Federal Manager's Daily Report

Goals of the GSA Energy Savings Performance Contracts program in federal buildings are not being met, an IG report has said calling for stronger oversight of the program by the agency.

Under the program, the government enters into contracts with private companies that finance and install energy efficiency improvements in federally buildings, with the government making payments to the company out of the savings achieved until the cost of the improvements is paid off. Over 2010-2014, GSA awarded 15 such contracts valued at $1.9 billion.


However, GSA “did not realize savings to fully fund payments for two of the seven” projects that auditors examined but was continuing to make full payments regardless. GSA further “did not have evidence that other projects were meeting their operations and maintenance savings,” including four projects in which such savings were “unsupported and overstated.”

GSA did not witness contractor measurements of energy savings to verify that they were accurate and either “failed to or did not effectively review” the contractors’ measurements of savings, “relying instead on the contractor to perform self-monitoring,” it said.

The report said that management agreed with its recommendations except for one regarding verification of savings.