Performance contracting centers of expertise: a framework for federal implementation
This report examines the establishment and operation of Energy Performance Contracting (EPC) Centers of Expertise (COEs) within the federal government. EPCs, including Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs), are critical mechanisms for advancing energy efficiency, resilience, and infrastructure modernization without the need for significant upfront appropriations. However, EPCs require specialized knowledge in project development, contracting, financing, legal parameters and technical project oversight. Currently federal agencies have varying levels of expertise and institutionalized policy to effectively and consistently use congressionally authorized EPCs which have decades of proven and impactful use. To address these challenges, several federal agencies have created COEs to centralize expertise, standardize practices, and streamline implementation. This report reviews statutory and policy drivers, highlights the benefits and challenges and presents case studies from the General Services Administration (GSA), the Department of Veterans Affairs (VA) and the U.S. Army Engineering and Support Center Huntsville (HNC). Recommendations are also provided for agencies considering the establishment of EPC COEs, which will bring much needed structure, consistency and lead to implementation of these energy and infrastructure building projects to save costs for U.S. taxpayers.