Department of Energy (DOE) Federal Energy Management Program (FEMP) Energy Savings Performance Contract (ESPC) Indefinite Delivery, Indefinite Quantity (IDIQ), Generation 4 Procurement is an anticipated partial small business contract opportunity by the Department of Energy.

A pre-solicitation notice type was released in the official website of Federal Business Opportunities to notify the industry that DOE FEMP intends to issue a competitive solicitation for Energy Savings Performance Contracts (ESPCs).

Through this acquisition, the contract allows an Energy Services Company (ESCO) to arrange for financing to develop and install energy, water conservation, and renewable energy projects at Federally-owned facilities.

The purpose of contracts by the Department of Energy (DOE) Federal Energy Management Program is to obtain energy and water cost savings through the implementation of high-end technologies and other innovative improvements for various facilities of Federal agencies.

This contract will enable the enhancement of resilience, modernization of the infrastructure while improving the mission assurance through advanced technologies such as the distribution of generation and energy storage, renewable energy technologies, continual/ongoing commissioning, and energy and water conservation services.

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The Opportunity in More Detail

Currently, DOE FEMP provides an efficient process for Federal agencies, allowing them to enter the ESPC program through ID/IQ contracts, which for the moment administers three generations of such contracts for Energy Savings Performance Contracts services.

These contracts can include convenient process improvements that reduce the consumption of energy and water, including the maintenance costs for energy and water-related operations. ESPC’s projects that meet the agency’s’ needs will be designed and constructed by an Energy Services company in consultation with an ordering agency.

The contract will be a full and open competition for a multiple award IDIQ with a Small Business Award Reserve. The Government, Department of Energy is planning to award a total of 15 ID/IQ contracts with up to five (5) awards reserved for small business concerns. Of course, in case the Government’s interests are in sake, DOE reserves the right to change the number of awards to both large and small business concerns.

The Government is considering to allow joint ventures under the SBA’s Mentor-Protege program for a small business IDIQ award for the procurement; however, the agency will not select any business concern for more than one IDIQ award either directly or indirectly through a joint venture due to competitive reasons. Task Orders issued under the ESPC IDIQ contracts may have a period of performance for up to 25 years.

What interested contractors must know?

According to the notice, the instructions and evaluation factors of Generation 4 will be different from the previous Generation 3 opportunity. Nevertheless, interested contractors are encouraged to read the solicitation to have a general idea of the type and volume of information that may be requested in a proposal for an ESPC IDIQ contract.

All potential contractors must be on the Qualified List of ESCOs prior to award, as well as be registered in the System for Award Management (SAM) database prior to award.

The anticipated duration of the contract period is a 5-year base, with a 5-year optional period. Its maximum ceiling value reaches $4 billion per IDIQ contract.


When the solicitation is released, it will be available on FedConnect, with a link to FedConnect on FEDBIZOPPS. While not required to view the pending solicitation, all Offerors must be registered in FedConnect in order to submit a proposal. 

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