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Request for Proposals (RFP)

Multifamily ProgramImplementation Contractor:

In support of Consumers Energy

Electric and Natural Gas Energy Efficiency Programs

Issued: March 21, 2016

Proposals Due: April 29, 2016

Program Delivery Public Launch: January 1, 2017

Consumers Energy is an electric and natural gas utility in the state of Michigan that serves 1.8 million electric customers and 1.7 million gas customers. Consumers Energy seeks bids from qualified firms to serve as the implementation and marketing Contractor for the Multifamily Program which will include Residential in-unit and Commercial common area spaces as well as market rate and affordable housing properties. Consumers Energy is issuing this RFP for program delivery for program years 2017 and 2018. Program year 2018 is contingent on obtaining MPSC approval of the Consumers Energy Plan for 2018 and beyond. If exceptions to the RFP requirements and terms/conditions are not stated in the bid it is assumed that all are accepted and will not be negotiable at a later date. All bidders must be willing to follow Consumers Energy Third Party Code of Conduct (2013).

TABLE OF CONTENTS1 Introduction...................................................................................1

1.1 Summary of Solicitations........................................................................1

2 Background & Program Descriptions................................................32.1 Consumers Energy..................................................................................32.2 Consumers Energy Legislative Goals and Budgets.................................42.3 Summary Program Descriptions..............................................................42.4 Staffing Requirements............................................................................52.5 Consumers Energy Roles and Responsibilities........................................62.6 Contractor Roles and Responsibilities.....................................................62.7 Contractor Budgets, Programs, and Goals..............................................8

3 Scope of Work...............................................................................103.1 Start Up Strategy and Transition Plan....................................................103.2 Program Design.....................................................................................113.3 Program Delivery...................................................................................12

3.3.1 Experience and Plan....................................................................123.3.2 Quality Control and Verification..................................................13

3.4 Marketing...............................................................................................133.5 Incentive Processing and Data Tracking................................................14

3.5.1 Data Tracking..............................................................................143.6 General Administration & Management.................................................16

4 Performance Goals.........................................................................174.1 Energy Savings Goals.............................................................................174.2 Other Performance Indicators and Incentives........................................17

4.2.1 Performance Indicators................................................................174.2.2 Performance Financial Incentives & Penalties.............................18

5 Qualifications and Experience.........................................................195.1 Management Structure..........................................................................195.2 Qualifications and Experience................................................................195.3 Resumes and Bios..................................................................................205.4 Client References...................................................................................205.5 Disclosure..............................................................................................20

5.6 Financial Information Requirements......................................................20

6 Budget..........................................................................................226.1 Programs:...............................................................................................226.2 Alternative Compensation Options.........................................................23

7 Proposal Response Format.............................................................24

8 Selection Process & Evaluation Criteria...........................................268.1 Selection Process...................................................................................268.2 Evaluation Criteria.................................................................................26

8.2.1 Technical Approach......................................................................26 8.2.2 Organizational and Management Capability................................27

8.2.3 Cost .........................................................................................27

9 RFP Response Procedures..............................................................289.1 Intent to Bid...........................................................................................289.2 Contractors’ Conference Call.................................................................289.3 RFP Schedule.........................................................................................289.4 RFP - Questions and Communications....................................................299.5 Proposal Review - Questions and Communications................................299.6 Submission of Proposal Responses........................................................299.7 Terms and Conditions of Submission.....................................................309.8 Consumers Energy is under no obligation to execute a contract...........309.9 Non-Confidentiality of Submissions........................................................319.10 Post Proposal Negotiation and Awarding of Contracts...........................319.11 Minimum Qualifications..........................................................................319.12 Negotiations and Finalizations..............................................................329.13 Contract Forms and Attachments.........................................................322

Appendix A: Terms and Conditions Exceptions Form.................................33

Appendix B: Consumers Energy Service Territory (Michigan)....................34

Appendix C. Consumers Energy EO Portfolio Structure for 2016-2017.......35

Appendix D. Contractor’s Reference Form...............................................36

Appendix E: Proposal Response Format and Checklist..............................37

Appendix F: Posting Installation Data to E-Tracker...................................39

1 INTRODUCTIONConsumers Energy Company (Consumers Energy), Michigan’s second-largest electric and natural gas utility based in Jackson, Michigan, has a total customer base of 2.9 million and serves approximately 6 million people. Consumers Energy received approval from the Michigan Public Service Commission (MPSC) for an Energy Efficiency Plan covering calendar years 2016 – 2017. Program year 2018 is contingent on obtaining MPSC approval of the Consumers Energy Plan for 2018 and beyond.

The Energy Efficiency Plan was designed in response to the requirements legislated in the Clean, Renewable, and Efficient Energy Act, 2008 PA 295. Consumers Energy intends to meet the energy efficiency challenge through the continuation and expansion of a comprehensive energy efficiency portfolio of programs. These programs will enable our customers to reduce their energy usage, decrease their environmental impact, and lower their electricity and natural gas bills. Consumers Energy has or will invest a total of $508 million on energy efficiency programs over a six-year period during calendar years 2009-2014 and plans on investing an additional $248 million over the two year period of 2017-2018.

Consumers Energy is issuing this Request for Proposal (RFP) for the selection of an experienced third party energy efficiency program implementation and marketing Contractor team(s) for delivery of a comprehensive Multifamily program targeting both electric and natural gas savings opportunities. The Multifamily program is a comprehensive program that provides energy efficiency direct install and energy efficiency retrofit services for in-unit and common area spaces for both market rate, affordable housing, and income qualified customer segments. The anticipated contract delivery period is for calendar years 2017-2018.

Implementation Contractors are requested to prepare and submit a detailed proposal as outlined herein in order for Consumers Energy to award the program to a successful Contractor, subject to Contract negotiations.

1.1 Summary of SolicitationsConsumers Energy 2016-2017 energy efficiency program designs and metrics are detailed in the 2016-2017 Amended Energy Optimization (EO) Plan which was submitted to the MPSC on July 31, 2015 (Case Number U-17771) ) and the MPSC Order, dated December 22, 2015. A supplement to the Multifamily program can be found in the Order dated December 22, 2015, Document #0031 Attachment E. Contractors are expected to review all documents in detail and customize your RFP response in the context of the program design vision detailed in the regulatory plan. As appropriate, Contractors are encouraged to propose new and innovative enhancements to the program design approaches already detailed in the regulatory plan.

Contractors can review the Plan and the Order by following this web link: http://efile.mpsc.state.mi.us/efile/

Consumers Energy seeks an experienced, motivated Contractor who can provide leadership and pro-active initiatives and strategies to achieve goals within budget. Consumers Energy’s overall objectives for electric and natural gas energy efficiency programs are multi-fold, and include, but are not limited to:

1. Meet resource acquisition goals while laying the groundwork for long-term market transformation 2. Design and implement a diverse program providing benefits for participation to residential customers

and the property owner/manager sectors through direct install, prescriptive, and custom retrofits.3. Where feasible, maximize opportunities for program coordination with the efficiency programs of other

providers (e.g., DTE Energy) to yield maximum benefits

Consumers Energy RFP: Multifamily Program Implementation 2017 - 2018 1

http://efile.mpsc.state.mi.us/efile/viewcase.php?casenum=17771&submit.x=0&submit.y=0

4. Maximize program savings at a minimum cost by striving to achieve comprehensive cost-effective savings opportunities

5. Provide Consumers Energy customers with easy access to information on all efficiency programs (residential and business) for electricity and natural gas savings opportunities via the Web and a toll free telephone number

6. Expand the energy efficiency program delivery infrastructure in the state. 7. Transform the market for efficient technologies and highly qualified energy efficiency-oriented trade

allies (such as electricians, HVAC contractors, builders, architects and engineers) 8. Inform and educate customers to enable them to use energy more efficiently while promoting

comprehensive, deep energy savings9. Provide Consumers Energy with a software database that will interface with Consumers Energy’s E-

Tracker system and comply with Consumers Energy XML extract of jobs and be able to measure data

Contractors may choose to respond to the Multifamily RFP either independently and/or as part of a team and are strongly encouraged to prioritize Michigan based staffing and teaming arrangements. In cases of collaboration, a “prime” contractor must be identified, who will work with a team of subcontractors (if necessary).


2 BACKGROUND & PROGRAM DESCRIPTIONS 2.1 Consumers EnergyConsumers Energy is one of the nation's largest combination utilities, providing electric and natural gas service to approximately 2.9 million customers, representing more than 6 million of Michigan's 9.5 million residents, in all 68 counties of Michigan's Lower Peninsula. Appendix B contains a map of Consumers Energy’s electric and natural gas service territories. To learn more about Consumers Energy, visit: consumersenergy.com/welcome.htm.

Table 1 shows energy use, along with customer count for each customer class, for Consumers Energy natural gas and electric service in 2015.

Table 1. Consumers Energy’s 2015 Customer Count and Energy Usage

Electric

Customer Class Customer Count

Annual MWh Usage

Residential Low-Income* 56,366 365,547

Residential 1,576,866 12,633,111C&I Secondary 209,243 7,461,492C&I Primary 3,586 11,287,260ROA C&I Secondary 629 235,711ROA C&I Primary 412 3,708,369

TOTAL (1) 1,846,690 31,983,121

Natural Gas

Customer Class Customer Count

Annual MCF Usage

Residential Low-Income* 76,632 4,532,363

Residential 1,527,723 152,996,903Commercial 122,047 57,355,412Industrial 5,459 9,721,589Transportation 3,621 73,999,285

TOTAL (2) 1,735,482 298,605,552*estimated(1) Excludes Lighting and GSG-2(2) Excludes Rate GL Outdoor Lighting


2.2 Consumers Energy Legislative Goals and Budgets Consumers Energy’s Energy Optimization (EO) Plan is designed to achieve savings goals at or below maximum available budget. Consumers Energy 2016-2017 energy efficiency program designs and metrics are detailed in the 2016-2017 Amended Energy Optimization Plan which was submitted to the MPSC on July 31, 2015 (Case Number U-17771) and associated MPSC Order dated December 22, 2015, posted at http://efile.mpsc.state.mi.us/efile/.

All Contractors are expected to closely review the proposed program designs detailed in the regulatory plan, and additional program changes as mentioned in this RFP. Current legislation is effective through 2017. Program year 2018 is contingent on obtaining MPSC approval of the Consumers Energy Plan for 2018 and beyond. After 2017, legislative uncertainty may result in altered savings and spending targets. As such, Contractors must be aware that approaches specified in their RFP responses may need to be re-negotiated.

2.3 Summary Program Descriptions Consumers Energy desires insight and innovation with respect to the program outlined in this RFP, as such, Contractors are encouraged to propose enhancements and modifications if a strong case can be proposed as to how these modifications are in the best interest for Consumers Energy and the target customers. Bidders are strongly advised to review in detail the energy efficiency filing in its entirety for more detailed information about the program. Bidders are advised that while the energy efficiency filing presents a proposed strategy for program design, marketing, and delivery, Consumers Energy is interested in the Contractor’s opinions and suggestions on modifications (if deemed necessary) to the program design included in the filing, to cost-effectively achieve necessary results. Partial or significant modifications of the anticipated program design as first detailed in the energy efficiency filing, will be entertained, and evaluated on the proposed merits, based on the Contractor’s experience and strategy for Consumers Energy. This may include changes in suggested program start-dates, funding levels, incentive amounts, etc.

The Consumers Energy Multifamily program has integrated the service offering into a single point of contact. The successful Contractor will facilitate both direct install measures and comprehensive prescriptive or custom efficiency improvements for residential in-unit and commercial common areas for three specific customer segments:

1) Market rate multifamily housing2) Affordable multifamily housing3) Income Qualified multifamily housing*

The Multifamily program is designed to offer a wide variety of energy saving opportunities to all multifamily properties (e.g. market rate, affordable, and income qualified) within the Consumers Energy service territory. The following is a summary description of the Consumers Energy Multifamily Program and its sub-components, specific to this RFP.


http://efile.mpsc.state.mi.us/efile/

Multifamily Residential & Commercial

One component of the Consumers Energy Multifamily program is designed to offer property owners a turnkey service for helping residents reduce energy use in their living units through the direct installation of various energy saving devices. The direct install service is provided at no cost to the property owners or the tenants. The Multifamily program also provides incentives for comprehensive prescriptive and custom measures to encourage property owners and managers to retrofit individual units and common areas throughout the property.

Multifamily Income Qualified & Affordable Housing

The Multifamily program also provides direct install energy efficiency products, comprehensive prescriptive and custom retrofits, and educational services for properties where 66% or more of the tenants are at or below 200% of the federal poverty level. In addition to income qualified properties, the program seeks to serve the entire affordable housing sector and works closely with the Michigan State Housing and Development Authority, Michigan Community Housing Commissions, and other non-profit agencies throughout the state to leverage existing state and federal funding to provide comprehensive energy efficiency upgrades. The program’s collaborative approach of engaging and cooperating with local agencies and communities fosters greater public awareness towards adopting higher energy efficiency practices in the affordable housing sector.

An important objective of the Multifamily program, including sub-program components, is to develop strong customer awareness of the multiple benefits provided by energy efficiency programs by demonstrating the correlation between the energy savings benefits of installed energy efficiency measures, and the non-energy benefits customers receive when they participate in the Consumers Energy Multifamily program.

2.4 Staffing Requirements Consumers Energy encourages the expansion of in-state capacity for administration and delivery of energy efficiency programs. As such, Contractors should specify in their proposal response the anticipated positions and associated functions which will be based in Michigan. Additionally, Contractors are strongly encouraged to consider sub-contracts with local Michigan based firms to help further the process of developing local and regional expertise with energy efficiency. All utility planning and coordination of Consumers Energy’s EO programs will occur from Jackson, Michigan.

Contractors are required to locate key program delivery team members in, or within a 40 mile radius, of Jackson, Michigan. Contractors are required to include a detailed staffing chart by position and firm, including proposed location for staff, with your proposal response. The Program Manager will be located in Michigan and 100% dedicated to the Consumers Energy Multifamily Program, in addition to the following roles:

Outreach Lead

Marketing Lead

Direct Install Lead

Engineer


2.5 Consumers Energy Roles and ResponsibilitiesConsumers Energy anticipates providing high-level administrative, contract management, program design, delivery, and marketing oversight of the selected Contractor. Consumers Energy will have a limited group of energy efficiency program managers to oversee Contractor operations. As such, Contractors must be prepared to implement these programs in a predominately “turnkey” fashion.

In summary, the anticipated roles and responsibilities for Consumers Energy utility staff are the following:

1. Contract program oversight, management, financial planning, budgeting.

2. Provide high-level guidance and direction to the Contractor, including review and revision of Contractor proposed annual implementation plans and proposed milestones, and additionally, engage with the Contractor team on a daily basis as a team player when working through strategy and policy issues.

3. Review and approve Contractor invoices and ensure program activities are within budget and on schedule.

4. Provide and maintain a centralized energy savings and costs tracking system.

5. Review of Contractor maintained program tracking database for accuracy.

6. Review of Contractor maintained measure saving estimates.

7. Management and coordination of the Evaluation, Measurement, and Verification (EM&V) Contractor with the Contractor.

8. Field visits and speaking engagements at high-profile events.

9. Provide guidance and direction on Contractor pro-active proposed new initiatives or strategies.

10. Communicate to Contractor other Consumers Energy initiatives that may provide opportunity for cross-program promotion.

11. Conduct field customer satisfaction surveys to evaluate customer awareness and participation in the energy efficiency programs over time.

12. Review and approve printed materials and advertising plans.

13. Evaluation of portfolio and program effectiveness and recommend modifications to programs and approach on an as needed basis.

14. Perform periodic review of program metrics, conduct budget analysis and review evolving program design.

2.6 Contractor Roles and ResponsibilitiesThe following is a high-level review of Consumers Energy expectations for the Contractor’s roles and responsibilities:

1. Development of budget investment and energy savings forecast using Consumers Energy supplied template.

2. Creation and management of Business Plan Deployment scorecards that track achievement toward key performance indicators.

3. Creation and management of detailed investment and energy savings tracking tool (Excel or other format) for Contractor management of actual to plan performance.


4. Preparation of an operations manual.5. Proposing and developing annual delivery plans, timelines, and milestones.6. Conduct adaptive re-design analysis to optimize savings objectives, work with Consumers Energy to

determine individual program evolution.

7. Keep Consumers Energy well informed of the program’s progress toward goals. This communication is expected to be both informal (i.e., phone calls and e-mails), through on-line/real-time systems and through formal reporting on a weekly basis.

8. Cross-program promotion when appropriate to ensure savings opportunities that may be delivered by a different Contractor supporting Consumers Energy are identified to the customer.

9. Maintain and manage operational database which ties into Consumers Energy E-Tracker database.10. Data tracking/reporting via password protected website as directed by Consumers Energy.

11. Incentive processing and payment services within a reasonable cycle time.12. In close coordination with Consumers Energy, develop marketing materials, including technical fact

sheets, incentive forms, web-based incentive forms, mass media marketing materials, marketing outreach, social media, articles for trade association newsletters, radio promotions, and newspaper ads, as necessary.

13. Trade ally recruitment, enrollment, training, technical seminars, reporting, and workshops.14. Provide training for Consumers Energy staff to help facilitate success and program coordination (e.g.,

orientation for Consumers Energy customer service operators and call center training). 15. Policy/strategy and implementation planning/updates with Consumers Energy’s energy efficiency

program managers.16. With direction from and coordination with Consumers Energy, conduct and coordinate marketing

efforts with Consumers Energy Marketing team.

17. Call center –Deploy and manage a single 800 number to manage customer Multifamily Program enrollments and questions/concerns.

18. Monitor customer satisfaction and implement a system for tracking complaints and satisfactory resolutions

19. Assist Consumers Energy with MPSC data requests and explanations, including participation (as requested) with any stakeholder meetings and development of new measures for the MEMD

20. Coordination with Consumers Energy Evaluation, Measurement, and Verification (EM&V) contractor

2.7 Contractor Budgets, Programs, and GoalsThis section details the Contractor budget and savings goals for each of the Multifamily program sub-components included in this RFP. The tables below detail Consumers Energy’s anticipated Contractor budgets, by category, and the savings goals. Contractors are strongly advised to review Consumers Energy’s energy efficiency plan, detailed program measures, and other technical appendices in the 2016-2017 Amended Energy Optimization Plan (U-17771).

and Table 3 show the Contractor Budget 2017-2018 and annual savings and lifetime savings for the three sub components of the Multifamily Program. The budget amounts are the maximum available to Contractors to deliver the program, including final program design, marketing, incentives, delivery, and all administrative and


reporting activities. Overall, Consumers Energy would like Contractors to present a strategy to achieve at least the minimum savings targets detailed below, and preferably 110% or greater of the stated savings targets within or below budget.

Table 2. Multifamily Program Contractor Budgets 2017-2018

1. Residential Multifamily :Year Electric Gas Total 2017 $4,154,820 $2,002,132 $6,156,9522018 $4,154,820 $2,002,132 $6,156,952Total $8,309,640 $4,004,264 $12,313,904

2. Commercial Multifamily : Year Electric Gas Total 2017 $464,000 $536,000 $1,000,0002018 $464,000 $536,000 $1,000,000Total $928,000 $1,072,000 $2,000,000

3. Income Qualified* :Year Electric Gas Total 2017 $442,000 $858,000 $1,300,0002018 $442,000 $858,000 $1,300,000Total $884,000 $1,716,000 $2,600,000

*66% or more of the tenants are at or below 200% of the Federal Poverty Level.

Table 3. Multifamily Program Net MWh, MW and MCF Savings Goals 2017-2018

1. Residential Multifamily : Annual Savings Lifetime Savings

Year MWh MW MCF MWh MCF2017 3367 0.4 129,887 45,892 963,7612018 3367 0.4 129,887 45,892 963,761Total 6,734 0.8 259,774 91,784 1,927,522


2. Commercial Multifamily : Annual Savings Lifetime Savings

Year MWh MW MCF MWh MCF2017 2,715 0.4 39,536 34,589 438,4542018 2,715 0.4 39,536 34,589 438,454Total 5,430 0.8 79,072 69,178 876,908

3. Income Qualified* : Annual Savings Lifetime Savings

Year MWh MW MCF MWh MCF2017 650 18,337 12,397 197,8842018 650 18,337 12,397 197,884Total 1,300 36,674 24,794 395,768

*66% or more of the tenants are at or below 200% of the Federal Poverty Level.


3 SCOPE OF WORKThe following section details the major task categories for the Multifamily Program. Contractors must discuss in detail their strategy to achieve task objectives for the start-up/transition, design, implementation, and marketing of the Multifamily Program, by task for the following program sub- components:

1) Multifamily Residential Direct Install and Prescriptive and Custom Retrofits – Affordable Housing & Market Rate

2) Multifamily Commercial Direct Install and Prescriptive and Custom Retrofits – Affordable Housing & Market Rate

3) Multifamily Income Qualified Direct Install and Prescriptive and Custom Retrofits

All sub-program components are designed to address and integrate both electric and natural gas energy efficiency measures and incentives.

3.1 Start Up Strategy and Transition PlanYour proposal should detail your start up strategy and transition plan for launching a new program (program sub-component) and preparing for official public launch of the programs, and/or continuation of the program under the new contract period.

1. Provide an overview of your program start-up and/or continuation of contract process.

Preparation of a detailed program operations manual is required and must be updated on an annual basis.

Describe how you approach launching a new program, or becoming the new Contractor for an existing program.

Define the key steps in your process that you use to ensure a smooth launch or transition, and coordination with Consumers Energy with respect to program management, rebate processing, call center, etc.

Summarize your training and development process for new hires and existing staff.

2. Summarize your data tracking system and how it would integrate with Consumers Energy E-Tracker System platform. Provide a comprehensive response in Section 3.5.

3. Confirm how you will address issues of program continuity and maintenance of established relationships with trade allies, and/or address strategic changes in program design components if proposing significant modifications.

4. Discuss your approach to staffing the program in the first three to six months and the level of involvement from corporate leaders.

Detail how you will work to recruit and train Michigan based staff. Define a process for Consumers Energy to review the qualifications of key local hires.

Outline your long term staffing strategy for the program and identify what steps you will take if a key staff member in your Michigan based team is underperforming or leaves your firm.


Describe your approach and commitment to on-going professional development for your staff.

3.2 Program DesignYour proposal should address for each program sub-program component included in this RFP for the following areas:

1. Discuss your approach and strategy for final program design and implementation planning. Contractors are reminded that the objective will be to design programs to ensure continuity in program offerings throughout the 2017-2018 contract period. Therefore, program design strategy and desired levels of program activity will need to be planned carefully given limited budgets. Contractors should carefully consider the available budgets and develop the most appropriate program design and delivery strategy for each of the program components identified in this RFP. It is critical that savings goals are met.

2. Based on your understanding of the program as currently designed and delivered, what are the key suggestions you have for innovation in program delivery and changes from the status quo, and/or re-confirm the value in maintaining the existing program design and delivery strategies.

a. Contractors are advised that while the Consumers Energy Optimization Plan presents a proposed strategy for program design, marketing, and delivery, Consumers Energy is interested in Contractor’s opinions and suggestions on modifications (if deemed necessary) to the program designs included in the filing, to cost-effectively achieve necessary results.

b. Partial or significant modifications of the anticipated program design as first detailed in the filing, will be entertained, and evaluated on the proposed merits, based on the Contractor teams experience and strategy for Consumers Energy. This may include changes in suggested programs, start-dates, funding levels, incentive amounts, etc. While Consumers Energy is interested in the opinion of Contractors on modifications to program plan elements, Contractors must report estimated savings consistent with the savings values detailed in the 2016 Michigan Energy Measures Database (MEMD). It is critical that all savings targets are met.

3. Introduce any new and innovative ideas as well as your proven best practice approaches from around the country that you propose for Consumers Energy.

4. Summarize the key measures you propose to promote, anticipated quantities, efficiency levels, savings, incentives, marketing approach, trade ally strategies, and anticipated program evolution with respect to measure mix or trade ally engagement over the three years.

5. Describe your program design strategies to minimize free ridership and if possible maximize quantifiable program spillover.

6. Detail how you suggest increasing customer awareness of Consumers Energy role in sponsoring the program and providing Consumers Energy increased recognition and attribution during customer satisfaction surveys.

7. Describe your approach to working with Consumers Energy’s program managers and other subcontractors (if on your team) to build on the program design. In your opinion, what level of involvement from Consumers Energy program managers and other subcontractors (if on your team) is: a) essential, b) desired, or c) optional? Describe the ideal framework for communications, guidance, and decision-making.


8. Describe your approach to revising the implementation plan, reporting on key program metrics and operational milestones, establishing new performance metrics and milestones, and overall ability to track progress and manage budgets.

9. Outline the systems and teams you propose (e.g. design, delivery, marketing, technical review, QAQC, etc.) to ensure coordination and efficient and effective decision making with Consumers Energy program managers.

10. Detail how you propose to allocate staff resources and how you will develop expertise and ownership among staff for achieving goals in all of the program sub-components.

11. Contractors must clearly specify any anticipated subcontractors who will be used, and identify their roles, responsibilities, etc.

3.3 Program DeliveryThe Contractor will provide the facilities, equipment, and personnel to operate the program as described in the specific areas below.

Your proposal should address, but is not limited to, the following:

3.3.1 Experience and Plan

1. Present your program delivery strategy and plan for 2017-2018. Prepare your proposed implementation timeline and Gantt chart from initial contract signing to program launch and on-going delivery for 2017-2018. Indicate the most important milestones and operational goals by each sub-component of the program.

2. Describe your ability and experience to staff a customer service toll-free telephone line for customers and trade allies interested in learning more about how to participate in the program.

3. Describe your approach and strategy for recruiting and training trade allies who will assist with specified areas of the program. Summarize the profiles of the most critical trade allies by program who you consider the most important partners for program success. Summarize your trade ally recruitment, training, and management process. Summarize how you ensure high-levels of customer satisfaction with participating trade allies, including your protocols for addressing customer complains related to trade ally performance.

4. Describe your approach and strategy for recruiting and training local, State, Federal and non-profit agencies that will assist with the income qualified and affordable housing component of the program. Summarize the profiles of the most critical organizations and agencies who you consider the most important partners for program success. Summarize your recruitment, training, and management process for these organizations.

5. If applicable, describe your approach to overseeing the performance of subcontractors and how you manage to achieve results, within budget, and ensure excellent customer satisfaction.

6. Define your approach and philosophy toward early identification of problems and implementation of adaptive program design if required.


7. Detail your approach to handling conflict resolution on your team and with Consumers Energy.

3.3.2 Quality Control and Verification

1. Contractors shall provide in their proposal a detailed explanation of the quality assurance procedures that will be put in place for the Multifamily program and it’s sub-program components, including, but not limited to:

a. Quality controls, energy savings and budget tracking and forecasting, key program leading indicators, continuous monitoring and measurement to goals, regulatory compliance measures and audit procedures.

b. Quality assurance procedures will address implementing the program with minimal mistakes and customer service problems, the protection of Consumers Energy customer data and program data files to eliminate to the greatest extent possible tampering, misapplication, or misappropriation of such data, and ensuring that resources claimed and charged for has been performed as described.

c. Contractors will implement a comprehensive set of business rules within their operational tracking system based on Consumers Energy’s E-Tracker requirements that will ensure first-time data quality when transferring data between Contractor’s tracking system and Consumers Energy’s E-Tracker system. Specific rules will be articulated upon award of contract.

2. Describe your process to verify that data submitted in the rebate incentive applications are valid, accurate and complete. . Outline your proposed QA/QC protocol and describe your procedures and commitment to monitoring day-to-day operations.

3. What will be your approach to handle dispute resolution between the program and customers?

4. Describe any previous work experience with EM&V contractors and how you would coordinate to ensure Michigan deemed savings are correctly being applied in all data tracking systems. Describe your skills and experience characterizing new efficiency measures for EM&V review.

3.4 MarketingDiscuss your approach and capabilities to develop a marketing and communications plan to support the program delivery. This task will involve coordination with Consumers Energy program staff to develop final program marketing and communications plan to ensure the Consumers Energy “brand” look and feel is maintained and enhanced. Please note that marketing efforts shall not be limited to driving program participation, and it is a requirement that outreach and communications should be included within the broader marketing umbrella. Successful marketing plans will include tactics that aim to improve JD Power Scores in Consumers Energy’s key strategic areas (Kent County and Muskegon, Southeast Michigan, Jackson County, Ingham County, Bay, Saginaw and Midland Counties, Genesee County, and Kalamazoo County).

Please address, although you are not limited to, the following areas in your proposal:

1. Given your understanding of Consumers Energy’s market, outline your proposed marketing strategy, by sub-program component, including key milestones, use of existing resources and timeline. Describe your approach to recruiting customers to participate in the program. Discuss your previous experience - what has worked and what didn’t; and recommendations for Consumers Energy.


2. List what you consider to be the most important marketing metrics to track and monitor. Describe the methods of tracking these metrics. What activities can be taken to either increase or slow the pace of savings acquisition?

3. What marketing approaches do you propose to raise awareness and utility attribution for the program and its sub-components? How will you educate multifamily property owners and managers on the benefits of the multifamily program beyond the rebate incentive? How do you anticipate that these approaches will change over time? Please give examples.

4. Detail the marketing approaches you propose to enroll and motivate Consumers Energy trade allies and relevant affordable housing agencies to generate program participation. How will you train trade allies and affordable housing agencies to achieve program requirements? Describe how you anticipate that these approaches will change over time. Provide examples.

5. Describe where the marketing staff assigned to the programs will be based and, as needed, their availability to meet directly with Consumers Energy’s program managers.

3.5 Incentive Processing and Data TrackingContractors should describe their proposed approach and experience with incentive processing, issuing incentive checks, and overall data tracking. The Contractor is expected to keep Consumers Energy well informed of the program’s progress. This communication is expected to be both informal (i.e., phone calls and e-mails), through on-line/real-time systems and through formal reporting.

The Contractor must demonstrate the skills and systems to accurately and quickly process rebate applications, track program activity, and coordinate data transfer with Consumers Energy’s E-Tracker database.

1. Describe your plan to process incentive applications, track participant and program savings data, and issue reports. Detail how you propose to accomplish these tasks for Consumers Energy and submit your proposed process map for incentive processing and data tracking.

2. Confirm your capability to provide a web-based dashboard, password protected program tracking and real-time reporting capabilities for implementation staff and Consumers Energy program managers to monitor. The real time dashboard should report key performance metrics including but not limited to: cycle time, field inspections, savings, and spending. Include illustrative screen shots of reporting dashboards as an appendix.

3. Describe your capability, experience, and suggestions with respect to the use of on-line enrollment and incentive application forms. Describe any experience with smart apps or other technologies. Consumers Energy expects to offer participants enrollment through online platforms.

4. Describe your incentive application record-keeping process and ability to scan all hard copy applications so content and data is available for Consumers Energy project manager review.

5. Discuss your ability and process to issue incentive checks to customers.

3.5.1 Data Tracking

Database and automated reporting systems – The Contractor should maintain a program reporting database that tracks all aspects of the program. The database should be an existing, fully-debugged system capable of providing information to Consumers Energy in real-time. The Contractor must have the demonstrated capability


to connect to E-Tracker and Middleware software. Appendix F summarizes the process of posting installation data to E-Tracker.

1. The successful Contractor will post application data (Customer Measure Data and Documents) on a daily basis. This information can be transferred directly to E-Tracker via the web service or the Contractor can utilize a Consumers Energy developed Middleware solution which will reformat the information, create the XML output and post to E-Tracker. Access to both the Middleware option and E-Tracker will be by secure ftp websites (sftp) with an authenticated username and password required. Data transfer will contain three separate data files: 1) Job/Project Level Data; 2) Measure Level Data; and 3) Documents. The common key will be a Job/Project unique identifier. A Job/Project can have multiple Measures. All Measures will have a unique identifier. Information that does not meet pre-existing business rules will be rejected and an error report will be returned to the Contractor detailing the Job/Project identifier, type of error (hard or soft) The Contractor will be provided with a Consumers Energy “masterfile” on a monthly basis that contains “active” (eligible) customers for the Contractor’s program(s). Business rules shall be created to ensure that the customer eligibility by customer segment (C&I versus Residential) and commodity (natural gas versus electric). Flawed and rejected Job/Projects are tracked and metrics on cycle time (Job/Project application date to completed/posted date) are monitored on a quarterly basis. Contractor will utilize the PCN process (Production Change Notice) to correct any erroneous data that has been posted to E-Tracker. Contractor will be responsible for providing data from their operational tracking system on a quarterly basis for reconciliation. This data will contain customer level data, measure level data, incentives, and energy savings. All information related to the Contractor’s program is exclusively the property of Consumers Energy and cannot be utilized for any other purpose without permission.

2. Indicate whether your firm has the technical and business capabilities to meet the following requirements. If you are unable to meet a requirement, due to technical, organizational, securities, or policy constraints, please provide an alternative approach that would continue to meet Consumers information needs.

a. Deploy the E-Tracker Middleware component in your data center. This component includes the Apache web server, Jboss application server, and mySQL relational database. Provide the addresses or address ranges of the server and/or computer systems that will access E-Tracker, the Web, or Middleware

b. Store and use a public security certificate to enable HTTPS communication between the Middleware component in your environment with the Middleware component residing at Consumers

c. Identify the status of a project/job at any point in its lifecycle

d. Develop an extract from your Energy Efficiency tracking system of installation, measure, and document data, using guidelines and support provided by Consumers. If you cannot meet this requirement, can you provide installation and measure information in a predefined Excel spreadsheet?

e. Insert extracted data into the Middleware database, using guidelines and support provided by Consumers.

f. Provide supporting project/documents in electronic format.


g. Provide the operational support required to ensure full roundtrip processing of installation, measure, and documentation data. A key function would be to responding to and resolve data errors presented to the Middleware.

3. Describe your operational tracking system, platform, and the security procedures that govern information processing. Detail whether it is an internal resource or a hosted operation.

4. Describe how your Application processing interfaces with your operational tracking system. Identify if you are SSAE 16 certified.

5. Describe your system change process and resources available to accomplish system changes within your operational tracking system and the interface with E-Tracker.

3.6 General Administration & ManagementContractors should describe their proposed approach for general management, budgeting, financial management, and reporting. This section should also include the approach to overseeing the performance of subcontractors and field implementers of programs.

Address, although you are not limited to, the following areas in your proposal:

1. Overall experience and systems used for administration and management of energy efficiency and program implementation and marketing. Outline your approach to monitor overall portfolio success and adjust programs and initiatives as needed over time.

2. Describe your internal and external fraud prevention approach and philosophy to prevent, detect, and resolve any misconduct.

3. Describe how you will track and allocate program costs and savings for electric versus natural gas measures and program expenses. Detail how you propose to fairly and proportionately allocate cross-cutting program administrative, promotion and marketing costs that promote both electric and natural gas programs.

4. Describe your ability to prepare weekly, monthly, quarterly, and annual reports detailing program results to date, anticipated activities, accomplishments, issues, and opportunities. Include in your appendix examples of past reports for programs delivered elsewhere. The following report types are anticipated:

Data Extracts: Ability to provide periodic data extracts to EM&V contractor and to Consumers Energy for on-going evaluation and review to ensure necessary information for M&V and incentive payments are being collected.

Weekly, monthly, quarterly, annual reports: Reports include numerical data that document progress toward achieving overall performance goals by program area and progress to date in achieving goals/milestones, including but not limited to: (1) actual expenditures by task item compared to the annual component of the approved annual and two year budgets; (2) incentive payments; (3) report of progress made towards achieving savings goals and other agreed-upon key performance indicators; (4) a summary of marketing and outreach activity; (5) a summary of any significant changes or anticipated changes in implementation strategy and service; (6) a summary of customer complaints, resolutions, and unresolved customer issues; (7) review of data and information requests to Consumers Energy and


list of proposed program enhancements that need a group decision; (8) support service activities and issues such as marking and IT.

5. Describe your financial management experience and systems. Review and confirm your capability to develop, implement, and maintain the necessary budgeting, invoicing, expenditure approval, payroll, and financial accounting systems to review, approve, and track budgets, invoices, and payments to subcontractors, program implementers, employees, and customers. Confirm that your financial accounting system is consistent with general accounting standards. Also confirm that you shall be able to provide information and documentation required for independent annual financial audits.

4 PERFORMANCE GOALS4.1 Energy Savings GoalsContractors are requested to carefully consider the planned energy savings goals for the programs, available budgets, and timeline, and propose your own Contractor specific performance goals for annual MWh, MW and MCF savings by program and sub-program component. Contractors are requested to propose what they believe are realistic and achievable goals, given available budgets and time, by sub-program, by year.

Contractors must populate their proposed savings in the supporting excel spreadsheet included as a support document to this RFP, and include the excel sheet with your submission. Consumers Energy expects Contractors to propose a plan to achieve at least 100% of the specified savings target, with preferably savings that achieve 110% or more of the savings target at or below budget. Additionally, Consumers Energy requires Contractors to calculate and propose the overall lifetime savings associated with their suggested measure allocation. Contractors must use savings values as detailed in the 2016 Michigan Measures Database (MEMD), which have been included in the supporting excel workbook. Achievement of goals will be based on net savings. On an annual basis the MEMD will be revised, and updated measure savings values will be the new standard for implementer savings goals. In instances where Contractors have concerns about the Michigan Measures values, Contractors are encouraged to include alternative savings values and sources for alternative savings as a footnote in their response.

4.2 Other Performance Indicators and Incentives4.2.1 Performance Indicators

Consumers Energy prioritizes continuous program design enhancement and improvement in external and internal outreach, design, and processes. Overall performance improvement can be quantified and tracked by establishing key performance indicators. Consumers Energy invites Contractors to propose additional performance goals or milestones for consideration (e.g. number of participating agencies in the program, operational and delivery goals such as time to issue rebate checks, customer satisfaction metrics, etc.). Consumers Energy requests Contractors to propose additional performance indicators (e.g. 3-5 indicators) per program (or program component) which will demonstrate commitment to continuous improvement and highlight core business functions that the Contractor considers as keys to success and worth tracking and achieving. All performance goals are subject to final negotiation between Consumers Energy and the finalist


prior to contract signing, and a process will be negotiated which establishes a schedule for annually re-visiting and revising key performance indicators and financial awards or penalties.

This program offers a unique opportunity to not only gain improved customer satisfaction but also improve relations within local communities and organizations by leveraging relationships and collaboration opportunities. Describe past results of your work with other clients or utilities with similar programs where you were able to increase or maintain a high customer satisfaction rating.

Reaching the goals will be a significant factor of consideration when Consumers Energy evaluates whether to grant contract extensions. In addition, Consumers Energy expects the Contractor to help Consumers Energy achieve the performance indicators established by the Michigan Public Service Commission. If Consumers Energy decides to continue the contract with the incumbent Contractor beyond the initial two year contract (2017-2018), the new contract performance goals and associated budgets will be re-negotiated.

4.2.2 Performance Financial Incentives & Penalties

Consumers Energy desires that Contractors propose a set of financial compensation options for consideration which will reward the Contractor for exceptional performance, while holding the Contractor financially accountable for unsatisfactory performance. The overall compensation cannot exceed the total amount allocated for program delivery as presented previously in the program budgets. Consumers Energy desires Contractors to propose a financial compensation performance incentive matrix that recognizes a performance goal associated with energy savings targets and other proposed performance indicators (i.e. incentive cycle time, customer satisfaction). Consumers Energy expects that at least 50% of the Contractor’s financial compensation will be performance based.


5 QUALIFICATIONS AND EXPERIENCEContractors are requested to describe their firm and/or team's experience and capabilities in managing, delivering, and implementing the programs requested in this RFP. Contractors must provide detailed information on their overall core team qualifications and experience, including the following:

5.1 Management Structure In this section, Contractors are requested to:

1. Include a management and organizational chart that depicts the relationships and proposed agreements among team members (subcontractors) to accomplish the tasks in the Scope of Work.

2. Describe the business structure under which they typically operate (i.e., for-profit corporation, not-for-profit corporation, partnership, etc.) and years of relevant experience.

5.2 Qualifications and Experience Use this Section to address your team’s qualifications and experience, drawing on lessons learned and best practices. Address, at a minimum, but you are not limited to the following areas:

Program Design and Delivery Experience

1. Describe your previous experience as a lead contractor responsible for the programs requested in this RFP. Do you have experience serving as a “turnkey” program delivery Contractor or a partial turnkey delivery Contractor in coordination with utility staff? Summarize your previous experience with implementation strategy for each of the programs (and sub-program components) specified in this RFP.

Marketing

1. Your previous overall experience developing marketing and outreach plans and materials to support similar programs.

2. Review your previous experience and capabilities to develop program documents, including customer agreements and applications, technical support guidance documents, marketing collateral (such as case studies, newspaper, newsletter, or radio advertisements) to communicate to customers.

3. Describe your creative design, graphic arts, and messaging skills. Include examples of previous creative marketing and technical support pieces as an appendix to your proposal. Indicate the Advertising Agency that was utilized to develop marketing materials.

4. Describe your experience and ability to develop and maintain general customer technical content for posting on the Consumers Energy website related to the Multifamily program and program sub-components requested in this RFP. Provide representative links to any existing websites which were developed by your firm for similar programs that are in use today.

Incentive Processing and Data Tracking

1. Explain your previous experience and ability to process incentive applications, track participant and program savings data.

2. Describe your ability, experience and process to verify that activities presented in the applications are valid.


Relevant Experience and Understanding

1. Describe previous experience you have working directly in Michigan or the Midwest as it relates to the Multifamily Program.

2. What is your current understanding of the Michigan market for the Multifamily program and the program sub-components with regard to opportunities for energy efficiency? What opportunities and challenges do you anticipate, and how will you address them for each sub-component?

5.3 Resumes and BiosContractors are requested to identify key personnel to be assigned to this project, describe their primary responsibilities in a brief biography (one paragraph), and include a maximum two (2) page resume that describes the individual's experience and qualifications. This should include information for the staff, which will be doing the actual work at the Michigan offices and key senior staff from other corporate offices.

Resumes and bios should describe relevant responsibilities from other projects that will help Consumers Energy evaluate the qualifications and experience of key personnel. Resumes and biographies submitted during the RFP process should be for staff who are committed to working on the programs, with specific reference to which staff will be involved in just a temporary start-up and transition role, versus long-term staffing. Consumers Energy requests the ability to review and approve key hires and request transfers of key staff if necessary during the course of the project.

The proposals must include agreements by individual subcontractors listed in bids to provide the outlined services. This agreement must be signed by a person with the authority to make such a commitment. There is no prohibition by Consumers Energy for firms to be included in more than one proposal.

5.4 Client References Contractors are requested to provide five (5) references from current (preferred) or previous clients for whom they have performed projects that are relevant to the Scope of Work. References should include a brief synopsis of specific services provided, project size, results, company name and location, contact name, contact title, telephone number and, email address.

Contractors must complete and submit with their proposal Appendix D: Contractor’s Reference Form.

5.5 DisclosureContractors are requested to describe any potential conflict of interests. Specifically, Contractors are requested to disclose if they have ever worked for Consumers Energy in the past, detailing briefly the year and activities undertaken. Previous experience working for Consumers Energy is not a conflict of interest; however, it must be disclosed. Additionally, Contractors are requested to disclose if they are a manufacturer of any hardware or software which they propose to use in the course of performing this assignment. If Contractors have any questions, they are encouraged to seek clarification.

5.6 Financial Information Requirements Contractors are requested to demonstrate and verify that they have the financial resources and stability to perform the proposed work.


1. Note any other related and pertinent financial information or disclosures that the Contractor considers important.

2. Specify any preferred or desired financial terms which will facilitate your firm’s ability to respond to this RFP.

3. Contractors must demonstrate that they have the financial resources to perform the proposed work (e.g., last three years of audited financial statements for their firm and any significant subcontractors, which should include a profit and loss statement, a cash flow statement, and a balance sheet (e.g. SEC form 10-K is acceptable).

4. A non-public or non-profit entity shall provide adequate information comparable to the information required above, that allows an assessment of financial status and capability.

5. In the event a Contractor is forming a new organization to bid on this proposal, the Contractor should provide comparable documents from investors, partners, and/or principals.

6. Contractors must clearly identify the accounting method that they propose to utilize throughout the term of the Contract.

The Contractor shall submit the following information regarding the Contractor’s organization:

1. Legal name of Contractor2. Form of organization: corporation; partnership; individual d/b/a; or other as applicable3. State of incorporation or registration4. Federal Identification Number or Social Security Number as applicable5. Address of Contractor (place of business)6. E-mail address and website URL7. Diversity Certification (if applicable)8. Michigan Based Business (MBB)9. Business card information for primary Contractor contact10. Ability to receive payments via a Financial Electronic Data Interchange (FEDI)

If applicable, the Contractor shall submit the information requested above for each proposed subcontractor.

Is your company capable of receiving payments via a Financial Electronic Data Interchange (FEDI)? If not, would you consider establishing an account with a financial institution that is FEDI capable?

*”Flow Back” is defined as the value of the bidders’ spend, including sub-contractors’ spend, to bidders employees located in Michigan or for materials supplied by Michigan firms for this RFP.


6 BUDGETContractors are requested to detail program delivery costs for each of the programs (sub-programs) on a “per time and materials” basis, with a not to exceed limit, by year, for 2017 and 2018 detailed in Section 3 “Scope of Work.” Submit estimated costs, to the extent possible, according to the format as outlined in the supporting excel sheet file associated with this RFP. Total program budgets, including any proposed performance incentives, are not to exceed the total amount specified previously. Budget tables can be found in the excel workbook.

Contractors must prepare the budget tables by year in the supporting excel file and include it with their proposal submission, detailing specific participation goals and annual net and lifetime MWh, MW and MCF savings by program/sub-program component for program years 2017 and 2018 .

6.1 Programs: 1) Residential Multifamily

2) Commercial Multifamily

3) Income Qualified Multifamily


6.2 Alternative Compensation OptionsContractors are required to also propose alternative compensation structures, or concept ideas, for consideration by Consumers Energy as a way to distinguish your bid from competitors. Consumers Energy is interested in meaningful and creative responses that will help ensure goals are achieved. All alternative compensation structures will be considered and subject to negotiation as part of reviewing the initial base time and materials pricing proposal. Consumers Energy prefers that Contractors propose compensation structures that represent a combination of base time and materials compensation and at risk performance based compensation tied to achieving performance indicators. Overall, Consumers Energy prefers that Contractors propose a compensation framework that would place up to 50% of compensation at risk, subject to achieving proposed performance indicators. Consumers Energy is willing to negotiate reasonable, meaningful, and clearly specified and measured performance indicators. Contractors may propose at risk compensation frameworks lower than 50% at their discretion and with justification.

Contractors are requested to propose performance indicators for consideration that that may include, but are not limited to; a) kWh and MCF energy savings, b) Customer satisfaction, c) Rebate processing times, d) Data tracking accuracy and timeliness with data transfers, e) Other.

Contractors, at their discretion, may propose compensation structure options such as, but not limited to:

1. Performance Incentives: Contractors may propose a performance incentive structure which would reward Contractors for achieving or exceeding goals within budget. The amount of potential performance incentive must be factored out of stated available Contractor budgets, after accounting for projected program delivery costs. Performance incentives for achieving other milestones are also open for consideration.

2. Hold Back: Contractors may propose a portion of their invoices be “held back” in good faith, until annual performance goals are achieved or a sliding scale of annual performance goals are achieved.

3. Other: Contractors may propose other compensation or performance incentive structures for consideration, which may be a payment per MWh, and MCF saved, for a portion or all of a program.


7 PROPOSAL RESPONSE FORMATProposals must provide a concise yet complete description of the Contractor's approach and capabilities for satisfying the required services outlined in this RFP.

Contractor’s proposal must contain all the information requested in Appendix E, Proposal Response Format and Checklist, or the Contractor’s proposal may, at Consumers Energy’s sole and absolute discretion, be deemed unresponsive and will not receive further consideration. In the event that a Contractor chooses not to respond to a section of the RFP format or any other requested information, the Contractor should then, in place of the appropriate section or information, indicate its reason for the omission of a response. In addition, Contractors should address any and all anticipated difficulties and/or problem areas along with potential approaches to their resolution. Responses which identify staffing limitations or budget constraints, or other specific challenges in achieving desired program goals, along with recommendations to overcoming challenges, will be well received.

Contractors are encouraged to pro-actively present additional information, not specifically requested, which helps demonstrate understanding of the market and ability to achieve program goals. This is especially relevant to the discussion of performance goals and the program delivery approach.

Contractors must prepare their proposal response according to the following format:

1. Cover letter

2. General Company Information

3. Contractor Understanding/Approach for Each of the Programs (sub-programs)

i. Description of the program’s scope and objective (including the market and customer segment served), and the key end uses that the program will cover.

ii. Basis for the need of the program, and projected accomplishments of the program.

iii. Program theory (e.g., program logic, niche, resources, and energy goals) and why you think customers or market actors will respond sufficiently to the proposed program design leading to enough installation of measures to meet the energy savings goals.

iv. Your company’s roles and responsibilities in the program. Also, include subcontractor roles and responsibilities.

4. Review of Roles and Responsibilities and Understanding of Assignment

a. In this section the Contractor shall describe the assignment as they see it, highlighting their key roles and responsibilities in the delivery of a successful program for each of the programs (sub-programs)


5. Scope of Work (Tasks 1-6)

a. Contractor shall include in their proposal a detailed discussion of the Program Scope of Work for each of the programs (sub-programs), as described in Section 3, Scope of Work.

i. Task 1Transition and Start-Up

ii. Task 2 Program Design

iii. Task 3 Program Delivery

iv. Task 4 Marketing

v. Task 5 Incentive (Checks) Processing and Data Tracking

vi. Task 6 General Administration/Management

6. Performance Goals

a. Contractor shall provide an estimate of energy savings achievable by program and sub-program by year and overall for the two year period, for each of the programs and sub-programs as described in Section 4, Performance Goals.

b. Contractor shall also detail other proposed performance goals and milestones by program and sub-program.

7. Qualifications and Experience

a. Contract shall describe their team’s qualifications and experience in implementing the requested programs and sub-programs as described in Section 5, Qualifications and Experience. Contractors shall include the following information:

i. Management and organizational chartii. Brief (one paragraph) biography for key personnel

iii. Client references, including contact information (See Appendix D, Contractor References Form)

iv. Previous three years audited financial statements

8. Budgets by program by Year

a. Contractor shall provide detailed total labor and other direct costs, by year, by program and sub-program component, as well as any other information requested in Section 6, Budget. Contractors must include budget tables in your response as well as also including populated budget tables as an excel sheet in a corresponding CD-ROM.

9. Appendices

Contractor may include any additional information in appendices that they feel relevant

a. Maximum 2-page resume for key personnel and b. Appendix A, Terms and Conditions

b. Appendix A, Terms and Conditions Exceptions Form


8 SELECTION PROCESS & EVALUATION CRITERIA

8.1 Selection ProcessAll proposals will be evaluated using the following process:

Step 1: Threshold Review

Proposals must contain all required elements including exceptions to terms and conditions in order to pass this stage. Additionally, Contractor must demonstrate that there are no legal claims/judgments that would make it difficult for the Contractor to perform. Contractor must also meet minimum qualifications described in Section 9.11.

Step 2: Proposal Evaluation

Review and scoring of the proposed Scope of Work, Schedule, Management Plan, Qualifications, and Budget. Evaluation criteria will include:

o Technical Approach

o Organization and Management Capability

o Cost

Step 3: Face to Face meetings

Consumers Energy may wish to schedule face to face meetings and follow up conversations with top ranked bidders.

8.2 Evaluation Criteria Proposals that combine experience and commitment to proven program designs, with a willingness to expand and innovate, combined with also maximizing savings per dollar invested will be scored more highly. Consumers Energy desires cost- competitive proposals that can convincingly present a strategy to exceed savings targets, below stated maximum budgets, will score higher points.

The RFP will be evaluated based on the following parameters:

8.2.1. Technical Approach

Included in this category will be an assessment of the overall strategic approach to achieving successful program start-up, design, delivery, marketing, data tracking, and assessment of ability to achieve proposed program milestones and sub-tasks contributing toward achieving proposed performance goals. The Selection Committee will award points for this section based on the Committee’s assessment of the quality of the proposal to the specific tasks requested in the Scope of Work, proposed performance goals, and the overall thoughtfulness and creativity of the proposed approach to achieving savings and other proposed program milestones.


8.2.2 Organizational and Management Capability

Since the tasks the Contractor will be selected to perform are complex and often difficult to measure quantitatively, the demonstration of organizational ability and administrative competence, and the experience of the organization and its staff and subcontractors, and demonstrated success elsewhere, along with positive references, will be a heavily weighted selection criteria.

8.2.3. Cost

Proposals must include a time and materials annual budget for 2017 and 2018 and summary of total proposed costs for the two years. The Selection Committee will review the overall delivery costs (labor, non-labor, incentives) including any alternative compensation structures and evaluate total costs related to the technical approach and proposed performance goals. Review of alternative compensation methods will also be reviewed and considered.


9 RFP RESPONSE PROCEDURES 9.1 Intent to Bid Contractors are requested to indicate their “intent to bid” by emailing Cheryl L. Ragland at [email protected] by March 31, 2016.

9.2 Contractors’ Conference CallContractors are encouraged, although not required, to participate in a Contractors’ conference call via telephone. The conference call will provide interested firms with an opportunity to seek clarification on the requirements of the RFP.

Date Time: March 29, 2016 at 2:00 PM ESTCall-In Number: 517.768.3300 Access Code: 358558#

9.3 RFP ScheduleMarch 21, 2016 Issue RFP

March 29, 2016 Contractor’s conference call

March 29, 2016 RFP question period ends

March 30, 2026 RFP question responses posted

March 31, 2016 Intent to Bid Notification

April 29, 2016 Proposals due

May 23– June 3, 2016 Interview finalists

July 25–August 12, 2016 Contract negotiations

October 17 – December 30, 2016 Anticipated contractor start date and (if needed) transition/coordination period with existing contractor

January 1, 2017 All programs operating under new Contractor (or continuation of incumbent team)

The above schedule is subject to change at the discretion of Consumers Energy. The individual designated as Contractor’s contact (in either the proposal or the intent to bid) must be available to receive and respond to inquiries and requests throughout the solicitation process. Any change to the process or timeline of this RFP will be sent to the designated Contractor’s contact.


mailto:[email protected]

9.4 RFP - Questions and Communications Contractor questions related to this RFP should be submitted by email to Cheryl Ragland at [email protected] consistent with the due date of March 29, 2016.Questions submitted after this date will not be addressed. Copies of all questions and answers will be e-mailed anonymously to all bidders.

No other contact with Consumers Energy employees related to this RFP shall be made throughout this entire process. Any unauthorized contact may result in immediate disqualification.

9.5 Proposal Review - Questions and CommunicationsConsumers Energy reserves the right to contact a Contractor at any time for clarifications about any part of the Contractor’s proposal. Proposal review questions and communications will focus on clarifying the information set forth by the Contractor in the proposals and will not be an opportunity for the Contractor to revise terms.

9.6 Submission of Proposal Responses Contractors must submit both hard copy and electronic versions of their proposals by the due date and times listed below. Any Proposals received after the date and time will be rejected. Proposals that do not contain the information requested in this RFP may also be rejected at Consumers Energy’s sole and absolute discretion.

1. Acceptance of Terms and Conditions - The submission of a proposal to Consumers Energy shall constitute a bidder’s acknowledgement and acceptance of all the terms, conditions and requirements set forth this RFP unless exceptions are noted specifically

2. Time and Place for Submission:

Due Date: April 29, 2016

Time Due: 5:00 p.m. (Eastern Standard Time)

To: Cheryl L. Ragland

Address: Consumers Energy CompanyOffice: EP2-434One Energy PlazaJackson, MI 49201

Phone Number: (517) 788-1456

Proposals received after this deadline will be rejected.

3. Proposal Submission – Contractors are required to submit ten (10) hard copies (with one (1) copy being unbound and single-sided and nine (9) copies being bound and double-sided of their Proposal, including all submittals required by this RFP. In addition to the hard copies, Contractor shall include with its submission one electronic copy of their full Proposal on a CD ROM in both PDF format, for internal distribution, and in Microsoft Office software (Word, PowerPoint, Excel), as well for purposes of facilitating preparation of scope of work contracts. Proposals must be enclosed in a sealed envelope or box clearly marked “Proposal”.

4. Verification of Receipt of Proposal – It is the Contractor’s sole responsibility to ensure that its Proposal is received at the address specified above by the deadline for submission.


mailto:[email protected]

5. Errors or Omissions – A Contractor that discovers an error or omission in its Proposal response package may withdraw that package and resubmit one, provided that it does so before the deadline for submission of Proposal responses.

6. RFP Withdrawal – Consumers Energy reserves the sole and absolute right to withdraw this RFP at any time before the duly authorized execution of the contract/purchase order with Contractors for any reason including, but not limited to, action by the MPSC that modifies or withdraws the program. In its sole and absolute discretion, Consumers Energy may accept or reject any or all proposals, and may accept other than the lowest cost proposal. Consumers Energy will not assume any liability, under any circumstances, to any Contractor submitting a proposal in response to this RFP.

7. Proposal Preparation Costs – Contractor accepts any and all costs and expenses incurred prior to the duly authorized execution of the contract/purchase order and will not seek any costs and expenses from Consumers Energy.

8. Ownership of Proposals - All proposals submitted by the Contractor to Consumers Energy in response to this RFP shall become the exclusive property of Consumers Energy and may be used for any reasonable purpose by Consumers Energy.

9. Proposal Confidentiality – To the extent possible, Consumers Energy will attempt to keep submitted proposals confidential. However, it is possible that proposals may be requested by the MPSC for review, or by other interveners, and as such, full assurance of complete confidentiality is not possible. Furthermore, Consumers Energy will not assume any liability to a Contractor or other party as a result of any public disclosure of any proposal or contract/purchase order.

9.7 Terms and Conditions of SubmissionReview the Consumers Energy’s Sample Contract Terms and Conditions, insurance requirements, Third Party Ethics and Compliance, and errors and omission documents located under the “Documents” section of the RFP website and make note of any exceptions in your proposal response. All proposals, along with all other documentation, submitted in connection with this RFP shall become and will remain the property of Consumers Energy and will not be returned to the Contractor.

By submitting a proposal pursuant to this RFP, Contractors acknowledge and agree that (a) they will be fully bound by the terms and conditions of this RFP and Consumers Energy Terms and Conditions in submitting their proposals, (b) they have had the opportunity to seek independent legal and financial advice of their own choosing with respect to the RFP and their proposals, (c) they have obtained all necessary authorizations, approvals and waivers, if any, required by them as a condition of submitting their proposals, (d) they are submitting their proposals subject to all applicable laws, and (e) they have not engaged and will not engage in communications with any other Contractor in the RFP concerning the price or other economic terms contained in their proposals and have not engaged in collusion or other unlawful or unfair business practices in connection with this RFP.

9.8 Consumers Energy is under no obligation to execute a Contract

Nothing contained in the RFP shall be construed to require or obligate Consumers Energy to select any proposals or limit the ability of Consumers Energy to reject all proposals in its sole and exclusive discretion. Consumers Energy further reserves the right to withdraw and terminate this RFP at any time prior to the execution of a contract.


9.9 Non-Confidentiality of SubmissionsContractors acknowledge and agree that the submission of a proposal or other information to Consumers Energy does not establish any fiduciary or confidential relationship between the Contractor(s) and Consumers Energy, nor is there one intended or created by reason of this RFP and/or submission of a proposal. The Contractor(s) agree that Consumers Energy shall not be obligated to return the proposal to the Contractor(s), and the Contractor(s) release Consumers Energy from any and all liability if the proposal is lost, misplaced, stolen or destroyed.

Contractors should not submit any information containing its or any third party’s trade secrets or other proprietary or confidential information. Contractors are hereby advised that Consumers Energy may use non-utility industry consultants to assist them in evaluating proposals, and for such work, Consumers Energy will allow these selected consultants to review all proposals that it will be evaluating, including pricing and other Contractor-provided materials within the proposal. These consultants will be required to sign a non-disclosure agreement with Consumers Energy.

Contractors are also hereby advised that Consumers Energy may also disclose proposals, or any information contained therein, by legal process or to judicial, governmental or regulatory authorities. Consumers Energy may elect to enter into mutual nondisclosure agreements with Contractors selected for further participation in transactions which are the subject matter of this RFP, but is not agreeing to such an arrangement at this time and will infer that information which is submitted by each Contractor is not deemed confidential or proprietary information of the Contractor or any third party.

9.10 Post Proposal Negotiation and Awarding of ContractsConsumers Energy reserves the right to negotiate both price and non-price factors during any post-proposal negotiations with a finalist. Consumers Energy has no obligation to enter into an agreement with any respondent to this RFP and may terminate or modify this RFP at any time without liability or obligation to any respondent. This RFP shall not be construed as preventing Consumers Energy from entering into any agreement that it deems appropriate at any time before, during or after this RFP process is complete.

Consumers Energy will utilize its Contract for Labor and Materials for this contract. A copy of this document is posted on the RFP website under “Terms and Conditions”. Contractors must complete the Terms and Conditions Exceptions Form provided in Appendix A and submit it with their proposal.

9.11 Minimum QualificationsThe Contractor team responding to this RFP must have at least the following qualifications to be considered for selection:

1. At least five years of experience with delivery and marketing similar types of energy efficiency programs for utility sponsored or other system benefit charge funded programs.

2. Demonstrated organizational, financial, and data tracking and reporting abilities.

3. Demonstrated commitment to quality and customer service.

4. Contractors are required to locate key delivery team members in Michigan. Staffing of the prime contract manager within 40 miles of Jackson, Michigan is required.


9.12 Negotiations and Finalizations Once the Contractors have been selected for the program, contract negotiations will be conducted. These negotiations will relate to the scope of work, specific program design features, program budgets, schedules, and payment terms. The contractual terms will include general terms and conditions. Consumers Energy reserves the right to simultaneously conduct negotiations with both the prospective Contractor and an alternate Contractor. Consumers Energy also reserves the right to terminate negotiations with any Contractor in the event that Consumers Energy and the Contractor are unable to agree on contract terms and conditions within a reasonable period of time to be determined in Consumers Energy’s sole and absolute discretion.

Program year 2018 is contingent on obtaining MPSC approval of the Consumers Energy Plan for 2018 and beyond. After 2017, legislative uncertainty may result in altered savings and spending targets. As such, Contractors must be aware that approaches specified in their RFP responses may need to be re-negotiated.

9.13 Contract FormsCSS Form 226 General Contract for Technical and Consulting Services along with the following checked attachments:

Contract Insurance Supplement - Class A Contract (CSS Form 928)

Vendor Payment - Financial EDI Transactions (CSS Form 0651A)

CMS Energy Corporation Third-Party Code of Conduct (2013)

Project Change Notice (“PCN”) Form

Cyber Security Questionnaire

CONTRACT FORMS LOCATIONThe Contract forms referenced above are:

Included with this RFP package.


APPENDIX A: TERMS AND CONDITIONS EXCEPTIONS FORMConsumers Energy Services Agreement is located under “Terms and Conditions”. If there are any exceptions to the Terms and Conditions, you must fill out Table .

Table 5. Terms and Conditions Exceptions FormCONTRACTOR NAME:PROGRAM NAME:EXCEPTIONS TO SERVICES AGREEMENT:

No_________ Yes_________ (if “Yes,” fill in table below)

Section/Paragraph Number (or other

description)Page

Number Reason for Exception Proposed Alternative Language


APPENDIX B: CONSUMERS ENERGY SERVICE TERRITORY (MICHIGAN)


APPENDIX C. CONSUMERS ENERGY EO PORTFOLIO STRUCTURE FOR 2016-2017


APPENDIX D. CONTRACTOR’S REFERENCE FORMContractor must provide at least five (5) references, including the information as outlined in example Table presented below.

Table 6. Contractor’s Reference Form

Contractor Name:

Program(s):

Reference #1

Reference Organization Name:

Reference Contact Person: Reference Title:

Reference Organization Location: Phone/e-mail:

Project Description, Budget, Time period, and Summary Results

Team Members on Project:

Consumers Energy requests the Contractor include public utility commission case numbers from this referenced utility project and a link to the docket number and public reports that summarize the performance of programs implemented by the Contractor. In addition to providing web links, Contractors are requested to include the most recent summary documents presenting official portfolio results, costs, and savings in a CD-ROM as part of the proposal response.


APPENDIX E: PROPOSAL RESPONSE FORMAT AND CHECKLISTContractors are required to prepare their proposal response according to the format in Table below. This table must be included in Contractor’s proposal as the table of contents for proposal. The total page length for proposal responses should not exceed 250 pages, 12 point font, not including appendices. Succinct and summarized responses addressing requested areas of interest are desired.

Table 7. Proposal ChecklistRFP

SectionIncluded?

(Y/N)Section/Page

Number

Cover Letter

General Information 1

Confirmation of Understanding of Approach for the Multifamily Program and Each Program Sub-Component and Roles and Responsibilities.

2

Description of the program’s scope and objective (including the market and customer segment served), and the key end uses that the program will cover.

2.3

Basis for the need of the program, and projected accomplishments of the program

2.3

Key roles and responsibilities in the delivery of a successful program for each of the program sub-components. Also, include subcontractor roles and responsibilities.

2.6

Scope of Work (Tasks 1-6) 3

Detailed discussion of the Program Scope of Work for each of the sub-program components.

3.1- 3.6

Performance Goals 4

Estimate of energy savings achievable by year and overall for the two year period, for each of the program sub-components. Complete energy savings forecasts populated in the supporting excel workbook.

4.1

Key performance indicators, performance goals, and milestones by program sub-component.

4.2

Qualifications and Experience 5

Budget 6

Detailed total labor and other direct costs, by year, by sub-program component. Complete budget forecasts populated in the supporting excel workbook.

6.1

Proposed alternate compensation options. 6.2

Appendix A, Terms and Conditions Exceptions Form


RFP Section

Included? (Y/N)

Section/Page Number

Appendix D: Contractor’s Reference Form

Appendices - Other supporting material as deemed relevant (No Page Limits Apply)

Supporting Excel Workbook


APPENDIX F: POSTING INSTALLATION DATA TO

E-TrackerA. Business Requirements

Contractors are required to transmit data to the E-Tracker System for each application it processes. This information includes (but is not limited to):

1. Customer information (e.g., account number)2. Facility/Residence information3. Job Status4. Installation Contractor information5. Installed Measure information, including quantity installed and associated incentive6. Field Inspection data7. Payment Information8. Supporting Documentation

This information must be transmitted to E-Tracker on a regularly scheduled basis, and must contain data for all applications whose status has changed since the last transmission. Installations with longer life cycled may require multiple data transmissions over the life of the effort. Installations with a very short life cycle (e.g., retail lighting and appliances) may only require one transmission (i.e., when the application has been completed), but could potentially require more if the job moves through multiple statuses.

B. E-Tracker Data Transmission Process

Consumers Energy provides three web services that enable Contractors to transmit installation information to E-Tracker, where it will be posted to the system's database. They are:

1. Residential Programs ("Job") web service2. Commercial and Industrial Programs ("Project") web service3. Supporting Documents web service

The web services may be directly invoked by the Contractor, however all new Contractors will be required to use Consumers Middleware solution that eliminates the need to develop complex web service invocation processes, and significantly reduces the need to code Consumer's business rules as part of the IC's data transmission process.

Contractors will be required to develop procedures to extract Job, Project, and/or Document information from their data stores and present the data to the Middleware interface according to the frequency rules outlined above.

C. E-Tracker Middleware Technical Environment

The Middleware environment consists of two main entities:


1. "client-side" components that reside on a server in the Contractor's data center, consisting of:

a. an open-source relational database management system (mySQL) with tables designed to store information extracted from IC data stores

b. Pre-defined Excel spreadsheets for storing job and installed measure data in place of the mySQL relational database. These are available for use in low-volume Energy Efficiency programs by smaller Contractors without automated job tracking systems

c. an open source web server (Apache)d. an open source Java application server (Jboss)e. Java Enterprise Edition (Java EE) componentsf. HTTPS communications protocol and security certificates

2. Additional components that reside within E-Tracker on Consumers' servers

a. A web page that enable's ICs to establish a schedule for extracting data from the Middleware database and posting it to E-Tracker

b. A process that extracts data from the Middleware tables, formats XML, invokes the appropriate web service, and posts data to E-Tracker's database.

c. A web page that enables ICs to see the results of the web service posting, including error conditions that require correction

In addition to these components provided by Consumers Energy, Contractors will be required to develop and deploy a process that extracts job/project and supporting document data from their data store and inserts the results into the Middleware's relational database on an event-driven or scheduled basis.

D. E-Tracker Middleware Functional Process Flow

1.The Contractor's procedure runs to extract project, job, and/ or supporting document data from their data store and post it to the Middleware's relational database. Alternatively, the IC can populate the Excel spreadsheets provided as a substitute data store. The Middleware contains a process that will "consume" these spreadsheet and post data to the relational database.

2.Middleware process executes based on client's pre-configured schedule, or upon request. The Middleware:

a. Extracts data from the Middleware tables that has not previously been processed

b. Formats the data into XML streams and invokes the appropriate web service3. The web service edits the data in the XML data stream. If the data for a particular

project/job/document is valid, the web service posts it to E-Tracker's database. If the data has errors, error messages are stored in an error table.


4.The web service sends an email to a previously-established Contractor mailbox upon completion of the run. The email will contain statistics from the web service execution (start and stop times, number of items processed, number posted, number in error, etc.)

5.The Contractor goes to the Middleware Errors web page to generate an Error Report, which can be used to make data corrections prior to the next run.
