Army’s First ESPC for a Government-Owned/Contractor-Operated Facility Is Snagged by Siemens

Under the terms of an $11.8 million contract with the U.S. Army Corps of Engineers, Siemens USA will implement facility upgrades to enhance energy efficiency and reliability, as well as energy security, at the Joint Systems Manufacturing Center in Lima, Ohio – one of the Army’s most voracious power consumers.

This represents the U.S. Army’s first energy savings performance contract (ESPC) at a government-owned, contractor-operated facility, the two signatories to the deal announced on March 20.

The JSMC, which restores and repairs armored vehicles, such as the M1A2 Abrams Main Battle Tank, is owned by the Army but operated by General Dynamics Land Systems.

The project includes a guarantee by Siemens that its improvements at the facility will save about $20 million – or 1.4 million British thermal units – over the 15-year performance period.

It is designed to reduce JSMC and the Army Materiel Command’s energy consumption for the 2017 calendar year and help strengthen their energy security. Under the ESPC contracting mechanism, Siemens will cover the cost for the efficiency improvements, and the facility will pay it back over time from cost savings generated by those improvements.

“Siemens has helped many U.S. Army installations become more energy efficient, and the company is proud to be chosen by the U.S. Army Corps of Engineers as the first energy services company to perform at a government-owned and contractor-operated Army site. We take seriously our commitment to execute in this more complicated environment,” said Barbara Humpton, CEO of Siemens Government Technologies.

Humpton added that, because Siemens will perform this work under an ESPC, “this is a great deal for our customer, and thus, the taxpayer.”

The highlights of the Siemens effort include:

  • Upgraded lighting to new, light-emitting diode or LED, technology with advanced controls;
  • Repair and replacement of existing steam traps and insulation in order to ease maintenance burdens and increase steam system efficiency;
  • Building envelope upgrades that will extend the useful service life of existing roofs; and
  • Water system efficiency upgrades and compressed air system upgrades for increased reliability and efficiency.

Although the commitment is long-term under the 15-year contract, Siemens stressed that the site actually will begin to see cost and energy savings in a matter of months.

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