A subsidiary of Bermuda-based Ingersoll Rand has landed a contract from the US government worth up to $5 billion to allow federal agencies worldwide to cut costs, energy use and pollution and improve efficiency.

The US Department of Energy handed Trane, a wholly-owned subsidiary of Ingersoll Rand and a global provider of indoor comfort systems and comprehensive facility solutions, the Indefinite Delivery Indefinite Quantity Energy Savings Performance Contract, which may may extend through 2019 if the government chooses to exercise all contract options.

The new contract, which was one of 16 to be awarded to qualified energy contractors, may also boost the economy's outlook by creating thousands of much-needed jobs.

The contracts are worth up to $80 billion for energy efficiency, renewable energy and water conservation projects at federally owned facilities worldwide.