Johnson Controls Inc.


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Johnson Controls Inc.

  1. 1. Johnson Controls, IncCreating “a more Comfortable, Safe and Sustainable World” Contract Connections: Energy & SustainabilitySandy MacMurtrieFederal Sales
  2. 2. Agenda: Fastest 8 Minutes….• Best Practices in the Energy and Sustainability Field• Lessons Learned in Contracting with the Government on Energy Projects• Industry Forecast: What‟s Hot?• Potential Areas of Collaboration Between Industry and Government2 Johnson Controls
  3. 3. Best Practices• Take significant action• Bundle ECMs and project locations as much as possible• Use financing tools to maximum extent WHY????3 Johnson Controls
  4. 4. Buildings must become more energy efficient Buildings in the U.S.: Create Use 40% of the 38% raw materials of the for construction CO2 emissions Consume Use 14% 72% of the potable of the water electricity produced Source: U.S. Green Building Council4
  5. 5. Best Practice – Aberdeen Proving GroundSituation: Solutions:•Aging steam infrastructure •Proactive leadership•Old, new and historic •Funded and financedbuildings approach•Over 2000 bldgs, 13.7M sqft •Comprehensive bundled solutions•$50M annual utilityexpenditure across all •4 ESPCs ($50M) thatcommodities generate $7.2 M in guaranteed annual savings •5 Johnson Controls
  6. 6. Lessons Learned When Contracting withthe Federal GovernmentWhen Contracting:•Ask yourself how does the governmentbuy what I sell?• Ask yourself who buys it?• Determine if I am better suited as aprime contractor or a subcontractor?• Answer the mail – Be responsive• Understand the special requirements• Be timely• Evaluation factors are your friends• Have patience6 Johnson Controls
  7. 7. What’s Hot?Presidential Memorandum on ESPC dtd December 2, 2011:(a)…Agencies shall prioritize ECMs with the greatest return on investment, leveraging both direct appropriations and performance contracting, consistent with guidance by the Office of Management and Budget (OMB).(b) The Federal Government shall enter into a minimum of $2 billion in performance-based contracts in Federal building energy efficiency within 24 months from the date of this memorandum.7 Johnson Controls
  8. 8. Power Purchase Agreements The system Renewable generates energy PPA provider PPA Agreement energy system for your building owns, manages between you and installed by PPA for which you pay and maintains PPA provider provider a pre-determined system energy price 10-25 years fixed rate8 Johnson Controls
  9. 9. Public Private Partnerships (P3): a construction funding modelWhat is it? Maintenance-free green facility at a consistent, fixed costWith this model, you can leverage the expertise of a team of private sector companies to design, construct, finance and manage your building, while you enjoy an energy efficient and well-managed facility in which to work. The private sector team takes care of your facilities in exchange for guaranteed fixed monthly payment terms and service levels. Throughout term of the contract, the public sector continues to own the facility while paying a consistent, fixed cost. Private sector Public sector Procurement consortium identifies new selection designs, constr Public sector owned or updated process ucts and Private sector run facility need operates facility Public sector leverages knowledge of private sector partners while benefitting from a sustainable, productive and efficient facility.9
  10. 10. Collaboration: The convergence of the challenges and the solutions “The ESPC model remains one of “The brand value from being the most effective ways to finance „green‟ is increasingly valuable energy efficiency projects” among environmentally -Pike Research report, 2012 conscious consumers”“The solution to the climate -McKinsey Global Institute, 2010 crisis… is in the buildings we inhabit, our civic “Proponents of PACE estimate this “Energy behavior programs in theinfrastructure, and the way method of financing might unlock workplace that didn‟t get we organize our lives.” hundreds of millions of dollars in leadership support are unlikely new investment with little risk” to succeed” Bill Clinton, 2011 ACEEE, Behavior Report, 2012 -Pike Research report, 201210
  11. 11. Contact InformationSandy MacMurtrieFederal Sales Manager610-592-5377Sandy.macmurtrie@jci.com11 Johnson Controls