The Performance Contracting Program for the Wisconsin Division of State Facilities (DSF) is defined in state statutes 16.847 and 16.858. This program provides a method for the Department of Administration to enter into a contract with a qualified Energy Service Company (ESCO) on behalf of a state agency for development, implementation, verification, and repayment of one or more cost savings measures.  Agencies will benefit by reduced overall energy costs, improved facilities, and a reduction in energy consumption.

The ESCO candidates on the DOA DSF pre-approved list of providers can work with agencies to find energy conservation measures (ECM) and have them implemented with no up front capital expenditures. The expenses are paid through the energy savings that result from this energy performance contracting method. Energy bills are guaranteed by the ESCO to be reduced and the savings realized are drawn from the agency's (109) utility account to pay back the bonds that financed this effort.  This agreement may last over a term not to exceed 20 years which is the maximum bonding capability for energy efficiency work. 

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, and conducts the initial monitoring of the project.  The ESCO uses the expertise and experience of the DSF/Agency team to provide quality assurance, project negotiation, and overall project management.  The agency manages the initial ESCO selection, coordinates site access during audits, may assist in construction coordination, and assumes the Measurement and Verification role once the ESCO hands that off after an initial 1-3 year M&V and commissioning period.

1.      The Agency (defined by statute 1.12(1)(b), see note below) reviews the proposals from the list of ESCO's. To review the ESCO list and the proposals, go to the contract information on VendorNet.

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 Agency/DSF/ESCO enters into a contract for Investment Grade Audit & Energy Assessment Report for Energy Saving Performance Contracting Services.  Universities, colleges, and correctional institutions must obtain signature of a state agency headquarters representative (DOC, UWS) on the IGA contract form before proceeding further.  DSF is the final signer of this IGA agreement.

6.      Once the IGA 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.  When the Agency and ESCO have finalized this audit phase the IGA proposal is then shared with DSF whereupon a technical and cost review is conducted. 

7.      The last step in obtaining the contract is negotiating an Energy Performance Contract.  This contract is an agreement between DSF/Agency team and the ESCO with the contract being 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.