MILWAUKEE - In an effort to improve its aging infrastructure, the Department of Veterans Affairs (VA) has given Johnson Controls notice to proceed with the second phase of a $14 million energy savings performance contract. The contract includes VA facilities in South Dakota and Minnesota, an area known as Veterans Integrated Service Network 23 (VISN 23). The performance contract was developed to enable the VA to modernize these facilities and improve energy efficiency without impacting its operating budget.

The first phase of the contract, which was completed in September 2003, enables VISN 23 to reduce annual energy consumption by more than $650,000, according to Johnson Controls. These guaranteed savings were used to pay for such infrastructure improvements as new light fixtures, window replacements, and new boilers.

In the second phase, Johnson Controls will implement energy conservation measures that will result in an additional $660,000 in guaranteed annual energy and operational savings. The guaranteed savings will pay for additional improvements, including an expansion of existing energy management systems, and upgrades to the HVAC systems and chillers. The savings will also fund the installation of a laser-guided automatic guided vehicle system, which will transport linens, food trays, and other items throughout the 1.6 million-square-foot facility without the need for additional personnel.

The total improvements will yield an estimated annual energy and operational savings of $1.3 million.

Publication date: 03/08/2004