Air Force leaders, energy companies meet to improve contracting process

  • Published
  • By Jennifer Elmore
  • AFCEC Public Affairs
TYNDALL AIR FORCE BASE, Fla. --  Doing business with the U.S. government can be time consuming and complicated. That's why Air Force energy leaders suggested holding an Industry Day event here Nov. 26 to discuss improving the Energy Savings Performance Contract program.

Representatives from more than 20 energy service companies and utility companies participated.

The Air Force Civil Engineer Center centrally manages the ESPC program with a focus on energy and water conservation initiatives. Rather than use taxpayer dollars up-front, these contracts provide energy-efficient improvements with third-party funds, typically have performance periods of 10 to 20 years, and come with complex financial terms.

ESCOs recover investment costs plus overhead and profit from funds made available via lower utility and operation and maintenance costs.

Since 2010, the Air Force has set aside what it calls "energy focus funds" - $250 million a year.

"Those dollars are going away in two years. We have to leverage third-party partnerships to get after these energy goals because a shrinking budget is coming," said the Air Force Civil Engineer Maj. Gen. Timothy Byers.

Industry day gave the Air Force an opportunity to share its philosophy and practices in regards to the energy program and the role of ESPCs. Attendees discussed ideas such as establishing a centralized contracting mechanism at AFCEC, educating base energy managers on how to engage with ESCOs and educating wing leadership about ESPCs.

"We're going to keep doing this until we get it right. We're going to keep improving the process, honing this thing down," said Terry Yonkers, Assistant Secretary of the Air Force for Installations, Environment and Logistics. "That's a commitment you've got from us. What I want from you is to continue the candid conversation."

Following industry day, AFCEC conducted a three-day rapid improvement event. AFCEC and major command engineers, and senior energy leaders from the Pentagon evaluated ways to streamline and improve the ESPC process and industry partnerships.

"You blew my socks off!," Yonkers said referring to the process improvements developed during the week.

Over the past two decades the Air Force has reduced energy consumption by 35 percent, creating a cost avoidance of more than half a billion dollars.
 
The most recent goal is to reduce energy intensity 30 percent by 2015. The Air Force leads its sister services in the race to meet this goal by reducing energy intensity 20 percent since 2003. Upgrades such as new lights, windows and cool roofs are making a difference. Other initiatives include adding energy management control systems and meters, recommissioning buildings, decentralizing heat plants, and changing the culture of Airmen. ESPCs are one of the tools the Air Force uses to implement and pay for these upgrades.

The Air Force has done a good job improving building envelopes, Byers said. The next step is to focus on users of large amounts of process energy, such as data bases and large depot facilities.

"To me, it's not just about making the 30-percent goal. It's about doing what's right for our country," said Byers.