ADI Energy, an energy services company headquartered in Smithfield, Rhode Island, today joined a prestigious list of Department of Defense contract holders. Fourteen businesses will share capacity on a $1.5 billion Indefinite Delivery/Indefinite Quantity (IDIQ) Energy Savings Performance Contracting (ESPC) Multiple Award Task Order Contract (MATOC) for the design, construction and operation of energy savings projects to help military installations meet mandated energy savings goals.
“We are very excited to help the U.S. Government become more effective and efficient operators of energy systems,” said John Rizzo PE, President and CEO of ADI Energy. “This award reinforces our belief that in a collaborative way, we can deliver cost-effective energy solutions that have a fundamental impact on the U.S. economy.”
“ADI’s accomplishment demonstrates that Rhode Island is a national leader in energy efficiency innovation and a state where small businesses can grow and be successful,” said Governor Gina M. Raimondo. “To spark our comeback, we must continue to support our small businesses and robust energy efficiency projects to reduce energy consumption and put Rhode Islanders back to work at the same time.”
The U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, the Army’s leader in ESPC projects, announced the awards May 8th. Funding and work locations will be determined with each awarded task order. Services may be performed at Government installations or facilities throughout the continental United States and locations in Alaska, Hawaii, Republic of the Marshall Islands, U.S. Territories and Possessions, Germany and South Korea.
An ESPC is a unique contracting vehicle that allows the government to take advantage of third party financing to finance infrastructure improvements at that facility. The Energy Services Company provides the capital and expertise to make comprehensive energy and water efficiency improvements at facilities or implement new renewable energy capabilities, and maintains them throughout their performance term. The ESCO is repaid using a portion of the generated savings. An ESPC is one of the acquisition tools that U.S. Government agencies use to meet the mandated energy and water reduction goals without incurring upfront capital costs. Actual energy and operational cost savings pay for the ESPC efforts on a yearly basis.
The period of performance is through May 7, 2024. The IDIQ contracts will have a base ordering period of five years, with one five-year option period, for a total ordering period of 10 years if the option is exercised. There is no guarantee that the option will be exercised on any or all of the awarded contracts.