price contract of this duration?
A firm-fixed-price (FFP) contract, while offering cost certainty to the government, carries inherent risks, especially over an eight-year period. The primary risk is that the contractor, NORESCO, LLC, may encounter unforeseen technical challenges, material cost increases, or labor rate escalations that erode their profit margin. This could incentivize the contractor to cut corners on quality or service delivery to maintain profitability. Conversely, if costs decrease significantly, the government might be overpaying relative to the actual effort expended. For long-term FFP contracts, robust performance monitoring and clear contract clauses for managing scope changes and potential economic price adjustments are crucial to mitigate these risks and ensure fair value.
What is NORESCO, LLC's track record with federal contracts, particularly with DHS?
NORESCO, LLC is a well-established energy services company that has a significant history of performing federal contracts, often focused on energy efficiency, renewable energy, and facility modernization projects. They have worked with various federal agencies, including the Department of Defense, Department of Energy, and potentially others within DHS. Their expertise often lies in performance contracting, where savings generated from improvements are used to pay for the project. While this specific contract is for general engineering services, their background suggests a capability in managing complex technical projects and delivering measurable outcomes. A deeper dive into their past performance ratings and any past disputes or awards would provide a more complete picture of their reliability and effectiveness.
How does the $31.7M total obligation compare to historical spending on engineering services at the Federal Law Enforcement Training Center?
To assess this, one would need historical spending data for engineering services specifically at the Federal Law Enforcement Training Center (FLETC) over previous periods. Without that data, it's impossible to definitively state if $31.7 million over eight years represents an increase, decrease, or consistent level of investment. However, given the long duration and the critical nature of training facilities, this level of funding suggests a sustained commitment to maintaining and potentially upgrading infrastructure. If historical spending was significantly lower, it might indicate an expansion of services or a backlog of deferred maintenance being addressed. Conversely, if historical spending was higher, it could suggest a scaling back of engineering support.
What are the implications of awarding this contract solely to NORESCO, LLC for the engineering services market?
Awarding a significant, long-term contract like this solely to one company, NORESCO, LLC, can have mixed implications for the broader engineering services market. On one hand, it provides a stable, large-scale opportunity for NORESCO, potentially allowing them to invest in specialized resources and personnel. On the other hand, it means that other capable engineering firms did not secure this particular business, potentially limiting market diversity for this specific set of services within DHS or FLETC. If the competition was indeed robust (i.e., many bids were received and evaluated fairly), then the market may have determined NORESCO offered the best value. However, if competition was limited in practice, it could signal a need for agencies to better outreach to a wider pool of potential contractors in the future.
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: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $46,981,318
Exercised Options: $46,981,318
Current Obligation: $31,713,704
Actual Outlays: $8,555,375
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $11,980,266
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29039
IDV Type: IDC
Timeline
Start Date: 2011-12-28
Current End Date: 2030-08-30
Potential End Date: 2033-08-31 00:00:00
Last Modified: 2025-12-09
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)