1. Implementing Effective Energy O&M Strategies on a Limited Budget
$500M & 46% Saved:
Implementing Effective Energy O&M Strategies on a Limited Budget
John Mikullitz
National Director, Energy
Aramark
John Tillotson
Senior Manager, O&M
Aramark

2. Energy Program Roadmap
Overview
Executional Framework
Energy Focused O&M Best Practices
Program Evolution
Reactive to Preventive Maintenance Transformation
Service Contract Management Program
Achievements-To-Date

3. Overview: New York State Office of Mental Health (OMH)
1843: Opening of First hospital (Utica)
Third largest New York State Agency
26 Campuses; 545 Buildings
Serves > 700,000 individuals / year
Large central heating and chiller plants
$80 million utility budget
Utica Psychiatric Center: Old Main

4. Overview: Program Goals and Achievements
Year & Executive Order
Required Energy Reduction
Actual Performance Results
1990: EO #132
20% by 2000
57% Reduction (7 years ahead of schedule)
2000: EO #111
35% by 2010
37% EUI Reduction
2010: EO #188
20% by 2020
9% Reduction to Date

5. Executional Framework
Six Energy Sub-System Framework

6. Energy Focused O&M Best Practices
Procurement
Least Cost Fuel
Lighting (T-8)
Generation
Off Is Best!
Central Heating Plant Optimization
Distribution
Match Supply and Demand
End Use
Eliminate Simultaneous Heating / Cooling
Excess Air
BAS Optimization

7. Program Evolution: Reactive to Preventive Maintenance Transformation
Objectives:
2005: Develop structured PM Program to sustain savings
Extend equipment life / reduce capital replacement
Reduce Repair Costs
Improve building conditions (comfort & indoor air quality)
Ensure individual system’s operate efficiently
Document and validate in-house or contractor activities
Transition maintenance activities from reactive to preventive

8. Program Evolution: Service Contract Management Program - Overview
Program Developed: 2007
153 service contracts serving 28 facilities
Contract Types
Building Management Systems
Heating, Ventilation and Air Conditioning Systems
Boilers
Chiller and Refrigeration Systems
Generators
Elevators
Total Contract Value: $72.7 Million

9. Total Cost Reduction of $21,110,094
Program Evolution: Service Contract Management Program
Overview: Summary of Achievements in 10 Years
Total Cost Reduction of $21,110,094
Time and Materials Improvement
Conversion of Warranty Contracts to PM Type
Negotiation and Strategy Support

10. Service Contract Management: 5 Step Process
Program Preparation
PM Task & Frequency Development
Service Contract: Bid Preparation
Service Contract: Bid Review
Service Contract: Ongoing Management

11. Step 1 of 5: Program Preparation
Asset Inventory
Skills and time available
Define Contract Type

12. Step 2 of 5: PM Task & Frequency Development
Review manufacturer’s operations & maintenance manuals
Research available standards and requirements
ASHRAE, NFPA, Joint Commission
Determine tasks capable of being performed in-house
Perform a tiered analysis of facility equipment
Write preventive maintenance program (to be entered into CMMS)
Validate that tasks are site specific

13. Step 3 of 5: Service Contract: Bid Preparation
Collaborate with procurement and legal for inclusive terms and conditions
Develop unit cost bid form for equipment and tasks
Develop budget for equipment repairs
Develop a qualified bidders list
Conduct bid walk-through for contractor understanding of requirements
Include terms to define responsibilities

14. Step 4 of 5: Service Contract: Bid Review
Review contractor’s bids for compliance with procurement rules
Review unit costs for reasonableness of cost
Negotiate unit costs
Develop a budget for equipment repairs
Conduct contractor qualification reviews and reference checks

15. Step 5 of 5: Service Contract: Ongoing Management
Conduct a contract kickoff meeting
Create a service ticket to be completed and verified prior to payment
Conduct monthly contractor meetings to verify compliance to quality and schedule
Review invoices for accuracy
Worst Case: Document deficiencies to support contract rebid

16. Program Has Generated More than $500 Million Dollars in Savings!
Overall Program Achievements to Date
Increase Equipment Life & Minimize Failure
Reduce capital replacement budget
Fewer client comfort complaints
Receive quality service at the right price
Reduce Energy Usage by 46%
Program Has Generated More than $500 Million Dollars in Savings!

17. QUESTIONS
John Mikullitz; National Director, Energy Aramark Engineering and Asset Solutions P: Ext E:
John Tillotson; Senior Manager, O&M
Aramark Engineering and Asset Solutions P: E: