The Air Force uses Energy Savings Performance Contracts and Utility Energy Service Contracts to fund energy conservation projects with no upfront cost to taxpayers. They are executed through an Energy Service Company that acquires financing for the infrastructure or equipment system and recovers costs, plus overhead and profit, from the funds made available via lower utility and operation and maintenance costs. ESPCs typically have performance periods of 10 to 20 years (max of 25), and come with complex financial terms.
The Air Force anticipates entering into contracts valued around $180 million during FY 13/14. An additional $400 million worth of potential ESPC and Utility Energy Service Contract projects have been identified for evaluation.
In the absence of appropriate funding, or if a project crosses lines of funding (medical, IT, working capital, etc.) ESPCs might be the right choice. In these cases, the Air Force prefers the Department of Energy's "multiple award" contract. It is an indefinite delivery/indefinite quantity contract with 16 preapproved ESCOs.