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<p>Energy Savings Performance Contracts (ESPC) are energy-related construction projects that are financed by a non–Department of Defense third party. This type of contract requires the contractor to perform the construction as well as the maintenance of installed equipment during the life of the financing agreement with the Navy. The Commander, Naval Installation Command (CNIC) must give approval for all Navy ESPC projects to proceed. CNICs are not provided future cost analysis to aid in deciding whether to approve or disapprove ESPC projects. Failure to approve the use of the ESPC for the required work will typically mean that the work must wait several years for appropriations funding to become available. During this time, the Navy will not realize the potential energy savings and associated benefits of the energy project. This analysis compares the Return on Investment for five energy project alternatives at Naval Air Station (NAS) Fallon, NV. Of these five, the ESPC alternative has the most benefit per this analysis, saving $1.3M over 20 years. CNIC can use these results to reinforce their decision to proceed with the NAS Fallon ESPC project.
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<br>Subjects: energy efficiency; contracting; Energy Savings Performance Contract</div>
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Sweet, Nicholas P.</div>
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