Department of Defense awards $10.9M for energy conservation measures, with performance extending through 2034
Contract Overview
Contract Amount: $10,922,084 ($10.9M)
Contractor: Ameresco Inc
Awarding Agency: Department of Defense
Start Date: 2015-09-23
End Date: 2034-12-23
Contract Duration: 7,031 days
Daily Burn Rate: $1.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE CONTRACT INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT.
Place of Performance
Location: BROOKLYN, KINGS County, NEW YORK, 11252
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to AMERESCO INC for work described as: IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE CONTRACT INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT. Key points: 1. Contract focuses on energy conservation measures, indicating a long-term investment in facility efficiency. 2. The indefinite delivery/indefinite quantity (IDIQ) structure allows for flexibility in project scope and execution over its lifespan. 3. Performance period spans over 19 years, suggesting a significant and ongoing commitment to energy management. 4. The contract is firm-fixed-price, providing cost certainty for the government once task orders are issued. 5. Competition was full and open, suggesting a broad market engagement for this significant energy project. 6. The contract is not set aside for small businesses, indicating the scale and nature of the services required.
Value Assessment
Rating: good
The total award amount of $10.9 million for energy conservation measures over a 19-year period suggests a substantial investment. Benchmarking this against similar large-scale energy performance contracts is challenging without more specific details on the scope of 'energy conservation measures.' However, the firm-fixed-price nature of task orders provides cost control. The long duration implies a phased approach to implementation and potential for significant long-term savings, which is a key objective of such contracts.
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 likely had the opportunity to compete. This approach is generally expected to yield competitive pricing and a wider range of technical solutions. The presence of 7 bidders suggests a healthy level of interest and competition for this type of energy services contract.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices and encouraging innovation, leading to better value for money on government energy projects.
Public Impact
The Department of Defense benefits from improved energy efficiency and reduced operational costs. Services delivered include the installation and performance of energy conservation measures, potentially encompassing upgrades to lighting, HVAC, and building controls. The contract is geographically focused on New York (st: NY, sn: NEW YORK), impacting federal facilities in that region. Workforce implications may include specialized labor for installation, maintenance, and energy management services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long performance period (over 19 years) could introduce risks related to technology obsolescence or changing energy needs.
- The broad scope of 'energy conservation measures' without specific task order details makes it difficult to fully assess value and potential risks upfront.
Positive Signals
- Firm-fixed-price task orders provide cost certainty for specific projects within the IDIQ.
- Full and open competition with 7 bidders suggests a competitive environment that should drive value.
- The focus on energy conservation aligns with federal sustainability goals and potential long-term cost savings.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), specifically related to energy performance contracting. Energy Savings Performance Contracts (ESPCs) are a key mechanism for federal agencies to improve energy efficiency and reduce utility costs without upfront capital investment. The market for ESPCs is significant, driven by federal mandates for sustainability and cost reduction. This contract with AMERESCO INC, a major player in the energy services sector, is consistent with other large-scale ESPC awards.
Small Business Impact
The contract was not set aside for small businesses (ss: false, sb: false). The scale and complexity of energy conservation projects, particularly those requiring long-term performance guarantees and significant upfront investment, often favor larger, established contractors. While there's no direct small business set-aside, opportunities for small businesses may exist indirectly through subcontracting, depending on the specific task orders issued and the prime contractor's subcontracting plan.
Oversight & Accountability
Oversight is likely managed by the Defense Logistics Agency (DLA) through contract administration and performance monitoring. The firm-fixed-price nature of task orders provides a degree of financial oversight. The long duration necessitates ongoing performance reviews to ensure energy savings are realized and that the installed measures remain effective. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.
Related Government Programs
- Energy Savings Performance Contracts (ESPCs)
- Department of Defense Energy Initiatives
- Federal Facility Energy Efficiency Programs
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Long contract duration may increase risk of technology obsolescence.
- Scope of 'energy conservation measures' is broad, requiring detailed review of task orders for specific risks.
- Performance verification over 19 years requires robust monitoring and potential adjustments.
Tags
defense, department-of-defense, defense-logistics-agency, energy-conservation, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, new-york, long-term-contract, espc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to AMERESCO INC. IGF::OT::IGF THE CONTRACTOR WILL COMPLETE INSTALLATION AND PERFORMANCE OF ENERGY CONSERVATION MEASURES IN ACCORDANCE WITH TASK ORDER AND THE REFERENCED DEPARTMENT OF ENERGY SUPER ENERGY SAVINGS PERFORMANCE CONTRACT INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT.
Who is the contractor on this award?
The obligated recipient is AMERESCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2015-09-23. End: 2034-12-23.
What specific types of energy conservation measures are included under this contract, and what are the projected energy savings?
The provided data indicates the contract is for 'installation and performance of energy conservation measures.' However, the specific measures (e.g., LED lighting retrofits, HVAC upgrades, building envelope improvements, renewable energy integration) and their projected energy savings are not detailed in the summary data. These specifics would typically be outlined in the individual task orders issued under the IDIQ contract. Energy Savings Performance Contracts (ESPCs) are designed to achieve savings that at least equal the cost of the contract, often through a guaranteed savings mechanism. A detailed analysis would require reviewing the task orders and associated energy audits and savings calculations.
How does the $10.9 million award compare to other similar energy conservation contracts awarded by the Department of Defense or other federal agencies?
The $10.9 million total award value, spread over a potential 19-year performance period, represents a significant but not extraordinary investment for a large-scale energy conservation project. Federal ESPCs can range from a few million to hundreds of millions of dollars, depending on the size and scope of the facilities involved. For instance, larger ESPCs might cover entire military bases or multiple large installations. Without knowing the specific scope of work and the number/size of facilities covered by this particular contract, a direct comparison is difficult. However, it falls within the typical range for substantial ESPC awards aimed at achieving significant energy efficiency improvements.
What is AMERESCO INC's track record with similar large-scale energy performance contracts for federal agencies?
AMERESCO INC is a well-established energy services company with a significant track record of performing Energy Savings Performance Contracts (ESPCs) for federal, state, and local government agencies, including the Department of Defense. They have been involved in numerous large-scale projects focused on energy efficiency, renewable energy, and infrastructure upgrades. Their experience typically includes managing complex projects from initial energy audits and design through installation, commissioning, and ongoing performance verification. A thorough assessment would involve reviewing their past performance ratings, any reported issues on previous federal contracts, and the scale of projects they have successfully completed.
What are the key performance indicators (KPIs) used to measure the success of this contract, and how is performance verified?
Key performance indicators (KPIs) for this contract would primarily revolve around achieved energy savings (e.g., kilowatt-hours reduced, cost savings realized), project completion timelines, and adherence to budget within individual task orders. Performance verification is a critical component of ESPCs. Typically, a Measurement and Verification (M&V) plan is established, often following established protocols like the International Performance Measurement and Verification Protocol (IPMVP). This plan details how energy savings will be tracked, calculated, and reported over the contract's life, often involving baseline energy use data, post-installation monitoring, and periodic audits to ensure the guaranteed savings are being met.
Given the 19-year duration, what mechanisms are in place to manage potential risks associated with technology obsolescence or changes in energy prices?
The long duration of this contract (2015-2034) necessitates proactive risk management. Mechanisms to address technology obsolescence might include clauses allowing for technology refreshes or upgrades within task orders, particularly if new, more efficient technologies become available and cost-effective. Changes in energy prices are often managed through the baseline energy consumption data and the savings calculation methodology. ESPCs typically guarantee a certain level of cost savings based on projected utility rates, but the actual savings are measured against actual consumption. Some contracts may include provisions for adjusting savings calculations based on significant, unforeseen shifts in energy markets, though the primary goal is to reduce consumption regardless of price fluctuations.
How does the 'Engineering Services' classification (NAICS 541330) inform our understanding of the work performed under this contract?
The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary work performed under this contract involves professional engineering services. This encompasses activities such as feasibility studies, design, development, consulting, and project management related to engineering projects. For an energy conservation contract, this means the contractor is likely providing expertise in analyzing energy usage, designing energy-efficient systems, overseeing the installation of equipment, and ensuring the technical performance meets specified requirements. It signifies a focus on the technical and analytical aspects of improving energy performance, rather than solely the physical installation of off-the-shelf products.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
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: $27,040,177
Exercised Options: $27,040,177
Current Obligation: $10,922,084
Actual Outlays: $288,940
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: 2015-09-23
Current End Date: 2034-12-23
Potential End Date: 2034-12-23 00:00:00
Last Modified: 2025-11-24
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