HomeReportsAll DoD OIG Reports

Air Force Civil Engineer Center Management of Energy Savings Performance Contracts Needs Improvement

DODIG-2016-087

PRINT  |  E-MAIL

Objective

Our objective was to determine whether the Air Force is effectively managing energy savings performance contracts (ESPCs). This report is the second in a series of audits on ESPCs.

Finding

The Air Force Civil Engineer Center (AFCEC) did not centrally manage 52 existing ESPCs, collectively valued at $849 million, effectively. Specifically, AFCEC did not perform post-award project management, track project status, verify statutorily required energy savings, track required ESPC training, or maintain ESPC lessons learned. This occurred because AFCEC officials:
  • considered program management of existing ESPC task orders to be an installation responsibility and training to be a Department of Energy (DOE) responsibility,
  • did not believe AFCEC could centrally manage ESPC projects with existing resources, and
  • focused on meeting Air Force goals to develop additional ESPC projects rather than managing existing projects.

As a result, Air Force officials do not know whether the 52 existing ESPC projects achieved contractor-guaranteed energy savings, which were to be the basis of payments to the project contractors.

Recommendations

We made nine recommendations to the Commander, AFCEC, to improve ESPC controls and to validate energy savings for existing projects. These recommendations included: revising existing procedures to establish and maintain a mechanism to track energy savings and ESPC project status for planned, in-process, completed, and terminated Air Force projects; developing and maintaining a process to coordinate with DOE for post-award ESPC technical review services; accessing DOE ESPC training data of Air Force personnel; and coordinating ESPC training for Air Force stakeholders. In addition, we recommended the Commander develop and maintain an ESPC lessons learned mechanism for Air Force use, a management plan for AFCEC and Base Civil Engineer oversight of existing Air Force ESPC projects, and a plan to provide post-award ESPC technical support using available Air Force or DOE engineers.

Management Comments and Our Response

Comments from the Director, AFCEC, addressed all the specifics of the recommendations and no further comments are required.

 

This report is a result of Project No. D2015-D000CI-0200.000.