1 / 12

Performance Contracting

Performance Contracting. Mukilteo School District May 14, 2001. What’s the Problem?. High Energy Cost Inadequate Indoor Air Quality Unknown Energy Use Inefficient and Outdated Systems Ongoing Maintenance Costs Limited Capital Budget. What is Performance Based Contracting?.

leia
Download Presentation

Performance Contracting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Performance Contracting Mukilteo School District May 14, 2001

  2. What’s the Problem? • High Energy Cost • Inadequate Indoor Air Quality • Unknown Energy Use • Inefficient and Outdated Systems • Ongoing Maintenance Costs • Limited Capital Budget

  3. What is Performance Based Contracting? • A method of identifying, constructing, and financing energy and utility conservation projects • Utilizes energy $ saved to defray project costs. • Eliminates the risks associated with the design, bid, build process

  4. What is Performance Bases Contracting? • Preliminary Audit • Identify Potential Conservation Measures • Detailed Audit and Cost Estimating • Determine Feasibility • Implementation • Program Management • Project Performance Review • Measure, Verify, Report, Reconcile

  5. Performance Based Contracting Today • 39.35 RCW • Acts in a project oversight capacity • Takes the contracting, legal review and timelines associated with P/C and eliminates or minimizes them • Helps to maximize the utility incentives • Reviews all projects for the customer • Provides first year monitoring and verification • Brings over 15 years experience in energy saving projects to School Districts

  6. Performance Based Contracting Today • ESCO Financing • State Financed • State Treasurer’s LOCAL Program • 5-10 year loan • 4.75% – 5.75% interest rate

  7. Benefits of Performance Based Contracting • Accepting of low bid not required • Owner involved with equipment selection • Owner involved with contractor selection • GUARANTEED maximum project cost • GUARANTEED energy savings • GUARANTEED equipment performance

  8. Benefits of Performance Based Contracting • Funding available through State Treasurer • Improved indoor environmental conditions • Reduction of maintenance costs

  9. Cautions to Consider • Potential for “Cherry Picking” • Equipment Specifications • Transfer of Capital Costs to the General Fund • Commitment to Long Term Monitoring

  10. Qualifying Projects Fire Alarm & Life Safety Water Conservation Lighting Systems Security IAQ Building Envelope HVAC Equipment Building Controls Waste Management

  11. Reasons to Consider • Energy Cost Reductions • Responsible Use of Resources • HB 2247 (39.35 RCW) • Energy consumption surveys, building walkthroughs, investment grade audits and installation of cost-effective conservation measures no later than December 31, 2004 • Performance Based Contracting preferred • Energy Stars School Challenge

  12. What’s Next? • District Decision to Participate • Set Payback Goals • Interagency Agreement with Department of General Administration

More Related