Types of Utility Energy Service Contracts

Several types of contracts are used as utility energy service contracts (UESCs). Many agency sites procure electricity services under a contract with the local utility, and most of these contracts have provisions that can also cover energy efficiency projects. Agencies not covered by such agreements may enter contracts with the utility for the sole purpose of implementing energy projects.

Agency staff will want to first find out whether their facility is already covered under a UESC. Using an existing contract that is familiar to the agency and the utility is typically the most expeditious means of getting projects done.

Three types of contracting mechanisms are discussed below:

Areawide Contracts
Basic Ordering Agreements
Model Agreements

Balloon chart outlining the areawide contract process. GSA and the serving utility sign an areawide contract, which can be leveraged by the agency. The contract can be used to create a site agreement with the agency, which can be used to create delivery orders.

Balloon chart outlining the basic ordering agreement process. An agency works with its serving utility to create a basic ordering agreement. This agreement is used to create delivery orders.

Balloon chart outlining the model agreement process. An agency works with its utility to create a master agreement, which is used to create site delivery orders.

Areawide Contracts

Areawide contracts (AWCs) are blanket contracts, which are essentially indefinite-delivery, indefinite-quantity (IDIQ) contracts for public utility services. The contract outlines general terms and conditions and authorizes any agency in the utility's service territory to place delivery orders for services offered under the contract. The order describes the details and technical specifications for the energy efficiency project or other services to be delivered.

The General Services Administration (GSA) established more than 150 utility areawide contracts to procure utility services for Federal facilities around the country. The GSA Web site contains a list of AWCs, an overview of energy and water conservation activities, and guidance materials for areawide users.

For more information about the use of GSA Public Utility Areawide Contracts, contact Lindsey Lee at 202-401-0174.

Basic Ordering Agreements

Basic ordering agreements (BOAs) are not contracts, but do establish general terms and conditions for future contracts. A delivery order placed under a BOA constitutes the contract and details services to be delivered. Any Federal agency can establish a BOA with their utility.

Model Agreements

Model utility service agreements for civilian and Department of Defense (DOD) agencies were developed by a collaboration of FEMP, the Edison Electric Institute (EEI), Federal technical and contracting experts, and utility partners. The agreements serve as a template for agencies to use in establishing UESCs or as master agreements within an AWC.

Based on successful BOAs and other contracting vehicles, model agreements contain approved, required clauses for Federal contracts and are the most comprehensive compilation of contractual language for UESCs available. Model agreement clauses can be added to an AWC or BOA. Model agreements can also be used alone.

A model agreement template was developed through a collaboration of EEI, DOD, DOE, and GSA. Development also included Federal and utility technical, legal, and contracting experts. A detailed explanation of the agreement is available.