Energy Savings Performance Contracts (ESPC) Kadena AB, Japan

DLA Energy will utilize the Department of Energy (DOE) Super Energy Savings Performance Contracts (ESPC)
Indefinite-Delivery/Indefinite-Quantity (IDIQ) to award a Task Order (TO) for the customer's requirement. The DOE
Super ESPC IDIQ contracts were awarded to sixteen Energy Service Companies (ESCOs) based on their
capability to meet specified ESPC terms and conditions, with a contract term up to 25 years allowed under 42
USC 8287. Through ESPCs, prequalified ESCOs finance, develop and implement energy conservation measures
(ECMs) for federal agencies at no upfront cost to the installation. The return to an ESCO is a contractually
determined share of the energy cost savings generated by the ESPC project. Prior to award of a TO, the ESCO
conducts a comprehensive energy audit and identifies improvements to avoid facility energy costs and energy
related operation and maintenance (O&M) costs. The ESCO guarantees annual cost savings upon
implementation of the ECMs and privately finances the investment. The delivery schedule is amortized to allow the
federal agency customer to pay for ESCO services and debt service from annual cost savings over the term of the
contract. The DOE Super ESPC IDIQ contract will be used to award a TO to design, install, and operate an ESPC
project at Kadena Air Base (AB), Japan. The purpose for pursing an ESPC project is to help Kadena AB reach it mandated energy conservation goals.