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Capital Assets Management |
Construction & Properties

Performance Based Efficiency

A state agency may participate in a performance-based efficiency contract pursuant to 61 OS §212 and 62 OS §318. Capital Assets Management has completed a consultant selection process and has selected the following firms to provide energy services to state agencies:

  • Entegrity
  • Johnson Controls, Inc.

Program Structure

There are three phases to the Performance-Based Efficiency Program:

Phase I: Memorandum of Understanding

This agreement binds the energy service company (ESCO) to perform preliminary analysis regarding the physical features and operating history of the facilities (buildings) under consideration. There is no financial obligation to the state for this stage of the program. Upon completion, neither party is bound to any further contractual relationship.

Phase II: Technical Energy Audit Contract

In the second step, the ESCO performs a detailed energy performance audit on the specific buildings as agreed to by the state. There is a cost for this service, usually expressed in dollars (fractional) per square foot. This audit provides a cost basis for operating the existing building and the detailed information necessary to make a financial decision regarding a long-term performance-based efficiency contract. As a condition of the contract, the cost of the technical audit may be rolled into the terms of a performance-based efficiency contract. If the agency decides not to enter into the long-term contract, the agency must pay the sum stipulated in the audit contract.

Phase III: Performance-Based Energy Contract

This is the contract for shared energy savings. The ESCO designs and installs new equipment and controls, which may consist of lighting, mechanical equipment, plumbing or other building systems that impact utility usage. The new equipment is financed by the ESCO, and the ESCO guarantees the minimum energy savings necessary to meet the debt service. Before entering into the contract, the agency should consult with the State Bond Advisor regarding the cost effectiveness of the financing. The ESCO guarantees energy usage will remain below the baseline established in the audit. The savings will pay for new and improved replacement equipment over the term specified in the contract, not to exceed 20 years. CAM recommends a 15-year term. Other financial considerations are allowed when computing the energy savings and the agency may ‘buy down” the cost of the contract.

A state agency may make a request to participate in the program by making a request to CAM’s Construction and Properties Department.

CAP will assign an ESCO to the agency and a project manager to provide assistance to the agency as needed. A new project will be opened and a CAP project number will be assigned. CAP will prepare a memorandum of understanding with the ESCO and route to the agency and ESCO for signatures.

If the agency decides to proceed with a technical energy audit, the agency will provide a requisition for the amount specified. Funds must be encumbered at the time of the audit contract, in case the agency decides not to proceed with the performance contract.

If the agency decides to proceed with the performance-based efficiency contract, a requisition is sent to CAP. The requisition will be in the amount of the first year’s payment.  (See next section for fee instructions).

Use CAP Form M701, Requisition Checklist for all requisitions to Construction and Properties. The following will apply when preparing the M701:

Phase I: Request for Program Participation and Memorandum of Understanding

For Project Description, state “Performance-Based Efficiency Program - Memorandum of Understanding”

Phase II: Technical Energy Audit Contract

  • Fill in the same CAP number that was previously assigned by CAP
  • For Project Description, state “Performance-Based Efficiency Program – Technical Energy Audit”
  • Fill in Vendor information, leave Consultant Information blank.
  • For Estimated Project Cost, fill in amount agreed to with ESCO
  • CAP Fee Code: 4, Projects with Complex Requirements, (See  CAP Form M701, Requisition Checklist).

Phase III: Energy Performance Contract

  • Fill in the same CAP number that was previously assigned by CAP
  • For Project Description, state “Performance-Based Efficiency Program – Energy Performance Contract”
  • Fill in Vendor information, leave Consultant Information blank.
  • For Estimated Project Cost, fill in Total Contract Amount and Annual Cost
  • CAP Fee Code: 4, Projects with Complex Requirements, Total Project Cost; compute fee on Total Project Cost (See  CAP Form M701, Requisition Checklist).

The multi-year Performance-Based Efficiency Contract will be renewed by CAP on an annual basis.  The initial contract period shall be from 07/01/2024 through 06/30/2025 with the option to renew annually for 4 additional one-year periods.

Currently, there is not a term code for this program. The agency’s PeopleSoft requisition should state “Performance-Based Efficiency Contract pursuant to 61 OS §212 and 62 OS §318.”

CAM/CAP

  • Process contracts and purchase orders
  • Assign project manager
  • General contract management
  • Technical assistance
  • Monitor and accept construction work

Using Agency

  • Assign UA lead point of contact
  • Provide identification, information and access to buildings under consideration
  • Review work product and make decisions concerning further participation
  • Financial responsibility for audit and performance contracts

Contacts

To take advantage of the program, public agencies should call the contacts listed below.

Entegrity
Matthew Graham
10319 E. 54th St.
Tulsa, OK 74146
Phone: 918-404-0413
Email:
matthew.graham@entegritypartners.com
Website: www.entegritypartners.com

Johnson Controls, Inc.
Josh Wilkens
4730 SW 20th St.
Oklahoma City, OK 73128
Phone: 785-249-9221
Email: joshua.j.wilkens@jci.com
Website: www.johnsoncontrols.com

Contact CAP

Administrative Questions
Program Consultation
Phone: 405-522-8896
Email: cap@omes.ok.gov

Phone: 405-522-6762
Email: cap@omes.ok.gov

U.S. Postal Delivery
Capital Assets Management
Construction and Properties
P.O. Box 53448
Oklahoma City, OK 73152-3448

Last Modified on Feb 26, 2024
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