Measurement and verification (M&V) activities help agencies confirm that legally and contractually required savings guarantees are met in federal energy savings performance contracts (ESPCs). When done correctly, M&V:
- Appropriately allocates risks
- Reduces uncertainty of savings estimates
- Accurately assesses cost and energy savings
- Potentially identifies operations and maintenance issues.
Read M&V Guidelines: Measurement and Verification for Performance-Based Contracts (Version 4.0) to learn about the Federal Energy Management Program's standard M&V procedures and guidelines.
Notice of Request for Information: Measurement and Verification Guidelines for Performance-Based Contracts
FEMP has drafted an update to the FEMP "M&V Guidelines: Measurement and Verification for Performance-Based Contracts Version 4.0" and invites public comment on the updates, as published in the Federal Register. The draft document is available for download: M&V Guidelines: Measurement and Verification for Performance-Based Contracts Version 5.0.
Comments can be submitted electronically to FEMP's MV5.0 Feedback email address with the subject line: "M&V Guidelines Update". DOE is providing an optional feedback form for submission of comments. However, comments can be submitted in any format.
For additional questions, contact Priya Stiller using the subject line: "M&V Guidelines Update".
Measurement and Verification Requirements
M&V is required in phase 3, phase 4, and phase 5 of the ESPC procurement process. Section C.4 of the U.S. Department of Energy's (DOE) ESPC indefinite-delivery, indefinite-quantity (IDIQ) master or "umbrella" contract prescribes the M&V process in general; M&V specifics are defined in each individual task order.
Learn about M&V activities required in the ESPC process.
Measurement and Verification Options
Four M&V options may be considered in an ESPC project. Learn about M&V options A, B, C, and D.
Degree of Measurement and Verification
The degree of M&V needed for an energy conservation measure (ECM) in an ESPC project is proportional to its performance risk and the magnitude of expected savings.
- Learn about managing risk through M&V.
- Learn about calculating energy and water savings in an ESPC.
The quantity of savings and the complexity of the ECM determine how much money and effort should be devoted to the ECM. For example, lighting retrofits generally don’t require a large investment in M&V to ensure they are delivering expected savings. However, combined heat and power plant projects are more complex and require more rigorous M&V to verify savings.