General Information

The Department of Veterans Affairs (VA) has a centralized program office for energy savings performance contracts (ESPC) and is actively developing and implementing these projects in VA medical centers across the country.

ESPCs help Federal agencies upgrade aging facility equipment, repair critical infrastructure, and address facility deficiencies without the need for up-front project appropriations. The agency engages an energy services company (ESCO) to design and install approved energy and water conservation measures to meet the agency’s needs. The ESCO will arrange project financing and will guarantee that the project will generate sufficient energy and water savings to pay for the upgrades over its full term (up to 25 years). Once the ESCO has installed the conservation measures and they are accepted by the agency, the agency will begin to make annual payments from the accrued energy and water savings. After the contract ends, ongoing cost savings accrue to the agency.

VA is interested in holding an event to provide information to the Veteran small business community about VA’s ESPC program and future project opportunities, including some discussion about the process of becoming an ESCO qualified by the Department of Energy to support ESPCs for Federal agencies. Additional details about the event will be provided in the months ahead.