GSA awards $183 million contract for new energy conservation measures at the Denver Federal Center

January 13, 2025

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

DENVER - The U.S. General Services Administration (GSA) awarded an Energy Savings Performance Contract to Ameresco for energy savings and conservation measures at the Denver Federal Center.

This award leverages $140,229,695 in Inflation Reduction Act funding to enable deep energy retrofits through energy conservation measures, building electrification and American-made low-embodied carbon materials. The project will cut grid-purchased energy use by approximately 51% and water usage by approximately 10%. This will result in Year One cost savings of more than $2 million stemming from electricity savings of 24 million kWh and natural gas savings of 85,000 MMBtu. The project also will modernize energy infrastructure at the Federal Center, reduce lifecycle operating costs and mitigate risk associated with future fossil-fuel price volatility.

The contract includes a centralized geothermal heat pump system and a solar photovoltaic system to supply year-round heating, cooling and electrical power for the 623-acre Denver Federal Center. These systems, along with new windows and other energy conservation measures, will eliminate approximately 50 percent of fossil fuel consumption at the Federal Center and allow for self-generated solar photovoltaic to electrify approximately half of the campus.

“These investments are a prime example of how Inflation Reduction Act investments get us a triple-win: creating good jobs, saving taxpayer dollars through energy efficiency, and ensuring a healthier, brighter future for our communities and our kids,” said GSA Administrator Robin Carnahan. “We look forward to working with industry and other stakeholders as we maximize the impact of these investments.”

The Inflation Reduction Act made the largest investment to combat climate change in history.

“Colorado is uniquely positioned to benefit from it and lead the transition to a clean energy economy,” said Senator Michael Bennet. “I’m glad that this funding will help conserve energy and reduce pollution from the Denver Federal Center — home to the largest concentration of federal agencies outside of Washington.”

“This investment will not only improve the Denver Federal Center’s infrastructure but also provide a solution that helps reduce the effects of climate change with products made right here in America,” said GSA Regional Administrator Denise Maes.

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. These efforts are a part of the Administration’s Climate Smart Buildings Initiative.

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 in achieving a net-zero emissions federal building portfolio by 2045. 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 GSA’s Inflation Reduction Act webpage.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of over 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.