FEMP Announces the Department of Energy's Third Generation IDIQ ESPC Contract Award
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The Department of Energy (DOE) announced the award of its third generation of indefinite delivery indefinite quantity (IDIQ) energy savings performance contracts (ESPCs) to 21 energy service companies (ESCOs).
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. After the contract ends, all continuing cost savings accrue to the agency.
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:
The federal government is the largest single user of energy in the United States, and these awards demonstrate a federal commitment to enhancing public-private partnerships and catalyzing federal infrastructure investments, strengthening national energy efficiency and security while reducing the overall federal government energy-related costs for the taxpayer. Since 1998, awards under the DOE IDIQ have resulted in $4.9 billion in investment, yielding $11.9 billion in total guaranteed savings and 27 trillion BTU of energy saved per year, the equivalent average annual energy usage of 300,000 U.S. households. Twenty-five major federal agencies have used previous DOE IDIQs to award Task Orders for work in more than 45 states and Washington, D.C., Spain, South Korea, and Puerto Rico. The average DOE IDIQ ESPC project over the last 5 years has an investment of approximately $25 million. An ESPC can include many types of energy and water savings systems including but not limited to efficient lighting such as LEDs, energy controls, heating ventilation and air conditioning upgrades, cogeneration and micro-grids, renewable energy, and water efficient systems.
The federal government has been awarding ESPCs at an investment pace of about $2 billion every three years. The DOE ESPC IDIQ contracts are expected to be used for a significant portion of these investments, aligning with the Administration's “all of the above” national energy strategy, providing opportunities for more efficient and secure government energy usage in government facilities and contributing to U.S. domestic job creation.
Read the full DOE press release and find a detailed listing of ESCO contacts for all active IDIQ contracts.