Two years into a federal energy savings and performance-based contracting initiative, a national trade organization calls the program an unqualified success. The National Association of Manufacturers (NAM) said President Obama’s Energy Savings and Performance-Based Contracting Investment Initiative should be expanded to five years and $5 billion.
The program was launched in December of 2011, intended to create $2 billion in savings. The NAM released a report, Improving Federal Energy Savings Through Performance Contracting. A bipartisan coalition in Congress also is promoting an extension.
In it, NAM used data from companies involved in the initiative, found that more than $1.3 billion worth of projects will have been awarded by the end of 2013 with another $1 billion worth of projects in various stages of the development pipeline and expectations of an additional $200 million being awarded in early 2014.
Twenty-three different agencies helped identify 305 projects with an estimated $2.4 billion investment value, with potential net savings to the federal government of more than $2 billion.
The program has created jobs across the manufacturing supply chain and around the country, the report concludes.
“Performance-based contracts have been a win-win-win for manufacturers, the federal government and the American public,” said NAM Vice President of Energy and Resources Policy Ross Eisenberg. “The government has saved money and energy by upgrading its buildings; jobs have been created across the supply chain to manufacture and install these products and technologies; and by leveraging the power of the private sector, there have been no upfront costs to taxpayers.”