The U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville awarded a task order contract to Honeywell International, Federal Systems Group, of Columbia, Maryland, to perform work under an energy savings performance contract at Rock Island Arsenal, Illinois.
The $22.4 million task order, awarded Dec. 30, will allow for removal of the existing coal-fired steam plant and replacing it with a high efficiency decentralized heating system. This energy conservation measure will eliminate coal consumption and help the garrison meet the requirements of the Environmental Protection Agency’s Clean Air Act.
The new heating system is expected to reduce energy consumption by approximately 11 percent and water consumption by 12 percent. The work should also reduce greenhouse gas emissions by an estimated 20,800 metric tons, equivalent to removing 4,500 cars from the road.
Work began in April 2015 and is scheduled to be finished by fall 2016. This work builds on a previous modernization project at an Army manufacturing facility that operates on-site. Together with the latest effort, the upgrades are expected to cut energy use on the Arsenal by more than 35 percent and water consumption by approximately 30 percent.
An ESPC uses third-party financing and expertise to make comprehensive energy and water efficiency improvements on facilities or implement new renewable energy capabilities and maintain them in exchange for a portion of the generated savings, with little or no upfront cost to the installation. The Energy Services Company guarantees the upgrades will generate enough savings each year to pay for the work. This project should pay for itself in less than 13 years.
An ESPC is one of the acquisition vehicles an installation can use to meet the Army’s 30 percent energy and 15 percent water reduction goals.
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 facility 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 15 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. The flexibility of this contracting vehicle allowed the Army to meet and exceed the president’s Performance Contracting Challenge in fiscal year 2014.