EconDefense
IND-47 / Energy, environment and communities

Finance efficiency improvements through energy savings performance contracts

Private contractor finances conservation equipment/services in return for a share of guaranteed savings; agencies may combine appropriations and private financing.

Action briefPDF dossier · original 168Download record
Authority / instrument · IND-47

Performance-based energy finance

Energy, environment and communities

Statute & instrument
Authority holder

Federal agency head; Secretary of Defense/authorized contracting officials

What this does not authorize / hard limit

Annual utility-plus-contractor payment cannot exceed without-project baseline

Recorded executor

DLA Energy Installation Energy or Utility Services as appropriate; Service contracting officers / USACE / NAVFAC / AFCEC

Continue to actor →

Recorded executing role; this record-specific route is not an additional institutional office.

Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingRules recordedPayments from authorized energy/related O&M resources; permitted incentives/credits/grid revenues may support contract. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRoles recordedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementProcess sourcedESPC has a defined process from audit through performance and an actual 2025 Huntsville MATOC award. The $3 billion figure is contract capacity, not cash granted to 18 firms. Program check: 2026-10-04; see each route for intake status.

Public evidence describes the institution and instrument; it is not approval of an individual transaction.

At a glance

Possible toolIND-47 · Contracts & purchases

Authority holder: Federal agency head; Secretary of Defense/authorized contracting officials

Contracts & purchases

Mechanism tags describe the source text; they do not expand the authority.

Availability and verification

Conditional legal pathway; current funding, required determinations, and actual delegation not certified.

Program process and intake

Checked 2026-10-04 · program documented. Program evidence is separate from legal authority, available funds and transaction approval.

ESPC has a defined process from audit through performance and an actual 2025 Huntsville MATOC award. The $3 billion figure is contract capacity, not cash granted to 18 firms.

Federal/Army energy savings performance contracting

Who this route serves
Qualified ESCOs and federal facility customers
Administering office / routing lead
Installation sponsor and contracting officer; USACE Huntsville ESPC program or DOE FEMP-supported agency vehicle
Direct implementation

FEMP’s procurement-options page explicitly ties ESPC to 42 USC 8287; the Huntsville award demonstrates use of that contract type.

What this evidence label means
Contract vehicle awarded

Huntsville awarded MATOC IV on June 9, 2025; orders are competed among 18 contract holders.

Status reference date: 2025-06-09 · research checked 2026-10-04

Huntsville Center awards$3 billion energy-resilience MATOC IV · June 9 award;18 ESCOs; order competition; task-order fundingofficial contract-award announcement · published 2025-06-10 · Evidence record

Program eligibility

  • Energy savings must cover annual payments, savings guarantees and measurement/verification are mandatory, and terms cannot exceed25 years.

    FEMP About Federal ESPCs · Audit, financing, savings guarantee, measurement/verification and25-year limitofficial program guidance · Evidence record

Steps and preparation

  • Select an ESCO for potential award, perform the facility audit, negotiate measures and guaranteed savings, arrange financing, then administer performance.

    FEMP About Federal ESPCs · Audit, financing, savings guarantee, measurement/verification and25-year limitofficial program guidance · Evidence record
Funding, limits and authority relationship

Funding and financial terms

Exclusions and limits

Authority relationship source

FEMP federal on-site distributed-energy procurement options · ESPC sectionofficial process guidance · Evidence record

FEMP ESPC process and federal-project assistance →

program/process guidance: Agency project assistance and contract options; firms must qualify for the chosen vehicle or actual competition.

Source access and verification notes
Research scope and sources checked

Reviewed FEMP implementation and actual Huntsville award/news; distinguished IDIQ ceiling, ordering period, project term and task-order commitments.

What remains unverified

  • Current small-business on-ramp timing and task-order opportunities were not verified; announced capacity is not remaining availability.

A dated source check is not continuing monitoring. Recheck the linked official notice before preparing a submission. Browse program research →

Requirements and limits

Eligibility & prerequisites

  • Guaranteed savings exceed debt service
  • Annual audits/measurement and verification
  • First-year funds adequate; statutory competitive selection

Limits & exclusions

  • Maximum25years
  • Annual utility-plus-contractor payment cannot exceed without-project baseline
  • Not general infrastructure debt borrowing

Funding conditions

  • Payments from authorized energy/related O&M resources; permitted incentives/credits/grid revenues may support contract.

Read the funding and execution guide

Who contributes what

Need & planning

  • Installation energy manager
  • Service energy office / ASD(EI&E)

Resources

  • Installation utility/O&M accounts or authorized project funds

Approval

  • Secretary concerned; Secretary of Defense approval when statute requires
    Office profile

Execution

  • DLA Energy Installation Energy or Utility Services as appropriate
  • Service contracting officers / USACE / NAVFAC / AFCEC
    Office profile

Partners & review

  • Utility / energy-service company
  • DOE technical assistance; State utility regulator where required

Office links are editorial matches to the original role text, not verified delegations. Composite labels and unmatched actors are preserved.

Coordination pathway

Requirement sponsor → named planning office → resource owner and counsel → statutory approving official → authorized executing/contracting office.

Actor and execution-role sources

Legal basis

What this research establishes

Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingRules recordedPayments from authorized energy/related O&M resources; permitted incentives/credits/grid revenues may support contract. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRoles recordedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementProcess sourcedESPC has a defined process from audit through performance and an actual 2025 Huntsville MATOC award. The $3 billion figure is contract capacity, not cash granted to 18 firms. Program check: 2026-10-04; see each route for intake status.

Confidence: High on statutory permission; execution roles are organizational routing, not verified individual delegations.

Currentness: 2024 official U.S. Code operative text read; relevant amendments in Pub. L. 119-60 (Dec. 18, 2025), 119-21 and 119-103 examined. Rolling OLRC source consulted where retrievable; transaction-specific later-law and delegation confirmation remains necessary.

Review scope: Original research target October 2, 2026; no record-specific last-review date supplied. Publication is not legal-currentness certification.

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