by Brianna Crandall — May 1, 2017 — The U.S. Department of Energy (DOE) announced on Friday the award of 21 new energy and water saving contracts to private-sector companies that will help improve the efficiency of federal facilities. These indefinite delivery indefinite quantity (IDIQ) energy savings performance contracts (ESPCs) are awarded to energy service companies (ESCOs) that provide guaranteed cost savings as a result of privately financed energy and water infrastructure improvements to federal facilities, without the need for additional congressional appropriations.
U.S. Secretary of Energy Rick Perry noted:
This program highlights how the public and private sector partnerships can align with the Administration’s objectives for increased energy efficiency and job creation without burdensome regulations. A key component is that these energy and water efficiency projects at federal facilities pay for themselves, and the hope is that all federal agencies will utilize this financing method to the fullest extent.
Under an ESPC, the contractor designs, constructs, and installs an energy and water savings project that meets the federal agency’s needs and provides the necessary financing, with no required initial cost to the federal agency. The contractor must provide a guarantee to the federal agency that the improvements will generate annual energy savings sufficient to pay for the project over the term of the contract.
The contractor is paid over the term of the contract from the savings resulting from the project, which must be paid by the federal agency from funds appropriated to, or otherwise made available by, the federal agency for the payment of energy, water, or wastewater treatment expenses and related operation and maintenance expenses.
The federal government has been awarding ESPCs at an investment pace of about $2 billion every three years. DOE expects the ESPC IDIQ contracts just announced to be used for investments resulting in federal infrastructure improvements, energy savings, and job creation. Federal agencies can work with the selected companies under the DOE IDIQ for a period of five years with one extension period of 18 months.
The new contracts were awarded to the following ESCOs:
- ABM Government Services LLC of Hopkinsville, KY
- AECOM Technical Services Inc. of San Diego, CA
- Ameresco Inc. of Framingham, MA
- The Brewer-Garrett Company of Middleburg Heights, OH
- CEG LLC of Arlington, VA
- Consolidated Edison Solutions Inc. of Valhalla, NY
- Constellation NewEnergy Inc. of Baltimore, MD
- EDF Renewable Energy of San Diego, CA
- Energy Solutions Professionals LLC of Overland Park, KS
- Energy Systems Group LLC of Newburg, IN
- Honeywell of Golden Valley, MN
- Leidos Engineering LLC of Oklahoma City, OK
- Lockheed Martin Corporation of Rockville, MD
- Noresco United Technologies of Westborough, MA
- OpTerra Energy Services of Overland Park, KS
- Schneider Electric of Austin, TX
- Siemens Government Technologies Inc. of Arlington, VA
- SmartWatt Energy of Ballston Lake, NY
- Southland Energy of Dulles, VA
- Trane U.S. Inc. of St. Paul, MN
- WGL of McLean, VA
DOE’s Office of Energy Efficiency and Renewable Energy (EERE) accelerates research and development of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality. Visit the Federal Energy Management Program’s (FEMP) Web site to learn more about how the Energy Department enables federal agencies to optimize building performance to reduce energy and water waste and to increase the energy security and resiliency of federal facilities.