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ESPC Contracting Division (DESC-EC)

Chief ESPC Contracting Division
Telephone: 703-767-8451
DSN: 427-8451
FAX: 703-767-2382

DESC-EC Points Of Contact
   
Provides contracting support to the Military Services in the acquisition of energy conservation initiatives and privatization of utility systems infrastructure.

Links
  Sources Sought Notice
  Contracted Advisory and Assistance Services (CAAS) to support DESC's Energy Savings Performance Contract (ESPC) and Utility Privatization (UP) Programs.
  Installation Management Institute Briefing (450K Powerpoint file)
  Fort Hood Utility Partnering
  Installation Energy Programs and Services: A Program Manager's Perspective of Acquisition' Briefing
  Department of Energy, Federal Energy Management Program
  Energy 2000 ESPC Briefing (Powerpoint file 910 KB)

DESC/DOE ESPC Partnership Established
  On October 18, 1999, Ms. Sharon Murphy, Director, DESC Energy Enterprise Office and Ms. Beth Shearer, Director, DOE Federal Energy Management Program (FEMP), signed a Memorandum Of Understanding that will allow DESC to use DOE's Super Regional Energy Savings Performance Contracts (ESPC) as well as their Technology-Specific ESPCs. The MOU will allow DESC to cut task orders off of already established DOE Indefinite Delivery/Indefinite Quantity contracts. The newly established partnership will give installations interested in utilizing ESPCs in an effort to cut energy usage and bills an effective means to tap into DESC’s contracting expertise and DOE’s technical expertise in one easy step.

The Defense Energy Support Center is dedicated to assisting Federal Government facilities reduce their energy consumption. Any Federal installation interested in learning more the DESC/DOE partnership is encouraged to contact any of the following individuals at DESC:

  • Director, Energy Enterprise Office 703.767.5168
  • Contracting Officer, Energy Conservation Branch 703.767.8451

What is Energy Savings Performance Contracting
  The ESPC is a contract mechanism that is designed to utilize creative financing for facility improvements and/or energy efficiency upgrades of commercial or public buildings. These improvements retrofit existing energy intensive equipment and replace them with proven technologies that are, by design, more energy efficient and less expensive to maintain. An Energy Service Company (ESCO) provides, installs and finances these capital improvements. The ESCO guarantees a resulting energy savings based on previous energy and operating costs. This guaranteed savings are the financing mechanism for the facility improvements. The ESCO assumes 100% of the risk and finances the project’s cost. The Total Project Cost is financed for the shortest length of time necessary for the energy savings to repay the cost of the loan. The guaranteed savings are calculated based on the facilities’ prior utility bills (gas, electric, water, wastewater). The ESCO uses these savings to finance the project cost. The end-user will realize improved operating and maintenance of their facility with zero out-of-pocket costs. The Contractor (ESCO) assumes responsibility for the installation and warranties the equipment until the Facility takes ownership. Additionally, the ESCO is responsible for all terms and conditions that define the ESPC’s financing structure, project scope and long-term benefits/risks. Improvements to the facility’s infrastructure can enhance the work environment and increase the productivity of the employees. Compliance with EPA mandates/guidelines such as those regarding HVAC refrigerants, meeting energy reduction goals provided in Executive Orders, and a reduction in pollution can also be accomplished with these retrofits.

Energy Savings Performance Contracting
  On June 29, 1999, the Defense Energy Support Center awarded an ESPC contract/task order to Viron/Pepco Services, Inc. for performance at five installations within the Military District of Washington. The task order calls for over $60 million in contractor investment. The initial task order under the contract calls for Viron/Pepco to install, own, operate, and maintain fourteen different types of Energy Conservation Measures affecting energy usage at over 800 buildings on Fort Belvoir, Fort A.P. Hill, Fort Myer, Fort McNair, and Fort Meade.

Energy Enterprise Office
  Energy Enterprise Office (-E)
  Utility Privatization Branch (-E)
  Utility Privatization Resources and Helpful Links

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