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Creating “a more Comfortable, Safe and Sustainable World” Contract Connections: Energy & Sustainability Johnson Controls, Inc Sandy MacMurtrie Federal Sales Manager 610-592-5377 [email protected]

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Page 1: Johnson Controls Inc

Creating “a more Comfortable, Safe and Sustainable World”

Contract Connections: Energy & Sustainability

Johnson Controls, Inc

Sandy MacMurtrieFederal Sales Manager [email protected]

Page 2: Johnson Controls Inc

Agenda: Fastest 8 Minutes….

• Best Practices in the Energy and Sustainability Field

• Lessons Learned in Contracting with the Government on Energy Projects

• Industry Forecast: What’s Hot?

• Potential Areas of Collaboration Between Industry and Government

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Page 3: Johnson Controls Inc

Best Practices

• Take significant action

• Bundle ECMs and project locations as much as possible

• Use financing tools to maximum extent

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WHY????

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Buildings must become more energy efficient

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Buildings in the U.S.:

Create 38%of theCO2

emissions

Use 14%of the

potable water

Use 40%of the

raw materials for construction

Consume 72%of the

electricity produced

Source: U.S. Green Building Council

Page 5: Johnson Controls Inc

Best Practice – Aberdeen Proving Ground

Situation:

•Aging steam infrastructure

•Old, new and historic buildings

•Over 2000 bldgs, 13.7M sqft

•$50M annual utility expenditure across all commodities

Solutions:

•Proactive leadership

•Funded and financed approach

•Comprehensive bundled solutions

•4 ESPCs ($50M) that generate $7.2 M in guaranteed annual savings

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Page 6: Johnson Controls Inc

Lessons Learned When Contracting with the Federal Government

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When Contracting:•Ask yourself how does the government buy what I sell?

• Ask yourself who buys it?

• Determine if I am better suited as a prime contractor or a subcontractor?

• Answer the mail – Be responsive

• Understand the special requirements

• Be timely

• Evaluation factors are your friends

• Have patience

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What’s Hot?

Presidential Memorandum on ESPC dtd December 2, 2011:

(a)…Agencies shall prioritize ECMs with the greatest return on investment, leveraging both direct appropriations and performance contracting, consistent with guidance by the Office of Management and Budget (OMB).

(b) The Federal Government shall enter into a minimum of $2 billion in performance-based contracts in Federal building energy efficiency within 24 months from the date of this memorandum.

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Page 8: Johnson Controls Inc

Power Purchase Agreements

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PPA Agreement between you and

PPA provider

Renewable energy system

installed by PPA provider

The system generates energy for your building

for which you pay a pre-determined

energy price

PPA provider owns, manages and maintains

system

10-25 years fixed rate

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Throughout term of the contract, the public sector continues to own the facility while paying a consistent, fixed cost.

Public Private Partnerships (P3): a construction funding model

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What is it? Maintenance-free green facility at a consistent, fixed cost

With this model, you can leverage the expertise of a team of private sector companies to design, construct, finance and manage your building, while you enjoy an energy efficient and well-managed facility in which to work. The private sector team takes care of your facilities in exchange for guaranteed fixed monthly payment terms and service levels.

Public sector identifies new

or updated facility need

Procurement selection process

Private sector consortium

designs, constructs and operates facility

Public sector ownedPrivate sector run

Public sector leverages knowledge of private sector partners while benefitting from a sustainable, productive and efficient facility.

Page 10: Johnson Controls Inc

Collaboration: The convergence of the challenges and the solutions

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“The brand value from being ‘green’ is increasingly valuable among environmentally conscious consumers” -McKinsey Global Institute, 2010“The solution to the climate

crisis… is in the buildings we inhabit, our civic

infrastructure, and the way we organize our lives.”

Bill Clinton, 2011

“Energy behavior programs in the workplace that didn’t get leadership support are unlikely to succeed” ACEEE, Behavior Report, 2012

“The ESPC model remains one of the most effective ways to finance energy efficiency projects”

-Pike Research report, 2012

“Proponents of PACE estimate this method of financing might unlock hundreds of millions of dollars in new investment with little risk”

-Pike Research report, 2012

Page 11: Johnson Controls Inc

Contact Information

Sandy MacMurtrie

Federal Sales Manager

610-592-5377

[email protected]

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