Original Date: 02/28/2000
Revision Date: 01/18/2007
Information : Energy Savings Performance Contracts
Crane Army Ammunition Activity established a contracting method to maintain and update its boiler operations in a manner that allows appropriated funding to be used in a new way. A partnership between the Activity and its host, Crane Division, Naval Surface Warfare Center, resulted in the commemorative signing of the Center’s first Energy Savings Performance Contract.
Crane Army Ammunition Activity (CAAA) established a contracting method to maintain and update its boiler operations ( for production and heating) in a manner that allows appropriated funding to be utilized in a new way. The existing equipment required constant maintenance and caused boiler downtime. The new method sets up a mortgage-type account that allows existing funding dollars to be used for the installation and maintenance of new equipment.
Due to fiscal budgeting constraints, CAAA was not able to purchase new boiler equipment needed to reduce the maintenance costs of operation. Funding was only available for the constant maintenance of existing equipment. This method caused excessive downtime and, over time, was costing more than replacing the equipment with new low maintenance equipment. Through the use of the Commerce Business Daily, CAAA found a contractor to set up a mortgage contract, allowing the purchase of new equipment over time which accommodated the fiscal budget constraints. The new contract allows for the current budget to purchase new equipment and eliminates the downtime of the old equipment.
A partnership with CAAA and its host, Naval Surface Warfare Center Crane, resulted in the commemorative signing of the Naval Surface Warfare Center’s first Energy Savings Performance Contract on July 16, 1997. The contract is used to achieve energy savings goals of Executive Order/12902. The contractor pays all up-front costs for design, purchase, and installation of new energy efficient systems. Over 20 years, the government repays the contractor from utility budget savings realized by the installation of the equipment. The cost savings over a 20-year period will be $447,015 and the operational availability time has increased.
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