23.200
Scope
FAR 23.200 establishes that agencies can use Energy Savings Performance Contracts to acquire energy-efficient technologies without upfront government costs, primarily within the U.S. and its outlying areas.
Overview
FAR 23.200 defines the scope of Subpart 23.2, which establishes the policies and procedures for using Energy Savings Performance Contracts (ESPCs) to acquire energy-efficient technologies for government facilities without requiring upfront government capital investment. The section clarifies that these policies apply to acquisitions within the United States and its outlying areas, while agencies operating outside these areas are encouraged to comply to the greatest extent possible. The intent is to facilitate energy efficiency improvements in government operations through innovative contracting mechanisms that leverage private sector financing and expertise.
Key Rules
- Use of ESPCs
- Agencies may use ESPCs to obtain energy-efficient technologies without incurring capital expenses.
- Geographic Applicability
- The subpart applies to acquisitions in the U.S. and its outlying areas; agencies outside these areas should make best efforts to comply.
Responsibilities
- Contracting Officers: Must follow the policies and procedures for ESPCs as outlined in this subpart when acquiring energy-efficient technologies.
- Contractors: Should be prepared to propose and implement energy-saving solutions under ESPC arrangements.
- Agencies: Must ensure compliance within the U.S. and outlying areas, and encourage compliance elsewhere.
Practical Implications
- This section enables agencies to improve energy efficiency without upfront costs, using private sector investment.
- It impacts acquisition planning, contract structuring, and compliance monitoring for energy-related projects.
- Common pitfalls include misunderstanding geographic applicability or failing to leverage ESPCs for eligible projects.