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During phase 1 of the energy savings performance contract (ESPC) process, the agency contacts a Federal Energy Management Program (FEMP) federal project executive who helps educate the agency about procurement steps that are unique to ESPCs. 

Phase 1 at a Glance
Step 1: Agency Contacts a Federal Project Executive
Step 2: Agency Considers Procurement Requirements
Step 3: Agency Develops a Plan of Action for the Project
Phase 1 FEMP Assistance and Resources

Step 1: Agency Contacts a Federal Project Executive

The agency contacts a FEMP federal project executive (FPE). The FPE helps the agency take its first steps toward an ESPC project by: 

  • Leading an initial briefing to educate staff and management about ESPCs 
  • Helping determine whether an ESPC project is feasible
  • Helping gain management support for the project 
  • Helping determine needed FEMP project support services
  • Coordinating FEMP services including engaging a FEMP-qualified project facilitator.

Step 2: Agency Considers Procurement Requirements

The agency contracting or procurement staff prepares to address agency-specific procurement requirements. The FPE advises about the unique aspects of ESPC procurements in these tasks, such as:

  • Assembling an ESPC acquisition team
  • Determining the agency’s requirements for the procurement at a high level
  • Identifying review, business clearance, and approval requirements and responsible managers
  • Beginning to develop an acquisition plan.

Step 3: Agency Develops a Plan of Action for the Project

The agency lays the groundwork for soliciting the interest of energy services companies (ESCOs) through a notice of opportunity. This includes:

  • Determining project motivations and site needs
  • Defining project requirements (and preparing the agency requirements document as needed)
  • Determining the ESCO selection procedure
  • Determining preliminary milestones for project award and implementation
  • Planning for advanced technologies such as combined heat and power and renewable energy.

Phase 1 FEMP Assistance and Resources

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ESPC Phase 1 >

FEMP's roles in phase 1 of the ESPC process include helping agencies with:

  • Leading the initial staff and management briefing 
  • Determining whether an ESPC project is feasible
  • Gaining management support 
  • Determining needed FEMP support services 
  • Engaging a FEMP-qualified project facilitator.

FEMP also provides resources to help agencies complete phase 1 of the ESPC process.

Next Phase

During phase 2 of the ESPC process, the agency selects an ESCO to proceed with project development. See Phase 2: ESCO Selection and Preliminary Assessment.