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Obama Extends Performance-Based Contracts for Federal Agencies

December 4, 2013 By Linda Hardesty

Energy Manage ObamaIn November, a bipartisan coalition of 117 House Members and 22 Senators signed a letter to President Obama, urging a five-year extension of the President’s federal buildings energy efficiency initiative, which permits federal agencies to enter into performance-based energy efficiency contracts. Now, the Obama Administration says it will extend the initiative another three years – until 2016.

The administration is challenging federal agencies to further expand their use of performance-based contracts through 2016 to upgrade the energy efficiency of federal buildings.

In December 2011, President Obama initially challenged federal agencies to enter into $2 billion worth of performance-based contracts within two years. Federal agencies have since committed to a pipeline of about $2.3 billion in projects.

Agencies will work with the Energy Department’s Federal Energy Management Program in early 2014 to identify additional project commitments to further reduce energy use through 2016.

Photo: President Obama via Shutterstock

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