Energy savings performance contracts (ESPCs) and utility energy service contracts (UESC)s are contracting vehicles that allow Federal government agencies to partner with private sector companies and utilities to install energy and water conservation measures without the need for upfront appropriations. Private sector companies take on the performance risk of the equipment and obtain competitive financing from a third-party lender. The government agency pays them back over time from the energy and water savings associated with the more efficient equipment. These contracts provide a solution to more immediately upgrade aging infrastructure and critical building systems when appropriations are not readily available.
VA has awarded $1.1 billion in upgrades at 88 medical centers through ESPCs and UESCs with private sector investment since 2011. These contracts are repairing and replacing critical energy and water infrastructure and are expected to avoid more than $1.6 billion of energy and water costs for VA facilities over the life of these contracts.
VA awards ESPCs through our ESPC SDVOSB IDIQ, which was originally awarded to four companies on May 21, 2020, with an additional two on-ramped in March 2022. The current list of awardees is:
- CTI-OES Joint Venture (OES is now Engie)
- TLS-CES Joint Venture (CES is now RWE)
- US2 (now partnered with Southland)
- Venergy-Brewer Garret Joint Venture [Joint venture has since been disbanded]
- HICAPS (partnered with Trane)
- HSGS-Ameresco Joint Venture
The Department of Energy provides additional information and resources about ESPCs and UESCs.