MINNEAPOLIS (AP) -- Honeywell International Inc. said Tuesday it has won a contract worth up to $5 billion to supply federally owned buildings with energy and water-saving equipment over the next decade.
The contract, awarded by the Department of Energy, will be paid for out of the energy savings the federal government accrues after installation of the new equipment, an arrangement known as an Energy Savings Performance Contract.
"This set of awards will ensure that federal agencies have access to powerful tools for alternative financing at a scale that is needed to meet our challenge of reducing energy intensity, increasing the use of renewable energy, and decreasing water consumption," Energy Department Secretary Samuel W. Bodman said in a statement.
Honeywell said typical improvements to government facilities will include upgrading heating and electrical systems, replacing light fixtures with more efficient models and improving insulation with better windows and doors.
Morristown, N.J.-based Honeywell shares fell 55 cents to $33.22 in afternoon trading.