GSA awards $210 million contract for new energy conservation measures at multiple facilities in the National Capital Region

January 14, 2025

Funded by Inflation Reduction Act as part of President Biden’s Investing in America agenda

WASHINGTON - The U.S. General Services Administration (GSA) awarded an Energy Savings Performance Contract to CEG Solutions, LLC to deploy energy and water upgrades in multiple GSA-facilities in the National Capital Region.

This award leverages $116,416,197 in Inflation Reduction Act funding to enable deep energy retrofits through energy conservation measures, building electrification and American-made low-embodied carbon materials.

The facilities covered by this contract include the Markey National Courts Building, Dolley Madison House, Cosmos Club, Tayloe House, 601 4th Street NW, The National Building Museum (Pension Building), Sidney Yates Federal Building (Auditors Building), Lyndon B Johnson Federal Building, Mary E. Switzer Federal Building and the U.S. Tax Court Building.

These projects, which are part of GSA’s overall plan to reduce about $450 million in energy costs across its real estate portfolio through the Inflation Reduction Act, will modernize building systems, improve energy efficiency, cut greenhouse gas emissions and convert nine of the buildings to operate exclusively on electric power.

“This project demonstrates how President Biden’s Investing in America agenda is helping to achieve a triple win of creating more jobs, lowering energy costs for taxpayers, and building healthier communities for all Americans,” said GSA Administrator Robin Carnahan. “By implementing innovative efficiency measures, we’re harnessing the best of American ingenuity to make the federal footprint more efficient while saving taxpayer dollars in the process.” 

All these federally-owned buildings are completely dependent upon the 90-year-old GSA-operated Heating Operations and Transmission District steam plant for their space heating. This project will increase each building’s resiliency and eliminate each building’s dependence on the heating plant.

Project goals are to use Inflation Reduction Act funds and reductions in utility expenditures leveraged through the Energy Savings Performance Contract to increase operational efficiency and resiliency, upgrade and improve building conditions, address long-term needs, and improve infrastructure. Other notable energy conservation measures to be implemented include upgrades to chillers, lighting and controls, building  automation systems, building envelopes, domestic water systems, and replacement of transformers. The project will generate an estimated annual energy savings of 66,920 MMBtu, equivalent to the energy usage of 1,182 homes, with a cost savings of over $4 million,  and an estimated annual water savings of 2,666 kGal.

An Energy Savings Performance Contract is an agreement between a federal agency and a U.S. Department of Energy-qualified energy service company. The service company conducts a comprehensive energy audit of federal facilities and identifies improvements to save energy. In consultation with the federal agency, the service company designs and constructs a project that meets the agency’s needs and arranges the necessary funding. Energy Savings Performance Contracts facilitate partnerships with the private sector to help stretch appropriations further, and deliver more with the available resources.

The Biden-Harris Administration is leading by example to tackle the climate crisis through President Biden’s Federal Sustainability Plan, which directs federal agencies to achieve net-zero emissions by 2050, including net-zero emissions from all federal buildings by 2045. The investments announced today are a part of the Administration’s Climate Smart Buildings Initiative and will help GSA on its ambitious plan to achieve net-zero emissions from federal buildings by 2045.

“GSA and PBS are proud of our continued collaborative work with other agencies in all areas to improve the performance of our buildings,” said Elliot Doomes, Commissioner of GSA’s Public Buildings Service. “This project demonstrates how we can incorporate sustainability measures while maintaining efficient and effective services provided to the American taxpayer.”

The Inflation Reduction Act includes $3.4 billion for GSA to build, modernize and maintain more sustainable and cost-efficient high-performance facilities that utilize low-embodied carbon materials. GSA’s Inflation Reduction Act projects will implement new technologies and accelerate GSA’s efforts to increase efficiency and reduce pollution. Through these investments, GSA estimates that it will reduce operational carbon emissions by 2.3 million metric tons, the same amount that 500,000 gasoline-powered passenger vehicles produce each year.

For more information about GSA’s Inflation Reduction Act projects, visit Inflation Reduction Act.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 360 million rentable square feet, overseeing more than $110 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.