The U.S. Army Engineering and Support Center, Huntsville is considered the Army’s expert in Energy Savings Performance Contracting (ESPC). In close coordination with the respective garrison and Huntsville Center, the Energy Service Contractor (ESCO) provides the capital and expertise to make comprehensive energy and water efficiency improvements on facilities or implements new renewable energy capabilities and maintains them in exchange for a portion of the generated savings.
An ESPC is one of the acquisition vehicles an installation can use to meet the goals set out by Executive Order 13834 to reduce energy and water consumption. Actual energy cost savings pay for the ESPC efforts on a yearly basis.
- An ESPC task order provides four key benefits to the installation:
- Savings guarantees are mandatory
- Savings must exceed payment each year
- Measurement and verification are mandatory
- Allows for the replacement of older systems with newer more efficient systems
The ESCO performs operations and maintenance on major systems, allowing limited Department of Public Works maintenance resources to be spent on other activities. Implementation and development costs are financed for up to 25 years. These third party financed agreements allow the garrison to focus appropriated funds on mission critical requirements.
Huntsville Center has a nationwide ESPC Indefinite Delivery/Indefinite Quantity (IDIQ) Multiple Award Task Order Contract (MATOC) with 13 ESCOs. Task orders are competed among the MATOC vendors using the center’s streamlined procurement process. This proven business model is considered one of the leaders in the Department of Defense. Successes associated with this program include task orders awarded to Kwajalein Atoll, Marshall Islands and Fort Huachuca, Arizona. Huntsville Center is also working overseas with efforts in Korea and Germany.
ESPC payments are derived from the savings generated by the improvements. ESPC project savings are ensured by mandatory measurement and verification performed each year. Savings must occur or the contractor does not get paid.
ESPC project savings are cumulative creating savings for the installation year after year throughout the project contract period and often replacing equipment near the end of its service life with higher efficiency energy solutions.
In FY18, the total verified savings amount was more than $102 million.
- ESPC provides several types of Energy Conservation Measures (ECMs) for government facilities.
- Boiler Improvements
- Air Handling Equipment
- High Efficiency Motors
- Lighting Retrofits
- Building Envelopes
- Weather Proofing
- Spray-On Insulation
- Water and Steam Distribution
- Water Wells
- Retention Ponds
- Ground Source Heat Pumps
- Variable Frequency Drives
- Metering and Energy Information Systems
- Primary/Secondary Pumping Systems
- Decentralization of Power Plants
- Chiller Plant Improvements
- Upgrade to HVAC Systems
- Renewable Energy Systems
- Solar, Photovoltaic
- Water Heaters
- Swimming Pools
- Power Generation
- Electrical Peak Sharing
- Combined Heat & Power Generators
- Upgrade of Central Power Plants
- Gas-fired Infrared Heaters
- Decentralization of domestic hot water systems
- Propane to Natural Gas Conversions
Installation Hotline – Assistance is available to Army installation energy managers and Directorate of Public Works personnel for all ESPC services. Call 256-895-1349.
Download the ESPC Fact Sheet (PDF) HERE.
(as of November 2019)