GSA/UN Partnership
Power Procurement through Strategic Positioning
U.S. General Services Administration, 2002
GSA formed a partnership with the United Nations to include the UN in GSA’s negotiated power procurement contract. When the State of New York deregulated the electric utility industry in the late 1990’s, GSA’s Energy Procurement team developed methods to use the deregulation to save taxpayer dollars and energy resources. One of example of GSA’s efforts is the concept of strategic positioning, which combines the aggregated electricity demand of many Federal agencies in a single utility power contract. Strategic positioning has insulated GSA from the drastic swings in the price of electricity in New York since deregulation.
In 2000, GSA invited the UN to join the negotiated utility power contract. The UN saved over $50,000 in electric utility costs in 2000. With this success, the UN joined as a participant in a three-year fixed price contract GSA negotiated for its electric needs in New York City. This contract allowed GSA, its tenants, and the UN to avoid the 31 percent price increase in electricity from 2000 to 2001.
For more information, contact Brian K. Magden at (212) 264-0591 or via e-mail at brian.magden@gsa.gov
