State of Louisiana
Department of Public Safety and Corrections
Department of Public Safety and Corrections
In 2013 E/S3 was competitively awarded a multi-year contract by the State of Louisiana Division of Administration, Office of Facility Planning and Control, to provide independent third-party consulting services to state agencies for energy saving performance contract projects in state buildings throughout Louisiana. E/S3 was awarded a follow-on contract to continue these services in 2017, and we have been awarded a new three-year contract through 2021.
The scope of services for each project includes energy services company (ESCo) RFP development assistance, proposal technical review, assisting with oral interviews, generating cumulative evaluation rankings for procurements, reviewing the investment grade energy audit, assisting with contract review and negotiation, performing reviews of Measurement and Verification efforts and providing a report to the participating entity and the Office of the Legislative Auditor.
Under this contract we provide review of the Measurement and Verification methodology, calculations and savings reports provided by the ESCo for a $29 million project encompassing seven Department of Corrections facilities. E/S3’s efforts began with examining the post-implementation construction savings report, then continued through review of quarterly interim reports and annual performance and savings reports for the first five years of the Performance Period and we are working on review of the Year 6 savings reports submitted by the contractor.
The principal M&V approach employed is IPMVP Option C and E/S3 carefully reviews any adjustments to savings proposed by the ESCo to ensure they are appropriate, based on sound data, and calculated properly to minimize negative impacts on the cash flow used for repayment of the project's financing. During Year 1 we found savings calculation errors in the Department’s favor that resulted in an additional $144,000 Year 1 shortfall payment to the Department by the ESCo and we have subsequently provided the justification the Department needed to negotiate with the ESCo to eliminate claims for unearned savings from a facility that has been closed since early in the ESPC construction period.
E/S3 continues to work closely with the ESCo on the Department’s behalf to ensure that each report is complete, accurate and addresses any issues noted. In addition, E/S3 has performed site visits to verify conditions and assisted the Department in representing their interests.