Naval Facilities Engineering Systems Command

President's Performance Contracting Challenge Surpassed with NAVFAC EXWC ESPC Award

12/30/16 12:00 AM

By Michael Ard, Naval Facilities Engineering Command Headquarters

PORT HUENEME, Calif. (NNS) -- Naval Facilities Engineering (NAVFAC) and Expeditionary Warfare Center (EXWC) awarded Ameresco Inc., from Framingham, Massachusetts, a $91.1 million first cost, $210.6 million total cost firm-fixed-price task order under a previously awarded multiple award contract for energy savings at Marine Corps Recruit Depot (MCRD), Parris Island, South Carolina, Dec. 28.

The task order was the culminating award which exceeded the Navy's financed energy project goal of $570 million, and contributed to meeting the overall President's Performance Contracting Challenge (PPCC). Originally announced in December 2011 with a goal of $2 billion in financed energy savings projects, the PPCC was reissued in May 2014 with an additional $2 billion challenge.

Energy Savings Performance Contract (ESPC) task orders do not have base and option periods; instead, they include a construction period and a performance period, the sum of which may not exceed 25 years. This task order consists of a 29-month construction period followed by a 22.5-year performance period.

"This latest ESPC award, which got the Navy approximately $50 million above their respective $570 million portion of the PPCC, reflects more than a year of tireless work and collaborative engagement by our collective NAVFAC Team," said NAVFAC EXWC Commanding Officer, Capt. Jay Mitchell. "The ESPC program was very visible to senior leadership this year and we committed over a year ago to delivering more than $300 million in additional task order awards by the end of calendar year 2016. That was a tall order and the entire NAVFAC team made the difference in achieving this goal."

The Parris Island project provides for a new 3.5 megawatt cogeneration plant and renewable energy systems to offset electricity purchases from the grid and provide steam to MCRD Parris Island. Other measures include upgrades to heating ventilation and air conditioning, chillers, lighting and controls, water fixtures, steam traps and laundry ozone systems.

"This ESPC project is probably the most comprehensive ESPC ever entered into by the Navy, involving 121 buildings (3.1 million square feet total) and 20 energy conservation measures (ECMs)," said NAVFAC EXWC ESPC Program Lead, Daniel T. Magro. "This will result in MCRD Parris Island reducing their energy consumption by 384,962 million BTUs (79%) and water consumption by 74.6 million gallons (27%) annually. I think the team at Parris Island, with this ESPC, may have just redefined a 'deep energy retrofit!'"

An ESPC is a partnership between a federal agency, the U.S. Navy and an energy service company (ESCO). In an ESPC, the ESCO designs a project that meets the agency's needs, arranges for funding, and guarantees the project will generate energy cost savings to pay for the project over the term of the ESPC. ESPCs allow agencies to procure energy savings and facility improvements with no up-front capital costs or special appropriations from Congress.

NAVFAC EXWC was established in September 2012 as NAVFAC's premier warfare center, employing a workforce of more than 1,000 Sailors, government civilians and contractors who provide specialized facilities engineering, technology solutions, and lifecycle management of expeditionary equipment to the Navy, Marine Corps, federal agencies, and other Department of Defense supported commands.


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