Third-Party Financing Could Enhance Resilience, Reduce Infrastructure Maintenance Backlog, Senate Committee Says

Third-Party Financing Could Enhance Resilience, Reduce Infrastructure Maintenance Backlog, Senate Committee Says

One of the ways the military services are improving their installations’ energy resilience is by leveraging private sector investment through energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs). In its report accompanying the fiscal 2019 defense authorization bill, the Senate Armed Services Committee says it supports the approach and “strongly encourages” DOD to leverage its facilities sustainment, restoration and modernization accounts, in combination with third-party funding sources, “to maximize energy infrastructure investments.” That tactic could help the department reduce its massive infrastructure maintenance backlog as well as enhance installation resilience, the panel states.

The panel remains concerned, however, that DOD has failed to streamline the procurement processes used to enter ESPCs, UESCs and power purchase agreements. In turn, the committee directs the Pentagon to set “a department performance contracting goal along with a tracking system to identify and address project phase bottlenecks, with a timeline goal of 18 months from notice of opportunity to notice of intent to award.” The lawmakers also request DOD to brief the committee on its progress by March 1, 2019.

 

Photo courtesy of Army Corps of Engineers Huntsville Center

Dan Cohen
Dan Cohen
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