Corrections Department to Save with Performance-Based Contract
Corrections Department to Save with Performance-Based Contract
Under the terms of a 15-year performance contract, Mississippi Department of Corrections (MDOC) has been guaranteed more than $6 million in energy and operational costs.
The MDOC is the first state agency in Mississippi to enter into a performance contract. Such agreements typically allow an entity to purchase a systems upgrade and/or service that pays for itself over time, with no upfront costs. The savings in energy and operating costs fund the building improvements and financing costs over a specified term, and the savings are guaranteed on an annual basis.
The contractor, Siemens Building Technologies, Inc., will provide the MDOC with a comprehensive energy and water management program that guarantees energy and operational savings estimated to be $430,000 per year at current energy prices.
“This joint partnership will serve as a representation for how other state departments throughout Mississippi might achieve an efficient and effective operation of their facilities,” said MDOC Commissioner Chris Epps.
The program, which began in May, will take eight months to complete. It will involve upgrading existing lighting to higher efficiency lighting in three state prisons (Mississippi State Penitentiary, Central Mississippi Correctional Facility, and South Mississippi Correctional Institute), 17 community work centers, and three restitution centers. The higher efficiency lighting in these facilities will consume 42 percent less energy.
Siemens will also install an energy management control system to improve the efficiency of heating, ventilation, and climate control equipment in the three state prisons, along with an Ozone Re-Circulating Laundry System that will provide significant reductions in both hot water and total water usage.
In addition, Siemens will replace an old 80-ton chiller with a new one at the South Mississippi Correctional Institute. The replacement of older mechanical equipment with new, more efficient equipment will not only save energy, it also will reduce maintenance cost.
“This venture will result in operational savings that by far exceed the installation cost associated with it, in addition to its continuing maintenance and support costs,” said Epps.
