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FORT BELVOIR, Va. - Defense Logistics Agency Energy is helping the Army increase its energy efficiency while saving taxpayer dollars through a series of recently awarded performance-based contracts.
The service is planning to execute $800 million in alternatively financed energy efficiency projects over the next two years through either energy savings performance contracts or utility energy services contracts, according to a March 22 article on the Army’s website.
DLA Energy has worked closely with the Army on a number of energy efficiency projects throughout the years, and DLA Energy Installation Energy Director Pam Griffith said her organization helped award the energy savings performance contracts that are part of the new business.
ESPCs are contracts that require energy service companies to install and finance projects that increase customers’ energy efficiency and water conservation at no direct cost to the customers, said Cindy Obermeyer, a contracting officer with DLA Energy Installation Energy.
“As part of the requirement, the energy service company identifies improvements that will save energy and related operations and maintenance costs for a federal agency customer, such as an Army installation,” Obermeyer said. “The ESCO guarantees that the energy improvements proposed will result in a specified level of annual energy-cost savings to the federal agency or installation customer.”
Obermeyer explained that the savings from an ESPC are guaranteed to be enough to let a customer pay the energy service company for its work over the term of the contract, which will not exceed 25 years.
DLA Energy was directed by Defense Reform Initiative Directive Number 21 in 1998 to assist the military services in using ESPCs.
“ESPCs help the services by reducing the amount of energy [consumption] at an installation,” Obermeyer said.
This type of contract also allows installations to improve their infrastructures and sometimes even their operations without using appropriated funds, Obermeyer said.
“The installation uses the guaranteed savings the ESCO achieves to then reimburse the ESCO for the cost of project development and implementation. The key is that the ESCO guarantees those savings will be achieved, so these same funds will be readily available for the installation to make the required payments,” she said.
“The ESPC branch has awarded more than $430 million in energy savings contracts for the [Defense Department], primarily for the Army,” Obermeyer said. “Personally, I don't believe that we have even scratched the surface on the use and benefits of ESPCs.”
Many, if not most, existing facilities were built prior to today’s increased awareness of the need for energy efficiency, Obermeyer said.
“There is a lot of work yet to do at the installations, and while notable progress has been made to date, we have a long way to go,” she said.
Griffith said she thinks the use of ESPCs will grow as more people become aware of their benefits in meeting energy goals.
“We have multiple ESPC initiatives in the pipeline in support of the Army, Air Force and Defense Commissary Agency,” Griffith said. “The word is getting out to the services and federal agencies about DLA Energy, and Installation Energy [in particular], so we expect to see additional requirements from customers.
DLA Energy is the supplemental contracting house for energy conservation efforts of all kinds, not just ESPCs, Obermeyer said.
“Energy managers at installations need a contracting house that will help them meet their energy savings goals. DLA Energy does that for them by offering installations something unique,” she said.
Obermeyer said the staff at DLA Energy Installation Energy is passionate about the work they do to increase energy efficiency and water conservation.
“That passion helps us turn an installation’s energy conservation requirements into reality, it’s what [our team] does best,” she said.
| Date Taken: | 04.13.2012 |
| Date Posted: | 05.07.2012 17:04 |
| Story ID: | 88052 |
| Location: | FORT BELVOIR, VA, US |
| Web Views: | 116 |
| Downloads: | 0 |
This work, DLA Energy supports Army’s execution of energy efficiency projects, by Susan Lowe, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright.
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