GSA Develops New O&M Contract and Language for Meeting National Energy Policy Act Requirements

April 20, 2004

The U.S. General Services Administration's mission is helping federal agencies better serve the public by offering, at best value, superior workplaces, expert solutions, acquisition services, and management policies. In fulfilling its mission, the GSA's Public Buildings Service (PBS), Northwest/Arctic Region 10, has developed a new performance-based contract to procure operations & maintenance (O&M) services for federal facilities within the region.

GSA has incorporated language into the new contract that would place responsibility for energy conservation and management squarely on the shoulders of the service contractor, and uses incentives to motivate the contractors to not only meet, but exceed, the conservation goals of the National Energy Policy Act of 1992 (EPACT) and related Executive Orders. The new approach is intended to streamline the procurement and improve the performance and administration of competitively-sourced O&M while ensuring continued progress towards meeting the federal energy management goals mandated for 2005 and 2010. Additionally, other GSA regions and government agencies throughout the nation may use this contract for their requirements.

The new contract's Performance Work Statement provides for facility operations and maintenance service including all management, supervision, labor, subcontractors, materials acquisition and disposal, supplies, tools, repair, and replacement parts. The multiple award contract will be the primary procurement method used to obtain any necessary operation, maintenance, and related services required at GSA PBS Region 10 facilities. Firms established on this contract will be provided an opportunity to submit proposals for task orders that will be issued for support of O&M services at specific buildings or groups of buildings.

Additionally the contract includes terms and conditions stating:

"The Contractor shall comply with all applicable federal, state and local laws, executive orders, rules and regulations applicable to its performance under this contract."

"Furthermore, assets under this Contract are subject to the energy conservation requirements mandated by the Federal Energy Management Improvement Act of 1992 (PL 102-486) and Executive Orders 12759 and 13123. All equipment must be operated as efficiently as possible, considering both demand and the consumption costs of utilities."

Several performance incentives are available for use in considering the requirements of individual task orders. Each informal "request for proposal" and task order clearly identifies those performance incentives that are included (e.g., nomination and sponsorship for various industry awards, reduced level of inspection and oversight, Fixed-Price-Award-Fee, options for various time periods for contract renewals). The GSA also offers a voluntary Energy Savings Award Fee program. The objective of this program is to positively motivate and reward contractors to perform work in a manner that allows the federal government to meet the mandates of the Energy Policy Act and Executive Order 13123 while maintaining high customer satisfaction.

This contract vehicle was awarded in June 2003, and task orders have been written for several GSA sites in the Northwest/Arctic Region including the Alcan U. S. Border Station; David J. Wheeler Federal Building, Baker, Oregon; and Juneau Federal Building, Juneau, Alaska. GSA will be monitoring the success of the contract over time, and invites other federal agencies to review the contract to see if it will fit your needs. The official solicitation (GS-10P-03-LSD-0072) can be viewed in its entirety on the Fedbizopps Web site.

FEMP would also like to hear how other federal agencies are addressing efficiency with their O&M contracts. If you can provide other examples and language, please contact Cheri Sayer at 206-553-7838.

For more information from GSA, please contact Michael Okoro at 253-931-7945.