Federal Energy Management Program Federal Energy Management Program

Leading by example, 

saving energy and 

taxpayer dollars in 

federal facilities

Contracting for a

Resource Efficiency

Manager

A Federal Energy Management

Program, Operations & Maintenance

Center of Excellence Guidebook
Acknowledgements

The Federal Energy Management Program, Operations & Maintenance Center of Excellence provided funding and direction

for this guide. Included are contributions from some of the strongest advocates for the Resource Efficiency Manager program. Special recognition goes to Ab Ream, FEMP O&M Program Manager; and Dave Hunt and Bill Sandusky, both of the

Pacific Northwest National Laboratory, for sharing their knowledge, experience and common sense.

We are also grateful to the following reviewers for their valuable comments and suggestions:

• Lisa Hollingsworth, U.S. Department of Energy, Southeast Regional Office

• Cheri Sayer, U.S. Department of Energy, Western Regional Office

• Ed Thibodo, Naval Facilities Engineering Command – Southwest Division

• Scott Wolf, U.S. Department of Energy, Western Regional Office

FEMP would like to thank the Washington State University Extension Energy Program for producing this publication.

Participants were Karen Messmer, project manager; Gerry Rasmussen, graphic design; and Margaret Thomas, text development.
Contracting for a

Resource Efficiency Manager

A Federal Energy Management Program,

Operations & Maintenance Center of

Excellence Guidebook

July 2004

DOE/EE-0299

 U.S. Department of Energy

Energy Efficiency

and Renewable Energy

Bringing you a prosperous future where energy

is clean, abundant, reliable, and affordable
Table of Contents

Introduction ...................................................................................................................1

Chapter 1: How do I know if I need a REM? ................................................................3

Assessing potential savings .................................................................................3

Self-screening survey ...........................................................................................4

Organizational readiness .................................................................................... 5

Getting help with your decision ........................................................................5

Chapter 2: What does it cost to hire an REM? .............................................................7

Cost and benefits .................................................................................................7

Funding options ..................................................................................................8

Chapter 3: How do I hire a REM? ............................................................................... 11

Getting started .................................................................................................. 11

A few things about the REM contract ............................................................. 12

Contract types .................................................................................................. 13

Which contract types make sense for your site? ............................................ 14

Length of the contract ..................................................................................... 17

What are the provider’s responsibilities? ........................................................ 17

What if is doesn’t work out? ............................................................................ 17

How will the REM fit into the organization? .................................................. 17

What if there is a maintenance and operations contractor on site? ............. 17

Chapter 4: How do I measure the REM’s performance? ............................................ 19

Tailoring reporting to your site’s needs ........................................................... 19

Appendixes

Appendix A: Sample Position Description ...................................................... 23

Appendix B: Statements of Work ..................................................................... 25

Appendix C: Sample Progress Reports ............................................................. 31
Contracting for a Resource Efficiency Manager • Page 1

Introduction

A Resource Efficiency Manager (REM) champions your

agency’s commitment to energy and environmental goals.

As a result, your organization reduces environmental

impacts, saves energy, improves energy security and

saves money.

REMs focus on reducing the cost of energy, water, fuel,

waste disposal and pollution prevention through improved practices, equipment modifications and consumer

awareness. REMs work onsite at federal facilities to meet

resource-efficiency objectives. They are contractors, rather

than federal employees, and work with existing staff to

enhance conservation efforts. A premise of the program is

that savings cover the REM’s salary. Typically, benefits far

exceed that threshold expectation.

The U.S. Department of Energy (DOE) Federal Energy

Management Program (FEMP) sponsors the REM program.

FEMP primarily is concerned with energy savings and this

guide reflects that emphasis. Three arms of DOE – FEMP

headquarters, the Western Regional Office, and the Pacific

Northwest National Laboratory (PNNL) – collaborate in

administering the REM program. The Washington State

University (WSU) Extension Energy Program provides

information and support necessary to maintain and

expand the REM network.

Currently, REMs serve about 40 federal sites. Annual

energy budgets for these sites are usually in the range of

$3 million to $5 million. Sites with smaller energy budgets

can and often do share the services of a single REM.

Successful REMs are self-motivated people with the ability

to motivate others. They work both independently and as

members of the team. Skills include project financing,

management, and results verification; procurement; and

marketing. Most importantly, the REM is someone familiar

with the agency’s culture and structure, who has a

working knowledge of day-to-day operations and maintenance practices, and focuses on practical, cost-effective

and sustainable measures.

The purpose of this guide, however, is not to convince

you to hire a REM. Rather, it is directed at those who

seek practical guidance. This step-by-step guide walks

you through the process – from making the decision to

hire a REM, to drafting a contract, to gauging the REM’s

performance.

As the nation’s largest energy user, the federal government

has pledged to lead the way in environmental stewardship. A series of executive orders and federal mandates

direct agency managers to improve performance through

energy efficiency, recycling, pollution prevention and

procurement. A REM can help turn these challenges into

opportunities for savings, recognition and environmental

benefits.

Resource efficiency management

is a systematic, holistic approach

to managing energy, water,

environmental and financial

resources, eliminating or

minimizing waste and emissions to

the environment on a sustainable

and cost-effective basis.
Contracting for a Resource Efficiency Manager • Page 2
Contracting for a Resource Efficiency Manager • Page 3

Charles Howell has served as REM at U.S. Army base Fort Lewis

in Western Washington since 1997. Cumulative cost savings

resulting from REM-led efforts at the base now exceed $4 million.

Charles Howell

This chapter provides some tools for assessing your site or

agency’s energy performance to help you decide if hiring a

Resource Efficiency Manager (REM) makes sense.

Assessing potential savings

Energy budgets tend to increase over time. Documentation shows this tendency can be mitigated with a fulltime, on-site monitor, such as a REM. Based on a decade of

experience with designated energy managers – first at

schools and later federal facilities – we know you can

conservatively expect to save 10 percent of what your site

or agency spends on energy and other utilities within a

year of hiring a full-time REM. Depending on what

energy-saving measures already are in place, it’s not

uncommon to save 20 percent or more after hiring a REM.

So what is your energy budget? The elements that make

up the budget vary between sites. Some have outsourced

management of their utilities. For others, it may make

sense to include transportation fuels. What your site

spends on non-energy utilities should be included, since

REMs also look for savings in these areas. To calculate your

Chapter One:

How do I know if I need a REM?

energy budget, consider including these basics:

• Electricity

• Electrical demand charges from the utility

• Fossil fuels

• Water

• Waste disposal

• Recycling

A REM may be responsible for a single site or for a

combination of sites under one federal agency. If the

energy budget at your site, or at several combined sites,

falls in the range between $3 million to $5 million per

year, a 10 percent savings will more than cover the cost of

a REM’s annual salary.

On the next page is a 20-question survey to help you

assess your agency or site’s energy planning and performance. If you answer yes to all of the survey questions,

you may not be able to justify hiring a REM. But if your

answer to several questions is no, hiring a REM may be the

most cost effective way to improve energy performance.
Contracting for a Resource Efficiency Manager • Page 4

Self-screening survey

1. Does your facility have a full-time energy manager? Yes No

2. Does your facility have a written energy management plan? Yes No

3. Do you have a reliable, timely and accurate means of measuring energy performance? Yes No

4. Are you on schedule for meeting your energy efficiency goals? Yes No

5. Have you completed comprehensive energy audits at your facilities? Yes No

6. Have you identified and prioritized your energy efficiency projects? Yes No

7. Do you have an annual budget for energy efficiency projects? Yes No

8. Have you installed significant energy efficiency projects already? Yes No

9. Do you have a preventive maintenance program? Yes No

10. Are you practicing reliability-centered maintenance? Yes No

11. Do you have a recycling program? Yes No

12. Do you regularly track and verify utility bills? Yes No

13. Have you entered into any energy savings performance contracts? Yes Noo

14. Has anyone onsite received an energy efficiency award? Yes No

15. Have you completed any renewable energy projects? Yes No

16. Do you have a peak electric load reduction program in place? Yes No

17. Do you have an emergency or contingency plan for energy shortages, price spikes, Yes No

brownouts or blackouts?

18. Does your senior management support energy efficiency in general? Yes No

19. Would your senior management support an alternatively financed full-time person? Yes No

20. Does your contracting officer understand and support alternative methods of Yes No

procuring energy efficiency?

Totals Yes: ________ No: ________
Contracting for a Resource Efficiency Manager • Page 5

Organizational readiness

For a REM to succeed, there must be consensus within the

organization about the need to make energy and resource

savings a priority. A powerful motivator is Executive Order

13123 Greening the Government through Efficient Energy

Management.

1 The executive order sets deadlines for federal

agencies to ultimately reduce by about one third their

energy consumption and greenhouse gas emissions. The

order also mandates that federal agencies use less water

and petroleum and increasingly rely on energy from

renewable sources.

The commitment to reduce energy use, however, followed

a decade of reductions in federal facility operations

budgets, which cost many agencies their energy staff in

addition to funding for energy-efficiency projects. Before

deciding if you should have a REM, find out who is

responsible for energy management and conservation in

your organization. Possible candidates include the

facilities manager, operations and maintenance personnel,

or an energy services company working on contract.

Dig beyond titles to find out who is actually watching the

energy meter. In some cases, agencies designate an “energy

manager” who in reality has little time for more than

filling out paperwork required by federal mandates. Do

the people in charge of energy matters have the financial

resources, top-level support and a willingness to make

changes? REMs spend 100 percent of their time on energy

issues and are motivated by the fact that their jobs are

performance-based. Continued employment depends on

finding enough savings to cover their annual salaries.

One obstacle to hiring a REM may be getting the finance

office to provide up-front funding to sustain the position

until energy and cost savings can be realized. Later in this

guidebook you’ll find information about specific funding

strategies, but the initial hurdle is convincing other

decision-makers that hiring a REM is a good idea. To assist,

we have published a series of fact sheets and case studies.

The following publications are available online at

www.energy.wsu.edu/projects/rem/rem.cfm

Fact sheets

• A Strategy for the 21st Century

• Blueprint for Successful Resource Efficiency

Managers Program

• Funding a Resource Efficiency Managers Program

• Introduction to Resource Efficiency Managers

Case studies

• U.S. Postal Service, Central Florida

• Fort Lewis, Washington: A Resource Efficiency

Manager, 1997-2001

• National Oceanic & Atmospheric Administration,

2001-2002

• Navy Region Northwest 1997-2001

Getting help with your decision

A number of utilities and private companies provide REMs

to federal agencies. These providers have a stake in

helping you decide what the potential is for saving energy

and other resources at your site. A conversation with one

or more providers may yield the information you need to

decide whether or not to proceed. A listing of the companies that provide these services is available through the

U.S. General Services Administration (GSA). Information

about how to contact these companies is covered in

Chapter Three of this guide.

Your utility may also be willing to assist with your

decision. Both electric and gas utilities have provided

REMs to federal sites. Ask your utilities’ customer service

representatives for federal agencies how they can help.

Information and assistance available through the Federal

Energy Management Program (FEMP) is covered in

Chapter Three.

1 See Executive Order 13123 online at

www.eere.energy.gov/femp/pdfs/eo13123.pdf
Contracting for a Resource Efficiency Manager • Page 6
Contracting for a Resource Efficiency Manager • Page 7

The first REM at Navy Region Northwest had six months to find projects to offset

$111,700 in program costs. Before the end of the trial period, he identified more than

$300,000 in savings and his position was renewed for a full year.

Navy Region Northwest case study, WSU Energy Program

Chapter Two:

What does it cost to hire an REM?

Cost

The cost of a one-year contract for a Resource Efficiency

Manager (REM) ranges from about $100,000 to $200,000.

The exact cost depends on many things, such as the size

of the site and what kinds of equipment, services and

staff expertise the contracting company provides to

support the REM’s work.

In general, REMs get paid the local market rate for a

semi-technical, skilled contractor. On the federal General

Schedule, the REM fits somewhere in the Grade 11 to

Grade 13 range. To find out what salaries correspond to

this grade range in your area consult the current General

Schedule Locality Pay Tables. 2

Benefits

REMs work on contract with the understanding that they

must generate enough cost savings and other benefits to

pay for their next period of employment. The position is

performance-based, a relatively new approach in the

federal sector. The primary outcome is lower energy costs

achieved by:

• Reducing use of energy, water, solid and

liquid waste;

• Acquiring funding to offset planned

expenditures;3

• Identifying more energy-efficient equipment,

and assisting with procurement;

• Identifying water-conserving equipment, and

assisting with procurement;

• Finding utility billing errors;

• Identifying more favorable utility rates;

• Running successful energy and water conserva -

tion awareness programs; and,

• Identifying and implementing more efficient

operation and maintenance procedures.

The REM’s work results in:

• Enhanced energy security and reliability;

• Improved lighting and comfort;

• Relief from budget problems;

• Identification of funding for new equipment

and controls;

• Reduced maintenance costs;

• Improved power quality; and,

• Improved utility services.

2 The federal Office of Personnel Management provides current

General Schedule locality pay tables online at

www.opm.gov/oca/04tables/indexGS.asp

3 REMs can apply for energy project funds through FEMP, utilities,

and energy savings performance contracts.
Contracting for a Resource Efficiency Manager • Page 8

REMs generally look for projects with a simple payback of

zero to three years. They also have been instrumental in

spearheading long-term projects that enhance energy

infrastructure at the site. The typical benefit-to-cost ratio

of hiring a REM is approximately 3.5-to-1. That means for

every dollar spent on the REM contract, $3.50 is saved.

Funding options

One of the hurdles in hiring a REM is finding upfront

funding to support the position until anticipated cost

savings can offset the REM’s salary. Within the federal

sector, REM positions typically are financed in the

following ways:

Direct appropriation of agency funds is the quickest way

to hire a REM at your site. About half of all REM positions

are funded this way, often from the agency’s utility

budget. This method is especially attractive to agencies

that have available funds but are under government hiring

restrictions. REMs work on contracts and are not considered regular federal employees. The U.S. Navy (USN) and

the National Oceanic and Atmospheric Administration

(NOAA) have used the direct appropriation approach,

adding the cost for REM contractors as line items in their

annual budget proposals.

Cost savings from ongoing alternatively financed

projects are a good funding option for large sites with

many facilities that use energy savings performance

contracts, agreements between an agency and an energy

services company. The agency uses energy cost savings

generated by the projects to reimburse the energy services

company (ESCO) and pay off the loans. Savings beyond

the contract and loan amounts can be used to cover a

REM’s first-year contract. The cost savings method is

related to the direct appropriation route, since resulting

funds are used to contract with an approved REM provider

through the U.S. General Services Administration (GSA).

Alternative financing through a utility is another way to

get a REM. About 20 percent of REMs are funded this

way. Several investor-owned utilities, including Puget

Sound Energy and San Diego Gas & Electric, have

funded REM positions. Depending on the customer’s

preference, the utility designates one of its employees or

a subcontractor as REM for the site. Typically, the utility

tacks a monthly or quarterly fee for the service onto the

agency’s utility bill.

The deal usually works something like this: If savings

identified over a specified initial period – usually about

three months – do not justify renewal of the REM

contract, the utility forgives the debt. If the work is

fruitful, the agency repays the utility over a 12-month

period. REMs provided by a utility usually know the site

well and have a technical background. From a procurement standpoint, paying for the REM incrementally

through the utility bill may be simpler than contracting

with another provider for the services. Agencies should

think creatively and make proposals to their utility

companies.

The Bonneville Power Administration,4 part of the U.S.

Department of Energy (DOE), has some unique procurement and borrowing authorities. Bonneville may be able

to help you hire a REM in one of the following ways:

Agencies sometimes transfer funds to Bonneville, which

then contracts with a provider, or selects from the GSA’s

list of approved companies. Bonneville can also finance

the cost of a REM. Typically, Bonneville provides threeyear funding, with a five-year payback period on the

principle and interest. Again, Bonneville contracts with

the provider.

4 Contact information for Bonneville Power Administration

energy efficiency representatives is online at www.bpa.gov/Energy/

N/about_ee/contacts/
Contracting for a Resource Efficiency Manager • Page 9

Grants and incentives can be used to offset the REM’s

contract costs. REMs working at Navy Region Southwest

sites have been able to generate 40 percent of their

contract costs through grants and incentives, according to

the service provider. Grants may be available through a

utility- or state-run public purpose program. In some states,

utilities attach a surcharge to their customers’ bills to fund

a public purpose program, which then provides energyefficiency grants.

Getting a grant requires persistence, patience and creativity. For leads, contact your state energy office,5 federal and

state environmental agencies, and the customer service

representatives at your utilities. If your agency has a

headquarters office, talk to the energy manager there for

more funding ideas.

The Federal Energy Management Program (FEMP) sponsors

a web site that lists state energy management programs,

including public purpose programs and utility energy

efficiency programs. To see what’s available in your state,

visit the web site at http://pnnl-utilityrestructuring.pnl.gov/

energymanagement/energymanagement.htm

5 The National Association of State Energy Officials provides

contact information for state energy offices online at

www.naseo.org/members/states.htm
Contracting for a Resource Efficiency Manager • Page 10
Contracting for a Resource Efficiency Manager • Page 11

“Our REM, John Nixon, is a former Navy lieutenant commander with over ten

years of engineering experience working for an energy service company. He

was ready to start saving for us the day he walked in the door.”

Utilities Director Lee Merrill, Navy Public Works Center

Jacksonville, Florida

John Nixon

Chapter Three:

How do I hire a REM?

Getting Started

The Federal Energy Management Program’s Resource

Efficiency Manager Team can guide you through the

contracting process by:

• Helping to determine which contracting

mechanism best fits your needs;

• Providing advisory support to agency staff on

legal, technical, financial and contractual issues;

• Directing you to user-friendly guidance

documents;

• Reviewing scopes of work, requests for proposals,

and task or delivery orders.

To find out more about how the FEMP REM Team can

help, contact:

Ab Ream, Program Manager, FEMP Operations

& Maintenance, at 202-586-7230 (Eastern

Standard Time), or send e-mail to

ab.ream@ee.doe.gov

Dave Hunt, Pacific Northwest National

Laboratory, at 202-646-7867 (Eastern Standard

Time), or send e-mail to dave.hunt@pnl.gov

Your utility companies may have experience in contracting for REMs. It’s worth a call to see what kind of advice

or assistance they can offer. The Bonneville Power

Administration also has helped with financing and

contracting for REMs.

Private companies that offer REM services may also be

willing to discuss the contracting process. A current list of

companies offering REM services is available through the

U.S. General Services Administration (GSA).6 Some of the

companies on the list will have extensive experiences

providing REMs to federal agencies, others may have little

or no expertise in this area. Be sure to ask if the company

has provided REMs in the past.

You may also want to contact agencies that already have

REMs. To find out which federal sites currently have

REMs, visit the WSU Energy Program’s web site at

www.energy.wsu.edu/projects/rem/rem.cfm

6 U.S. General Services Administration Schedule 871 II

Energy Management Services, including a list of approved

contractors, is online at http://216.64.206.176/ElibMain/Sin

Details?executeQuery=YES&scheduleNumber=871+II&flag=&

filter=&specialItemNumber=871+201
Contracting for a Resource Efficiency Manager • Page 12

The ideal REM

Deciding what you want in a REM is one of the first steps

in the contracting process. It is important that the REM be

able to develop a thorough understanding of your

agency’s culture and operations. A REM should be:

• Accomplished in the technical areas of energy

efficiency, water conservation, and/or resource

management;

• Innovative, while applying proven practices and

technologies;

• Skilled in data collection, analysis and

presentation;

• Able to think systematically and holistically,

implementing long-term changes and not just

one-time fixes;

• An excellent marketer and communicator.

The REM’s job is to support the agency’s mission, rather

than dictating changes that may be intrusive or impact

safety, health or morale. For a list of specific REM qualifications you may want to consider, see the sample position

description in Appendix A of this guidebook.

A few things about the REM contract

Statement of work

You may find that your agency’s contracting officer is

unfamiliar with REM services. You can help by providing

general information about REMs, any preferences you

have for specific contractors, and a statement of work.

The statement of work describes what is to be done, rather

than how it will be done or how many hours it will take.

Task performance must be easy to assess and preferably

measurable. The contracting officer will use the statement

of work as part of a request for proposals. The GSA

requires a statement of work as part of the REM contracting process, which is described later in this chapter. The

GSA requirement reads as follows:

A statement of work (a performance-based statement of

work is preferred) that outlines, at a minimum, the work to

be performed, location of work, period of performance,

deliverable schedule, applicable standards, acceptance

criteria, and any special requirements (i.e., security

clearances, travel, special knowledge, etc.) should be

prepared.

Two sample statements of work are available in Appendix

B of this guidebook.

Deliverables

The products you want the REM to deliver can be mentioned in the statement of work or the request for

proposals. After negotiation with the successful bidder,

deliverables should be clearly defined in the contract.

Deliverables can be divided into three categories: program

deliverables, project deliverables, and awareness deliverables.

Examples of deliverables you may want to consider under

each category are listed below:

Program Deliverables:

• Develop an energy master plan

• Develop a metering program

• Perform utility billing audits

• Establish an energy account database

• Develop and maintain energy program reports

• Provide planning support for the energy budget

• Provide a REM program status report
Contracting for a Resource Efficiency Manager • Page 13

Project deliverables

• Identify and develop low-cost and no-cost energy

efficiency opportunities

• Provide operational support for energy

management control system

• Develop/assist in project identification and

justification

• Develop projects for utility energy service

contracts and energy savings performance

contracts

• Monitor facility energy projects

• Provide peak load management

Awareness deliverables

• Coordinate energy efficiency meetings

• Manage an energy awareness program

• Prepare annual energy reports

• Establish and support an awards program

recognizing energy efficiency efforts

• Develop and distribute energy articles,

newsletters, notices, posters and signs

• Coordinate Energy Awareness Week/Month

Non-personal versus personal services

REM contracts are for non-personal services. The difference

between a personal and a non-personal service is mainly a

matter of supervision. A personal services contract implies

that the government agency exercises the same control

and supervision of the contractor as it does over its regular

employees. A non-personal services contract establishes

that the person performing the service is not under the

agency’s control and supervision.

This is an important distinction because personal service

contracts require special authorization. Companies

bidding on the REM contract may include the name and

qualifications of a particular person in their proposals, but

the final contract should describe the services to be

provided, and not an individual.

Contract Types

There are four major contract types to consider:

1. GSA Federal Supply Service contracts;

2. Utility energy service contracts (UESCs);

3. Basic ordering agreements (BOAs), and;

4. Stand-alone contracts.

The method you choose depends to a large degree on

whether or not your agency has upfront funding to hire a

REM. If you have available funding, the GSA contract

maybe the fastest and easiest way to hire a REM. The GSA

schedule serves as a template and helps ensure that the

contract conforms to federal acquisition regulations. It

comes with a list of pre-approved contractors from which

to choose.

If your agency needs financing, you will most likely want

to work with a utility using a utility energy service

contract or a basic ordering agreement.

A stand-alone contract is the vehicle of last resort, since it

requires the most effort.
Contracting for a Resource Efficiency Manager • Page 14

Stand

Scenarios GSA UESC BOA Alone

Appropriated funds are available.

Appropriated funds are available and the agency

wants to contract with non-utility companies

not on the GSA schedule.

Appropriated funds are available and the agency

anticipates need for more than one REM

over a five-year period.

Appropriated funds are available and

an areawide contract is in place.

Appropriated funds are not available and there

is an areawide contract in place.

Appropriated funds are not available and no

areawide contract is in place.

Which contract types make sense for your site?

GSA Federal Supply Service contracts

Only a contracting officer can use the GSA Schedule to

place an order for REM services. If your agency does not

have a contracting officer a GSA contracting officer may

be able to place the order.

The federal supply schedule makes it easy to purchase

commercial services. GSA contracts are governed by the

Federal Acquisition Regulation (see FAR 8.4 Federal Supply

Schedules7) and the Defense Federal Acquisition Regulation

Supplement (DFARS). The FAR codifies uniform policies

for acquiring supplies and services through federal

executive agencies. The DFARS applies when the U.S.

Department of Defense (DOD), or other agencies placing

orders on DOD’s behalf, request services worth more than

$100,000. By contracting through the GSA schedule,

agencies comply with both of these regulations.

Under each schedule, the GSA provides a list of approved

contractors. The GSA has determined that contractors on

the list charge prices that are fair and reasonable for the

services requested.

7 FAR 8.4 Federal Supply Schedules is online at

www.arnet.gov/far/current/html/Subpart_8_4.html
Contracting for a Resource Efficiency Manager • Page 15

The GSA schedule for hiring a REM is the Energy Management Services Multiple Award Schedule 871 II, Special

Item Number (SIN) 871-201 Energy Audit Services.8 This

schedule covers energy audits, resource efficiency management, use of alternative energy sources, and building

commissioning. The SIN description reads in part:

Resource Efficiency Management (REM) – provide

information on possible steps that will improve energy

efficiency. This information shall include estimates of cost

savings and environmental benefits. This includes onsite

analysis of current operations, equipment, and energy

purchasing patterns. This may include the services of a

resource efficiency advocate for individual or aggregated

building(s) in order to maximize resource efficiency.

To order services through the GSA schedule:9

1. Prepare a request (known as a request for quote or

request for proposal). The request should include a

statement of work and ask contractors to submit

a firm-fixed price. The price is a bottom-line figure

that includes travel costs and other direct costs

related to performance of the requested services.

The request may ask contractors for a project

plan and information about their past experience

performing similar tasks. The request must

inform contractors about how the information

they supply will be used in making a selection.

That is, what basis will be used for deciding

whether contractors are technically qualified.

2. Send the request to contractors. The ordering

office should consider the scope of services

offered by GSA approved contractors, pricing and

other factors such as the contractors’ location

and submit the request to at least three

contractors, plus any others who specifically ask

for a copy.

3. Evaluate responses and select a contractor. You

need not select the lowest bidder. Instead, your

agency should choose the contractor that offers

the best value. In determining best value, FAR

8.404 allows requestors to consider, among

other things:

• “Special features of the supply or service

required for effective program

performance;”

• “Past performance,” and;

• “Environmental and energy efficiency

considerations.”

The contracting officer should document how

the determination of best value was made, in

case questions arise.

For more information about Energy Management Services

contracting, contact the GSA at:

Management Services Center

Phone: 800-241-7246

Email: mgmtservices@gsa.gov

Utility energy service contracts

Utility energy service contracts are a means to tap

regulated electric and gas utilities as a source of funding

for energy projects at federal facilities. UESCs are exempt

from federal competitive bidding requirements. That

means your agency can submit a statement of work and

request a proposal from gas and electric utilities that serve

your site. If the site is served by more than one utility, the

agency should request competitive bids, though utilities

are not obligated to respond. Utilities may subcontract for

the REM services or provide one of their own employees

to the requesting agency.

8 U.S. General Services Administration Schedule 871 II

Energy Management Services is online at http://216.64.206.176/

ElibMain/SinDetails?executeQuery=YES&scheduleNumber=871+II&

flag=&filter=&specialItemNumber=871+201

9 This information was excerpted from a more detailed explanation of the ordering process on the GSA’s web site: www.gsa.gov/

Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&content

Id=8131
Contracting for a Resource Efficiency Manager • Page 16

An easy mechanism for contracting with a utility for REM

services is the GSA Areawide Contract, a master agreement

between the federal government and a utility to cover a

range of utility service for federal agencies in the utility’s

service area for up to ten years. Most federal sites have

areawide contracts for procurement of energy from

utilities that serve their area. Exemptions include sites that

purchase power directly from a federal power marketing

agency, such as the Bonneville Power Administration or

the Western Area Power Authority.

Federal agencies use the areawide contract by completing

an Energy Management Services Authorization, an attachment to the master contract that details the specific

service to be provided to the ordering agency. Because the

contract terms and conditions are already established, the

GSA areawide contract may be easier to use than other

contracting methods.

The GSA maintains a list of utilities with areawide

contracts online, and has posted information on how to

use the contracts.10 For details, see the GSA publications

titled Utility Areawide Guide and Procuring Energy Management Services with the Utility Areawide Contract. For more

information visit the GSA Energy and Water Conservation

web page at: www.gsa.gov/energy

The basic ordering agreement

If there is no GSA areawide contract in place for your

utility, a basic ordering agreement can be used to issue

multiple orders for REMs over a five-year period. A basic

ordering agreement can be used to order REM services

competitively through private companies, or sole source

through the servicing utility.

The agreement is a written instrument of understanding,

negotiated between an agency and a contractor, which

contains terms that will apply to future orders between

the parties for a specified term; a description of services to

10 A list of GSA areawide contracts by utility and publications on

how to use the contracts are online at www.gsa.gov/Portal/gsa/ep/

programView.do?pageTypeId=8195&programId=8367& channelId=-

13908

11 A sample Form 1155 Order for Supplies and Services is online at

www.dior.whs.mil/forms/DD1155.PDF

be provided; and the methods for pricing, issuing and

delivering future orders.

The agreement can be used to expedite contracting when

specific quantities are needed and prices are unknown, but

the agency anticipates the need for substantial quantities

of a product or service from the contractor. Under the

right circumstances, the basic ordering agreement can save

time and effort. The advantage of the BOA is that, once

awarded, it is easy to procure additional REM services

under the same agreement.

A basic ordering agreement is not a contract. To use the

agreement, the ordering agency completes and signs a

delivery order, Form 1155 Order for Supplies or Services.11

Submitting and signing this form officially awards the

order to a contractor. A sample contract delivery for REM

services is available online at www.energy.wsu.edu/projects/

rem/rem.cfm

The stand-alone contract

A stand-alone contract is a mutually binding legal

relationship obligating the seller to furnish the services

and the buyer to pay for them. The contract must go out

for competitive bidding and is for one-time procurement

of services.

The stand-alone contract is best for unique situations

when, for one reason or another, an agency does not want

to contract with a utility or one of the GSA approved

companies. The agency’s contracting officer must make

this a non-personal services contract that complies with

all federal acquisition regulations.
Contracting for a Resource Efficiency Manager • Page 17

Length of the contract

REM contracts are typically one year long with an option to

renew for two or three years. The renewal option allows the

agency to keep the REM on without going through the

complete contracting process every year. Exercising the

option is usually a simple matter for the contracting officer.

What are the provider’s

responsibilities?

Once a contractor is selected, negotiations between the

agency and the contractor can begin. Agency representatives, including the contracting officer, meet with the

selected contractor to work out details such as who will

provide equipment and administrative assistance.

Typically, the host agency provides office space, office

furniture, a computer, a phone, basic office supplies, email and Internet access. The host agency is responsible

for ensuring that the REM has access to top management,

and for verifying the REM’s reported savings.

The contract should specify how the REM’s effectiveness

will be measured and by whom. The contractor is generally responsible for submitting a monthly report including

any measurements of savings. The REM’s success as an

advisor and revenue generator should also be included in

any performance assessment.

What if it doesn’t work out?

Open communication between the host agency and the

contractor normally results in the resolution of problems

before the point of contract termination. Because the

contract is performance based and the REM is expected to

submit regular reports, the agency will know early on if

the arrangement is effective. If there is no evidence of

identified or realized savings within a reasonable period of

time – say six months – the agency can cancel the contract

without penalty or liability.

An estimated 85 percent of federal REM contracts are

renewed at the end of the initial contract period. In most

instances where contracts were not renewed, the REMs’

performance was not the deciding factor. In one case, the

REM was called to active military duty before completing the

contract. In another case, the host agency hired the REM as a

full-time employee. Some REMs have now been with their

original contracting agency for more than six years.

How will the REM fit into

the organization?

On an organizational chart, REMs generally fit into a

department that is facilities or utilities related and

responsible for energy management. Usually, they are part

of the public works team, specifically the planning,

engineering or environmental division. The REM reports

to the department head and sometimes the contracting

office, too. The most effective arrangements call for the

REM to report directly to top management periodically.

The REM is expected to perform independently while

keeping those in charge informed about the workload and

any issues that arise.

What if there is a maintenance and

operations contractor on site?

It is the REM’s job to collaborate with and support existing

operations and maintenance personnel – whether they are

members of the agency staff or other contractors. The

REM should work closely with operations and maintenance personnel on energy-related jobs and activities,

providing guidance on equipment purchases or adjustments, recommending new operating procedures, or

making policy recommendations. The REM’s work should

dovetail with that of others on the site and always reflect

the agency’s priorities.

Facility managers have many high-priority missions, such

as general operations and ensuring the comfort of

occupants. Many don’t have the time or resources they

would like to devote to energy efficiency. The REM can fill

the gap. Among other things, the REM focuses on human

behavioral and awareness aspects of energy efficiency,

which can yield significant savings and often are not part

of anyone else’s job description.
Contracting for a Resource Efficiency Manager • Page 18
Contracting for a Resource Efficiency Manager • Page 19

“You cannot manage what you do not measure.”

Jack Welch, former chief executive officer, General Electric

Chapter Four:

How do I measure the REM’s performance?

A foundation of the Resource Efficiency Manager (REM)

program is the understanding that REMs will identify

enough savings to cover the cost of their annual contracts.

In practice, there is wide variation in how the REM’s

performance is evaluated.

Before hiring a REM, you should decide how rigorous

your agency intends to be in quantifying energy and

dollar savings. The hiring agency needs evidence that

the REM has produced the promised savings, however

some activities are difficult to quantify. The more

precise the methods used the more expensive and timeconsuming savings verification becomes. The challenge

is to balance the cost of accounting with the value of

the conservation activity.

Another factor to consider when deciding how you will

evaluate the REM’s performance is the price of natural gas

and electricity at your site. Energy savings activities are

much easier to justify economically when electricity is 10

cents per kilowatt-hour than when it is only 3 cents per

kilowatt-hour.

In general, savings are calculated by comparing energy use

before and after the implementation of energy saving

measures. Adjustments should be made for changes – such

as weather or building occupancy – that might cause

increases or decreases in energy use that are unrelated to

efficiency measures.

As part of contract negotiations, the host agency and the

contractor should agree to a schedule and method for

reporting the REM’s progress. As a starting point, consider

asking the contractor for a written proposal outlining how

performance will be measured and reported.

Tailoring reporting to your site’s needs

Reporting procedures range from monthly progress reports

that show precise energy and dollar savings by project or

activity, to simple weekly narratives that detail the REM’s

activities. For sample reports, see Appendix C of this

guide.

Whatever the interim reporting requirements, REMs

generally are expected to provide an annual quantitative

accounting of the energy and dollars saved as a result of

their activities. Quantitative measures typically include:

• Annual cost savings;

• Annual resource savings;

• Grants, incentives and other funding secured

by the REM;
Contracting for a Resource Efficiency Manager • Page 20

• Return on investment;

• Avoided costs (such as billing errors caught, or

lower rates negotiated), or;

• Net present value of life cycle savings.

These figures are derived in a variety of ways depending

on the agency’s needs and what kind of energy information

system already is in place. An energy information system is

a process for recording and tracking energy use and

calculating costs. For example, some facilities are submetered, making it easy to collect data. Most are not.

Among the REM’s objectives may be establishing an

energy-use baseline or finding funding to improve the

quality of data available. Ultimately, the data collected can

also be used to meet other agency objectives, such as

planning future energy projects or demonstrating progress

toward efficiency goals.

So how do REMs actually calculate energy and cost

savings? Following are three anecdotal examples of the

methods used by experienced REMs at federal sites:

REM One works for the public works center

(PWC) at a naval air station. He submits a

monthly narrative report to the company he

works for, the PWC utilities department head

and the PWC energy manager. His last report of

the year includes an Annual Summary of REM

Facilitated Savings.

REM One uses a Navy life cycle cost analysis

workbook to determine a dollar value for savings

from energy projects. The workbook details

methods for evaluating net present value (NPV) for

the life of energy projects. Net present value is a

standard accounting method for determining the

present value of an investment’s future net cash

flows minus the initial investment.

For example, if the Navy uses 15 years as the life

of a lighting system. REM One calculates the

NPV of the annual savings for the 15-year life of

the system and the NPV of the payments to the

financier. (Energy projects at the air station are

done through utility energy savings contracts.)

He then subtracts the payment from the savings

to determine the amount of savings facilitated by

the REM for the project.

REM One bases energy savings from retrofit

projects on estimated savings. Again using a

simple lighting project as an illustration,

estimated savings are determined by comparing

the amount of energy consumed by existing

lighting fixtures to the expected energy consumption of replacement fixtures.

REM One uses sub-metering data to help identify

viable energy projects. For reporting purposes, he

assigns no dollar value to energy awareness

activities, such as the trainings he conducts.

Instead, he considers these activities “fishing

expeditions,” a chance not only to change

behavior but to interact with others who might

know about energy savings opportunities he’s

missed.

REM Two works for the public works planning

division at an Army base. Using data from the

post’s electric sub-meters and from local utilities,

he analyzes and reports consumption figures and

energy costs to public works personnel monthly

using Utility Manager Prop, software from Save

More Resources, Inc. For reporting to the Army

and the U.S. Department of Defense (DOD), he

uses a DOD reporting tool called the Defense

Utility & Energy Reporting System.

To determine project savings, REM Two

calculates simple pay back, or the net present

value of life cycle costs. For some retrofit

projects, he develops spreadsheets for comparing

before and after energy consumption and costs,

plus other benefits such as maintenance savings

and emissions reductions.
Contracting for a Resource Efficiency Manager • Page 21

To determine annual savings, REM Two calculates British

Thermal Units (BTUs) saved and converts that figure to

dollars. Actual energy savings account for about half of

the dollar value he brings to the base, which also includes

grants, in kind support for special projects, and cost

avoidance. For example, REM Two monitors utility bills,

including a natural gas bill that covers more than 300

accounts. In one two-month period a few years ago, he

identified $79,600 in utility billing errors.

REM Three works for the public works department at a

naval air station. The Navy looks for a ten-year payback

on energy projects, and REM Three’s contract reflects the

same expectation. Under the heading Evaluation Criteria,

the contract calls for a ten-year payback on the REM’s

salary, according to the following equation:

REM Three writes a weekly “situation report,” a nontechnical narrative – no longer than one page – that is

widely distributed by e-mail. He also submits a monthly

report to the Navy’s regional office, and briefs the air

station’s commanding officer annually on his progress.

For his monthly reports, REM Three enters meter data, fuel

oil reports and utilities billings into the Utility Management System, a software program that provides a breakdown of usage, trends and historical data.

On the job for six years, REM Three maintains an ongoing

spreadsheet of energy projects and activities, including,

where possible, energy savings in BTUs and dollar figures

for actual cost savings, potential cost savings and cost

avoidance. He uses the spreadsheet to generate a number

of reports, included the air station’s annual energy report

to the secretary of the Navy.

Savings from some REM activities are difficult to quantify.

Energy awareness activities aimed at changing human

behavior are a good example. These activities might

include:

• Establishing an energy awareness program;

• Developing a building energy management team;

• Initiating a utility demand reduction program;

• Attending training courses; or,

• Writing a column for a newsletter or other

publication.

REM Three does assign a value to his energy awareness

activities. While the Navy generally attributes 10 percent

of energy savings to awareness activities, the REM provider

and the host agency agreed to assign a more-conservative

5 percent of total energy savings.

In addition to tracking savings from projects and awareness activities, REMs typically monitor building energy

performance. They know that building operations and

maintenance (O&M) practices offer low- and no-cost

opportunities for reducing energy consumption, such as:

• Using energy and management control systems

properly;

• Limiting system overrides;

• Periodically readjusting temperature settings;

• Reviewing equipment operating hours, and;

• Repairing dampers and economizers.

The REM’s real value to the agency cannot be measured in

kilowatt-hours or therms alone. In many cases, REMs

bring to the agency thousands or even millions of dollars

The sum of identified estimated projects costs +

REM costs for Year 1 < 10 years simple payback

Estimated project savings
Contracting for a Resource Efficiency Manager • Page 22

in outside funding for energy projects. In addition, they

serve as valuable advisors. In an article in the May 2004

edition of Energy User News,

12 an army contractor describes

the REM’s role at an Army fort:

In addition to helping us save operating costs, she

serves as an independent third-party advisor for our

performance contracts. In this role, she has helped us

tremendously by explaining just how our energy

savings should be measured and verified so we can

see if we’re actually achieving the cost savings that

our contractors have projected.

The real value of a REM includes the support and funding

they bring to the agency as well as the energy and

resources they save.

12 Making Sure Things are Done Right, by Steve Sain; Energy User

News, May 2004, p. 8; www.energyusernews.com/CDA/

Article_Information/Fundamentals_Item/0,2637,124306,00.html
Contracting for a Resource Efficiency Manager • Page 23

Appendix A:

Sample Position Description

Position(s):

TITLE

Resource Efficiency Manager (REM). This is a (position classification) position on a (number of years) renewable

contract.

PURPOSE

One Resource Efficiency Manager position to be filled at a Department of Defense installation. The REM’s role will be to

reduce operating costs by improving the way the base uses and consumes resources (i.e. water, natural gas, oil, electricity,

and solid waste). Basic REM responsibilities include: 1) Monitoring the installation’s use of resources, 2) analyzing that

use, and 3) making adjustments to improve resource use while continuing to promote conservation efforts.

With the support of the local utility, a performance contractor, and upper management at the facility, energy efficiency

projects may already be effectively installed at DOD installations. The REM’s efforts focus on the behavioral and

building operations issues. To this end, the REM will need to involve many groups employed and living at the base by

motivating and educating them with regard to the efficient use of resources.

GENERAL RESPONSIBILITIES

May include any or all of the following:

1. Use energy accounting software or spreadsheets to monitor the actual quantity and cost of fuels such as

electricity, natural gas, and fossil fuel, as well as the amount of water used and volume of garbage disposed on a

monthly basis. Distribute and provide monthly and quarterly reports to various base groups.

2. Compile data, investigate problems, discuss ideas and report results.

3. Work with building occupants to enthuse, support and gain cooperation.

4. Gain personal knowledge of the operation of the various facilities and industrial processes on base.

5. Educate occupants on efficient operation of buildings.

6. Build a network and establish working rapport with people who will be instrumental in supporting the program.

7. Work with on-site teams to set goals.

8. Promote and publicize the program.

9. Develop policies for resource conservation and management.

10. Perform and train others to do operations surveys to evaluate how resources are used and identify opportunities

for conservation and efficiency improvement.

11. Develop and implement procedures to recycle material from the waste stream.

SAMPLE
Contracting for a Resource Efficiency Manager • Page 24

12. Develop procurement policies that reduce the amount of solid waste.

13. Establish, develop and implement monthly forums to building monitors and maintenance staff.

14. Establish lines of communication (including a monthly newsletter) to become a primary point of contact for

technical assistance to various on-site groups.

REQUIRED QUALIFICATIONS

1. Bachelor’s Degree.

2. Ability to work independently and in a team.

3. Good oral and written communications skills.

4. Computer skills in spreadsheets and work processing applications.

5. Experience presenting technical information to residential and commercial audiences through a

variety of media.

6. Ability to apply energy related training information, methodologies, and technologies in the field to

demon strate effective application.

DESIRABLE QUALIFICATIONS

1. Five years of progressively responsible experience in energy management or heating, ventilating and airconditioning (HVAC) industry lead work and project management responsibilities.

2. Previous experience in operations at Department of Defense installations.

3. Experience in marketing and public outreach.

4. Technical writing, data analysis, information research skills and use of computer software tools in the

development of graphics, and various presentation materials.

5. Experience in application of computer software programs used in energy and resource accounting.

6. Previous experience providing training.

TO APPLY

Submit (appropriate number of) copies of the following items:

Letter of interest with detailed description of experience(s) related to the above numbered qualifications by listing the

employer, number of months in each position as it relates to the qualifications; vitae, transcripts, and minimum of three

employment references (supervisor, peer, and subordinate) which includes current telephone numbers; one page example

of your writing.

Send applications to (your Personnel Office or appropriate party). All application materials must be received by (time

and date).

Accommodations for applicants who qualify under the Americans With Disabilities Act are available upon request.

SAMPLE
Contracting for a Resource Efficiency Manager • Page 25

Appendix B:

Statement of Work SAMPLE

ONE

STATEMENT OF WORK

1. A Resource Efficiency Manager (REM) is an energy technical professional sited at a federal facility charged with

reducing the consumption of resources such as natural gas, electricity, water, and fuel oil; and reducing the

generation of waste water and solid waste. Other savings are expected in identifying utility billing errors,

recommending rate schedule changes and reducing utility bill late charges. The REM shall work in cooperation

with existing energy and engineering staff to focus on four essential areas: Resource accounting and sub-metering;

energy policies and incentive programs; building energy monitor programs (BEMs); and installation or facility-wide

training and promotion of energy conservation activities. The REM will purchase marketing materials to promote

energy efficiency awareness. These items include T-shirts, hats and pens, educational brochures and/or other

printed material.

Work to be Performed:

a) 15% In Support of Utility Meter Reading & Analysis: On a monthly basis, the REM shall download and analyze

data from local utilities and report the findings to appropriate Army personnel. The data will be analyzed to

confirm consumption data to design conversation strategies.

b) 15% Resource/Energy Accounting: The REM shall use energy accounting software and spreadsheets to maintain

a current database of energy consumption at [NAME SITE]. The REM shall monitor the cost and consumption of

electricity, natural gas, and fossil fuel on a monthly basis at the regional level. The REM shall distribute and

provide reports to designated points of contract.

c) 10% Energy Awareness Training & Marketing: The REM shall prepare training materials for monthly energy

awareness seminars. The REM shall also develop brochures, conservation tips, and related material on energy.

And develop and design resources conservation measures using computer presentation equipment, overhead

transparencies, slide presentations, and hands-on demonstrations.

d) 5% On-site Conservation Support: The REM shall provide onsite support to energy officers, noncommissioned

officers, and building energy personnel.

e) 10% In support of Program & Policy Development: The REM shall develop and design incentive programs to

motivate customers to reduce resource consumption. The REM shall review water management policies and

procedures, maintain the current consumption database, and report to participating military units. The REM

shall serve as a member of various teams such as [TEAM NAMES].

f) 10% Energy Audits & IG Inspector General Inspections: The REM shall provide energy audits and IG

inspections on request.

g) Provide Recommendations: The REM shall provide recommendations on energy efficiency improvements and

projects, assist in project package preparation, and provide energy analysis using spreadsheets and energy

accounting software to document energy savings for proposed energy efficiency measures.
Contracting for a Resource Efficiency Manager • Page 26

SAMPLE

ONE

h) 5% Energy Manager Support: The REM shall provide logistical support to public works staff, management and

unit commanders.

i) 5% Additional Training Duties: The REM shall train customers to conduct energy audits and surveys; to

evaluate the way resources are used; and to identify opportunities for conservation and efficiency improvement.

The REM shall review renovation and new construction project designs for energy efficiency criteria.

j) 5% Technical Assistance & Information Clearinghouse: The REM shall write articles and become the primary

point of contact for technical assistance to various groups, including the U.S. Department of Defense and other

federal agencies. The REM shall research availability of fund sources such as grants and incentives.

k) 5% Agency Support: Promote and support [HIRING AGENCY] nationally to expand the REM program.

l) 5% Other Support: The REM shall, for example, respond to requests for energy data and information.
Contracting for a Resource Efficiency Manager • Page 27

Resource Efficiency Manger Program for [ site name ]

INTRODUCTION

In an effort to address escalating utility prices and Executive Order #13123 mandating energy usage reduction goals of

30% (by 2005) and 35% (by 2010). The Public Works Center (PWC) [installation name and location], is requesting a

Resource Efficiency Manager (REM). The REM will provide a focused and coordinated effort for improvement in the

energy-efficient operation of key facilities, equipment and control systems, address demand reduction, and research/

facilitate energy conservation programs offered through UESC contracts and others.

The program will analyze systems and methods of operation, identify new opportunities for energy, water and solid

waste (implement or strengthen recycling programs), emission reductions, and facilitate implementation of energy

initiatives to reduce demand and consumption. By developing and building on existing resources, the program will

reduce energy use, help the environment, and save money.

This effort will assist [installation name], and the entire Navy to comply with Federal Executive Order 13123. This

order calls for Federal agencies to improve the energy efficiency of their buildings, promote the use of renewable

energy, and reduce greenhouse gas emissions associated with energy use in their buildings, among other energyrelated requirements.

BACKGROUND

The key mission of a dedicated REM is to reduce the overall energy/resource consumption. Further the REM will

develop and submit grant applications to install energy reduction projects which may be offered through the state,

federal or utility programs.

The key mission of the REM program is “energy-efficient operation”. By definition this term means:

An energy-consuming device is operated efficiently when it consumes only as much energy as is necessary to fulfill its

intended function.

Secondly, the REM will assist the Navy to reduce peak electrical demand. Thirdly, the REM will reduce energy, water and

solid waste consumption. Lastly, the REM will assist with identification and development of additional projects.

Appendix B:

Statement of Work SAMPLE

TWO
Contracting for a Resource Efficiency Manager • Page 28

SAMPLE

TWO

Four benefits of the energy efficient operation component are 1) substantial energy savings, 2) low cost, 3) no sacrifice of

comfort or productivity, and 4) better information from which to make capital improvement decisions

Generally most facilities have a few large energy consuming devices that use a large percentage of the annual energy.

The REM will inventory and identify these energy-consuming devices and estimate the electrical and fuel use thereby

creating a energy use profile of the equipment. Using the Energy Management Control Systems (EMCS) and/or simple

datalogger equipment, actual energy use will be measured over time. After examining the actual energy use, the REM

will compare this data to the estimated profiles. The profiles will reveal waste occurring either because of system

malfunctions or because systems are operating when they are not required.

STATEMENT OF WORK

The following scope items will be implemented as part of the [installation name] REM program. In order for the efficient

operation process to be effective, the REM will lead work with the Public Works Center utilities team and managers of

Naval facilities to establish policies, responsibilities and attitudes described below:

1) Develop Overall Resource Policy and Incentive Program

Develop a resource policy and incentive program which will impart a value to energy-efficient operation. The

REM will work with utilities department to create these polices which are congruent with the appropriate

Federal Executive Orders. The outcome of this effort is elimination of unnecessary energy use and cost, which

should be highly valued by management. In addition the reduction of environmental degradation should also

be valued. Incentive programs will also be created and approved by management to motivate various site

groups to reduce resource use.

2) Develop an Awareness Program

An important objective is to develop enthusiastic participation in the REM program. It is critical to the success

of this effort that management looks at the accountability, incentives and motivation of all key participants to

ensure there are no barriers to their participation.

3) Cultivate Cross-Functional Nature of Program Effort

Management must recognize the cross-functional nature of the REM effort. The REM will assist in the

formation of an energy management team that can occasionally involve all of the people who significantly

influence the energy use of the equipment under study. This team will include, when possible, personnel

representing electrical maintenance; HVAC maintenance; contract maintenance; custodians; security staff;

occupants of energy intensive spaces such as computer rooms, and occupants of general office spaces. The REM

will interact with individuals having responsibility with the Energy Management Control Systems (EMCS).

Development of base wide EMCS will be a constant focus of the REM; as well as ensuring existing systems are

programmed to reduce waste and optimize schedules.

4) Define Return on Investment

The REM coordinates the effort where Management will define an acceptable return on the investment in the

energy reduction program. For example, management might stipulate that each dollar spent on this effort

should return $1.20 in avoided energy costs.
Contracting for a Resource Efficiency Manager • Page 29

SAMPLE

TWO

5) Institute Methods of Accounting

The REM will coordinate between Management and the energy team to institute simple methods to account for

the time and materials invested in the efficient operation program. This is necessary to ensure that the

appropriate relationship between investment and return is maintained. This accounting should recognize that

the initial start-up of the process would take considerably more time than will be required for maintenance of

the mature process. In addition energy accounting software will be purchased and set up to maintain a current

database of energy consumption. Each month various energy consumption reports will be provided to team

members and management. Each quarter upper management will be provided special briefings pertaining to

the overall REM program and energy use trends.

6) Establish Management Process

Initially the REM will establish an orderly, methodical management process.

The REM will collect information, develop procedures, keep records, chair informational teams meetings and

communicate with persons of diverse skills and backgrounds. Once the procedures and responsibilities are

clearly established the REM may hand off this responsibility to another team member.

7) Become Self-Funding

The REM program is to become self-funding through avoided energy/resource use, fuel switch savings, energy

rate savings and avoidance of late payment penalties.

Performance management practices will be integrated into the REM to maximize the program’s return on

investment and to justify the programs existence. The PWC will be offered an annual extension of this service.

DELIVERABLES

The REM will provide monthly progress reports, which document activities conducted and savings achieved to date.

In addition to the monthly status reports, the REM will be required to: 1) submit written recommendations for

energy projects, operation and maintenance measures, and other actions, as they occur; 2) prepare award nominations; and 3) prepare applications for state, federal, and utility incentive programs, rebates, and grants to the

appropriate offices for submittal. The following REM Scope of Work outlines the tasks required of the REM within

three specific areas. These are; 1) Energy Program Support, 2) Projects, and 3) Awareness. The tasks may include,

but not be limited to the following:

Program

1. Develop energy master plan, for installations where none exists.

2. Develop/establish metering/submetering program.

3. Perform utility billing audits.

4. Establish energy account database.

5. Develop/maintain energy program reports, metrics, and performance indicators.

6. Provide planning support for energy budget.

7. Provide support for energy efficient design/procurement standards and codes.

8. Provide REM program status report.

9. Manage implementation of installation Energy Visions.
Contracting for a Resource Efficiency Manager • Page 30

SAMPLE

TWO

Projects

1. Identify and develop low cost/no cost opportunities.

2. Provide support to develop, and operation of the Energy Management Control System, and scheduling of other

building control systems.

3. Re-commission/re-calibrate HVAC inefficient energy controls.

4. Develop/assist in project identification and justification (scope, LCC, auditing).

5. Serve as commissioning agent throughout planning, design, construction, and occupancy phases

for various facilities.

Awareness

1. Creating, updating, maintaining and implementing PWC’s and installation’s Energy Conservation Instruction.

2. Participate and/or chair Activity level meetings and committees supporting the energy conservation program.

3. Advise energy manager, Public Works Officer, and tenant activities on energy conservation

and awareness matters.

4. Assign tasks to various Activity organizations and monitor goals and task progress.

5. Manage on-going energy awareness program, which communicates the conservation message.

6. Prepare annual energy reports and conservation awards submittals, including major claimant awards.

7. Establish and support an incentive and awards program recognizing outstanding energy conservation efforts.

8. Provide training and support for Building Energy Monitors (BEMs).

9. Develop and distribute energy articles, newsletters, notices, posters, signs, and E-mails supporting

energy conservation.

10. Prepare the program for Energy Awareness Week, Earth Day, and Energy Fairs.

11. Develop and ensure use of energy/utility building checklists.

12. Quantify and report energy waste corrective actions and service requests sent to trouble desk.

13. Establish/quantify/report on Energy Hot Line telephone number.
Contracting for a Resource Efficiency Manager • Page 31

Appendix C:

Sample Progress Reports

The following is a Weekly Situation Report from a REM who works for a utility at a Navy site.

Bracketed text replaces identifying information.

To all,

This week’s report as follows:

1. Conducted the monthly Building Energy Monitor (BEM) meeting on 15 June. This month’s agenda was

a round robin discussion current energy concerns and issues from each BEM.

2. [installation name] project updates.

• NAVHOSP facility energy upgrades. Completed the [corporation name] remote access test on 16

June. Completed a test on Air Handling Unit (AHU) –[No.] on 18 June with noted punch list items

corrected the same day. A re-test will be scheduled early next week.

• Facility Energy Improvements. [company name] mechanical completed the water heater

replacement, successfully op-tested it, and will return next Tuesday to install the seismic strap.

• NEX air boundary curtains. Forwarded cost data to the Navy Exchange for review

and consideration.

3. Responded to a) an Engineering Field Activity [region] request for input suggestions on incorporating

energy conservation into future BOSC contracts and b) Engineering Field Division [region] queries on

our energy conservation measures proposed for Schedule 258 funding.

4. Enlisted energy team. Completed daily energy conservation rounds, conducted energy project

contractor escort duties, took and recorded nighttime foot-candle readings at hangar [No.], supported

the monthly BEM meeting, updated the Defense Utility and Energy Reporting System (DUERS) data

base, completed Assisted Public Works Officer (APWO) tasking, and facilitated routine department

vehicle maintenance.

5. Resource efficiency related training. Completed the ride share course, “Coaching the Van Driver II,”

facilitated by [transit company name] on 12 June.

6. This week’s base newsletter give details on the use of straw as a sustainable eco-friendly alternative for

building insulation.

7. Finally, “Fair Winds and Following Seas” to [name of engineering technician], leaving government

service today. His support made it possible for the formation of the air station’s enlisted energy

conservation team, an event that made all else we created possible. Thanks, shipmate. You embody

the Seabee “Can Do” spirit.

v/r,

[name of REM]

SAMPLE
Contracting for a Resource Efficiency Manager • Page 32

The following is a monthly progress report from a REM who works at a Navy site.

Bracketed text replaces identifying information.

SAMPLE
Contracting for a Resource Efficiency Manager • Page 33

Notes
Contracting for a Resource Efficiency Manager • Page 34
DISCLAIMER

This report was sponsored by the United States Department of

Energy, Office of Federal Energy Management Programs.

Neither the United States government nor any agency thereof,

nor any of their employees, makes any warranty, express or

implied, or assumes any legal liability or responsibility for the

accuracy, completeness, or usefulness of any information,

apparatus, product, or process disclosed, or represents that its

use would not infringe privately owned rights. Reference

herein to any specific commercial product, process, or service

by trade name, trademark, manufacturer, or otherwise does not

necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any

agency thereof. The views and opinions of authors expressed

herein do not necessarily state or reflect those of the United

States government or any agency thereof.
For more information:

General Inquiries

EERE Information Center

1-877-EERE-INF

(1-877-337-3463)

www.eere.energy.gov/femp/

General Contact:

Ab Ream

Federal Energy Management

Program (FEMP)

U.S. Department of Energy

EE-2L

1000 Independence Ave. SW

Washington, DC 20585-0121

Phone: 202-586-7230

ab.ream@ee.doe.gov

Technical Contact:

Dave Hunt

Pacific Northwest National

Laboratory

Washington Operations

901 D Street SW

Washington, DC 20024

Phone: 202-646-7867

dave.hunt@pnl.gov

Produced for the U.S. Department

of Energy, Energy Efficiency and

Renewable Energy, Federal Energy

Management Program, by the

Washington State University (WSU)

Extension Energy Program,

through the Pacific Northwest

National Laboratory.

DOE/EE-0299

July 2004

This publication is available online

through the WSU Energy Program

at www.energy.wsu.edu/projects/

rem/rem.cfm

Printed with soy ink on

recycled paper.

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Energy Efficiency

and Renewable Energy

A Strong Energy Portfolio for a Strong America

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Working with a wide array of state, community,

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Renewable Energy invests in a diverse portfolio of

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