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Energy Savings Performance Contract to Save $265,000 Annually

Navy NewsStand

Story Number: NNS090824-10
Release Date: 8/24/2009 10:34:00 PM

From Naval Facilities Engineering Command Southeast Public Affairs

JACKSONVILLE, Fla. (NNS) -- Naval Facilities Engineering Command (NAVFAC) Engineering Service Center (ESC) out of Port Hueneme, Calif., awarded an Energy Savings Performance Contract (ESPC) July 31 for work to be done within NAVFAC Southeast's Area of Responsibility at Marine Corps Air Station (MCAS) Beaufort, S.C., that will provide an annual total energy cost avoidance of $265,000.

"This project directly supports Marine Corps energy reduction goals and the Commandant's Ten by Ten energy campaign plan," said James Heller, supervisory mechanical engineer with NAVFAC ESC.

The ESC provides specialized acquisition expertise to enable the successful and strategic implementation of NAVFAC's global programs. They provide specialized worldwide contracting for the Navy's energy program. Some of the specialized contracts include ESPCs for a wide variety of technologies and public private ventures and power purchase agreements for large scale renewable projects.

The $8.6 million contract was awarded to Trane U.S. Inc., out of La Crosse, Wis. This project will provide HVAC, lighting and water conservation upgrades at various buildings throughout MCAS Beaufort.

The energy conservation measures (ECMs) that will be implemented in this project include adding ground source heat pump equipment to Building 1108; upgrading HVAC and building mechanical systems, consisting of chiller replacements at various buildings; installing building automation systems compliant with the existing base Automated Logic control energy management and control system at various buildings; installing energy efficient lighting; and retrofitting existing fixtures by installing long life variable flow technology in sinks, showers and toilets throughout MCAS Beaufort.

An ESPC is a contract with an Energy Services Company (ESCO) to implement energy improvements. An ESCO develops a project and arranges financing to cover the capital cost of the project. The contractor then installs the project and is repaid over the contract term from the energy cost avoidance generated.

The difference between the original utility cost and the new lower utility cost is used to repay the contractor. An advantage of this type of contract is there is no budget increase to the installation; the total outlay for utilities plus the financed project payments is the same as or lower than before the project.

This MCAS Beaufort project will see a total energy savings of more than 10,000 MBTUs per year. This equates to cost avoidance savings of more than $8.6 million during the 18-year performance period of the contract – which will be used to repay the ESCO (Trane) for their services.

The expected completion date for these energy improvements is August 2010, at which point Trane will then enter into their performance period, guaranteeing the project's annual cost avoidance through August of 2028.

For more news from Naval Facilities Engineering Command, visit www.navy.mil/local/navfachq/.