The US Army Corps of Engineers, Engineering and Support Center (USACE) has awarded a $1.5bn energy savings performance contracting (ESPC) multiple award task order contract (MATOC) to 14 companies, including one small business.

The indefinite-delivery, indefinite-quantity (IDIQ) contract covers the design, construction and operation of energy savings projects to help the military installations address mandated energy savings goals.

Recipients include AECOM, Ameresco, Clark Energy Group, Constellation NewEnergy, Energy Systems Group, Honeywell International, Johnson Controls Government Systems, Noresco, Pepco Energy Services, Schneider Electric Buildings Americas, Siemens Government Technologies, Southland Energy, Trane US, as well as the American Development Institute.

The IDIQ contract features a base ordering period of five years with one five-year option period. Funding and work location are scheduled to be determined with the award of each task order.

"The IDIQ contract features a base ordering period of five years with one five-year option period."

Services will reportedly be performed at government installations or facilities across the continental US and locations in Alaska, Hawaii, Republic of the Marshall Islands, US Territories and Possessions, Germany, and South Korea.

The ESPC is a partnership between the army and an energy service contractor (ESCO), which works with the garrison on a military installation to provide the capital and expertise needed to make energy and water efficiency improvements on facilities or implement new renewable energy capabilities and maintain them in exchange for a portion of the generated savings.

ESPC is one of the acquisition vehicles that can be used by an installation to meet the army’s 30% energy and 15% water reduction goals without upfront capital costs.

MATOC contracts are used for the procurement of reliable, locally generated, renewable and alternative energy through power purchase agreements over the next 30 years.

Through the contracts, the army moves closer to meet US Congress-mandated energy goal of 25% production and consumption of energy from renewable sources by 2025, while also enhancing the installation energy security and sustainability.