Solutions for Federal Government Agencies

It's no surprise that Federal agencies are seeking ways to save energy and use renewable resources. Energy infrastructure improvements can benefit taxpayers and the environment.

In fact, Executive Order 13123 mandates that federal facilities must reduce their energy consumption 35% from a 1985 baseline amount by 2010. Yet at many mission-critical facilities, the cost of keeping old, inefficient systems alive consumes large portions of operations and maintenance budgets, making it nearly impossible to afford improvements.

Chevron Energy Solutions understands that mission-critical functions cannot be compromised to comply with this mandate. That's why our projects utilize energy-saving technologies that reduce costs and improve infrastructure conditions while supporting mission operations.

We understand your requirements
The professionals on our team bring many years of experience to the highly complex and competitive federal marketplace. As a division of Chevron, we know the energy business; many of our engineers and project managers have extensive military experience as well. We work closely with our federal customers to ensure that they use less energy, pay less for energy, and secure reliable, high-quality power for their critical operations.

Our team understands how to solve many of the challenges facing federal facilities managers and has a proven track record of moving projects from conception to completion on time and under budget. In fact, on federal projects where we've served as prime contractor, we've been asked back to work on other projects every single time.

As needed, we can utilize multiple federal Energy Savings Performance Contracts (ESPCs) available for implementing energy-savings projects at federal facilities:

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Our approach works because we work with you
Because each customer's situation is unique, we implement customized solutions that address their specific requirements. Our project teams include professional project, contracts, construction, and maintenance managers; mechanical, electrical, and control systems design engineers; energy and financial analysts; technical writers; and measurement and verification specialists. Customers benefit from this cross-functional approach, since individual team members contribute expert-level knowledge, helping the team develop long-term solutions that work.

Through a highly collaborative and analytical process, we develop appropriate technical components into an integrated solution that can include:

Excellent coordination and task management are at the heart of every successful project, from development to implementation. Accordingly, we locate offices near our customers so that we can thoroughly understand local market dynamics and requirements. Our teams ensure that technologies selected are appropriate based on factors specific to your facility, the local utility, and other issues that may impact the project.

In addition to maintaining local presence, we utilize internet-based management tools and data storage spaces that allow our customers, partners, subcontractors, and employees to access the information they need, when they need it.

We offer solutions that are innovative, fuel-neutral, vendor independent consistent with specific customer requirements, and most importantly, economically and operationally feasible.

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Solving Federal Facilities Managers' Challenges
Deteriorating Federal Facilities and Utility Infrastructure
Nearly all federal agencies face the growing challenge of maintaining and operating building-level facility infrastructure, energy generation and distribution systems, and production support assets. Budgets and appropriated funding have failed to keep pace with rising costs, trapping facilities in a downward spiral of deferred maintenance and aging infrastructures.

In many facilities, maintenance and repair costs to keep old, inefficient systems alive consume large portions of operations and maintenance budgets, limiting any real possibility of affording renewal or improvement projects. These problems are further complicated by federal mandates to cut energy use, privatize utility systems, phase out the use of ozone-depleting refrigerants, and reduce emissions of greenhouse gases.

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A Solution: Recognition of Life-Cycle Costs vs. First Cost
In addition to paying higher maintenance costs each year, the Federal Government spends approximately $3.5 billion per year to power, heat, and cool its 500,000 facilities and associated infrastructure worldwide. To reduce these enormous expenditures, the Government has shifted its facilities' design focus from first cost to life-cycle cost so that significant consideration is given to long-term energy, environmental, and maintenance-related expenses. Energy Savings Performance Contracts (ESPCs) are budget-neutral funding mechanisms that allow installations to monetize the life-cycle operating cost differences between old, inefficient systems and highly-efficient replacement systems. Under ESPCs, reduced operating cost savings are guaranteed to exceed the long-term amortized expense associated with the new replacement systems.

Life-cycle costing, sustainability, and ESPC are all focal points of Executive Orders 13123, 13101, and 13148. These mandates establish goals and provide operating guidance and tools to assist federal installations in reducing greenhouse gas emissions, improving energy efficiency, utilizing renewable and distributed energy systems, reducing source energy, and conserving water at federal facilities.

Sustainability is important to Chevron and Chevron Energy Solutions. In fact, our organization's structure and many of its internal processes, methodologies, and practices are designed to support the Government's objectives regarding sustained energy and waste reduction.

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Energy Savings Performance Contracts
Alternative Project Funding and Budget Protection Programs
Congress has authorized and encouraged federal agencies to use long-term private financing to fund projects that upgrade their facilities' infrastructure, reduce ongoing maintenance expense, and decrease energy consumption.

Concurrently, the U.S. Departments of Energy and Defense encourage the use of private-sector technical expertise and investment through an "alternative funding" program known as Energy Savings Performance Contracting (ESPC). Under ESPC, cost savings generated by implemented efficiency improvement projects are guaranteed to cover all associated life-cycle costs, so that annual budget dollars saved are used to pay for 1) energy-related capital improvements, 2) long-term interest charges, and 3) services required to ensure sustainability through a project's life-cycle.

Through ESPC, federal agencies can save energy, reduce emissions, upgrade and lock-in long-term maintenance services without competing for appropriated capital dollars or new operations and maintenance funding. Once a project is awarded, all services included within the scope of that contract are guaranteed and funded for the entire contract term from savings generated. Through this truly unique mechanism, federal installations now have a highly viable option for saving energy while renovating aging facility infrastructure and programming long-term maintenance.

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Department of Defense 46-State ESPC
This Indefinite Delivery/Indefinite Quantity (IDIQ) Energy Savings Performance Contract (ESPC) was awarded to multiple recipients in August, 1997. The base contract period for this IDIQ was five years, with a five-year extension period, which the contract is now in.

Projects awarded under this IDIQ can be financed over a 25-year period. The contract requires Chevron Energy Solutions to provide engineering design, capital investment, construction, and maintenance for facility infrastructure improvements and then guarantee that annual operating savings associated with the upgrades exceed yearly amortized project costs.

Although administered by the U.S. Army Corps of Engineers, Huntsville Center (USACE-HNC) multiple Task Orders under this ESPC have been awarded to a variety of agencies: Army, Navy, Air Force, and Marine Corps installations, as well as Veterans Affairs Medical Centers and Coast Guard facilities.

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Department of Energy Regional Super ESPCs
This Indefinite Delivery/Indefinite Quantity (IDIQ) Regional Energy Savings Performance Contract (ESPC) was awarded to multiple recipients in July, 1997.

Through the DOE Regional ESPC program, Chevron Energy Solutions arranges financing to develop and install energy and water conservation and renewable energy projects for federal facilities. After conducting a comprehensive energy audit, we identify improvements that will save energy and reduce utility bills.

Chevron Energy Solutions then guarantees that energy improvements will result in a specified level of annual cost savings to the government and that these savings will be sufficient to pay for the yearly amortized project costs. After the contract ends, all cost savings accrue to the government. Contract terms can extend to 25 years, depending on the scope of the project.

This Regional ESPC is administered by the U.S. Department of Energy and can be used by any federal government agency. Numerous Task Orders have been awarded under DOE Super ESPC IDIQs to DOE, Veterans Affairs, GSA, EPA, DOT, Army, Navy, Air Force, and Marine Corps installations nationwide.

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General Services Administration Federal Supply Schedules
Chevron Energy Solutions offers services through GSA Schedules because they closely mirror commercial buying practices. These schedules provide Federal customers with literally millions of state-of-the-art, high-quality commercial services and products on a direct-delivery basis. All customers are provided with the latest technology, quality services and products, convenience, and most-favored customer pricing.

Contracting Officers have determined that Chevron Energy Solutions' prices are fair and reasonable by comparing the prices or discounts that we offer the government with the prices or discounts that we offer to commercial customers. This negotiation objective is commonly known as "most favored customer" pricing. When orders are placed against a GSA Multiple Award Schedule (MAS) contract, using the procedures under Federal Acquisition Regulation (FAR) 8.4, they are considered to be issued using full and open competition (see FAR 6.102(d)(3)). Ordering offices need not seek further competition, synopsize the requirement, make a separate determination of fair and reasonable pricing, or consider small business programs. By placing an order against a GSA Schedule contract using proper procedures, the ordering office has concluded that the order represents the best value and results in the lowest overall cost alternative to meet the government's needs.

GSA Schedules offer several features such as:

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