Overview
This section defines the scope of FAR subpart 23.2, which governs the use of Energy Savings Performance Contracts (ESPCs) to acquire energy-efficient technology for federal facilities without requiring initial government capital expenditure.
Key Rules
- Funding Mechanism: Agencies are encouraged to use ESPCs to obtain energy-efficient technologies where the costs are covered by the energy savings rather than upfront government capital.
- Geographic Mandatory Application: These policies and procedures are mandatory for all acquisitions conducted within the United States and its outlying areas.
- Extraterritorial Guidance: For acquisitions conducted outside the United States, agencies are not strictly bound by these procedures but are required to use "best efforts" to comply with the subpart’s intent.
Practical Implications
- This scope allows agencies to modernize aging infrastructure and meet sustainability goals by leveraging private-sector financing, essentially paying for upgrades through future utility cost avoidance.
- Contracting officers operating internationally have more regulatory flexibility than those stateside but must still document their efforts to align with energy-efficiency policies.