July 28, 2003
VA Handbook 0055
Investment Board/Strategic Management Council (SMC) will occur. If planned ECMs are
below established thresholds, investments are still subject to OAEM approval.
d. Step Four Investment Process.
(1) Administrations and staff offices will procure the identified ECMs in accordance with the
OAEM-approved Energy Investment Strategic Plan.
(2) For competitive pricing procurement processes using appropriated funds or third-party
financing, obtain a detailed EA (phase III of the EA) based on the selected ECMs and a
solicitation package from the EA contractor. The solicitation package will be used for a
competitive pricing procurement either through full and open competition or the General
Services Administration (GSA) Federal Supply Schedule. Selection of the contractor will be
based on criteria identified within the solicitation package.
(3) The non-competitive pricing procurement process for third party financing will use one
of the following: Department of Energy, Department of Defense, or GSA ESPC procedures, or
VA's enhanced-use leasing procurement tools, or a GSA utility energy savings contract. VA
would provide the initial energy assessment to the selected energy savings contractor (ESCO)
for the procurement process identified by the approved investment decision matrix. The
procurement process will follow the guidelines of the selected agency's procurement tools.
(4) The non-competitive pricing procurement process will be accomplished either at VACO
or administration/staff office regional level after receiving approval of the proposed investment
strategies. The following additional VA procurement guidelines are to be used in performing
the procurement method:
(a) Elimination or substantial reduction of contingent termination liabilities compared to
those experienced in current ESCP third-party financing.
(b) The investment interest rate for any ESPC delivery order shall not exceed a maximum
of 100-125 basis points above the 10-year Treasury Bond rate published on the date of
closing. Any proposed higher rates will be submitted in writing with justification for approval to
OAEM.
(c) The total payback period of the amortized debt shall not exceed 10 years or the useful
life of any one ECM.
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