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Greening Schools through Performance Contracting for a Sustainable Future

Learn about Performance Contracting to reduce expenses and create a better learning environment by incorporating green initiatives in schools. Follow the process overview and benefits discussed in the session.

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Greening Schools through Performance Contracting for a Sustainable Future

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  1. Save While You SaveGreening Schools through Performance Contracting Presented by: Alison Gangl

  2. Today’s Topics: • What is Performance Contracting? • Why pursue Performance Contracting? • How will it help your district to “Go Green?”

  3. What is important to you and your district? • Identify needs of the district • Facility improvements • Reduce expenses • Identify goals and wish lists • Create a better learning environment • Incorporate green initiatives

  4. It’s about Performance! Energy Performance Contracting: • Is an alternative construction method. • Allows for a facility to complete energy-saving improvements within an existing budget by financing them with money saved through reduced utility expenditures. • Energy Savings are financially guaranteed and the project must perform as promised.

  5. PC Funding Model

  6. PC Process Overview • Initial Energy Survey and Qualification Process • Preliminary Energy Audit • Complimentary study with energy saving recommendations • Preliminary energy savings dollar figures provided • Investment Grade Audit • Defines the scope of work • Finalizes energy conservation measures and savings figures • Installation • Improvements implemented • Energy savings begin

  7. Performance Guarantee • Savings Measured & Verified • Performance assurance consultant assigned to your project to ensure your savings are met • Financial guarantee ensures any shortfall of savings will be reconciled

  8. Why pursue Performance Contracting?

  9. Governor Mandate • State has been charged with a green challenge • Executive Order S-20-04: • Gov. Arnold Schwarzenegger, December 2004 • Mandates that all state-owned buildings must reduce their energy consumption by 20% in the state of CA by 2015

  10. California Law CALIFORNIA GOVERNMENT CODE SECTION 4217.10 – 4217.18 • Alternative to public works process • No low-bid/quality • Performance is REQUIRED! • Advertising is at district’s discretion • “greatest possible flexibility…”

  11. Federal Support • President-elect, Barack Obama, has stated the need for more energy efficient facilities • "Our government now pays the highest energy bill in the world… We need to upgrade our federal buildings by replacing old heating systems and installing efficient light bulbs.“ – Barack Obama

  12. Classic Procurement “Doom Loop” Equipment Need Budget Build Symptoms Appropriate Reduce Scope Design Bid Review Costs

  13. Breaking the Cycle Performance Goals Budget End Result Appropriate Design / Build Facility Audit Develop Project

  14. Breaking the Cycle Performance Goals Performance Metrics Budget End Result Commission Appropriate Design / Build Facility Audit Develop Project

  15. Breaking the Cycle Tie Goals to Metrics Years 20 0 5 10 15 Performance Period Commissioning Construction Final Design Development & Design Facility Audit

  16. Overview of PC Summary: • Results Based • Systems focused, not component focused • Single source of accountability • Better overall project quality than classical procurement P C

  17. The First Step • Contact an energy service company for a complimentary energy survey • Requires: • 12 months of utility data • Square footage of buildings • Walk-through of buildings Begin greening your buildings today!

  18. Alison Gangl Client Representative 21550 Oxnard Street Woodland Hills, CA 91367 323-472-0018 alison.gangl@tac.com

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