Army launches $3B energy services recompete / Yaorusheng

Iteration number four of the Energy Savings Performance Contracts program continues the Army's efforts to use those alternative financing mechanisms.

The Army has green-lighted industry to start working on and submitting their proposals for a potential 10-year, $3 billion contract vehicle covering energy and water conservation services at federal facilities.

Iteration number four of the Energy Savings Performance Contracts program will continue efforts to fulfill the Army's energy usage and reduction needs without upfront capital costs or special appropriations from Congress.

Bids are due to the Army by May 13 with work slated to take place in the U.S. and at least 10 foreign locations, the service branch said in its Friday notice to release the final solicitation.

ESPC IV awardees will vie for task orders to help carry out projects for conservation and renewable energy products, as well as needed repair and replacement jobs.

ESPCs are designed as alternative financing mechanisms arranged between a federal agency and an energy service company, the latter of which is responsible for designing and constructing projects.

The Army has obligated approximately $281 million, or 19%, of the current ESPC III vehicle's $1.5 billion ceiling since that contract was awarded in May 2015. The last date to order is May 6, 2025.

Siemens' U.S. federal subsidiary has been by far the largest recipient of the task order obligations at around $116.2 million, according to GovTribe data. Noresco, Southland Industries, Johnson Controls and CEG Solutions round out the top five incumbents.