Energy Savings Performance Contract (ESPC) Kunsan AB, South Korea

DLA Energy will utilize the Department of Energy (DOE) Super Energy Savings Performance Contracts (ESPC) Indefinite-Delivery/Indefinite-Quantity (IDIQ) to award a Task Order (TO) for the customer's requirement. The DOE Super ESPC IDIQ contracts were awarded to sixteen Energy Service Companies (ESCOs) based on their capability to meet specified ESPC terms and conditions, with a contract term up to 25 years allowed under 42 USC 8287. Through ESPCs, prequalified ESCOs finance, develop and implement energy conservation measures (ECMs) for federal agencies at no upfront cost to the installation. The return to an ESCO is a contractually determined share of the energy cost savings generated by the ESPC project. Prior to award of a TO, the ESCO conducts a comprehensive energy audit and identifies improvements to avoid facility energy costs and energy related operation and maintenance (O&M) costs. The ESCO guarantees annual cost savings upon implementation of the ECMs and privately finances the investment. The delivery schedule is amortized to allow the federal agency customer to pay for ESCO services and debt service from annual cost savings over the term of the contract. The DOE Super ESPC IDIQ contract will be used to award a TO to design, install, and operate an ESPC project at Kunsan Air Base (AB), South Korea. The purpose for pursing an ESPC project is to help Kunsan AB reach it mandated energy conservation goals.