A new Lockheed Martin contract from the Department of Energy that's valued at up to $5 billion could bring work to the Tri-City area.

The 11-year contract covers work to help the federal government reduce its energy costs and environmental impacts. But as one of 16 companies given the contracts worth up to a total of $80 billion, it's up to Lockheed Martin to find federal agencies to sign up for work on their buildings or facilities.

There's plenty of potential for work to be done in the Tri-City area, including at the Hanford nuclear reservation, said Tom Grumbly, vice president of Lockheed Martin Energy & Security Services.

However, Lockheed Martin is so early in the process of implementing the contract that it's still developing a list of federal projects to target for potential agreements. Work could include increasing energy efficiency, additional use of renewable energy and water conservation or other utility management.

If projects are done in the Tri-Cities as anticipated, the work should generate jobs, particularly for small businesses that might be able to provide services such as air conditioning systems and for the construction trades, Grumbly said.

Payment for Lockheed would come through savings in energy costs, which Lockheed would be required to guarantee.

"We have to be prudent; we have to have a sharp pencil," Grumbly said.

Lockheed Martin initially would conduct a comprehensive energy audit and identify improvements that would save energy at a facility. It then would arrange financing to pay for any improvements and design and construct the project.

The agency would make payments to Lockheed Martin from savings generated on utility bills. After the contract ends, the federal agency would keep any additional savings.

Because contractor pay comes through savings, "it's a way to drive down energy costs without diverting money from other missions," Grumbly said. For instance, if energy efficiency work was done at Hanford, money for cleanup of the site would not have to be used.

Lockheed Martin also is competing for a $3 billion contract to provide support services, including utilities, at Hanford as Fluor Hanford's contract expires. DOE earlier awarded the contract to Lockheed Martin, but the award was protested and DOE is expected to re-evaluate proposals and then name a contractor.

Part of the job of the new mission support contractor will be to make sure energy is used as efficiently as possible, said Frank Armijo, general manager of Lockheed Martin's Richland operations.

It should be possible to potentially do work under both contracts without a conflict of interest, Grumbly said.

The federal government is the largest single user of energy in the United States. DOE said the award of the energy efficiency contracts demonstrates commitment to save energy, cut greenhouse gas emissions, bring more cutting-edge technologies to use and create a stronger economy.