8 Benefits to Using the GESA Process for Facility Modernization

Energy Savings Performance Contracting was established in Pennsylvania in 1998 under Act 62 Pa.C.S. § 3752 and later § 3758 (2004 Amendment, Act 77 ).

Energy Savings Performance Contracting provides Commonwealth Agencies with a way to achieve large-scale capital improvements – and energy savings – with no upfront costs and in a timely manner.*  By contracting with a qualified energy service company (ESCO), Commonwealth Agencies are able to pay for facility upgrades today with tomorrow’s energy savings.

While the goal of Performance Contracting is to create energy savings by reducing energy usage and increasing operational efficiency, there are benefits beyond energy savings:

1. Budget Neutral Approach

Because the program is paid for by future energy savings, it does not affect operating or capital budgets. Financing can be arranged with annual energy and operational savings offsetting annual debt service.

2. Sole Source Accountability

Provides one point of contact for the entire array of projects being installed. This streamlines communication and ensures that any obstacles which arise are readily addressed.

3. Lower Administrative Costs

One umbrella contract covers the entire project scope which reduces administrative costs associated with oversight and payment processing of each individual scope item.

4. Quick Installation

The comprehensive project scope enables multiple projects to be installed simultaneously. This also minimizes disruption to the facility and its occupants’ daily activities.

5. Standardization of Equipment

Entities can standardize equipment from building to building, thereby reducing the learning curve of employees as they move between buildings. This also allows for minimization of service contracts.

6. Manufacturer Preference

Entities can select the equipment manufacturers that they prefer, rather than being held to a lowest-cost approach thus guaranteeing performance and longevity of equipment life.

7. Subcontractor Preference

Entities can recommend local subcontractors with whom they have had past success for inclusion in the current project scope These contractors are already familiar with the buildings and the equipment thus allowing for a quicker installation.

8. Local Business Inclusion

Entities, in concert with their Performance Contractor, can choose to channel as much revenue as possible through the local economy by working with local contractors and suppliers. This has the added benefit of enhancing tax revenue back to the municipality.

* Department of General Services GESA Program Booklet August 2020