VA Awards $19.86M Energy Savings Contract for El Paso Medical Center
Contract Overview
Contract Amount: $19,859,268 ($19.9M)
Contractor: Noresco, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2015-09-24
End Date: 2026-11-30
Contract Duration: 4,085 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::CL::IGF VETERANS INTEGRATED SERVICE NETWORK 18, ENERGY SAVINGS PERFORMANCE CONTRACT FOR EL PASO, TEXAS VETERANS AFFAIRS MEDICAL CENTER FOR SOLAR PHOTOVOLTAIC, ENERGY CONSERVATION MEASURE 9.
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79930
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $19.9 million to NORESCO, LLC for work described as: IGF::CL::IGF VETERANS INTEGRATED SERVICE NETWORK 18, ENERGY SAVINGS PERFORMANCE CONTRACT FOR EL PASO, TEXAS VETERANS AFFAIRS MEDICAL CENTER FOR SOLAR PHOTOVOLTAIC, ENERGY CONSERVATION MEASURE 9. Key points: 1. Contract focuses on solar photovoltaic and energy conservation measures. 2. NORESCO, LLC is the contractor for this Energy Savings Performance Contract (ESPC). 3. The contract aims to reduce energy consumption and costs at the VA facility. 4. This ESPC is a firm-fixed-price contract with a duration of over 11 years.
Value Assessment
Rating: good
The $19.86 million award for an ESPC appears reasonable given the long-term nature and expected energy savings. Benchmarking ESPC pricing is complex, but the fixed-price structure provides cost certainty for the VA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: The primary taxpayer impact is the initial investment, offset by projected long-term energy cost savings and improved facility efficiency.
Public Impact
Improved energy efficiency at a federal medical center. Potential for significant long-term cost savings for taxpayers. Contribution to federal renewable energy and sustainability goals. Modernization of energy infrastructure at the El Paso VA Medical Center.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 11 years) requires ongoing monitoring.
- Performance verification is crucial to ensure projected savings are realized.
Positive Signals
- Utilizes a competitive procurement process.
- Focuses on renewable energy (solar photovoltaic).
- Aims for long-term operational cost reductions.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330) and specifically addresses energy infrastructure upgrades. ESPCs are common in federal facilities to improve energy efficiency and reduce utility costs, often benchmarked against similar projects and energy savings potential.
Small Business Impact
The data does not indicate specific subcontracting goals for small businesses on this contract. Further review would be needed to assess small business participation.
Oversight & Accountability
As an Energy Savings Performance Contract, this award is subject to oversight by the Department of Veterans Affairs and potentially the Department of Energy to ensure performance and savings realization. The fixed-price nature provides some cost control.
Related Government Programs
- Engineering Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long-term contract duration requires sustained oversight.
- Reliance on contractor's performance guarantees for savings.
- Potential for unforeseen technological obsolescence over 11+ years.
- Complexity of accurately measuring and verifying energy savings.
Tags
engineering-services, department-of-veterans-affairs, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $19.9 million to NORESCO, LLC. IGF::CL::IGF VETERANS INTEGRATED SERVICE NETWORK 18, ENERGY SAVINGS PERFORMANCE CONTRACT FOR EL PASO, TEXAS VETERANS AFFAIRS MEDICAL CENTER FOR SOLAR PHOTOVOLTAIC, ENERGY CONSERVATION MEASURE 9.
Who is the contractor on this award?
The obligated recipient is NORESCO, LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2015-09-24. End: 2026-11-30.
What is the projected return on investment (ROI) for this ESPC, and how does it compare to industry benchmarks?
The projected ROI is not explicitly detailed in the provided data. However, ESPCs are designed to be cost-neutral or cost-saving, with savings from reduced energy consumption covering the project costs over time. Benchmarks vary widely based on project scope, technology, and facility specifics, but a typical goal is a payback period of 10-15 years, with significant savings thereafter.
What are the key performance indicators (KPIs) used to measure the success of the energy conservation measures?
Key performance indicators for this ESPC would likely include measured reductions in electricity consumption (kWh), natural gas usage, and associated utility costs. Specific metrics for solar photovoltaic generation (kW output) and the operational efficiency of installed energy conservation measures would also be tracked. Performance is typically verified against a baseline established before project implementation.
How will the VA ensure that the contractor, NORESCO, LLC, meets the energy savings guarantees over the contract's 11-year duration?
The VA will ensure performance through a Measurement and Verification (M&V) plan, a standard component of ESPCs. This plan outlines how energy savings will be tracked, calculated, and reported periodically. The contract likely includes provisions for adjustments or remedies if guaranteed savings are not met, ensuring accountability for NORESCO, LLC.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $27,082,953
Exercised Options: $27,082,953
Current Obligation: $19,859,268
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $11,352,950
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: 2015-09-24
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2025-12-17
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