Robert A. Palazzi, chief, design and development for the VACHS, was selected to act as energy manager for the project. He sought the expertise of several energy service companies (ESCOs), reviewed proposals, and selected EUA Cogenex (Lowell, MA) based on the company's ability to meet the VA's needs and provide guidance concerning finances and energy service contracts. Working with Cogenex, Palazzi implemented the first Energy Savings Performance Contract (ESPC) within the VA system.

The project was completed in two phases. Phase One replaced approximately 8,000 incandescent and fluorescent fixtures with modern, energy efficient fixtures. Two inefficient 885-ton centrifugal chillers were replaced with a 1,000 ton, two-stage, new steam absorption chiller and a new 800-ton electric centrifugal chiller, both by York International (York, PA). The aging cooling tower, chilled water, and condenser water pumps were all replaced with new equipment and energy efficient motors. Bell & Gossett (Morton Grove, IL) provided the base-mounted centrifugal pumps.

A ddc control system, the Infinity SCX 920, by Andover Controls (Andover, MA) was installed to control the new chiller plant. Square D (Palatine, Il) provided the electrical distribution control center. By implementing Phase One, VACHS pioneered performance contracting for energy services in the VA system.