Georgia Tech Procurement Assistance Center

Green Government: An interview with GSA’s top Green building officials

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The General Services Administration (GSA) is one of the largest owners of real estate in the country, composed primarily of office buildings and courthouses, land ports of entry, and warehouses.  The GSA owns and leases more than 354 million square feet of space in 8,600 buildings across the nation.

The GSA is also the owner of one of the greenest real estate porfolios.  As of the summer of 2010, the GSA had 48 LEED-certified owned and leased buildings with approximately 150 more working towards accreditation. Eighteen of those projects exceeded the minimum with LEED Gold certifications, and one GSA lease, the FBI Regional Office in Chicago, achieved a Platinum LEED rating for Existing Buildings.  The GSA has required LEED Silver certification for its projects for some time, and now requires that new Federal buildings achieve LEED Gold certification.

While I was at GreenBuild in Chicago, I had the chance to sit down with Kevin Kampschroer, GSA’s Director of the Office of Federal High-Performance Green Buildings and Eleni Reed, GSA’s Chief Greening Officer.

We talked about GSA’s experience greening the Federal government’s real estate portfolio, implementing the GSA’s LEED Gold requirement and the challenge–and benefits–of trying to do four times as many contracts as the GSA normally does because of the influx of $5 billion in Stimulus funding. 

Here is what they said:

GBLB: What has the GSA done with the Stimulus money? 

KK: The GSA has a bit of a different position than other agencies because the GSA actually enters into the contracts with builders and other receipients, as opposed to granting funds to states and other entities that ultimately contract with the recipients.  As of the end of September we had awarded $5 billion [for greening the Federal real estate and fleet].  After the award, it takes some time for the contractor to get the contract and hire the people and do the work, but we have made $1 billion in payments so far.

GBLB: What was impact of the Stimulus money on the GSA?

KK:  As a result of the Stimulus, we awarded four times as many contracts as the GSA usually does in the same period of time.  This forced us to find ways to be more efficient in what we were doing.  For example, we started “speed dating.”  Where decisions had to be made, we put all the decision makers in a room togther to come to a decision quickly.  Executives and managers had to delegate some of the decision-making to ensure efficiency. 

Because the projects had to be “shovel ready,” many of the designs were already done.  The designs met our specifications, but were not necessarily the best possible designs–the most you can do with the budget that you have.  Going forward, we are retooling our performance criteria and specifications to spur teams to be more innovative and creative with the budget they have.

For example, the National Renewable Energy Laboratory is a net-zero building.  We gave the team specifications, and we incentivized the team by paying them mroe the closer they got to the goals.

For other projects, we had a relatively brief minimum performance criteria which was a goal statement for the project.  It has resulted in more rapid and more innovative designs. However, this requires accepting a shift in risk to the Government side.  But the less risk you take, the less you get [in terms of innovation and design.]

This also has implications for allocating capital.  The GSA has to allow for approximation up front and not require everything to be fixed from the beginning of the project.  

GBLB:  Now that you have all these green buildings, what are you going to do next?  

ER: We are looking to get good metrics about whether we are doing what we set out to do [in terms of building performance].  We have 250 buildings with baseline metrics across a wide variety of project types so we should be able to get some good data. 

GBLB: How will the experience with the Stimulus funds impact the agency going forward? 

KK: We will be more efficient and more effective.  We will have achieved significant improvement in our portfolio [of buildings].  The budget will be extremely lean in the future.  It will be important to apply the lessons we have learned [about how to do projects more efficiently] to operating and maintaining the buildings to prevent deterioration.  We have an opportunity in tracking the performance of the inventory over time and across the portfolio.

GBLB: What about your requirement that GSA projects achieve LEED Gold certification?

KK: We select contractors who know that this is the expectation.  We have been doing LEED Silver for a decade, this is raising the bar to LEED Gold, but the architect and engineering firms know how to do it. 

When we budget the project, we have adjusted the process to allow for LEED Gold certification.  We have done studies on standard versus green construction, you can do LEED Silver for less than conventional construction because of integrated design. 

GBLB: Have you ever had a project fail to get the mandated certification? 

KK: The way we started out was that our goal was LEED Silver.  We have had building that did not reach that level of certification, but never had one that failed to acheive minimum LEED certification.

For more on the GSA’s efforts, Architecture Week had an article by Kevin, and Kevin’s testimony before the House Subcommittee on the GSA’s Stimulus efforts is available here.

–  by Shari Shapiro – Dec. 9, 2010 – Sustainable Cities Collective

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Federal stimulus contract work switched amid delays

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Citing persistent work delays, state officials have decided to replace a contractor weatherizing homes with federal stimulus money for low-income people in Cobb County.

The Georgia Environmental Finance Authority is taking part of its $7.6 million stimulus contract away from Gainesville-based Ninth District Opportunity and giving it to Tallatoona Community Action Partnership to do the work in Cobb.

Ninth District also must team up with North Georgia Community Action to continue doing its weatherization work in Forsyth and 12 other North Georgia counties. As of Aug. 31, Ninth District had weatherized 175 homes, state records show. State officials expected the agency to have more than twice the number done by then.

GEFA is also considering taking away part of Columbus-based Enrichment Services Program’s $4.5 million contract and giving it to one or more other agencies to do the work in Stewart, Randolph, Clay and Talbot counties. Between August of last year and September of this year, Enrichment Services weatherized 79 homes, meeting less than half of its goal of 206, state records show. ESP has until Nov. 11 to either accept GEFA’s plan or say why it should reconsider.

Officials with Enrichment Services and Ninth District did not respond to requests for comment Friday.

The American Recovery and Reinvestment Act includes $5 billion to weatherize homes for low-income families nationwide, create jobs and cut utility bills, energy use and pollution. The federal government is divvying up the money among the states, which are hiring community action agencies, nonprofits and local governments to do the work.

— by Jeremy Redmon – The Atlanta Journal-Constitution – Oct. 29, 2010

New report shows significant potential for renewable energy in the South

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The South could generate 20-30 percent of its electricity from renewable energy sources within the next 20 years – up from less than 4 percent today — if strong federal policies are enacted, according to a report released today by researchers at the Georgia Institute of Technology and Duke University. The analysis, “Renewable Energy in the South,” finds that conventional wisdom has underestimated the available renewable resources in the region and that a federal renewable electricity standard (RES) would enable the South to capitalize on this untapped renewable energy potential.

Read the Full Report Here: http://www.spp.gatech.edu/aboutus/workingpapers/renewable-energy-in-the-south

The South lags behind all other regions in renewable electricity, obtaining 3.7 percent of its power from renewable sources, compared to 9.5 percent for the country as a whole. Only four states (Delaware, Maryland, North Carolina, and Texas) have a state-level renewable portfolio standard, while three others have voluntary renewable energy goals.  The fate of renewables in the South is not only important for the region, but for the nation as a whole since, in 2008, the region accounted for 44 percent of the country’s energy consumption.

Opponents of renewable energy production claim that the South lacks the renewable energy resources to capitalize on the growing demand for clean energy.  However, the report finds that there are abundant renewable energy resources available that can be tapped if supportive policies are put in place. The report shows that if a 25 percent (by 2025) federal RES is enacted, the amount of electricity supplied by power companies from renewable sources could increase more than 250 percent above the level expected in 2030 if no new federal renewables policies were enacted.

A number of other studies have shown a large potential for renewable energy in the South,” said Etan Gumerman of Duke University’s Nicholas Institute and co-lead researcher of the study.  “Our study shows that significant increases can actually be achieved, particularly through supportive local or federal policies.”

The report, using a customized version of the economic modeling system used by the U.S. Energy Information Administration, finds that a federal renewable electricity standard and carbon pricing system would increase the proportion of electricity derived from renewable sources by power companies in every state, particularly in wind and biomass. By 2030, the report shows, federal carbon pricing policy would increase renewable electricity production in the South by 390 percent.

“Countries around the world are already tapping into the potential of renewable energy, and are capturing export markets and generating jobs in the process,” said Dr. Marilyn Brown of the Georgia Institute of Technology and co-lead researcher of the study.  “The report demonstrates that although many states in the South are off to a slow start, renewable initiatives are now underway across the region, and the potential for expansion is promising.”  

In addition, the report finds that electricity produced by end-users, such as households and businesses using small-scale solar electric and heating facilities, would also benefit from federal policies and could supply a substantial portion of the region’s renewable electricity.  Under a 25 percent RES, for example, renewable electricity supplied by utilities and end-users could increase by 154 percent. Carbon pricing policy could lead to a 266 percent increase above the total level of renewable electricity expected in the absence of federal policy changes.

“In the future, households and businesses have the potential to become major suppliers of clean, renewable electricity,” added Dr. Brown.  “This changes the way we need to think about the South’s renewable energy potential.”

About Dr. Marilyn Brown and Georgia Tech:

Dr. Marilyn Brown, a professor in the School of Public Policy at the Georgia Institute of Technology, is an internationally-recognized leader in the analysis and interpretation of energy futures in the United States. In 2007, Brown was a co-recipient of the Nobel Peace Prize along with the other members of the Intergovernmental Panel on Climate Change and Vice President Al Gore. Additional information about Brown and her research can be found at http://www.spp.gatech.edu/faculty/faculty/mbrown.php.  Brown has been nominated to serve on the Board of the Tennessee Valley Authority and awaits confirmation.   

Georgia Tech’s Ivan Allen College of Liberal Arts offers one of the world’s top public policy programs. The research-intensive and globally engaged curriculum aims to solve complex problems in the public interest related to issues of research and technology, energy and sustainability, economic development and governance. The School of Public Policy is dedicated to scholarship and learning that is reflective, effective and sustainable.

About Etan Gumerman and Duke University’s Nicholas Institute:

Etan Gumerman is a scientific engineer at the Nicholas Institute for Environmental Policy Solutions at Duke University.  Prior to joining the Nicholas Institute, Gumerman was employed by Lawrence Berkeley National Lab and served as the lead modeler and analyst for the Scenarios for a Clean Energy Future Project.  In this role, Gumerman coordinated the efforts of scientists at five national laboratories.  

The Nicholas Institute is a nonpartisan institute founded in 2005 to help decision makers in government, the private sector, and the nonprofit community address critical environmental challenges. The Institute responds to the demand for high-quality and timely data and acts as an “honest broker” in policy debates by convening and fostering open, ongoing dialogue between stakeholders on all sides of the issues and providing policy-relevant analysis based on academic research. The Institute’s leadership and staff leverage the broad expertise of Duke University as well as public and private partners worldwide. Since its inception, the Institute has earned a distinguished reputation for its innovative approach to developing multilateral, nonpartisan, and economically viable solutions to pressing environmental challenges.

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Carpet manufacturer focuses on energy efficiency with Georgia Tech assistance

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When managers at a Dalton, Ga.-based carpet manufacturer agreed to host a group of Georgia Tech students as part of a mechanical engineering course, they had no idea they’d also be learning some important lessons themselves. Students visited two plants at Beaulieu of America to evaluate energy-saving opportunities.

“We had a group of students at two of Beaulieu’s plants in Dalton, and they really helped us. It’s good to get the students out of the classroom to see real things,” said Bob Hitch, a project manager with Georgia Tech’s Enterprise Innovation Institute. “And then we talked about multiplying those opportunities throughout all of the company’s plants and getting everybody up to speed.”

With funding from the Georgia Environmental Partnership (GEP), Beaulieu was able to have water, energy efficiency and conservation assessments conducted at five of its facilities. GEP includes the Sustainability Division of the Georgia Department of Natural Resources (DNR), the University of Georgia’s Engineering Outreach Service and Georgia Tech’s Enterprise Innovation Institute. The Sustainability Division helped Beaulieu address its water conservation issues and Georgia Tech provided assistance on the energy efficiency assessments.

“We conducted one-day site visits at each plant. During the mornings, we held overview meetings on energy issues that were important to specific plants, like energy management, boilers and steam systems, large motors and drives or compressed air systems,” Hitch recalled. “Then we walked through the facility and observed where we could conserve energy.”

The objectives of each site visit were to understand how management systems apply to energy conservation, recognize significant cost saving opportunities and typical paybacks, and identify specific opportunities at each facility. After determining the major energy uses at each facility, the team determined what additional data and metering devices were needed for conservation calculations. After the data were collected, Hitch and other energy specialists at Georgia Tech guided the energy conservation analysis and made energy conservation recommendations for each facility.

“This project highlighted some good opportunities,” recalled Troy Slatton, mechanical engineer with Beaulieu. “Saving energy is really a continuous process – there are a lot of little things you need to do to capture the savings. You don’t go through just one time and fix things; it’s a recurring event that has to be monitored.”

According to the findings of the study, Beaulieu could reduce its utility usage by almost 15 percent with an estimated annual savings of $2 million. Georgia Tech engineers trained Beaulieu staff so well that the corporate engineering staff recently led the training and baseline assessment for the company’s sixth facility themselves. According to Slatton, plant personnel awareness has increased through participation in the projects, and management is enthusiastic about the corporate culture change.

“We have a project on one of our coater ovens that is attempting to reduce our natural gas usage by reducing the oven’s exhaust rate,” noted Slatton. “We’ve had good results over the past eight months and are continuing to implement and track the results.”

In addition to the energy conservation projects, Beaulieu enlisted the help of DNR to assist with its water conservation efforts. DNR engineers examined water and sewer bills, toured each facility and focused on common water users and maintenance issues. The recommended savings totaled more than 25 million gallons per year, or $81,600. Six months into the implementation, the team had already documented $60,000 in savings.

“There’s a great value for what Georgia Tech and the Department of Natural Resources do,” Slatton said. “But it’s up to us to implement these recommendations and make energy and utility savings a priority.”

About Enterprise Innovation Institute:

The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.

Research News & Publications Office

Enterprise Innovation Institute

Georgia Institute of Technology

75 Fifth Street, N.W., Suite 314

Atlanta, Georgia 30308 USA

Media Relations Contacts: Nancy Fullbright (912-963-2509); E-mail: (nancy.fullbright@innovate.gatech.edu) or John Toon (404-894-6986); E-mail (john.toon@innovate.gatech.edu).

Writer: Nancy Fullbright, June 14, 2010

Navy wants to establish a preferred supplier program

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Most major companies have them, and now the Navy wants one too — a preferred supplier program that would give preference to contractors that have demonstrated superior performance in controlling costs, meeting schedules, providing quality services and products, and reducing energy consumption.

Through a May 24 notice in the Federal Register, the service is seeking industry feedback for establishing a pilot program that would reward qualifying companies with things such as more favorable progress payments, tailored reporting requirements and special award fee pools.

Designation as a preferred supplier would not be a factor in contract awards, but solicitations could contain terms and conditions that would apply to preferred suppliers after a contract is awarded.

“Companies in the private sector that have implemented PSPs have significantly improved performance. Cash flow, profit, and contract terms and conditions that reduce contractor costs and risk are powerful incentives that can be used to motivate contractors to perform at a high level,” the notice said.

The Navy currently negotiates business arrangements on a contract-by-contract basis. “As a result of this decentralized and individual approach, [the Navy] loses an extremely important opportunity,” the notice said.

Secretary of the Navy Ray Mabus said in a statement he intended to “reward contractors with favorable contract terms and conditions and favorable payment schedules in return for consistent and exemplary contract performance.”

At least during the pilot phase, the Navy intends to rate its top 25 contractors using the Contractor Performance Assessment Reporting System to develop a baseline of performance data.

Factors the Navy intends to consider include technical competence, ability to meet schedule, cost control, management responsiveness, oversight of key personnel, and a company’s use of small business. In addition, the Navy will assess energy efficiency for all contractors as an excellence factor.

The notice stated, “Energy efficiency is a critical [Navy] requirement significantly impacting the successful achievement of [the service’s] missions.” It specifically seeks feedback on how the department should evaluate companies’ use of energy as relates to the life cycle of its products.

Companies have until July 23 to submit comments.

–  By Katherine McIntire Peters – GovExec.com – May 27, 2010

Feds stand behind energy savings performance contracts

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By Katherine McIntire Peters – govexec.com – March 19, 2010 – Federal leaders on Friday emphasized their support for using energy savings performance contracts to meet efficiency requirements, but told industry leaders they must work together to improve management and oversight of such contracts.

Energy savings performance contracts, or ESPCs, allow agencies to invest in green building upgrades with little upfront cost: companies finance the improvements in exchange for a share of the savings from reduced energy consumption.

“The issue of energy efficiency has never been more relevant for the federal government,” said Richard Kidd, program manager for the Federal Energy Management Program at the Energy Department, in an address to members of the National Association of Energy Service Companies in Washington.

Recent laws have put tremendous pressure on agencies to reduce petroleum, water and electricity consumption, and in October 2009 President Obama signed Executive Order 13514, which required agencies to measure and reduce greenhouse gas emissions as well.

But an inspector general analysis of Energy Department ESPC contracts in September found that much of the savings stipulated in the contracts could not be verified, and in some cases equipment installed under the pacts was not being maintained. Some contracts were in such disarray that the department continued to pay for energy savings in four buildings that had been demolished.

“We went back and visited all the DOE sites and found that people involved in development [of the ESPC contracts] were no longer there, and new people were not [knowledgeable] about the contracts,” said Ab Ream, a technology program specialist at Energy who spoke to the industry executives.

“It was a huge effort,” Ream said, adding that both government and industry officials must perform better. Improving the way energy savings are measured and verified will be central to restoring confidence in the contracts, he said.

Federal officials want future ESPC deals to take a more comprehensive approach to improving efficiency, Kidd said. For example, while it may be worthwhile to upgrade to a more efficient heating system, if heat is escaping through a leaky roof, then those benefits will be minimal.

In addition, Energy wants ESPC contracts to embrace more new technologies being financed through agency laboratories, Kidd said.

Industry officials expressed some concern about whether federal contracting officials were ready to embrace more comprehensive ESPC contracts in the way Kidd described, and wondered how receptive they would be to adopting new technologies. Kidd acknowledged Energy and Obama administration officials must do a better job of training agency contract professionals in making the best use of the tool.

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