DOE FEMP First Thursday Seminar
Goal-Based Contracting for
Energy Efficient Buildings
Short Description
In Goal Based Contracting for Energy Efficient Buildings you will learn about ways to
implement performance-based contracts that achieve high-performance buildings with low
energy profiles. Learn about upfront contract provisions that lead to measurable performance
benchmarks in building construction and operations.
Discover techniques that result in:
•
Innovation by design teams and contractors to incorporate energy efficiency
as part of the design/construction process
•
Minimal or no additional cost to achieve significant energy savings
(in the range of 50% reduction) •
Owners who are focused on project management, rather than solving design and
construction problems
•
Strong communications between owners, design teams, and contractors
•
Best practices, examples, and lessons learned from real experiences
in implementing this process.
Core Competency Areas Addressed in the Training
This course is designed to address the Federal Building Personnel Training Act of 2010
(FBPTA) competencies related to demonstrating familiarity with sustainability.
1. Implement energy-use performance requirements as part of a performance-based
design-build process
2. Identify opportunities to integrate goal-based contracting concepts into facility operations
3. Use today’s technologies and strategies to meet aggressive energy goals
4. Engage resources, peer-to-peer opportunities, and data to influence decision makers
Page 1
Resources for Goal Based Contracting, DOE's Building Technologies Office,
and the Better Building Alliance
Better Building Alliance for the Public Sector
http://www4.eere.energy.gov/alliance/sectors/public
DOE Building Technologies Office: Emerging Technologies
http://www1.eere.energy.gov/buildings/technologies/index.html
DOE Building Technologies Office: Commercial Buildings
http://www1.eere.energy.gov/buildings/commercial/index.html
Resource database is at: buildingdata.energy.gov/cbrd
DOE Building Technologies: Appliance and Equipment Standards
http://www1.eere.energy.gov/buildings/appliance_standards/
DOE Building Technologies: Building Energy Codes
http://www1.eere.energy.gov/buildings/codes.html
National Renewable Energy Laboratory Research Support Facility
http://www.nrel.gov/sustainable_nrel/rsf.html
Design Build Institute of America: http://www.dbia.org/
Seven Steps for Performance Based Acquisition
http://www.acquisition.gov/sevensteps/introduction.html
Glossary
Acquisition Guidance and Efficiency Requirements (aka, Product Overview) - Define the
Department of Energy's FEMP purchasing specifications.
Acquisition Strategy - An acquisition strategy serves as a roadmap for the acquisition portion
of the investment life-cycle. It describes the overall approach for acquiring the capabilities
needed to fulfill the objectives of a major capital investment in accordance with the Acting
Senior Procurement Executive’s Acquisition Policy Memorandum (APM) No. 2009-05, dated
July 29, 2009
Absolute Greenhouse Gas Emissions - Total greenhouse gas emissions without
normalization for activity levels (see Energy Intensity) but including any allowable consideration
for sequestration.
Carbon Intensity - The amount of carbon by weight emitted per unit of energy consumed.
A common measure of carbon intensity is weight of carbon per British thermal unit (Btu) of
energy. When there is only one fossil fuel under consideration, the carbon intensity and the
Page 2
emissions coefficient are identical. When there are several fuels, carbon intensity is based on
their combined emissions coefficients weighted by their energy consumption levels.
Contract Officer's Technical Representative (COTR) - A Federal employee to whom a
Contracting Officer has delegated authority in writing to act as his or her representative in
monitoring specified aspects of contractor performance. These aspects may include ensuring
that the contractor’s performance meets the standards set forth in the contract, ensuring the
contractor meets the technical requirements under the contract by the delivery date(s) and/or
within the period of performance, and ensuring that the contractor performs within the price or
estimated cost stated in the contract.
Contracting Officer (CO) - An individual who can bind the United States Government to a
contract that is greater than the Micro-Purchase threshold.
Contracting Officer’s Representative (COR) - Contracting officers may designate qualified
personnel as their authorized representatives to assist in the technical monitoring or
administration of a contract. This individual is referred to as a contracting officer's
representative
Critical Path - Critical path identifies a series of milestones, or critical activities, which must be
met or accomplished as per schedule and at stated levels of performance in order to achieve
the required end product or output of the effort.
Demand response - Demand response refers to the peak reduction of customer power usage
at times of peak usage in order to help address system reliability, reflect market conditions and
pricing, and support infrastructure optimization or deferral. Demand response pricing may
include dynamic pricing/tariffs, pricing responsive demand bidding, contractually obligated and
voluntary curtailment, and direct load control/cycling.
Emerging technologies (ET) - Contemporary advances and innovation in various fields of
technology. Various converging technologies have emerged in the technological convergence
of different systems evolving towards similar goals.
Energy audit or Energy Assessment - Analysis of a facility's electricity and other energy
usage, often including recommendations to alter the customer's electric demand or reduce
energy usage. An audit usually is based on a visit by an energy analyst or engineer to the
building, or manufacturing or agricultural facility.
Energy benchmarking - a process for describing the energy performance of a building at a
point in time and for comparing that performance with similar buildings. As this definition
implies, there are two key elements in benchmarking: (1) the description of performance, and
Page 3
(2) the comparison. The description of performance is often accomplished through calculation
of a performance metric
Energy Escalation Rate Calculator (EERC) - Computes an average annual escalation rate for
fuel prices from the annual energy price forecasts of the DOE Energy Information
Administration. This rate can be used to escalate contract payments in Energy Savings
Performance Contracts and Utility Energy Services Contracts when the payments are based on
projected annual energy cost savings.
Energy management system - A full or partially computerized system designed to monitor
and control energy use in order to achieve optimal efficiency.
Energy performance contract - Energy Performance Contracts are designed to improve
energy performance of a building an incorporate: a clearly stated target or performance goal; a
method to evaluate performance during the design process; a protocol for measuring
performance after the building is constructed, commissioned and occupied; and A/E
compensation (or design/build fee) that is partly contingent upon meeting the
performance goal.
Energy savings performance contract (ESPC) - A contracting method in which the
contractor provides capital to facilitate energy savings projects and maintains them in
exchange for a portion of the energy savings generated.
Energy use index (EUI) - A number calculated by taking the total energy consumption of a
building and dividing it by the area of the building. A normalization of energy consumption
based on building area.
Energy-conservation measure (ECM) - A building material ,component, or strategy whose
use will affect the energy consumed for space heating, space cooling, plug loads, domestic hot
water or refrigeration.
ESCO - Commercial business providing a broad range of comprehensive energy solutions
including designs and implementation of energy savings projects, energy conservation, energy
infrastructure outsourcing, power generation and energy supply, and risk management.
Federal Acquisition Streamlining Act (FASA) of 1994 - The Federal Acquisition Streamlining
Act of 1994 (FASA) made a number of changes in the way goods and services at, or below,
$100,000 are acquired. The Act replaces the $25,000 threshold with a new "Simplified
Acquisition Threshold" (SAT) of $100,000 once an agency (or procuring activity within the
agency) have achieved certain electronic commerce (FACNET) capabilities, are using them and
Page 4
certify that they have met the criteria. Until that time, the threshold is only increased to
$50,000.
Federal Financing Specialist (FFS) - FEMP's Federal financing specialists (FFSs) help
agencies get started with energy savings performance contract (ESPC) projects.
Goal Based Contracting - Also known as Performance-based acquisition" (PBA) means
structuring all aspects of an acquisition around the purpose of the work to be performed with
the contract requirements set forth in clear, specific, and objective terms with measurable
outcomes, as opposed to either the manner by which the work is to be performed or broad
and imprecise statements of work. The use of the word "acquisition" rather than "contracting"
reflects the broader scope (from mission planning to contract performance management) and
the broader community (including program offices) that are a necessary part of the process.
Greenhouse Gases (GHGs) – Gases in the Earth’s atmosphere that produce the greenhouse
effect. Changes in the concentration of certain greenhouse gases such as fossil fuel burning,
increase the risk of global climate change. Greenhouse gases include water vapor, carbon
dioxide, methane, nitrous oxide, halogenated fluorocarbons, ozone, perfluorinated carbons,
and hydro fluorocarbons.
Integrated design - is a collaborative method for designing buildings which emphasizes the
development of a holistic design
Integrated project team - The integrated project team consists of multidisciplinary (e.g.
Engineers, Health and Safety, Social and Environmental, Operations, Maintenance) personnel
from both the Agency and contractor or contractors. This integrated team is required for both
design and constructability reviews among other responsibilities. Integrated project teams are
used for whole building systems approaches.
Integrated Whole Building Design Strategy - An integrated whole building design strategy
uses energy modeling, energy efficient approaches and technologies, and performance based
strategies to achieve high performance building design and subsequent operations.
Load - The amount of power consumed at any specified point or points on a system. Load
originates primarily in the power consuming equipment of the customers.
Load leveling - A process in which the energy demand can be temporarily reduced during
certain periods. Typical examples include the intermittent operation of certain electrical
equipment and shutting off equipment when rooms and buildings are not in use.
Load management - The controlling, by rescheduling or direct curtailments, of the power
demands of customers or groups of customers in order to reduce the total load that a utility
Page 5
must meet at times of peak demand. Load management strategies reduce usage over larger
multi-hour periods.
Measurable performance standards—To determine whether performance outcomes have
been met, defines what is considered acceptable performance.
Net present value (NPV) - The value of future energy savings -- less all project construction
and operating costs, discounted to present value.
Net-Zero Emissions - A net-zero emissions building produces (or purchases) enough
emissions-free Renewable Energy to offset emissions from all energy used in the building
annually. Carbon, nitrogen oxides, and sulfur oxides are common emissions that NZEBs offset.
To calculate a building’s total emissions, imported and exported energy is multiplied by the
appropriate emission multipliers based on the utility’s emissions and on-site generation
emissions (if there are any).
Net-Zero Energy Costs - In a cost NZEB, the amount of money the utility pays the building
owner for the RE the building exports to the grid is at least equal to the amount the owner pays
the utility for the energy services over the year.
Net-Zero Site Energy - A site NZEB produces at least as much Renewable energy as it uses
in a year, when accounted for at the site (typically at the utility meter).
Net-Zero Source Energy - A source NZEB produces (or purchases) at least as much
Renewable Energy as it uses in a year, when accounted for at the source. Source energy refers
to the primary energy used to extract, process, generate, and deliver the energy to the site. To
calculate a building’s total source energy, imported and exported energy is multiplied by the
appropriate site-to-source conversion multipliers based on the utility’s source energy type.
NREL Research Support Facility (RSF) - The RSF which is located on the main campus of the
National Renewable Energy Laboratory (NREL) in Golden, Colorado, was completed in June
2010. It is a showcase for sustainable, high-performance design that incorporates the best in
energy efficiency, environmental performance, and advanced controls using a “whole building”
integrated design process and performance based contracting.
OPR - Owner Performance Requirements
Peak demand - The largest value of demand occurring during the billing cycle. This value is
typically used by the utility to assess peak demand billing. It is critical to understand how your
Page 6
utility assesses peak demand, and the associated kW charge, to be able to manage
operational and economic efficiency.
Performance-Based Building Design - In performance-based building design, the owner
does not rely on “prescriptive” plans and specifications to define the scope of the project.
Instead, the owner focuses on defining the problems to be solved, and the design-builder is
tasked to develop solutions, Performance-based building design is an approach which
focuses on the objective of a building asset, in order to prescribe desired results instead of the
way and the method to get things done. In a Performance Based approach the focus of all
decisions is on demand requirements and on required performance in use. This approach
provides a methodology to develop tools and methods to set the whole life cycle Building
Process, from the dealing phases to the procurement, to the construction and the evaluation of
results.
Performance Based Contracting - Also referred to as Goal-Based Contracting means
structuring all aspects of an acquisition around the objectives of the work to be performed.
Performance-based service contracting (PBSC) - PBSC emphasizes that all aspects of an
acquisition be structured around the purpose of the work to be performed as opposed to the
manner in which the work is to be performed or broad, imprecise statements of work which
preclude an objective assessment of contractor performance. It is designed to ensure that
contractors are given freedom to determine how to meet the Government's performance
objectives, that appropriate performance quality levels are achieved, and that payment is made
only for services that meet these levels.
Performance requirements - Performance requirements translate user requirements in more
precise quantitative measurable and technical terms, usually for a specific purpose such as
achieving specific energy use targets.
Performance work statement - Describes the requirement in terms of measurable outcomes
rather than by means of prescriptive methods.
Remedies - Procedures that address how to manage performance that does not meet
performance standards. While not mandatory, incentives should be used, where
appropriate, to encourage performance that will exceed performance standards. Remedies
and incentives complement each other.
Scope 1 Emissions - Includes direct greenhouse gas emissions from sources that are owned
or controlled by a Federal agency.
Page 7
Scope 2 Emissions - Includes direct greenhouse gas emissions resulting from the generation
of electricity, heat, or steam purchased by a Federal agency.
Scope 3 Emissions - Includes greenhouse gas emissions from sources not owned or directly
controlled by a Federal agency but related to agency activities, such as vendor supply chains,
delivery services, and employee travel and commuting.
Section 433 of EISA 2007 - Federal Building Energy Efficiency Performance Standards, directs
DOE to issue revised Federal building energy efficiency performance standards within one year
of enactment of Act. The revised standards specify that"...the buildings shall be designed so
that the fossil fuel-generated energy consumption of the buildings is reduced, as compared
with such energy consumption by a similar building in fiscal year 2003. Section 433 also
requires that sustainable design principles shall be applied to the siting, design, and
construction of buildings subject to the standards. A certification system and level for green
buildings is to be identified by DOE in consultation with DOD and GSA, based on Director of
Federal High-Performance Green Buildings (GSA) findings. The section provides specific
guidance for developing certification program.
Whole Building Design - The integration of a building's systems to maximize environmental
and financial functioning by considering energy systems, building materials, design methods,
site preservation, and indoor air quality so that a structure can run at its maximum efficiency.
An integrated project team is used to consider all aspects of the whole building design.
Page 8