Siemens Reaches Next Step in USACE Effort to Achieve Significant Energy and Cost Savings

The U.S. Army Corps of Engineers (USACE) has selected Siemens as one of the contract vehicle holders for a base contract award that now gives the company the opportunity to bid on the design, construction and operation of a variety of energy savings projects across the U.S. Government. The U.S. Army Engineering and Support Center in Huntsville, Alabama (CEHNC) awarded USACE ESPC III to Siemens May 8.

Siemens Government Technologies, Inc. (SGT) will hold this Energy Savings Performance Contract (ESPC). The cost of any projects subsequently won by Siemens will be funded by the energy savings derived from the conservation measures Siemens implements. Siemens also guarantees the savings, which will allow the federal government to advance President Obama’s vision that federal facilities generate 20% of their energy from renewables by 2020.

The Army Corps of Engineers has been one of the most active users of ESPCs in the federal government. This successor Indefinite Delivery Indefinite Quantity (IDIQ) builds on earlier momentum by providing a new funding ceiling, an extended timeframe and an expanded scope beyond U.S. territory and into U.S. government facilities in Germany, South Korea and the Marshall Islands. Though USACE will hold the contract, all federal agencies will be able to use this vehicle to seek industry help to achieve their own energy and cost savings. Other federal agencies currently using ESPCs range from the Departments of Defense and Energy to the General Services Administration and National Park Service.

Siemens holds many ESPCs across the federal government. An ESPC is an alternative financial mechanism that allows federal agencies to reduce their energy usage, incur no upfront costs and then retain the associated savings. As a certified Energy Service Company, Siemens provides essential expertise for meeting federal energy goals and optimizing energy management – from energy audits and full program design, to alternative financing that covers costs while energy savings are realized. Siemens’ performance-based solutions leave appropriated funds intact and leverage energy savings to pay for facility, capital and technology improvements. This enables federal agencies to reduce operating costs while realizing the additional value of new, energy–efficient equipment and infrastructure. These facility improvements decrease energy consumption, save money, optimize functionality and help government agencies meet their federal energy-saving mandates

“Siemens is proud to be a significant partner across the federal government, helping a variety of agencies use ESPCs to meet their mission to save energy and use more renewable energy. We are applying our innovative energy and environmental expertise in energy efficiency and power generation to help them do that,” said Judy Marks, President and Chief Executive Officer, Siemens Government Technologies, Inc. "As the largest single user of energy in the U.S., the federal government is leading by example through its commitment to improving the energy efficiency of America's publicly-owned buildings and facilities, reducing carbon emissions and enhancing the nation's energy security.”