Company selected for overseas energy savings performance contract

  • Published
  • By Jessica Echerri
  • AFCEC Public Affairs
The U.S. Army Corps of Engineers in Huntsville, Alabama, recently released a selection decision document identifying Siemens as the energy services company, or ESCO, chosen to provide services for an energy savings performance contract, or ESPC, at Spangdahlem Air Base, Germany.

The primary scope of the ESPC is to convert the heating and hot water systems in 32 facilities from fuel oil to natural gas.  In addition to the natural gas conversion, the ESCO will examine all potential energy conservation measures, or ECMs, to maximize energy savings base wide.

USACE accepted proposals from all interested ESCOs in November. Spangdahlem's energy managers and the project manager at the Air Force Civil Engineer Center at Tyndall Air Force Base, Florida, provided inputs to USACE when deciding which company was the best match for this project.

"Siemens submitted a proposal that was best overall based on technical approach, management and past experience," said Morgan Hurst, AFCEC program manager.  "Siemens' proposal stood out for presenting unique and potentially highly valuable ECMs."

Siemens will perform an assessment to provide sufficient information for the Air Force to make a decision on proceeding with the ESPC project. This assessment is based on a walk-through audit of the facilities plus a review of site energy and facility data provided by the base. It will provide a narrative summary, description of likely energy conservation measures, estimates of proposed energy and cost savings, and other information for decision-making.

Under the ESPC model, ESCOs compete to finance, design, construct and manage energy projects, and maintain the systems long-term. ESPCs range from 10 years to a maximum of 25 years, with the Air Force paying the ESCO back over the term of the contract from cost savings garnered by the energy efficiency improvements they make.