The Management of Energy Savings Performance Contracts

Energy Savings Performance Contracts (ESPCs) originated to accomplish several objectives: (1) to meet energy efficiency goals mandated by executive orders and energy policies; (2) to improve federal government facilities using funds allocated for utility bills; and (3) to receive repayment of expenditures through energy savings reflected in reduced utility bills. In ESPCs, the contractor guarantees savings to the federal government agency. 10 CFR 436 limits the time necessary for payback. However, this regulation and others were written prior to the deregulation of utility companies. This theory is based on the underlying premise that the contractor payback is a direct result of the energy savings. The population of study is all of the Air Force ESPCs. The sampling frame used will be the ESPCs and their task orders (TOs) listed in the Air Force Civil Engineering Support Agency (AFCESA) database. The primary unit of analysis will be the individual task order. Data will be collected from interviews, observations, conferences, archives, and other task order related documents. Using case study methodology, contract financial data, energy rates, contract decision memorandums, contract clauses and statements of work, observation, open interviews, and other relevant meetings and materials will be evaluated to determine whether deregulation has an effect on contractor payback and what the effect entails.

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