Performance Contracting - Lesson Learned

Marvin Kirshenbaum, Argonne National Laboratory

• A better understanding needs to be provided for the ECM evaluation process with regard to risk.
• How does consideration of risk management affect the assumptions that go into the energy and subsequent economic analysis of an ECM?
• What is the impact to the owner when the ESCO's analysis is biases toward risk avoidance?
• Does the owner get more or less value in implementing the ECM?
• For facility owners with strong in house engineering and maintenance staff, greater emphasis needs to be placed on collaboration between the owner's technical staff and the ESCO's engineers in identifying potential projects.
• This collaboration should be carried through the conceptualization of the design proposals.
• Prior to completion of the final project proposal discuss and detail the format for all post construction reports.
• A consensus between the owner and the ESCO should be reached that provides a reporting format that easily and clearly defines the system performance and cost savings.
• Prior to acceptance of the final project proposal, the contract documents must clearly specify the Measurement and Verification (M&V) Protocol.
• A clear and “plain English” description of how the energy, maintenance, and other savings are being generated should be provided.  This description should be tailored to enable those tasked with the M&V effort to properly evaluate the performance of each ECM and the applicability of the data collected for reporting.
• Clearly define all variables and data to be measured and recorded for verification of energy and operation cost savings.
• Specifically, the mathematics, equations, and calculations must be fully developed and included in the M & V methodology.
• All equations used in spread sheet, computer software, or automated energy reporting systems must be explicitly called out and defined using standard mathematics and engineering formats.
• We need to have a more comprehensive understanding of the tools required for proper M&V.
• Discuss reliance on the typical building automation system (BAS) for this function.
• Is the typical BAS capable of this function?
• Should the use of specialized energy and metering software be advocated?

Biography:

Marvin Kirshenbaum is a senior project mechanical engineer at the Advanced Photon Source (APS) facility at Argonne National Laboratory. He is responsible for new design and engineering support of facility operations at the APS. Mr. Kirshenbaum holds a B.S. degree in Aerospace Engineering from the Illinois Institute of Technology with post graduate work at the University of Illinois, Chicago. He is a CEM and CMVP He has spent the last 24 years providing engineering support at the APS.

Note: I²SL did not edit or revise abstract or biography text. Abstracts and biographies are displayed as submitted by the author(s).