Energy Savings Performance Contract II (ESPC II)

The Department of the Army Corps of Engineers Engineering Support Center Huntsville established this Master IDIQ for Energy Savings Performance Contracts (ESPC) on December 18, 2008, with a last date to order of December 21, 2018—the vehicle is closed to new orders as of 7 years 6 months ago. A successor vehicle, Energy Savings Performance Contract II, was awarded on May 8, 2015, and is the active procurement path for new ESPC work going forward.

Under this vehicle, ESCOs conduct comprehensive energy audits, design energy savings projects, guarantee achievement of energy savings sufficient to cover project costs, arrange third-party financing, and develop Measurement and Verification plans to monitor actual savings. Work spans lighting improvements, HVAC and chiller system upgrades, renewable energy systems, steam and boiler plant decentralization, water and sewer conservation, electrical load shifting, and utility monitoring control systems.

The vehicle awarded 45 task orders between January 2011 and September 2017, with activity concentrated in 2013 and 2014 (11 and 9 orders respectively) and declining thereafter (2 orders in 2017). Combined potential value reached $1.32 billion, with $928.8 million obligated to date (70% of potential). Johnson Controls Government Systems, LLC dominates with 16 orders totaling $415.9 million in combined potential value, followed by Honeywell International, Inc. (8 orders, $337.2 million) and Siemens Government Technologies Inc. (9 orders, $283.2 million). These three firms represent the overwhelming majority of activity; the remaining two named primes (AECOM Usa, Inc. and Noresco, LLC) hold smaller positions. All 45 task orders carried no set-aside designation.

The Department of the Army Corps of Engineers Engineering Support Center Huntsville itself placed 38 of the 45 orders ($1.21 billion combined potential value). The remaining 7 orders funded Navy and Army customer agencies at substantially smaller scales. Task order durations typically extend 10 to 20+ years to align with debt service and performance periods; representative mega-orders include a $121.7 million ceiling order for energy savings improvements (with $86.1 million obligated), an $85.6 million ceiling order for ESPC project work (with $52.9 million obligated), and an $87.3 million ceiling order for APG facility improvements (with $50.1 million obligated). Performance locations concentrate at Army installations across CONUS and overseas territories, including Fort Bliss, Fort Carson, Fort Lee, Fort McCoy, Schofield Barracks, Aberdeen Proving Ground, and Puerto Rico National Guard facilities.

In an ESPC project, the Energy Services Contractor (ESCO) conducts a comprehensive energy audit and identifies improvements that will reduce energy consumption and costs at a U.S. Government installation. The ESCO designs an energy savings project and guarantees that the improvements made will generate savings sufficient to pay for the project over the term of the task order. Additionally, the ESCO develops a Measurement and Verification (M & V) plan that is utilized to monitor the savings resulting from the energy savings project, and arranges 3rd party financing to pay for the project.