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Energy Savings Performance Contracts for Federal Agencies

Energy Savings Performance Contracts for Federal Agencies

Energy savings performance contracts (ESPCs) allow federal agencies to procure energy savings and facility improvements with no up-front capital costs or special appropriations from Congress. An ESPC is a partnership between an agency and an energy service company (ESCO).

Agencies have used the ESPC contracting vehicle since 1998 to significantly reduce energy and operating costs and make progress toward meeting federal sustainability goals, including the directives of the Presidential Memorandum: Implementation of Energy Savings Projects and Performance-Based Contracting for Energy Savings.

The Federal Energy Management Program (FEMP) provides agencies with expert assistance, guidance, and training to help them implement ESPC projects that are technically excellent, legally sound, and a good deal for the government. FEMP's activity in this area stems from the legislation that authorizes federal ESPCs, which also made FEMP the federal organization responsible for creating and providing services to enable all agencies to implement successful ESPC projects.

FEMP is authorized by statute to establish appropriate procedures and methods for use by federal agencies with regard to the ESPC program. See 42 U.S.C. § 8287(b)(1)(A); 10 C.F.R. § 436.30(a). 

Consider The Options

Start a Project

Energy Service Companies

  • Learn about ESCOs.
  • Find a U.S. Department of Energy (DOE) indefinite-delivery, indefinite-quantity (IDIQ) ESPC ESCO.
  • Apply to become a DOE Qualified ESCO.

Awarded ESPC Projects

Quick Links

Contracting officers (COs) and lawyers can use these quick links to find information quickly.

Contracting Officers

gavel (1).jpgProcurement process for ESPCs 
Federal Acquisition Regulation for ESPCs
Best practices for high-value, on-time ESPC procurements



Photo of a gavel on top of paper.Legislated purpose and authority for federal ESPCs
Guidance on single energy conservation measure projects
Savings that can be used to pay for a task order
Refinancing, restructuring, or modifying loan agreements
New construction guidance

What Success Looks Like

Photo of wind turbines.Read case studies and watch a video about agencies that have successfully used energy savings performance contracts to implement energy-saving projects.