ARLINGTON, Va. — Siemens has been awarded a $38.6 million contract by the Federal Bureau of Prisons (BoP) to implement a comprehensive set of energy and water conservation measures at two correctional facilities in eastern Kentucky that are expected to save the federal government and taxpayers $2.5 million annually.

Siemens Government Technologies Inc. (SGT) will implement this work through an energy savings performance contract (ESPC), a financial mechanism that allows federal agencies to reduce their energy use and costs by accelerating investment in cost-effective conservation measures while incurring no capital costs. The cost of the project is being funded by energy savings generated through energy conservation measures being installed and operated by the Siemens Building Technologies Division. The annual energy savings are guaranteed by Siemens and the project is expected to pay for itself in 20 years.

Siemens will make these energy and water conservation measures at the Federal Correctional Institution (FCI) in Ashland and the Federal Medical Center (FMC) in Lexington, both minimum security facilities. Siemens will implement 44 individual projects that will bring modern energy and water savings equipment and building automation systems into facilities that date to the 1930s and 1940s. Conservation measures include replacing HVAC systems and upgrading lighting and water infrastructure. Perhaps most significant, Siemens will replace the steam facility at the Lexington site with a modern high-efficiency facility outside the security fence. Repositioning the steam plant outside the security fence greatly simplifies its construction and long-term maintenance and reduces the overall cost of operation.

In addition to helping to meet federal mandates to improve the sustainability of federal buildings, Siemens will install technologies that will require less maintenance and, therefore, lower life-cycle costs. Modern rooftop HVAC systems, high-efficiency refrigeration systems for kitchen facilities, modern building automation systems, modern LED lighting, low-flow sink and shower fixtures, and laundry water recycling systems will anchor the projects at both locations.

The energy and water savings will support the BoP’s efforts to meet its White House mandate as outlined in Executive Order (EO) 13693 that federal facilities reduce their energy consumption by 2.5 percent per year and potable water consumption by 2 percent per year by fiscal year 2025.

“Siemens is proud to partner across the federal government by applying our innovative energy and environmental expertise to help agencies meet their sustainable energy goals. We are pleased that the Federal Bureau of Prisons has chosen Siemens to help them improve the energy and water efficiency of these publicly-owned buildings and facilities, reduce carbon emissions, and enhance our nation’s energy security. It is especially noteworthy that implementing these improvements through an ESPC incurs no additional cost to the U.S. taxpayer,” said Barbara Humpton, SGT’s president and chief executive officer. “As the largest single user of energy in the United States, the federal government is leading by example through these public-private partnerships.”

For more information about Siemens Government Technologies, visit

For more information about the Siemens Building Technologies Division, visit

Publication date: 7/4/2016

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