Important energy performance contract for US Army

In Europe and globally, in the endless search for financing energy efficiency improvements, discussions always turn to energy performance contracts and the role of energy service companies. Business Wire provides a news item on the Yahoo Finance website about a recent contract signed between Siemens and the US Army. If you know of a good project that we should know about, please let EiD know.


Siemens to Improve Efficiency and Reliability at Army Facility Known for Significant Energy Use

Siemens has signed the U.S. Army’s first energy savings performance contract at a government-owned, contractor-operated facility.

Under this $11.8 million contract with the U.S. Army Corps of Engineers, Siemens will implement facility upgrades to enhance energy efficiency and reliability at the Joint Systems Manufacturing Center in Lima, Ohio, known to be one of the Army’s largest energy consumers.

The project includes a guarantee by Siemens that its improvements at the facility will save approximately $20 million or approximately 1.4 million British thermal units over the 15-year performance period. 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 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, president and CEO of Siemens Government Technologies, Inc.

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 control
  • Repair and replacement of existing steam traps and insulation to ease maintenance burdens and increase steam system efficiency
  • Building envelope upgrades that will extend the useful service life of existing roofs
  • Water system efficiency upgrades and compressed air system upgrades for increased reliability and efficiency

“We are proud to embark on this new project with the U.S. Army Corps of Engineers and help the organization reach its sustainability goals,” said Dave Hopping, president of Siemens’ North American-based Building Technologies Division. “This collaboration is a great example of how leveraging an energy savings performance contract can enable sustainable improvements while saving taxpayer dollars.”

Humpton and Hopping emphasized Siemens’ long-term commitment to the Lima facility. This is a 15-year contract, they stressed, adding that despite the long-term horizon, the site will begin to see cost and energy savings in a matter of months.

Siemens is a global powerhouse focusing on electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis.

Siemens Government Technologies, Inc. is a federally-compliant U.S. organization structured to help the federal government address national imperatives in energy, infrastructure, automation and marine platforms. SGT is the leading integrator for Siemens’ innovative products, technologies and services to meet the needs of federal customers.

The Siemens Building Technologies Division (Buffalo Grove, Illinois) is the North American market leader for safe and secure, energy-efficient and environment-friendly buildings and infrastructures. As a technology partner, service provider, system integrator and product vendor, Building Technologies has offerings for fire protection, life safety and security as well as building automation; heating, ventilation and air conditioning or HVAC; and energy management.

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