GSA Slashes New England Energy Expenditure by Almost 40%

Energy management services firm World Energy Solutions and science and engineering firm SAIC have helped the U.S. General Services Administration with a procurement process that cut energy expenditure at federal facilities in New England by almost 40 percent.

The companies helped the G.S.A. buy over 220 million kWh of electricity for 60 of its facilities and other federal accounts through a series of reverse online auctions on the World Energy Exchange. G.S.A. tested multiple products and terms and received over 150 bids from six suppliers, during the process.

The online events resulted in new 24- and 36-month contracts that are expected to yield more than $3.75 million in annual savings compared to the participating agencies’ prior agreements – a rate reduction of 39.5 percent. Delivery under the new terms began January 1, 2012.

Along with G.S.A., participants in the procurement included the American Red Cross, Bureau of Prisons, Department of State and Veterans Administration.

In October, the G.S.A. announced a program aimed at getting the private sector to improve the energy performance of federal buildings through the use of energy service performance contracts.

The Net Zero Challenge will see 16 energy services companies that already provide ESPCs to federal agencies compete for contracts by providing retrofit plans for approximately 30 federal buildings across the country.