5 steps to reduce operating costs and modernize aging facilities

Infrastructure improvements deliver real savings opportunities, from reducing energy and water costs to improving maintenance and extending asset life. And the latest financing options eliminate the need for upfront capital while enabling you to transfer operating risk. Consider these five steps to renew your infrastructure.

1. Make better use of building data

You're likely using building automation systems to control HVAC, lighting and even security for your government facilities. Now it's time to harness the data those systems generate and see clearly how operations relate to costs. But many states don't have the resources for effective data gathering, analysis and benchmarking – especially across multiple sites and utility providers.

Johnson Controls can integrate even aging systems across a campus or a region to capture key data. Affordable, AI-fueled tools like OpenBlue Enterprise Manager keep data secure while clarifying where your facilities and systems stand, how funds are being spent, and where you can improve operations and reduce costs.

2. Find opportunities inside and outside the walls

As experts in the built environment, Johnson Controls reviews your building data to identify upgrades with favorable return on investment (ROI). Capture savings and improve service through more efficient systems, optimal operations and reduced maintenance. Opportunities include but are not limited to:

• Water system analysis to identify losses and reduce consumption
• Central utility plant upgrades that cut operating costs
• HVAC repairs and retrofits that support uptime and extend asset life
• Space analysis to make cost-effective use of assets

It's also smart to diversify your power supply, given strain on the grid from EVs and data centers as well as extreme weather events. Options like solar energy with storage help you reduce energy costs and increase resilience, enabling critical systems to withstand disruptions.

3. Transfer risk with as-a-service models

Retrofits and renovations come with risks: budget pressures, schedule disruptions, operability issues. As-a-service models offer a radically different approach that lets you transfer the risk to Johnson Controls, with no upfront capital.

We take responsibility for planning, funding, operating and servicing throughout construction or installation and across the equipment's lifecycle. For a fixed monthly fee, you gain a new or improved space or system to better serve stakeholders. Equally important, you keep capital free for other uses.

Of course, one size does not fit all. Johnson Controls Capital can help you explore other options such as power purchase agreements, public-private partnerships, and grants, rebates and federal programs.

4. Manage labor shortfalls

Operations and maintenance services from Johnson Controls focus on keeping systems working at peak condition, whether it's a correctional facility or a government office building. Solutions range from planned service agreements, where factory-trained professionals regularly visit facilities to maintain equipment, to embedding our experts on site.

• Augment your staff at a time when skilled labor is in short supply
• Access the right people, processes and technology to optimize buildings and systems
• Create a realistic plan to address deferred maintenance

5. Achieve KPIs – guaranteed

We guarantee results, helping you reduce total cost of ownership, save energy and decarbonize. Our team works with you during project development to define outcomes and metrics. Outcomes are guaranteed for the service term – and if guaranteed savings don't accrue, we pay the difference. We're proud to note that those payout numbers are historically small. Our five-year average for guaranteed energy savings shows that, 99.8% of the time, we deliver on our promise.

Improved correctional facilities generate savings, advance state goals

These five steps come together in practice. Here's how one state agency used performance contracting to modernize aging facilities with no upfront capital.

A two-phase energy savings performance contract with the West Virginia Division of Corrections and Rehabilitation (WVDCR) required no upfront capital from the state and will produce more than $56 million in savings.

Johnson Controls upgraded some 20 facilities, reducing energy use and addressing deferred maintenance. The project is expected to save 6,395 metric tons of CO2 emissions. Phase Two also includes an HVAC learning lab and job skills training to combat recidivism.

"Through our partnership with Johnson Controls, we've been able to drastically improve functionality and efficiency, reduce costs and develop additional programs that meet the needs of the people within our facilities," said WVDCR Commissioner William Marshall. "Not only is the team at Johnson Controls helping us advance the overall safety and intelligence of our spaces, but also our big-picture goals of holding offenders accountable while giving them the skills to eventually reintegrate into society."

FAQs

How do as-a-service models work for government facility upgrades?

As-a-service models transfer the risk of planning, funding, operating and servicing infrastructure to the provider. For a fixed monthly fee, government agencies gain new or improved systems with no upfront capital. The provider takes responsibility throughout the equipment lifecycle, keeping capital free for other uses.

Are energy savings from government building upgrades guaranteed?

Yes. Under performance contracts, outcomes are guaranteed for the full service term. Johnson Controls reports a five-year average showing that 99.8% of the time, guaranteed energy savings are delivered as promised. If savings fall short, the contractor pays the difference.