The Performance Contracting Program is a turnkey program whereby private Contractors design and install conservation measures to upgrade existing state facilities' building systems project. Payments for the projects will be made using funds partially or wholly derived from the energy and water savings achieved by the projects. There are two types of projects: Equipment, Design, and Installation, which, generally, include a greater level of design in the RFP; and Comprehensive Energy and Water projects, which, generally, require the contractor to undertake a greater degree of project scoping and design after selection. Both projects require that energy and water savings be verified, to varying degrees, but the details for meeting the performance requirements are different. The Performance Contracting Program offers several benefits to the Commonwealth:
  • This procurement approach enables the state facility to upgrade energy and water related equipment with little or no up-front investments.
  • This procurement approach enables the state to take advantage of innovative products and financing.
  • For Comprehensive projects: the state facility is guaranteed a net positive cash flow for the contract term, since the Contractors must guarantee that the facility will achieve energy and water savings greater than the annual costs associated with paying for the equipment and related services.
  • For Equipment, Design, and Installation projects, the Commonwealth engages consultants and engineers to develop the scope of work, and the Contractors are required to design and install the project so that at commissioning, the projected savings are validated.
  • The state eventually assumes management of a facility with reduced energy and water requirements, and with staff trained to operate and maintain the new equipment

Model Energy Services Agreement (ESA) for Comprehensive Energy Projects pdf format of model_comprehensive_esa.pdf file size 3MB

Standard ESA for Equipment, Design and Installation for projects procured under M.G.L Chapter 25A Sec. 11c pdf format of model_equip_only_ESA_rev09_2010.pdf file size 6MB (Revised 9/2010) PDF

Some helpful links to more information about State Energy Saving Programs, Federal Energy Saving Programs and Energy Performance Contracting Project Snapshots

Energy and Water Audits

The Conservation Team administers energy and water audits of state facilities. These audits target energy and water efficiency measures that typically pay for themselves through savings in five years or less. Recommendations are made for funding the design and construction of cost-effective measures that have been determined through these comprehensive energy and water audits. Due to capital spending constraints, bond funds are utilized to improve energy efficiency only at those sites where other financing programs are not suitable.

This information provided by the Division of Capital Asset Management.