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Types of 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 cover energy efficiency projects as well. Agencies not covered by such agreements may also make contracts with the utility for the sole purpose of implementing energy projects.

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

In this section, three types of contracting mechanisms are discussed: areawide contracts, basic ordering agreements, and model agreements.

Chart: Areawide Contracts - GSA and Utility go to AWC. Utility goes to Site Agreement with Utility, AWC goes to Site Agreement with Utility, Agency goes to Site Agreement with Utility, and Site Agreement with Utility goes to Delivery Orders.
Chart: Basic Ordering Agreements - Agency and Utility go to BOA and BOA goes to Delivery Orders.
Chart: Agency Model Agreements - Agency and Utility go to Master Agreement, Master Agreement goes to Site Delivery Order.

Areawide Contracts (AWCs)

The General Services Administration (GSA) has established more than 150 utility areawide contracts (AWCs) to procure utility services for Federal facilities around the country. AWCs are blanket contracts-essentially indefinite-quantity, indefinite-delivery (IDIQ) contracts- for public utility services. The AWC spells out general terms and conditions and authorizes any agency in the utility's service territory to place delivery orders for services offered under the contract. A delivery order describes the details and technical specifications of energy efficiency projects or other services to be delivered. The General Services Administration Web site contains a list of their AWCs, an overview of their energy and water conservation activities, and their guidance materials for Areawide Users. For more information about the use of the GSA Public Utility Areawide contracts, contact Lindsey Lee, Contracting Officer, at (202) 401-0174.

Basic Ordering Agreements (BOAs)

Any agency can establish a basic ordering agreement (BOA) with its utility. BOAs are not contracts, but like areawide contracts, they establish general terms and conditions. A delivery order placed under a BOA constitutes the contract and details the services to be delivered. Department of Defense organizations typically use BOAs.

Model Agreements

Model utility service agreements for civilian and Department of Defense agencies--developed by a collaboration of Edison Electric Institute (EEI), the Federal Energy Management Program, Federal technical and contracting experts, and utility partners--were written as templates for agencies to use in establishing their own utility energy service contracts (UESCs). These model agreements contain the essential, must-include clauses for Federal contracts and are the most comprehensive compilation of contractual language for UESCs available. Clauses from the model agreements can be added to an areawide contract or a basic ordering agreement. Or a model agreement can be used on its own.

DOE/EEI Civilian Model Agreement

The Department of Energy/Edison Electric Institute (DOE/EEI) Civilian Model Agreement (MS Word 88 KB; WordPerfect 76 KB) is a guideline agreement for Federal installations and their local utilities. It is patterned after a similar model agreement between the Department of Defense and EEI implemented on April 18, 1997.

Representatives from DOE, the General Services Administration, several electric utilities, and EEI developed the DOE/EEI agreement to conform to the legal and regulatory constraints of civilian agencies. A detailed explanation of the agreement is available in PDF format (PDF 269 KB, 15 pp). Download Adobe Reader.

Also check out the the EEI/DOD Model Agreement.