FEMP-FS--Regional Super ESPC Saves Energy and Dollars at ... · U.S. Department of Energy (DOE)...
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Overview NASA should save approximately $43 million in utility costs over the next 23 years at the Johnson Space Flight Center (JSC) in Houston, Texas, thanks to the largest delivery order signed to date under a U.S. Department of Energy (DOE) Regional Super Energy Savings Performance Contract (Super ESPC). The delivery order calls for many new and improved energy and water efficiency measures to be installed at JSC. The order was issued to Honeywell Inc. in February 1999 under a DOE Central Region Super ESPC that was awarded in July 1998. As a result of the combined efforts of staff from JSC, Honeywell, and DOE’s Federal Energy Management Program (FEMP), this project will be saving energy and water as well as taxpayer dollars for many years to come. Under the terms of this delivery order, Honeywell is installing energy-efficient lighting and compressed- air systems, implementing measures to reduce water consumption, and improving air-conditioning and lighting control systems in more than 140 buildings at JSC, the Sonny Carter Training Facility, and Ellington Field in Houston. Honeywell's initial investment of about $20 million should save nearly $2 million a year in energy and water costs. As JSC begins realizing these cost savings, Honeywell will receive a portion of them in payment for its investments. Additional investments and savings, via follow-up deliv- ery orders, are also possible over the next several years. Background The project was originally designed to be carried out in phases under multiple contract awards. Eventually, however, the project team decided to make use of DOE’s Central Region Super ESPC and combined the phases under one delivery order for the entire project. Super ESPCs, which are streamlined indefinite deliv- ery, indefinite quantity (IDIQ) contracts, can be either regional (see map on reverse for a list of con- tacts) or technology-specific. Regional Super ESPCs allow agencies to contract with competitively select- ed energy service companies (ESCOs) in their region for a variety of energy and water efficiency services. Technology-Specific Super ESPCs allow ESCOs to provide certain products (such as geothermal heat pumps or photovoltaic systems) to agencies any- where in the nation. Both kinds of ESPCs can include maintenance, which is usually done by the ESCO. Delivery orders signed under Super ESPCs specify the products and services that will be provided and estimate the agency’s savings and payments to the ESCO. ESCOs assume the up-front capital costs in exchange for a portion of the Federal agency’s energy cost savings. Payments are made to the ESCO over the life of the contract, which can be up to 25 years. Project Summary Honeywell staff worked closely with JSC’s Energy Management Team at the Houston site to identify dozens of potential energy and water conservation measures and improvements. The JSC-Honeywell team then determined the feasibility of these meas- ures, estimated their potential long-term savings, and prepared a guaranteed savings proposal. After deciding to have the work done under the DOE Central Region Super ESPC, JSC requested final technical and financial review assistance from FEMP. The project team asked FEMP to help verify calcu- lated savings, validate proposed measurement and verification methods, and confirm price schedules. Regional Super ESPC Saves Energy and Dollars at NASA Johnson Space Center Regional contract enables Houston space flight center to reduce utility bills by nearly $2 million per year while conserving energy and water FEDERAL ENERGY MANAGEMENT PROGRAM ESPC Case Study U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Internet: http://www.eren.doe.gov/femp/ PIX03814 The NASA Johnson Space Flight Center in Houston is well known for its achievements in the U.S. space program (this 1994 photo shows the Space Shuttle Columbia during a launch).
Transcript of FEMP-FS--Regional Super ESPC Saves Energy and Dollars at ... · U.S. Department of Energy (DOE)...
OverviewNASA should save approximately $43 million inutility costs over the next 23 years at the JohnsonSpace Flight Center (JSC) in Houston, Texas, thanksto the largest delivery order signed to date under aU.S. Department of Energy (DOE) Regional SuperEnergy Savings Performance Contract (Super ESPC).
The delivery order calls for many new and improvedenergy and water efficiency measures to be installedat JSC. The order was issued to Honeywell Inc. inFebruary 1999 under a DOE Central Region SuperESPC that was awarded in July 1998. As a result of the combined efforts of staff from JSC, Honeywell,and DOE’s Federal Energy Management Program(FEMP), this project will be saving energy and wateras well as taxpayer dollars for many years to come.
Under the terms of this delivery order, Honeywell isinstalling energy-efficient lighting and compressed-air systems, implementing measures to reduce waterconsumption, and improving air-conditioning andlighting control systems in more than 140 buildingsat JSC, the Sonny Carter Training Facility, andEllington Field in Houston. Honeywell's initialinvestment of about $20 million should save nearly$2 million a year in energy and water costs.
As JSC begins realizing these cost savings, Honeywell will receive a portion of them in
payment for its investments. Additionalinvestments and savings, via follow-up deliv-ery orders, are also possible over the next severalyears.
BackgroundThe project was originally designed to be carriedout in phases under multiple contract awards.Eventually, however, the project team decided tomake use of DOE’s Central Region Super ESPC and combined the phases under one delivery orderfor the entire project.
Super ESPCs, which are streamlined indefinite deliv-ery, indefinite quantity (IDIQ) contracts, can beeither regional (see map on reverse for a list of con-tacts) or technology-specific. Regional Super ESPCsallow agencies to contract with competitively select-ed energy service companies (ESCOs) in their regionfor a variety of energy and water efficiency services.Technology-Specific Super ESPCs allow ESCOs toprovide certain products (such as geothermal heatpumps or photovoltaic systems) to agencies any-where in the nation. Both kinds of ESPCs caninclude maintenance, which is usually done by the ESCO.
Delivery orders signed under Super ESPCs specifythe products and services that will be provided andestimate the agency’s savings and payments to theESCO. ESCOs assume the up-front capital costs in exchange for a portion of the Federal agency’senergy cost savings. Payments are made to theESCO over the life of the contract, which can be upto 25 years.
Project SummaryHoneywell staff worked closely with JSC’s EnergyManagement Team at the Houston site to identifydozens of potential energy and water conservationmeasures and improvements. The JSC-Honeywellteam then determined the feasibility of these meas-ures, estimated their potential long-term savings,and prepared a guaranteed savings proposal.
After deciding to have the work done under the DOECentral Region Super ESPC, JSC requested finaltechnical and financial review assistance from FEMP.The project team asked FEMP to help verify calcu-lated savings, validate proposed measurement andverification methods, and confirm price schedules.
Regional Super ESPC Saves Energy and Dollars at NASA Johnson Space CenterRegional contract enables Houston space flight center to reduce utility bills by nearly $2 million per year while conserving energy and water
F E D E R A L E N E R G Y M A N A G E M E N T P R O G R A M
ESPCCaseStudy
U.S. Departmentof Energy
Office of EnergyEfficiency andRenewable Energy
Internet: http://www.eren.doe.gov/femp/
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The NASA JohnsonSpace Flight Centerin Houston is wellknown for itsachievements in theU.S. space program(this 1994 photoshows the SpaceShuttle Columbiaduring a launch).
FEMP Help Desk:800-DOE-EREC
(363-3732)Internet:http://www.eren.doe.gov/femp
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Working closely with the JSC-Honeywell team,FEMP staff validated the guaranteed savings pro-posal. One unexpected but not unusual resultoccurred when the FEMP/JSC/ Honeywell teamidentified more than $1 million worth of additionaloperations and maintenance savings. These savingswere applied to the contract at no additional cost to JSC. The result was a win-win situation for allparticipants.
The project team then worked with contracting staffin the DOE Golden Field Office to prepare a deliveryorder under the Central Region Super ESPC. In thefirst phase of this project, Honeywell is installingenergy-efficient lighting and compressed air systems,water efficiency measures, and improved air-conditioning controls.
Lessons learned The FEMP Service Network (FSN) provided veryvaluable assistance. FSN's review of the technicalproposal and its support during negotiationsallowed JSC to make the award quickly and confi-dently, and this shaved several weeks off theprocess. JSC should realize about $40,000 in energysavings each week. FSN's review also uncoveredmore than $1 million in additional savings that canbe applied to the contract, resulting in extra servicesand a shorter contract term.
Quality assurance Measurement and verification (M&V) of energy savings are negotiated as part of the delivery order.Honeywell's M&V activities concentrated on com-missioning and first-year performance. Honeywellwill also place a Technical Resource Manager on the
site for the first five years of the contract, to ensurethat the new equipment is operating effectively and tohelp develop new energy-saving measures for follow-up delivery orders.
Looking ahead Because of this project's size, energy conservationmeasures will be commissioned incrementally in10 steps over a 15-month construction period. Thiswill allow savings and payments to begin sooner andshorten the term of the contract. After construction,Honeywell, JSC, and the site operations and mainte-nance (O&M) contractor will work together to deliverpredicted savings and look for additional opportuni-ties for energy efficiency improvements.
NASA is enthusiastic about Super ESPC. Completedand planned awards include those for the GlennResearch Center, Kennedy Space Center, MarshallSpace Flight Center, and Ames Research Center.
For More InformationTatiana Strainic MuesselU.S. Department of EnergyFederal Energy Management ProgramProject Financing Team Leader202-586-9230
Beth PetermanU.S. Department of EnergyDOE Golden Field OfficeContracting Officer303-275-4719
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NASA JSC is becoming more energy-efficient, thanks to aRegional Super Energy Savings Performance Contract.
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