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DOE Awards Contracts to Conduct up to $80 Billion in Federal Energy Projects

December 18, 2008

Photo of the U.S. Department of Energy's main building, the Forrestal Building. The large, rectangular office building is lined with windows on all sides and is raised a story above street level by several large pillars. It is surrounded by a simple lawn and sided by a busy six-lane street.

DOE announced on December 18 that it will award sixteen new Indefinite Delivery Indefinite Quantity Energy Savings Performance Contracts (ESPCs) that could result in up to $80 billion in energy efficiency, renewable energy, and water conservation projects at federally-owned buildings and facilities. The new contracts provide for a maximum individual contract value of $5 billion over the life of the contract, eliminate technology-specific restrictions, and allow federal agencies to use these contracts in national and international federal buildings. Sixteen energy service companies were awarded contracts: Ameresco, Inc.; Chevron Energy Solutions; Clark Realty Builders; Consolidated Edison Solutions, Inc.; Constellation Energy Projects and Services Group, Inc.; FPL Energy Service, Inc.; Honeywell International, Inc.; Johnson Controls Government Systems, LLC; Lockheed Martin Services, Inc.; McKinstry Essention, Inc.; NORESCO, LLC; Pepco Energy Services; Siemens Government Services, Inc.; TAC Energy Solutions; The Benham Companies, LLC; and Trane U.S., Inc. See the DOE press release and read more information about the new contracts on the Federal Energy Management Program Web site.

The federal government is the largest single user of energy in the United States. The energy goals outlined in Executive Order 13423, the Energy Policy Act of 2005, and the Energy Independence and Security Act of 2007 require that federal agencies reduce energy intensity 30% from 2003 levels and reduce water usage by 16% by 2015 from the 2007 usage levels, and require that at least 7.5% of all electrical needs at federal facilities be supplied by renewable energy by 2013. ESPCs are used to help the federal government meet its energy efficiency, water conservation, and renewable energy goals. ESPCs are contracts under which a contractor designs, constructs, and obtains the necessary financing for an energy savings project, and the federal agency makes payments over time to the contractor from the savings in the agency's utility bills. The contractor guarantees the energy improvements will generate savings. After the contract ends, all continuing cost savings accrue to the agency.