The Performance Contracting Program for the Wisconsin Division of State Facilities (DSF) is defined in state statute 16.858. This program provides a method for agencies to enter into a contract with a qualified energy service company (ESCO) for evaluation, recommendation of one or more cost savings measures. Agencies will benefit by reduced overall energy costs and a reduction in energy consumption. To implement this program, the agency will enter into a guaranteed energy savings performance contract. 

The candidates on the DOA DSF list of providers can work with the agencies to find energy conservation measures (ECM) and get them implemented with no up front capital expenditures. The expenses are paid through the energy savings the result (guaranteed) through this energy performance contracting method. Your energy bills are reduced and the savings realized are used to pay the contractor for the effort (usually over a 7-10 year period). 

Performance contracting is a partnership established between the ESCO, the Agency and the Division of State Facilities (DSF).  The DSF/Agency team provides a single contract for a complete package of services from an ESCO.  The ESCO provides a facility energy audit; develops a cost effective proposal; as well as installs, commissions, finances, and monitors the project.  The ESCO uses the expertise and experience of the DSF/Agency team to provide quality assurance, project negotiation, and overall project management.  In addition, monitoring and verification procedures are structured so that all costs are paid from the savings - the ESCO guarantees the energy savings!

See Guidelines for Energy Saving Performance Contracting.  

Steps for Performance Contracting 

1. The Agency reviews the proposals from the list of ESCO's. To review the ESCO list and the proposals, go to the contract information on VendorNet.
2. The Agency prepares a Preliminary Scoping Audit Request. This form describes the scope of the audit and provides the necessary building and energy information for the ESCOs.
3. The Agency then selects three or more ESCOs to conduct the Preliminary Audit and provide an Audit Assessment Report.
4. The Agency evaluates the Audit Assessment Reports using the Preliminary Scoping Audit Evaluation. The Agency then selects an ESCO to continue.
5. The DSF/Agency enters into a contract for Investment Grade Audit & Energy Assessment Report for Energy Saving Performance Contracting Services.
6. Once the contract is in place, the ESCO audits the facilities under consideration, prepares the final contractual proposal and then submits it to the Agency. As part of the final proposal, the ESCO must complete these energy assessment spreadsheets to calculate energy and financial data. The Agency shares the proposal with DSF. 
7. The last step in obtaining the contract is negotiating an Energy Performance Contract.  This contract is between DSF/Agency team and the ESCO and is issued by DSF. The contract addresses the Agency, DSF and ESCO responsibilities as well as contractual completion and closeout procedures.  Sample forms: Energy Performance Contract and General Conditions of the Energy Saving Performance Contract. 
8. Once the contract is signed, the ESCO is under contract to proceed with the project.