DoD's $24.7M energy savings contract with Ameresco Inc. aims for long-term facility upgrades
Contract Overview
Contract Amount: $24,757,639 ($24.8M)
Contractor: Ameresco Inc
Awarding Agency: Department of Defense
Start Date: 2019-11-07
End Date: 2044-03-01
Contract Duration: 8,881 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENERGY SAVINGS PERFORMANCE CONTRACT FOR ENERGY CONSERVATION MEASURES AT PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE
Place of Performance
Location: KITTERY, YORK County, MAINE, 03904
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to AMERESCO INC for work described as: ENERGY SAVINGS PERFORMANCE CONTRACT FOR ENERGY CONSERVATION MEASURES AT PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE Key points: 1. Contract focuses on energy conservation measures, potentially reducing operational costs. 2. Long duration suggests a strategic, long-term investment in facility modernization. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Competition level indicates a potentially competitive bidding process. 5. Geographic focus on a single naval shipyard. 6. Contractor Ameresco Inc. has experience in energy performance contracting.
Value Assessment
Rating: good
The contract's value of $24.7 million over approximately 24 years represents a significant investment in energy infrastructure. While specific performance metrics and achieved savings are not detailed here, the fixed-price nature suggests a pre-defined cost for the scope of work. Benchmarking against similar large-scale energy performance contracts for federal facilities is necessary to fully assess value for money, but the long-term commitment implies expected substantial returns through energy efficiency.
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 and evaluated. This approach generally fosters competitive pricing and allows the government to select the most advantageous offer based on technical merit and cost. The presence of two bids suggests a moderately competitive environment for this specialized service.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overcharges associated with limited competition.
Public Impact
The Department of the Navy benefits from modernized energy infrastructure and potential cost savings. The Portsmouth Naval Shipyard in Kittery, Maine, will receive energy conservation upgrades. The contract supports the federal government's broader energy efficiency and sustainability goals. Potential for local job creation during the implementation phase of the energy conservation measures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 24 years) could lead to unforeseen cost escalations or technological obsolescence if not managed proactively.
- Reliance on a single contractor for such a long period may limit future flexibility in adopting new technologies or renegotiating terms.
- The effectiveness of energy savings hinges on the accurate implementation and ongoing performance of the installed measures.
Positive Signals
- Fixed-price contract structure provides cost certainty for the government.
- Focus on energy conservation aligns with federal sustainability mandates and potential long-term operational cost reductions.
- Contractor's experience in energy performance contracting suggests a higher likelihood of successful project execution.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy conservation and facility modernization. Energy Performance Contracts (EPCs) are a common mechanism for federal agencies to upgrade infrastructure without upfront capital investment, leveraging future energy savings to pay for the improvements. The market for such services is substantial, driven by government mandates for efficiency and sustainability.
Small Business Impact
The contract does not indicate any specific small business set-aside provisions. Given the nature and scale of energy performance contracts, prime contractors often manage large projects, potentially utilizing subcontractors. Analysis of subcontracting plans would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy contracting officers and facility managers responsible for the Portsmouth Naval Shipyard. Performance metrics and savings verification would be crucial components of oversight to ensure the contractor meets contractual obligations and achieves the projected energy savings. Inspector General involvement would be contingent on any reported issues or performance discrepancies.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Department of Defense Facility Modernization Programs
- Federal Energy Management Program (FEMP)
- Naval Facilities Engineering Command (NAVFAC) Contracts
Risk Flags
- Long-term contract duration may pose risks of technological obsolescence.
- Performance verification is critical to ensure projected savings are realized.
Tags
energy-savings, performance-contract, department-of-defense, department-of-the-navy, portsmouth-naval-shipyard, kittery-maine, engineering-services, full-and-open-competition, firm-fixed-price, facility-modernization, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to AMERESCO INC. ENERGY SAVINGS PERFORMANCE CONTRACT FOR ENERGY CONSERVATION MEASURES AT PORTSMOUTH NAVAL SHIPYARD, KITTERY, MAINE
Who is the contractor on this award?
The obligated recipient is AMERESCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2019-11-07. End: 2044-03-01.
What specific energy conservation measures are included in this contract, and what are the projected energy savings?
The provided data does not detail the specific energy conservation measures (ECMs) to be implemented. Typically, ESPCs can include upgrades to lighting, HVAC systems, building envelope improvements, water conservation measures, and renewable energy installations. Projected energy savings are usually calculated by the contractor based on baseline energy use and the expected performance of the proposed ECMs. These projections form the basis for the contract's financial structure, where savings are used to repay the contractor's investment. A thorough review of the contract's Performance Work Statement (PWS) and associated energy studies would be required to identify the specific ECMs and their anticipated savings.
How does the $24.7 million contract value compare to similar energy savings contracts for federal facilities of comparable size and scope?
Benchmarking this $24.7 million contract requires comparing it to other Energy Savings Performance Contracts (ESPCs) awarded to federal facilities, particularly naval installations or shipyards, with similar energy usage profiles and modernization needs. Factors such as the scope of ECMs, the duration of the contract (8881 days, approx. 24 years), and the specific technologies implemented significantly influence cost. Without access to a database of comparable ESPC projects, it's difficult to definitively state if $24.7 million is high or low. However, the long contract term suggests a comprehensive suite of upgrades rather than minor retrofits, which typically command higher total values.
What is Ameresco Inc.'s track record with the Department of Defense and other federal agencies regarding energy performance contracts?
Ameresco Inc. is a well-established energy service company with a significant history of performing ESPCs for various federal agencies, including the Department of Defense. They have completed numerous projects involving infrastructure upgrades, renewable energy installations, and energy efficiency improvements across military bases and government buildings. Their experience often includes navigating the complex requirements of federal contracting and performance measurement. A detailed review of their past performance, including project success rates, client satisfaction, and any past performance issues or disputes with the DoD or other federal entities, would provide further insight into their capabilities for this specific contract.
What are the key performance indicators (KPIs) used to measure the success of this contract and the achieved energy savings?
Key performance indicators for this ESPC would primarily focus on the actual energy savings realized compared to the projected savings outlined in the contract. This often involves Measurement and Verification (M&V) protocols, which systematically track energy consumption before and after the implementation of ECMs. KPIs might include reductions in kilowatt-hours (kWh), British Thermal Units (BTU), or gallons of water consumed, as well as associated cost savings. The contract likely specifies reporting frequencies and acceptable variance levels for savings. Failure to meet agreed-upon savings targets could trigger remedies outlined in the contract.
What is the potential impact of the contract's long duration (over 24 years) on future technological adoption and maintenance costs?
The extended duration of this contract presents both opportunities and challenges. On the one hand, it allows for the amortization of significant capital investments in energy infrastructure over a longer period, potentially leading to greater overall savings. On the other hand, it raises concerns about technological obsolescence. Energy technologies evolve rapidly, and measures installed today might be less efficient or effective compared to newer options available in 10-15 years. Furthermore, long-term maintenance responsibilities and associated costs need careful planning and management to ensure the continued optimal performance of the installed systems throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $172,832,865
Exercised Options: $172,832,865
Current Obligation: $24,757,639
Actual Outlays: $5,851,708
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
Start Date: 2019-11-07
Current End Date: 2044-03-01
Potential End Date: 2044-03-01 00:00:00
Last Modified: 2025-05-21
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