NORESCO Awarded $44.3 Million Navy Energy Contract at California Base

NORESCO Awarded $44.3 Million Navy Energy Contract at California Base

The Westborough, Massachusetts, firm secured a firm-fixed-price task order for energy improvements at Naval Base Ventura County, with work expected to finish by September 2028.

Richard Miniter
First Published: July 31, 2026, 1:32 PM ET

— NORESCO LLC, an energy services firm based in Westborough, Massachusetts, received a $44.3 million task order to modernize energy systems at a Navy base in Southern California.

The firm-fixed-price energy savings performance contract task order attaches to a previously awarded Department of Energy indefinite-delivery/indefinite-quantity contract, according to war.gov. The award funds energy improvements at Naval Base Ventura County, California, as announced on war.gov. Work will span Port Hueneme, Point Mugu, and San Nicolas Island, California, and should finish by September 2028. The Naval Facilities Engineering and Expeditionary Warfare Center in Port Hueneme runs the contract, which drew fifteen competing offers.

Energy savings performance contracts let federal agencies fund upgrades through the savings those upgrades generate, rather than upfront appropriations. Financing at the time of award will set the exact task order amount, and no funds attach to the deal now, according to war.gov. The structure shifts financial risk toward the contractor, which recoups its investment as the base cuts utility spending. For a reader far from the California coast, the contract shows how the military funds infrastructure without new spending. Sailors and civilian staff at the three sites stand to gain modernized facilities, while taxpayers avoid direct outlays because repayments come from lower energy bills over the life of the deal.

The order marks NORESCO’s first contract of 2026 and the 44th Department of Defense contract in Massachusetts during the year, according to war.gov. The figure trails the company’s record award of $169.3 million and sits well below the year-to-date maximum of $8 billion in the Navy portfolio. This has happened before. The Navy has used energy savings performance contracts across its installations for years, and NORESCO has repeatedly competed for and won such work. The next decision rests with the Naval Facilities Engineering and Expeditionary Warfare Center, which will set the final task order amount once financing closes, and a date for that determination has not been announced. Military energy contracting at Naval Base Ventura County reaches back decades, as happened before with the Seabees who built it. The Navy established the Port Hueneme construction battalion base during World War II, and Point Mugu became a missile test center in 1946. San Nicolas Island, the most remote of the three sites, has served as a Navy range since the 1950s. Each installation now depends on reliable power, and the latest order continues a long push to keep those aging facilities running at lower cost.

This contract represents the 1st contract awarded to NORESCO LLC, in 2026, bringing the company’s total contract value for the year to $44,318,672. It is also the 44th Department of Defense contract awarded in Massachusetts during 2026. While this is not the largest contract ever awarded to NORESCO LLC, whose record stands at $169,331,394, it is notable within the Navy portfolio. Specifically, it falls between the 2026 Navy portfolio’s year-to-date minimum of $9,046,496 and maximum of $8,000,000,000. Overall, this award was announced among 16 Department of Defense contracts issued nationwide on July 31, 2026.

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OpenTopoMap / Natural Earth - San Nicolas Island, California
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