DoD awards $48M contract for Naval Research Lab feasibility study to Ameresco Inc

Contract Overview

Contract Amount: $48,000,000 ($48.0M)

Contractor: Ameresco Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2050-01-30

Contract Duration: 8,888 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IMPLEMENTATION OF A DETAILED FEASIBILITY STUDY AT NAVAL RESEARCH LABORATORY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to AMERESCO INC for work described as: IMPLEMENTATION OF A DETAILED FEASIBILITY STUDY AT NAVAL RESEARCH LABORATORY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 8,888 days (approx. 24 years) is exceptionally long, raising questions about scope and planning. 3. Firm Fixed Price contract type aims to control costs, but long duration may introduce unforeseen risks. 4. The primary contractor, Ameresco Inc., has a track record in energy efficiency and infrastructure projects. 5. The contract is for a feasibility study, indicating early-stage project planning rather than immediate implementation. 6. The significant value suggests a complex and potentially high-impact study for the Naval Research Laboratory.

Value Assessment

Rating: fair

The $48 million award for a feasibility study over an 8,888-day period appears high, especially considering the nature of a study. Benchmarking against similar, shorter-term feasibility studies for complex engineering projects would be necessary to assess value. The long duration could inflate costs if not meticulously managed. Without specific deliverables and milestones, it's difficult to definitively assess value for money at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 9 bidders participating. This indicates a robust bidding environment, which typically benefits price discovery and can lead to more competitive pricing. The presence of multiple bidders suggests that the market has capacity and interest in providing these engineering services.

Taxpayer Impact: Taxpayers benefit from a competitive process that should drive down costs and ensure the government receives the best possible value for the services rendered.

Public Impact

The primary beneficiary is the Naval Research Laboratory, which will receive the results of the feasibility study. The study will inform potential future infrastructure or energy projects at the Naval Research Laboratory. The geographic impact is primarily within the District of Columbia, where the Naval Research Laboratory is located. Workforce implications are likely to involve specialized engineering and technical personnel for conducting the study.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exceptionally long contract duration (8,888 days) raises concerns about potential scope creep, inefficient resource allocation, and the relevance of the study's findings over such an extended period.
The substantial award amount for a 'feasibility study' warrants scrutiny to ensure funds are used efficiently and not for extended project management or preliminary design work that could be completed sooner.
Lack of specific details on deliverables and milestones within the provided data makes it difficult to track progress and ensure accountability over the contract's lifespan.

Positive Signals

Awarded through full and open competition with 9 bidders, indicating a healthy level of market interest and potential for competitive pricing.
The Firm Fixed Price contract type provides cost certainty for the government, assuming the scope is well-defined and managed.
Ameresco Inc. has experience in related fields, suggesting a degree of technical capability for the task.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities in planning, designing, and overseeing complex projects. The market for engineering services is substantial, with significant government spending allocated to defense and infrastructure. This contract's focus on a feasibility study for a naval research facility aligns with typical government R&D and infrastructure support spending.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this award. While Ameresco Inc. may engage small businesses as subcontractors, there is no explicit mandate for it in this contract's primary award terms. Further investigation into Ameresco's subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the Naval Research Laboratory's contracting and program management offices. The Firm Fixed Price nature provides some cost control, but the long duration necessitates robust performance monitoring and milestone tracking. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency could be enhanced by publicizing key study milestones and findings.

Related Government Programs

Naval Research Laboratory Operations
Department of Defense Research and Development
Engineering and Technical Services Contracts
Feasibility Study Awards
Long-Duration Government Contracts

Risk Flags

Long Contract Duration
High Value for Study
Potential Scope Creep
Lack of Detailed Deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to AMERESCO INC. IMPLEMENTATION OF A DETAILED FEASIBILITY STUDY AT NAVAL RESEARCH LABORATORY

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 Army).

What is the total obligated amount?

The obligated amount is $48.0 million.

What is the period of performance?

Start: 2025-09-30. End: 2050-01-30.

What is Ameresco Inc.'s track record with similar large-scale feasibility studies for government entities, particularly within the Department of Defense?

Ameresco Inc. is primarily known for its work in energy efficiency, renewable energy, and infrastructure upgrades. While they have a strong track record in implementing projects, their specific experience with conducting large-scale, multi-year feasibility studies for entities like the Naval Research Laboratory, especially those valued at $48 million, requires deeper investigation. Publicly available data often highlights their project execution capabilities rather than the detailed methodologies and outcomes of early-stage feasibility assessments. A review of past performance reports and contract histories with federal agencies would be necessary to fully gauge their suitability and past success in this specific niche.

How does the $48 million cost for this feasibility study compare to industry benchmarks for similar projects, considering the contract's 24-year duration?

The $48 million cost for a feasibility study, particularly one spanning approximately 24 years, appears exceptionally high and deviates significantly from typical benchmarks. Feasibility studies are generally intended to be shorter-term assessments, often completed within months to a few years, with costs ranging from tens of thousands to a few million dollars, depending on complexity. A 24-year duration suggests the 'study' may encompass extensive research, development, or preliminary design phases that extend far beyond a traditional feasibility assessment. Without a clear breakdown of the study's scope, deliverables, and the rationale for such an extended timeline, it is difficult to justify this cost against standard industry practices. This duration raises concerns about potential inefficiencies and the relevance of findings over such a prolonged period.

What are the primary risks associated with a feasibility study contract lasting nearly 24 years?

The primary risks associated with a feasibility study contract lasting nearly 24 years are numerous. Firstly, technological advancements and evolving mission requirements could render the study's initial assumptions and findings obsolete long before completion. Secondly, the extended timeline increases the likelihood of scope creep, where the project's objectives expand beyond the original intent, leading to cost overruns and delays. Thirdly, maintaining institutional knowledge and consistent project oversight over such a long period is challenging, potentially leading to a loss of focus or accountability. Finally, the prolonged duration may indicate that the 'study' is actually encompassing significant design or development work, blurring the lines between phases and increasing overall project risk and cost uncertainty.

What specific services or outcomes are expected from this $48 million feasibility study, and how will their success be measured?

The provided data indicates the contract is for 'IMPLEMENTATION OF A DETAILED FEASIBILITY STUDY AT NAVAL RESEARCH LABORATORY.' However, specific services and measurable outcomes are not detailed. Typically, a feasibility study assesses the practicality of a proposed project, including technical, economic, legal, and operational viability. Success would be measured against predefined milestones, the delivery of comprehensive reports detailing findings and recommendations, and the clarity of the assessment regarding the viability of future actions. Given the $48 million value and the nearly 24-year duration, the expected outcomes likely involve in-depth analysis of complex infrastructure, energy systems, or research capabilities, requiring detailed technical assessments, cost-benefit analyses, and risk evaluations. The lack of explicit performance metrics in the summary data makes definitive success measurement challenging.

How does this contract's value and duration compare to historical spending on feasibility studies by the Department of the Army or Navy?

This $48 million contract for a feasibility study, with a duration of 8,888 days (approximately 24 years), stands out as exceptionally high in both value and duration when compared to typical historical spending on feasibility studies within the Department of the Army or Navy. Historically, feasibility studies are shorter-term engagements, often costing significantly less, ranging from thousands to a few million dollars, and completed within months to a few years. The scale of this award suggests it may encompass more than a traditional feasibility assessment, potentially including preliminary design, extensive research, or long-term planning phases. Without further details on the specific scope and objectives, it is difficult to find direct historical comparables that justify this magnitude for a study.

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

Solicitation ID: W912DY12R0046

Offers Received: 9

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: $267,367,976

Exercised Options: $267,367,976

Current Obligation: $48,000,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0041

IDV Type: IDC

Timeline