Energy Savings Performance Contract II (ESPC III)

The Energy Savings Performance Contract II (ESPC III) is a $1.5 billion multiple-award indefinite delivery/indefinite quantity (IDIQ) contract administered by the U.S. Army Corps of Engineers Engineering Support Center Huntsville. The contract enables federal agencies, primarily within the Department of Defense, to implement comprehensive energy conservation and infrastructure modernization projects through performance-based contracting. Under this vehicle, energy service companies (ESCOs) design, finance, and implement energy efficiency upgrades, renewable energy systems, and infrastructure improvements at military installations and other federal facilities, with project costs repaid through guaranteed energy savings over extended performance periods.

Task orders under this IDIQ consistently focus on energy conservation measures at military bases across the United States and overseas, with contract values ranging from approximately $300,000 to over $410 million. Frequent prime contractors include Energy Systems Group, Noresco (a subsidiary of RTX Corporation), Siemens Government Technologies, CEG Solutions, Constellation Newenergy, Johnson Controls Government Systems, and AECOM Technical Services. Typical project scopes include lighting upgrades, HVAC system replacements, building automation system improvements, utility infrastructure modernization, and renewable energy installations. The task orders consistently demonstrate long performance periods, often spanning 20-25 years, with completion dates extending to 2040-2046. None of the task orders utilized small business set-asides, and performance locations span multiple states including Virginia, California, Texas, Kentucky, New York, and even international locations like the Marshall Islands and Germany.