Briefing to

1
Energy Savings Performance Contracts

• Briefing to
• ENERGY 2000
• Panel
• Using the Military Energy
  Savings Performance
  Contracts
• August 22, 2000

Sharon L. Murphy
Defense Energy Support Center
Director, Installation Energy and Energy
Enterprise Office
2
Where DESC is in DoD Chain of Command
Office of Secretary of Defense
Unified Commands
JCS
Army Petrol. Center
Navy/Marine Corps
Defense Logistics Agency
Army
Air Force
AF/ILE
Navy Petrol Office
Aerospace Fuels
Army Energy Office
Defense Energy Support Center
AF Pet
AFCESA
NAVFAC
2
3
DESC Organization
3
4
Contract Awards FY 99
5
New Energy MissionStrategic Plan Recap
Satisfy DODs Energy Needs at Best Value
Utility System Privatization
(MIL SVC Lead)
TOTAL ENERGY MANAGEMENT (via DOD partnerships)
Supply Management (DLA Lead)
Demand Manage- ment

• Aggregated Regional Commodity Contracts
• - Electricity
• - Natural Gas
• - Heating Oil
• - Coal

• Energy Savings Performance Based Contracts (ESPC)
• Utility service contracting
• Total Integrated Energy Management

• DRID 9, 21, 49
• Contracting support to Program Manager Role
• Maximize Regional Opportunities

OPTIMAL Approach To Managing Energy, Not
Infrastructure
5
6
Super ESPC Success Story

• Conducted Competitive Energy Savings Performance
  Contract (ESPC) for MDW
• Fort McNair
• Fort Meade
• Fort Belvoir
• Fort Myer
• Fort A P Hill
• Contract awarded to Viron-Pepco on June 29, 1999
• Includes 837 buildings and facilities
• 15 energy conservation measures - lighting,
  controls, boiler conversions and replacement,
  chiller installation
• 67 Million in contractor investment in first
  three years of contract

6
7
The Deal

• Creative Bundling
• Capital Investment 67 Million
• Construction 1st 3 Years
• Number of Buildings 837 (out of 2400 surveyed)
• 143,000 Lighting Fixture
• 888 Cooling System Retrofits
• 430 Controls
• All 5 Central Heating Plants Refurbished
• Creative Contracting
• Solicitation was issued under FAR Part 12
• Award was made on a Best Value Basis
• Full and Open Competition

7
8
The Partnerships

• Public/Private AND within the Government
• MDW/DESC tapped into Department of Energy
  expertise
• Worked closely with the National Renewable Energy
  Laboratory (NREL)
• Additional technical assistance provide by NREL
  contractor Schiller and Associates
• Consulted with DOE contracting individuals during
  the early phases of solicitation preparation
• Utilized technical expertise of installation base
  personnel

8
9
DOE/DESC Partnership

• Why establish additional ID/IQ umbrella
  contracts?
• Industry wants task orders construction!
• Plenty of head-room on existing umbrella
  contracts
• DOE/DESC MOU signed 18 Oct 99
• No separate MOU needed with customer
• DESC as Contracting Officer for any DoD customer
  ILO Base CO
• Its a great partnership - DESC is 100 on-board
  with DOE process

9
10
DOE/DESC Process

• Customer advises DESC of interest DESC
  advises DOE RO
• DESC/DOE briefs process to Command and
  Organization Elements Base contracting, legal,
  environmental, and comptroller
• Ensures buy-in at highest level
• Greater potential for success
• Get OK to proceed
• If customer has ESCO in mind proceed with
  kick-off meeting
• If not, DESC sends out e-mail advisory of
  opportunity to Regional ESCOs

10
11
DOE/DESC Process (contd)

• Interested ESCOs present marketing proposal/
  presentations at established date/time
• DESC sends advisory to ALL DOE contract holders
• 1 to 2 hours each with QA
• Customer selects ESCO advises DESC
  DOE R/O kick-off meeting scheduled
  DOE Project Facilitator involved
• ESCOs Preliminary Proposal
• Conducts preliminary audit
• Usually 30-60 days
• Recommends milestones - BUT, a 180-day process is
  our goal!

11
12
DOE/DESC Process (contd)

• RO reviews proposal Gives Go/No Go
  recommendation to customer
• If Go ESCO conducts full scale
  investment audit (target is 60 days)
• Tech eval starts concurrently
• DESC opens negotiations
• If contractors audit comes in within initial
  proposal guarantee, DESC awards Delivery Order

12
13
Ongoing Efforts

• Fort Hamilton Xenergy
• Carlisle Barracks Xelon
• Fort Leavenworth geothermal Duke Solutions
• Fort Rucker Honeywell
• Fort Jackson - Duke Solutions
• Aberdeen Proving Grounds geothermal
  Constellation
• Fort Bliss - ERI

13
14
(http//www.dscp.dla.mil/gi/general/light3.htm)
14
15
Summary

• At customers requests, DESC has expanded its
  Energy Services and Programs
• DOE/DESC Partnership is Win/Win for
• ESCOs
• Futherance of super energy reduction tool
• DOE
• DESC
• AND THE DOD CUSTOMER!

15
16
One Stop BTU Shop Organization
Sharon Murphy Director, Installation Energy and
Energy Enterprise Office [phone]
smurphy_at_desc.dla.mil
Mark Iden Deputy Director, Energy Enterprise
Office (Privatization and Energy
Conservation) [phone]
miden_at_desc.dla.mil (3 Support Personnel)
Vacant Deputy Director, Installation Energy
(Natural Gas, CNG Refueling Stations,
Electricity and Coal)
Kevin M. McCulla, Supervisory General Engineer
[phone] kmcculla_at_desc.dla.mil (3
Engineers)
CONTRACTING DIVISION CHIEFS
Electricity, Privatization, Energy Conservation
- Jacob Moser (25 1102s) [phone]
jmoser_at_desc.dla.mil
Natural Gas/Northeast and Central - John
Crunkilton [phone] jcrunkilton_at_desc.dl
a.mil
Coal - Donna Frankel [phone]
dfrankel_at_desc.dla.mil
Natural Gas/South and West - Anna Kerr (703)
767-8135 akerr_at_desc.dla.mil
17
For copies of briefing charts
http//www.desc.dla.mil/main/a/espc/espc.htm
17