GSA has awarded more than $191 million worth of energy savings performance contracts as part of its contribution to the President’s Performance Contracting Challenge, which is improving energy efficiency at Federal buildings at no up-front cost to taxpayers. The Obama Administration recently announced it will push Federal agencies to further expand their use of performance-based contracts to help the Federal Government save money and further reduce energy use.
In December 2011, President Obama directed Federal agencies government-wide to enter into at least $2 billion worth of performance-based contracts over the next two years to achieve substantial energy savings and to create jobs. Since then, GSA has entered nearly 100 buildings into energy savings performance contracts, and we exceeded our original commitment of $175 million worth of contracts by $16 million. The Obama Administration recently challenged Federal agencies again to use even more energy savings performance contracts to improve their buildings. GSA will identify additional buildings to further our commitment to the President’s challenge and meet the new goal of achieving additional savings by 2016.
Through performance-based contracts with energy companies, the government can harness private-sector innovation and investments to achieve greater levels of energy savings in Federal buildings. Federal agencies have since created a pipeline of about $2.3 billion in projects within their building portfolios that are creating renovation and construction projects across the country.
In response to the Better Buildings Challenge, GSA set out to push performance-based contracts to the next level, and our efforts so far will cut energy use in the facilities by 38 percent. Our initial estimates show that we can achieve approximately $10.6 million in annual savings from energy and water reductions.
ESPCs allow the government to pay energy companies once the savings have been delivered, and the savings go towards paying for the renovations over a period of time. The government is then left with more energy efficient buildings with lower utility bills after the life of the contracts.
Find more information on the President’s Better Buildings Challenge at www.energy.gov/betterbuildings.