Opponents of these kinds of contracts such as the Project on
Government Oversight contend that they are based on uncertain
projections, would increase direct spending, and lead to a
non-competitive contracting environment.
POGO called attention to GAO-05-55, issued last December, in
which GAO found that similarly conceived energy savings
performance contracts could have increased government costs 8
to 56 percent rather than full, up-front appropriations.
Some agencies have said they don’t always get the best deals,
but noted that ESPCs are sometimes the only way to fund
energy efficiency improvements when budget resources are
not immediately available.
Still, without any data or contracts actually awarded GAO
said it was unable to evaluate the effectiveness of SIS contracts.
