Part of the energy savings performance contract (ESPC) process involves selecting an energy services company (ESCO) that will most cost-effectively meet your energy savings needs.  

How should you select an ESCO for your ESPC project?

Answer—Consider the following when selecting an ESCO for your ESPC:


  • Contact your state energy office to find out if your state has an ESPC umbrella contract.
    • If so, use it, if your procurement agent agrees that you can do so.
    • If not, develop a Request for Proposal (RFP). Consider using the model procurement and contracting documents the Energy Services Coalition has created.
  • Select several ESCOs that operate in your geographical area. The National Association of Energy Service Companies (NAESCO), DOE’s qualified ESCO list, and the Energy Services Coalition recommend resources for identifying ESCOs.

  • Collect building and utility data.

  • Issue an RFP to selected ESCOs.

  • Hold a pre‐bid meeting and a facility walk‐through with all selected ESCOs at the same time.

  • Explain the project’s overall objective to the ESCOs, including minimum energy savings percentage goals.

  • Limit the ESCOs to 30 days to develop proposals.

  • Receive proposals from ESCOs.

  • Review proposals and select the ESCO that best suits your project and that you feel will be the best long-term partner for your organization.

You can view a presentation called The Procurement Process: Selecting an ESCO for a Project on the NAESCO website. It explains what information you should request in the RFP and ESCO evaluation.

For additional information or assistance in selecting an ESCO, or other ESPC-related questions, please submit a comment to this post or contact the Technical Assistance Team. Project resources are also accessible through the Solution Center.

Content for this Blog post courtesy of Sentech-SRA/ICF International