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Federal Performance Contracting

The BCSE works to accelerate federal performance contracting through the use of Energy Savings Performance Contracts (ESPCs). ESPCs and Utility Energy Service Contracts (USECs), collectively known as performance contracts, enable government agencies to procure energy savings and facility infrastructure improvements with no up-front capital costs or appropriations. Federal performance contracting provides an innovative opportunity for federal government agencies to save money and energy.

Through performance contracts, private sector companies or Energy Service Companies (ESCOs) finance and install new energy efficient equipment in federal buildings, reducing energy and operating costs and addressing maintenance backlogs. In exchange for a pre-determined price, the chosen ESCO guarantees future energy savings, which are used to pay for the energy efficiency upgrades with excess savings accrued to the federal government. In fact, payment to the ESCO is contingent upon realizing that guaranteed annual savings stream.

Federal Performance Contracting Coalition

 
 
To advance the use of federal performance contracting the Business Council for Sustainable Energy formed the Federal Performance Contracting Coalition (FPCC) in the late 1990s. The FPCC was instrumental in securing a ten-year re-authorization of the ESPC program as part of the Energy Policy Act of 2005.  The FPCC is currently focused on accelerating the pace, easing the approval process and increasing the number of federal performance contracts with the federal government.

FPCC is a group of Energy Service Companies (ESCOs) advocating for increased federal use of Energy Savings Performance Contracts (ESPCs.) To that aim, its activities focus primarily on barrier removal and ensuring “more, faster, bigger and better” ESPC projects in the Federal ESPC marketplace. The FPCC is the primary organization representing ESPC industry and its members represent over 90% of Federal ESPCs.

2019 FPCC members include: AECOM, Ameresco, CEG Solutions, Constellation Energy Services, Energy Systems Group, Honeywell, Johnson Controls, Lockheed Martin Energy, NORESCO, Schneider Electric Federal Energy Services, Siemens Government Technologies, Inc., Southland Energy, Trane and WGL Energy.

For more information, please contact the Council or visit federalperformancecontracting.com.