2 Breakout Session # 506 Daryl Berg, DOE Contacting Officer Julia Trautman, DOE Contract Specialist Date April 15, 2008 Time3:20 – 4:20 p.m. Energy Savings Performance Contracts (ESPCs)

3 Objective To increase the understanding and use of the Department of Energy’s (DOE’s) Energy Savings Performance Contracts (ESPCs).

4 Outline Description of DOE’s ESPCs Five Phases of an ESPC Project Roles in DOE’s ESPC Projects Payments to Energy Service Companies (ESCOs) Key Points of DOE’s ESPCs Resources and Contacts

5 Description of DOE’s ESPCs Contracting vehicle that allows Federal agencies to accomplish energy projects at their facilities without using up-front capital appropriations. Can be used for any existing Federally-owned buildings. Contracting method in which the contractor provides and finances energy and water conservation projects and is repaid from the resulting savings. General terms and conditions established and Competition in Contracting Act (CICA) satisfied. –Agencies issue task orders (TOs) against DOE’s master indefinite delivery/indefinite quantity (IDIQ) contracts.

6 Five Phases of an ESPC Project Phase 1: Project Planning Phase 2: Initial Project Development Phase 3: Negotiation and Award of Final TO Phase 4: Implementation — Design, Construction and Acceptance Phase 5: Post-acceptance Performance Period

7 Roles in DOE’s ESPC Projects Energy Service Company (ESCO) Identifies energy savings opportunities Guarantees a specified level of cost savings Incurs the cost of developing and implementing an energy project Finances, designs and constructs the project Ordering Agency (Customer) Selects ESCO Negotiates, awards and administers TO Ensures that savings exceed contractor payments

8 Roles (cont.) DOE Contracting Officer Overall responsibility for ESPC master IDIQ administration Provides guidance to agencies on TO award and administration Assigns the project facilitator (DOE PF IDIQ contract) for the ordering agency’s project Federal Financing Specialist (FFS) Typically the first point of ordering agency contact with DOE Assists in initial project planning and coordination Available for assistance throughout project

9 Roles (cont.) Project Facilitator (PF) Required under DOE master IDIQs at nominal cost to ordering agency (DOE pays from project inception through preliminary assessment) Experienced and dedicated guide throughout the ESPC process Expert industry (contractor) consultant to the ordering agency on ESPC project issues

10 Payments to ESCOs ESPCs are paid from guaranteed savings No increase in Government spending occurs

11 Key Points of DOE’s ESPCs DOE provides expert support and guidance for agency projects The best vehicle for achieving Federal energy reduction mandates Savings guarantees are mandatory Measurement and verification of savings is mandatory Task order term cannot exceed 25 years

12 Resources and Contacts ESPC Website – s.htmlhttp://www1.eere.energy.gov/femp/financing/superespc s.html –Contains tools, templates and guidance FFS’ –Scott –Tom –Doug –Gordon

13 Questions???