Guidance, Oversight Key as Agencies Seek New Ways to Save

July 8, 2012

As traditional funding streams dry up, agencies increasingly are embracing unconventional methods to get the goods and services they need but don't have funds for.

many are employing Energy Saving Performance Contracts to renovate their facilities with energy-efficient fixtures and systems, for example. In these deals, the contractors bear the upfront renovation costs and are paid back with energy cost savings those upgrades generate each year. Similarly, the Defense Department and a host of other agencies are conducting more reverse auctions — online offerings of contracts to the lowest bidder — to secure rock-bottom prices on everything from medical equipment to janitorial services.

There are other examples. Military services use so-called enhanced-use leases to trade the use of unused properties on military bases for cash, energy or renovations of dilapidated facilities. 

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