23.202 Policy
Source: FAR 23.202 on acquisition.gov
Federal agencies should prioritize using ESPCs to achieve energy savings in their facilities, following prescribed procedures and leveraging qualified energy service companies.
Overview
FAR 23.202 establishes the policy for federal agencies to maximize the use of Energy Savings Performance Contracts (ESPCs) as authorized by the National Energy Conservation Policy Act. ESPCs allow agencies to partner with energy service companies to implement energy efficiency improvements in federal facilities without upfront capital costs. The energy service company finances the improvements and is compensated through a share of the resulting cost savings over a contract period not exceeding 25 years. The section outlines that ESPCs must follow specific procedures and requirements, including those in 10 CFR part 436, subpart B, and are generally subject to FAR subpart 17.1, except as otherwise provided. Contracting officers are encouraged to use the Department of Energy’s Qualified List of energy service companies and are directed to additional resources and procedures for unsolicited proposals.
(a) Agencies should make maximum use of the authority provided in the National Energy Conservation Policy Act (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section8287&num=0&edition=prelim" target="_blank">42 U.S.C. 8287) to use an energy savings performance contract (ESPC), when life-cycle cost-effective to reduce energy use and cost in the agency's facilities and operations.
(b)
(1) Under an ESPC, an agency can contract with an energy service company for a period not to exceed 25 years to improve energy efficiency in one or more agency facilities at no direct capital cost to the United States Treasury. The energy service company finances the capital costs of implementing energy conservation measures and receives, in return, a contractually determined share of the cost savings that result.
(2) Except as provided in https://www.ecfr.gov/current/title-10/section-436.34" target="_blank">10 CFR 436.34, ESPC's are subject to subpart 17.1.
(c) To solicit and award an ESPC, the contracting officer—
(1) Must use the procedures, selection method, and terms and conditions provided in https://www.ecfr.gov/current/title-10/part-436/subpart-B" target="_blank">10 CFR part 436, subpart B; and
(2) May use the “Qualified List” of energy service companies established by the Department of Energy and other agencies.
(d) For procedures related to unsolicited proposals for energy savings performance contracts, see 15.603(e).
(e) For more information see https://energy.gov/eere/femp/energy-savings-performance-contracts-federal-agencies" target="_blank">https://energy.gov/eere/femp/energy-savings-performance-contracts-federal-agencies.