Policy
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.