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Determining Price Reasonableness in Energy Performance Contracts

Report provides recommendations and best practices concerning fair and reasonable price determination in federal energy performance contracts (EPCs), which include energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs). It reflects the experiences, lessons learned, and best practices of agencies implementing EPCs, and is consistent with FEMP’s training on this subject. This is an update to the 2015 revision.

Dominy, Russ [Boston Government Services (BGS)]↗

Utility Energy Service Contract Guide: A Resource for Contracting Officers Working on UESC Projects

A Utility Energy Service Contract (UESC) is a limited-source contract between a federal agency and serving utility for energy management services including energy and water efficiency improvements and demand-reduction services. In a UESC, the Contracting Officer (CO) will lead the acquisition effort, supported by technically knowledgeable staff working closely with the utility, to assess potential, investigate technical and economic feasibility, and ensure a fair and reasonable price for design and implementation of the project. The UESC Guide is a compilation of samples and templates developed as a resource to help COs implement Task Orders (TOs) for UESCs under existing U.S. General Services Administration (GSA) Areawide Contracts (AWC). All samples and templates provided in this guide were derived from actual UESC project contract documents and will be available for download on FEMP’s website at https://www.energy.gov/node/850656. Templates in Microsoft Word can be modified to address each agency’s unique acquisition process.

Federal Energy Management Program↗

Understand the Costs of an Energy or Water Outage with the Customer Damage Function Calculator

The Customer Damage Function (CDF) Calculator is a free, publicly available web tool that helps users estimate the costs incurred at their site due to an electric grid or water service outage. Developed by the National Renewable Energy Laboratory (NREL) with support from the Federal Energy Management Program (FEMP), the tool is designed to help federal facility owners, building energy managers, and resilience planners understand and quantify the value of resilience to justify investments that would prevent or lessen the impact of a disruption.

CDF Calculator↗

Holistic Energy Management Yields Cost Savings and Resilience Benefits for the U.S. Coast Guard Academy

As the U.S. Coast Guard's third largest energy consumer, the 86-year-old Coast Guard Academy in New London, Connecticut, was ripe for an energy management overhaul. That overdue overhaul was made possible by the largest utility energy service contract (UESC) in U.S. Department of Homeland Security history. Awarded in September 2017, the $72.6 million contract provided for $39 million in capital improvements and is expected to cut total energy costs by 80% - more than $2 million - each year. On-site generation of 82% of the site's electricity needs will dramatically improve site-wide resilience, and savings generated from implementation of the project will pay for all project costs. The UESC project team developed and executed an energy management project to meet several priority objectives, including implementing essential infrastructure improvements, increasing reliability, and enhancing resilience - and engaged the Federal Energy Management Program (FEMP) Utility Partnerships Program for project assistance.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy Efficiency Requirements for Acquisition Professionals

Federal agencies are required to purchase products as certified by EPA or designated by DOE’s Federal Energy Management Program (FEMP). The two programs cover different products, sizes and applications. These requirements also have an associated FAR clause, FAR 52.223-15. They apply to both energy-consuming products and services that use energy-consuming products.

Ackerman, Allison↗

FAST FY 2018 Data Call: A Preliminary Review [Slides]

This presentation provides an overview of fiscal year 2018 federal motor vehicle fleet data at the individual vehicle level during the fall of 2018, a preliminary summary of the data collected, and how the collecting project has reviewed that information for potential quality issues. This presentation will be given at the March 2019 INTERFUEL group meeting, hosted by DOE's Federal Energy Management Program (DOE FEMP). The information is collected through the Federal Automotive Statistical Tool (FAST) project. FAST is a Web-based information system managed by the US Department of Energy, the US General Services Administration, and the Energy Information Administration. FAST is used to collect information about the fleet of motor vehicles used and managed by the Federal government. FAST is developed and maintained by DOE's Idaho National Laboratory (INL).

99 GENERAL AND MISCELLANEOUS↗

Performance Assurance Planning: Continuous Design-Level Performance of Each Energy Conservation Measure in a Utility Energy Service Contract is Fundamental to Achieving Projected Results

Design-level performance of each energy conservation measure (ECM) in an awarded utility energy service contract (UESC) is fundamental to achieving the projected results through the term of the contract and over the life of the measure. Because the authority for a UESC does not require contractual guarantees of energy, water, or cost savings, FEMP developed a protocol for emphasizing sustained performance to help ensure projected savings are realized. The information and templates offered within this paper reflect responsible project management and oversight, align with UESC best practices, and satisfy the conditions for annual scoring provided by the Office of Management and Budget (OMB). OMB memorandum M-12-21 requires, 'energy savings performance assurances,' 'measurement and verification (M&V) of savings through commissioning and retrocommissioing,' and 'competition or an alternatives analysis as part of the selection process.'

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Facility Cybersecurity Framework Best Practices

Federal facilities are increasingly adopting automation and connecting to the Internet creating an energy-internet-of-things environment that converges operational technology (OT) and information technology (IT). Today's buildings increasingly weave together networked sensors and cyber and physical systems that enable data to be collected, aggregated, exchanged, stored and monetized in new ways. Building technological advances have created new energy technology, services, markets and value creation opportunities (e.g. transactive energy, two-way grid communications, machine learning, and increased use of renewable and distributed energy resources). But as larger data sets are being exchanged at faster speeds between an increasing number of OT systems, it becomes more difficult to protect the security of the data lifecycle and the physical equipment it interacts with. These challenges are especially difficult to overcome because the economic and environmental gain (interoperability, big data, social networks and ubiquitous information sharing) are driving these prominent trends in the digital age. Often cybersecurity is an afterthought. The U.S. Department of Energy’s (DOE) Federal Energy Management Program (FEMP) funded the Pacific Northwest National Laboratory (PNNL) to develop various cybersecurity tools, trainings, and reports to aid federal facility managers – and other building owners and operators – in better applying frameworks and lessons learned from the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), risk management framework (RMF), DOE’s cybersecurity capability maturity model (C2M2), and a wide variety of industry best practices and guidance documents (i.e., NIST 800 series, Department of Defense United Facilities Criteria). This set of tools, collectively known as the FEMP Facility-Related Control System Cyber Toolkit (FRCS Cyber Toolkit)2, is focused on cybersecurity concerns from facility-related control systems and other operational technology (OT), such as industrial control systems (ICS). The FRCS Cyber Toolkit can be applied across six of the sixteen critical infrastructure sectors designated by the Department of Homeland Security, including government facilities, healthcare and public health, commercial facilities (e.g., public assembly, offices, lodging), financial services (e.g., banking and insurance), emergency services (e.g., fire and police stations), and information technology. With increasingly converged IT and OT systems, it is crucial to address OT cybersecurity considerations and assess how the seam of these two systems could impact the overall cybersecurity posture of a facility. The objective of this report is to provide an overview of the best possible method to use FRCS Cyber Toolkit (section 2.0) and distilled cybersecurity best practices for the federal facilities to address growing non-linear cyber threats (section 3.0). Recommendations in this document are aggregated from several NIST and other documents (see Appendix A for additional details).

97 MATHEMATICS AND COMPUTING↗

FEMP ESPC Project Development Resource Guide

Guide charts the Federal Energy Management Program process for providing project development support to agencies developing energy savings performance contract (ESPC) projects using the U.S. Department of Energy (DOE) indefinite-delivery, indefinite-quantity (IDIQ) ESPC. Within that process, the guide outlines: (1) the resources that Project Facilitators (PFs) and Federal Project Executives (FPEs) are required to use in their lead role in the delivery of project development services, and (2) minimum requirements for project documentation.

ESPCs↗

U.S. Forest Service's Power-IT-Down Program

Case study describes the U.S. Forest Service's Power-IT-Down Program, which strongly encouraged employees to shut off their computers when leaving the office. The U.S. Forest Service first piloted the program on a voluntary basis in one region then implemented it across the agency's 43,000 computers as a joint effort by the Chief Information Office and Sustainable Operations department.

campaign↗

Guidance and Recommendations for Streamlining Reporting for Federal Energy and Water Efficiency Projects

Federal agencies are required to report on their progress in meeting various energy and water management requirements. These reporting requirements encompass energy and water projects at federal facilities, including projects that are alternatively financed, e.g., conducted through energy savings performance contracts (ESPCs) or utility energy service contracts (UESCs). The purpose of this guidance is to provide recommendations to streamline federal agency reporting. The guidance recommends the use of eProject Builder (ePB), a project development and archiving tool for energy projects. ePB carries additional value in its simplification of federal agency reporting by dovetailing with the Federal Energy Management Program’s (FEMP’s) EISA 432 Compliance Tracking System (CTS).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Houston, We Have a Problem-and a Solution: Solar Performance Initiative Helps Federal Building Boost Rooftop Production

In 2014, the Mickey Leland Federal Building in Houston, Texas installed a 192 kW PV system on top of its parking structure. To monitor and optimize its performance, the General Services Administration, which manages the site, responded to the Federal Energy Management Program’s request for federal agency participation in the Federal Energy Management Program Solar PV Performance Initiative.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Leveraging Lighting for Energy Savings: GSA Northwest/Artic Region

Case study describes how the Northwest/Arctic Region branch of the General Services Administration (GSA) improved safety and energy efficiency in its Fairbanks Federal Building parking garage used by federal employees, U.S. Marshals, and the District Court. A 74% savings was realized by replacing 220 high-pressure sodium fixtures with 220 light-emitting diode fixtures.

FEMP↗

Case Studies in Leveraging Performance Contracts for Resilience Projects

The resilience of federal facilities has become increasingly important among lawmakers, agency leadership, and the American public as high impact natural hazards occur more frequently over time. Resilience is broadly defined as the ability of a federal facility to withstand, respond to, and recover rapidly from disruptions to maintain critical functions. The Department of Energy (DOE) Federal Energy Management Program (FEMP) was codified to facilitate the strengthening of federal energy and water efficiency and resilience. Performance contracting is one of the mechanisms through which federal agencies can finance projects at their facilities, but resilience improvement measures do not always result in utility cost savings, which are the primary driver behind performance contracts. This report provides example cases where performance contracts, specifically energy savings performance contracts (ESPC) or utility energy service contracts (UESCs), were used to implement a resilience measure at a federal facility.

99 GENERAL AND MISCELLANEOUS↗

Energy Management Information System Powers NREL's Intelligent Campus

NREL's Intelligent Campus program leverages its own laboratory buildings as research instruments to study renewable energy, energy efficiency, and energy storage, integration, and analysis with real, quantitative measurements. At the heart of NREL's Intelligent Campus program is its Energy Management Information System (EMIS), a family of tools and services used to manage building and campus energy use. NREL's EMIS includes capabilities, such as benchmarking and monthly utility tracking, interval meter analytics, equipment fault detection and diagnostics, condition-based monitoring, and supervisory control, enabling unprecedented energy management capabilities. The system serves as a demonstration project for other federal facilities interested in learning about its design, features, and benefits.

EMIS↗

Federal Fleet Resilience Planning

Federal fleet operations span the diverse geography of the country as the vehicles provide services in support of equally diverse agency missions. Fleets face the potential for disruption of services from natural disasters, infrastructure failures, and human threats. This report reviews some of the hazards, threats, and disruptions that fleets may face, describes an approach to fleet management that incorporates resilience, and provides an overview of fleet resilience considerations. While this report is not comprehensive, it describes considerations for integrating resilience into fleet management organizational priorities.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Updated Estimates of the Remaining Market Potential of the U.S. ESCO Industry

The energy service company (ESCO) industry has a well-established track record of delivering energy and economic savings in the public and institutional buildings sector, primarily through the use of performance-based contracts. The ESCO industry often provides (or helps arrange) private sector financing to complete public infrastructure projects with little or no up-front cost to taxpayers. In 2014, total U.S. ESCO industry revenue was estimated at $5.3 billion. ESCOs expect total industry revenue to grow to $7.6 billion in 2017—a 13% annual growth rate from 2015-2017. Researchers at Lawrence Berkeley National Laboratory (LBNL) were asked by the U.S. Department of Energy Federal Energy Management Program (FEMP) to update and expand our estimates of the remaining market potential of the U.S. ESCO industry. We define remaining market potential as the aggregate amount of project investment by ESCOs that is technically possible based on the types of projects that ESCOS have historically implemented in the institutional, commercial, and industrial sectors using ESCO estimates of current market penetration in those sectors. In this analysis, we report U.S. ESCO industry remaining market potential under two scenarios: (1) a base case and (2) a case “unfettered” by market, bureaucratic, and regulatory barriers. We find that there is significant remaining market potential for the U.S. ESCO industry under both the base and unfettered cases. For the base case, we estimate a remaining market potential of $92-$201 billion ($2016). We estimate a remaining market potential of $190-$333 billion for the unfettered case. It is important to note, however, that there is considerable uncertainty surrounding the estimates for both the base and unfettered cases.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗