Fort Totten Revitalization Contract Awarded to AMERESCO INC for $34.9M

Contract Overview

Contract Amount: $34,874,031 ($34.9M)

Contractor: Ameresco Inc

Awarding Agency: Department of Defense

Start Date: 2021-04-26

End Date: 2024-11-24

Contract Duration: 1,308 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FULL FACILITY REVITALIZATION B200, FORT TOTTEN, NY

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to AMERESCO INC for work described as: FULL FACILITY REVITALIZATION B200, FORT TOTTEN, NY Key points: 1. Contract value represents a significant investment in facility upgrades. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility. 4. Contract duration of over three years indicates a substantial project scope. 5. Performance location in New York places it within a major construction market. 6. Contractor's experience in similar projects will be key to successful delivery.

Value Assessment

Rating: good

The contract value of approximately $34.9 million for facility revitalization at Fort Totten appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction and renovation projects for federal facilities suggests that this price falls within expected ranges. The firm fixed-price structure implies that the contractor, AMERESCO INC, has committed to delivering the project within this budget, which is a positive indicator for cost control. However, a detailed comparison with specific, comparable projects would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The number of bidders is a positive sign, suggesting that the opportunity was attractive enough to draw multiple interested parties.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down potential costs through competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and military personnel stationed at Fort Totten, who will gain modernized facilities. The project will deliver comprehensive revitalization of the full facility, enhancing operational capabilities and living/working conditions. The geographic impact is localized to Fort Totten, New York, contributing to the local economy through construction activities. Workforce implications include job creation for construction workers, engineers, and project managers in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in an older facility, despite the fixed-price nature.
Dependence on contractor's ability to manage complex construction timelines effectively.
Risk of scope creep if project requirements evolve significantly during the contract period.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust selection process and potentially competitive pricing.
Contract duration allows for thorough planning and execution of revitalization efforts.
Contractor's selection implies they met the government's technical and performance requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often involves large-scale projects requiring specialized expertise. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in infrastructure and facility upgrades. This contract represents a specific instance of federal investment in maintaining and modernizing military installations, aligning with broader trends of infrastructure renewal.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, AMERESCO INC, may still engage small businesses as subcontractors to fulfill parts of the project, depending on their own subcontracting strategies and the availability of qualified small business vendors in the relevant trades. The absence of a set-aside means the primary competition was open to all business sizes.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified scope within the agreed budget. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged during the contract's performance.

Related Government Programs

Military Construction Program
Base Realignment and Closure (BRAC) related facility upgrades
Department of Defense Facilities Modernization Projects
General Services Administration (GSA) Public Buildings Service contracts

Risk Flags

Potential for unforeseen site conditions in older facilities.
Contractor performance risk.
Change order management complexity.
Budget adherence under fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to AMERESCO INC. FULL FACILITY REVITALIZATION B200, FORT TOTTEN, NY

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 $34.9 million.

What is the period of performance?

Start: 2021-04-26. End: 2024-11-24.

What is AMERESCO INC's track record with similar federal facility revitalization projects?

AMERESCO INC has a documented history of engaging in energy efficiency, infrastructure upgrades, and facility revitalization projects for various federal agencies, including the Department of Defense. Their portfolio often includes projects focused on modernizing buildings, improving energy performance, and implementing renewable energy solutions. While specific details on past projects of identical scope and value are not provided here, their general experience suggests they possess the capabilities required for large-scale federal construction and renovation. A deeper dive into their past performance ratings and any past performance issues on similar contracts would provide further insight into their reliability for this specific Fort Totten project.

How does the awarded amount compare to the estimated cost or initial solicitations?

The provided data shows the awarded amount ($34,874,030.98) but does not include the initial estimated cost or details from the solicitation phase. To assess value comprehensively, comparing the awarded price against the government's independent cost estimate (if available) and the range of bids received would be crucial. A significant difference between the estimate and the award, or a wide variance among bids, could indicate issues with the initial estimate or the competitive landscape. Without this comparative data, it's difficult to definitively state if the award represents exceptional value relative to expectations.

What are the primary risks associated with a firm fixed-price contract for facility revitalization?

The primary risk with a firm fixed-price (FFP) contract for facility revitalization is that unforeseen issues discovered during construction (e.g., structural problems, hazardous materials, outdated systems not initially identified) can lead to significant change orders, potentially increasing the overall cost and duration. While the FFP aims to cap the government's financial exposure, the contractor bears the risk of cost overruns. If the contractor underestimated the complexity or encountered unexpected challenges, they might seek additional compensation through change orders, or potentially face financial strain if they cannot absorb the extra costs. Effective initial site assessments and clear contract scope are critical to mitigating these risks.

How effective are the oversight mechanisms for this type of contract?

Oversight for this contract is expected to be robust, given it's a Department of the Army project. The firm fixed-price nature itself provides a degree of oversight by focusing accountability on the contractor's adherence to the agreed-upon scope and price. The Army's contracting officer and project managers will monitor progress, quality, and compliance with contract terms. Transparency is generally maintained through contract reporting systems. However, the effectiveness ultimately depends on the diligence of the oversight personnel, the clarity of the contract requirements, and the contractor's commitment to quality and timely delivery. Independent government cost estimates and regular progress reviews are key oversight tools.

What are historical spending patterns for facility revitalization at Fort Totten or similar Army installations?

Historical spending patterns for facility revitalization at Fort Totten and similar Army installations typically show consistent investment in maintaining and upgrading aging infrastructure. These patterns are often driven by the Army's long-term infrastructure investment plans, which prioritize modernization, energy efficiency, and operational readiness. Spending can fluctuate based on specific modernization initiatives, BRAC actions, or responses to deferred maintenance backlogs. Analyzing past spending on similar projects at comparable installations can provide benchmarks for cost-effectiveness and project duration, helping to contextualize the current $34.9 million award.

What is the significance of the contract duration (1308 days)?

A contract duration of 1308 days (approximately 3.5 years) for facility revitalization signifies a substantial and complex undertaking. This extended period suggests that the project involves extensive renovation, potentially encompassing multiple buildings or systems, and allows for phased execution, detailed planning, and integration of various construction activities. It indicates that the scope is beyond a simple repair or upgrade and likely involves significant structural, mechanical, electrical, or architectural overhauls. Such durations are common for major facility modernizations where thoroughness and quality are prioritized over speed.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR20R0049

Offers Received: 4

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: $37,084,974

Exercised Options: $34,879,964

Current Obligation: $34,874,031

Actual Outlays: $1,762,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline