The Large Value of Small Projects

A Conversation with Jack Almeida, Director of Utility Services at Facility Solutions Group

By Parker Allen

After graduating from Fairleigh Dickinson University with a degree in electrical engineering, Jack spent 23 years working with the New York Power Authority, helping create and run the $100M annual Energy Services Program. He then moved from the public to the private sector, serving as the Director of Business Development for AECOM. He spent time at EnerPath and Lime Energy before joining the team at Facility Solutions Group (FSG) in August 2015. His wealth of knowledge of the energy efficiency industry, combined with experience in business development and team leadership, perfectly positioned him to help FSG find a successful niche in the utility programs market.

Jack Almeida, Director of Utility Services at FSG

He and his team at FSG compete for business from utilities that put out RFPs (requests for proposal) for energy efficiency programs. Utility companies file every 3 to 5 years for these programs with local public service commissions and include a budget to achieve a specific goal of energy usage reductions. The utilities must reinvest the money in energy efficiency, renewables, and other carbon reduction efforts, so they turn to companies like FSG to implement these programs.

FSG provides comprehensive turnkey services for those programs, from the initial audit of the facility to the installation of new equipment. They complete an energy assessment of the customer’s facility, develop a scope of work, supply the necessary materials, and engage local contractors to install the project. Their jobs often focus on upgrading the lighting of a building but can include HVAC and any other mechanical system that impacts its energy consumption.

The size of the job can vary greatly, from several thousand dollars to multi-million-dollar projects. Usually, the threshold for eligibility for a program is based on peak energy demand which dictates the size of the project.

FSG has found a niche with those small projects, and they have created an efficient, sustainable business model to continue to win these types of jobs. Small businesses are often overlooked for energy efficiency projects because the size of the job is typically not enticing to contractors. In order to do it well, you must have the right structure and business plan in place. While the size of these jobs is smaller than the typical energy retrofit project, the volume of projects is much higher. As an example, Jack estimates that in South Carolina, FSG completes 70 to 80 small business energy retrofits per month. So, efficiency and proper planning are crucial to making this a successful market for them.

The process typically begins with identifying potential customers. Some programs provide a list of eligible customers, but not all do. FSG has an inside sales team responsible for reaching out to the customers and local sales reps that will eventually call on these potential customers to pursue the opportunity. When a job is won, FSG works with local contractors to complete it. They must have dedicated teams of contractors, because these projects typically require installation and completion within 30 to 45 days of when the customer signs a contract.

Given the amount of jobs and the time constraints, FSG must operate in the most economical way possible. They must have efficient distribution in place to get energy efficiency products to the job site in a timely manner. The logistics of these smaller projects is also crucial. They want both their sales personnel and contractors to be able to maximize their time, so they make every effort to streamline prospecting and outreach efforts and installations by bundling customers geographically.

Success in this market requires optimal efficiency and planning as well as an intimate knowledge of the local markets and programs. It is a difficult task, and Jack and FSG have mastered it. ■

Photo Credit: FSG