Federal Energy Management Program

Price Reasonableness Working Group

Objectives

In conventional bid-to-spec contracts implemented with appropriated funds, federal agencies receive construction bids from multiple competing offerors based on a completed design. In some cases the agency may develop its own independent cost estimate as well. The price competition between offerors and the independent government estimate provide assurance that the prices received are fair and reasonable. A major difference with energy savings performance contracts (ESPC) is that a single energy services company (ESCO) develops a firm, fixed price bid based on a design that is only about 30% complete. Because of this difference, some agencies have struggled with how to perform timely, cost-effective price review of ESPC projects. There is a need to pool the experience of the various federal agencies, and to use that experience to develop consensus recommendations that agencies can use for price review in ESPC projects.

Members

Chair: John Shonder, Oak Ridge National Laboratory
John Lloyd, U.S. Navy
Pat Mumme, U.S. Air Force
Linda Sisk, U.S. Air Force
Tatiana Strajnic, U.S. DOE/FEMP
Kelly Dowd, DESC
Kirby Wilcher, Oak Ridge National Laboratory
David Williams, U.S. Army
Carl Zeiger, U.S. Marines

Results

Report to the Federal ESPC Steering Committee on federal best practices for price review in ESPC projects, with recommended procedures to ensure fair and reasonable pricing:
Determining Price Reasonableness in Federal ESPCs.

FEMP Home       ORNL Home       Index       Search       Comments       Disclaimers
Oak Ridge National Laboratory is a multi-program research and development facility
managed by UT-Battelle LLC for the U.S. Department of Energy.

Last Revised: Thursday, April 21, 2005 3:22 PM