Johnson Controls is a company focused on creating a more comfortable, safe and sustainable world. They provide energy and sustainability solutions for buildings, including best practices like bundling energy conservation measures (ECMs) and using financing tools. One best practice example is their work at Aberdeen Proving Ground, where they implemented $50 million in energy savings performance contracts that generate $7.2 million in annual savings. When contracting with the government, it is important to understand procurement processes and requirements. Current hot areas include a presidential memorandum prioritizing ECMs with high returns and $2 billion in performance-based building efficiency contracts.

1. Johnson Controls, Inc
Creating “a more Comfortable, Safe and Sustainable World”
Contract Connections: Energy & Sustainability
Sandy MacMurtrie
Federal Sales Manager
610-592-5377
Sandy.macmurtrie@jci.com

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 Government
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3. Best Practices
• Take significant action
• Bundle ECMs and project locations as
much as possible
• Use financing tools to maximum extent
WHY????
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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 Council
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5. Best Practice – Aberdeen Proving Ground
Situation: Solutions:
•Aging steam infrastructure •Proactive leadership
•Old, new and historic •Funded and financed
buildings approach
•Over 2000 bldgs, 13.7M sqft •Comprehensive bundled
solutions
•$50M annual utility
expenditure across all •4 ESPCs ($50M) that
commodities generate $7.2 M in guaranteed
annual savings
•
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6. Lessons Learned When Contracting with
the Federal Government
When Contracting:
•Ask yourself how does the government
buy what I sell?
• Ask yourself who buys it?
• Determine if I am better suited as a
prime contractor or a subcontractor?
• Answer the mail – Be responsive
• Understand the special requirements
• Be timely
• Evaluation factors are your friends
• Have patience
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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.
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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 rate
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9. Public Private Partnerships (P3): a construction funding
model
What is it? Maintenance-free green facility at a consistent, fixed cost
With 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.
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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 the
infrastructure, 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, 2012
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11. Contact Information
Sandy MacMurtrie
Federal Sales Manager
610-592-5377
Sandy.macmurtrie@jci.com
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