U.S. General Services Administration (GSA)
Taps World Energy Solutions for Texas Electricity Procurement
with Projected Savings of nearly $7mm
GSA TX also chooses World Energy for Bill Analysis, Presentment
and Payment to assure savings are realized over the life
of the contract
June 17, 2002 - World Energy Solutions, Inc. through its
prime contractor, Science Applications International Corporation
(SAIC), has completed an electricity procurement valued
at more than $20 million for the U.S. General Services Administration
(GSA) and its clients in Texas. Based on projected fuel
prices, GSA estimates savings of nearly $7 million (25%)
on the three year contract.
This is the second procurement that the GSA has conducted
with this team, following the successful electricity procurement
conducted in 2001 in New York that placed more than 900
accounts under contract and projected savings of $24 million
(18%).
Electronic Procurement Secures Improved Pricing
The Texas procurement was administered as a series of reverse
auctions, with suppliers competing to submit the lowest
bids on the energy requirements. World Energy alerted more
than a dozen suppliers in 4 utility service territories
to participate in 24 separate auctions. In total, 125 bids
were placed, driving down the winning prices. In some cases,
there was a 30% difference between the highest and lowest
bids, representing millions of dollars in reduced costs
for GSA and the agencies it represents.
Once the winning bids were in, the GSA utilized World Energy’s
proprietary rate and tariff analysis models to forecast
future changes in the standard offer based on current and
projected fuel costs. This analysis led the GSA to sign
three year contracts to lock in the attractive pricing they
secured through the auction process.
“As they did for my colleagues in New York, World
Energy got us a great price for our energy. We appreciated
the professional manner in which WEXCH/SAIC supported us
in this procurement. The auction process allowed competitors
to bid against one another, driving down our final prices.
Finally, their sophisticated models helped us understand
future pricing scenarios, and enabled us to manage our risk
by awarding a three year contract. We are very happy with
the process and the results,” said Judy Ray, contracting
officer, GSA Texas.
Billing Service Assures Savings are Realized over the Life
of the Contract
The GSA also turned to World Energy to manage the billing
function. World Energy’s BILL APP solution (Bill Analysis,
Presentment and Payment) will ensure the GSA realizes the
savings they are projected to earn. World Energy will verify
that bills are correct by digitizing bills, check for out-of-range
data and apply the industry’s most comprehensive tariff
database and pricing models to validate the bills.
“We were working on an advanced metering project,
when World Energy introduced their BILL APP solution to
us, and we immediately saw it as a great fit and interim
method for managing all
of our facilities. We feel these solutions will pay for
themselves in error identification and better analysis of
tariff rates” said Kevin Myles, Acquisition Services
GSA Texas.
From Transaction to Relationship
“The World Energy and SAIC team has been a great
partner for us, in the truest sense of the word. World Energy
and SAIC are diligent, thorough, and professional. I am
very satisfied with the way they solve our procurement and
billing issues - getting us the lowest price today and ensuring
we enjoy savings over the life of the contract. With our
second consecutive success, I anticipate working with them
as other states become competitive.” said Linda Collins,
National Energy contracting officer, GSA.
“We are pleased to be the energy procurement supplier
of choice for the GSA,” said Richard Domaleski, president
of World Energy Solutions. “Having them validate their
satisfaction in New York by choosing us to run the Texas
procurement speaks volumes to strength of our relationship.”
About GSA
Created in 1949, GSA is an independent executive branch
Federal agency with an annual budget of $18 billion and
14,000 workers who are responsible for the acquisition of
government supplies, services and space.
About SAIC
SAIC is the nation's largest employee-owned research and
engineering company, providing information technology, systems
integration and eSolutions to commercial and government
customers. SAIC engineers and scientists work to solve complex
technical problems in national security, homeland defense,
energy, the environment, telecommunications, health care
and transportation. With annual revenues of $6.1 billion,
SAIC and its subsidiaries, including Telcordia Technologies,
have more than 40,000 employees at offices in more than
150 cities worldwide. More information about SAIC can be
found on the Internet at www.saic.com.
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