request for esco contract.pdf

8/11/2019 Request for ESCO contract.pdf

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Request For Qualifications (RFQ) For Energy Performance Contracting Services

Request For

Qualifications (RFQ)forEnergy PerformanceContracting Services

Sample Letter of Invitation to respond to RFQ

Sample RFQ for Energy Performance Contracting Services

! Services Desired

! Procurement Process

! Attachment A: Sample Project Schedule

! Attachment B: Evaluation Criteria! Attachment C: Terms and Conditions

! Attachment D: ESCO Response

! Attachment E: Guidelines for Developing a Facility Profile! Attachment F: Technical Energy Analysis & Project Development

Agreement

! Attachment G: Measurement & Verification Requirements &

Recommendations

These are sample documents only and do not attempt to identif y or address all

cir cumstances or conditi ons you may encounter or desir e. Consul t with your legal

counsel and procur ement staf f to adapt thi s document to meet your needs.


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Request For Qualifications (RFQ) For Energy Performance Contracting Services 1 of 46

SAMPLE

ADVERTISEMENT FOR PROPOSALS

Notice is hereby given that ________________________________________ shall receive proposals

from qualified Energy Services Companies (ESCOs) to provide energy conservation equipment and

services under an Energy Services Performance Contract until 3:00 pm, Wednesday, April 1, 1998,

at 500 Jefferson Street, Jackson, Mississippi. Proposals will be in accordance with Section 31-7-14

of the Mississippi Code and the Request for Qualifications.

A detailed Request for Qualifications may be obtained from the Project Manager:

_______________________________________________

Name_______________________________________________Organization

_______________________________________________Address

_______________________________________________Phone

All correspondence should be directed to:

_______________________________________________Name

_______________________________________________Title (President, Superintendent, Administrator, etc. )

_______________________________________________Organization

_______________________________________________Address

_______________________________________________Phone

Publish: __________________ and _________________


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SAMPLE

LETTER OF INVITATION TO RESPOND TO RFQ

Date:__________________

Dear Energy Service Company,

is inviting the submission of qualifications from Energy Service Companies (ESCOs) to provide a full range

of services and related capital improvements in order to reduce the consumption and related costs of energy and water use.

Projects will be financed through a performance-based contract with a guarantee of savings under which incurs

no initial capital costs. These services may include a technical energy analysis to assess energy, water and operations and

maintenance savings opportunities, as well as the design, acquisition, installation, modification, maintenance and training

in the operation of existing and new energy-efficient equipment.

The attached RFQ describes the services requested, terms and conditions, the proposed project schedule and the energy-

using systems and maintenance issues in the facilities.

Responses must be prepared as described in Attachment D: ESCO Response. Responses must be received by

on by at or sent to .

For further information, please contact:

Sincerely,


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REQUEST FOR QUALIFICATIONS

Issued by

For Energy Performance Contracting Services

INTRODUCTION

(hereinafter referred to as Customer)

seeks specific qualifications from interested Energy Services Companies (ESCOs) that are capable of providing

comprehensive energy and water management as well as related capital improvement services for selectedfacilities owned or managed by Customer. A description of these facilities is provided in an attachment to this

RFQ. Additional buildings and facilities, are listed, may be included in the future under the same contract."

GENERAL RESULTS DESIRED

Customer seeks a broad range of services and capital improvements in order to reduce the consumption and

related costs of energy and water use in the facilities addressed in an Attachment of this RFQ (Facility Profile).

These services and capital improvements will be provided and financed through a performance-based contract

with a guarantee of savings under which the Customer: a) incurs no initial capital costs (with option for Customerto provide initial capital if desired), b) achieves significant long-term savings, c) achieves a guarantee for energy

savings, water savings and operations and maintenance (O&M) savings (O&M savings includes materials and

labor savings and will only be applicable at the option of Customer), d) obtains consistent levels of occupant

comfort and building functionality, and e) captures ancillary benefits that may accrue as a direct result of such

energy-related services and capital improvements, such as environmental protection, hazardous materials

disposal, etc.

Customer seeks to maximize energy savings and related improvements. Within the framework of available

financing, therefore, ESCOs are encouraged to advocate the installation and implementation of improvements

providing the greatest possible energy, water and O&M savings. Essential services and improvements sought

are those that will reduce energy and water consumption in Customer's facilities, upgrade capital energy-related

equipment, improve building operations and maintenance, save costs through fuel switching or improved demand


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management, and aid in meeting environmental management responsibilities.

Improvements must result in a guaranteed minimum energy savings with the ESCO payments linked to

actual measured reductions in energy cost or consumption. No contract shall exceed ( ) years in duration

and is subject to annual appropriations. The energy savings achieved by the installed energy efficiency measures

(EEMs) need to be sufficient to cover all project costs including annual maintenance and monitoring fees for the

duration of the contract term. At a minimum, the energy savings guarantee should be structured to correspond

to the annual financing costs associated with the project. The contract is subject to approval and review by the

Mississippi Department of Economic and Community Development - ENERGY DIVISION.

REQUIRED SYSTEMS AND SERVICES CAPABILITIES

An interested ESCO must have the demonstrated technical and managerial capability to address a broad range

of building energy and water systems, provide a comprehensive set of energy and water services, and capture the

value of any directly related ancillary benefits.

Energy systems include, but are not limited to, heating, ventilating and air conditioning (HVAC) equipment,

energy management and control systems, lighting systems, domestic hot water systems, the building envelopeand other energy using systems such as laundry, kitchen, pool, and renewable energy systems.

Water systems include, but are not limited to, devices which reduce water consumption and sewage services, such

as, automatic controls, low-flow sink aerators, showers, and toilets, cooling, tower modifications, and irrigation

system controls or modifications.

Energy and water services include, but are not limited to, a technical energy and water analysis; the design,

acquisition, installation, modification and commissioning of new and/or existing energy systems. Additional

services include continuing operations and maintenance for all improvements and/or training of Customer's staff

on routine maintenance and operation of systems as well as training of occupants. Monitoring and verification

services include appropriate measurement and reporting of the performance and savings from improvements.

Ancillary benefits may include, but are not limited to, hazardous materials disposal or recycling, improved

occupant comfort or building functionality, improved indoor air quality, and any unique benefits that may be

provided by regular technology upgrades or advanced proprietary technology.

OVERVIEW OF TERMS AND CONDITIONS

Contract Term. No contract shall exceed years in duration and is subject to annual

appropriations. The duration of the contract will be mutually determined between the ESCO and the Customer

based on financial factors so that a zero or positive net cash flow is realized by the Customer.

Guarantee. Improvements and services must result in guaranteed minimum annual energy, water and O&Msavings option, as well as guaranteed minimum levels of occupant comfort and operations and maintenance

and/or any ancillary services. A guarantee is required to equal the calculated savings attributable to all energy

saving measures for each year during the contract period. The combined savings achieved by the installed

projects must be sufficient to cover all project costs including debt service and contractor fees maintenance,

monitoring and other services, for the duration of the contract term. At a minimum, the savings guarantee

should be structured to correspond to the annual financing costs associated with the project. Payments must


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be linked to actual measured post-retrofit improvements as compared to building performance before the

installation of any energy systems and service improvements. Payments for capital improvements and continuing

services shall be structured as constant, level payments to be made by Customer through the term of the

agreement. The guaranteed savings must be achieved each year. Annual cost savings derived from such

improvements beyond the guaranteed minimum savings will be held by Customer, and will not be allocated to

shortfalls in other years.

Financial Review. Detailed financial projections of project benefits are dependent upon the scope of technical

retrofits finally selected and installed. It is premature to place a major emphasis on projected financial benefits

prior to the completion of a detailed engineering study and negotiation of the project structure. During contract

negotiations, the ESCO shall disclose cost markups which will be applied during the subsequent technical energy

analysis and energy performance contract. Open book pricing during the construction stage will be required, such

that pricing information or bids on individual products and services will be available for review by Customer.

Respondents are encouraged to carefully review the evaluation criteria in the RFQ under Financial Approach and

to respond as fully as possible.

O&M Savings. Any O&M cost savings related to maintenance and operation of the facilities will be rigorously

reviewed and, if agreed to, will be limited to those that can be thoroughly documented and approved by Customer.

Deposit to Board or Contract of Insurance. The ESCO must deposit with the Board of an amount of money equal to all payments to be made by the board during the first year of the contract

or a contract of insurance guaranteeing payment to such board of the amount, if any, by which such payments

exceed such actual savings of energy costs for the first year. The ESCO will forfeit the amount by which actual

savings fall short of guaranteed savings. Any amount not forfeited will be returned to the ESCO upon contract

termination.

Technical Energy Analysis. The technical energy analysis must include estimates of savings for eachmeasure.

Also, the cost estimate for eachmeasure must include an estimate of all costs including design, engineering,

installation, maintenance, repairs and debt services.

PROCUREMENT PROCESS

The evaluation and selection of an ESCO, and the negotiation and procurement of services will proceed as

follows:

Site Visits. Prior to the submission of proposals and upon request, Customer will arrange a walk-through

inspection tour of the buildings described in the Attachment to this RFQ. Knowledgeable representatives will

be available to answer questions about the operation of the facilities. All ESCOs are encouraged to carefully

review the facility profile information contained in the Attachment and to visit the facility in order to enhance

their understanding of existing building conditions and opportunities. To make arrangements for a walk-through

inspection tour, please contact the following person by :


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Submission of Written Proposals. ESCOs that wish to participate must submit responses as directed in the

Attachment D: ESCO Response. All submissions become the property of Customer and will not be returned

to the ESCO. All costs associated with submission preparation will be borne by the submitting ESCO.

Responses must be prepared as described in the attachment.

Proposal Review and Selection of Finalists. Customer will establish a Project Evaluation Team to review and

evaluate the written responses to this RFQ in accordance with the evaluation criteria identified in an Attachment

to this RFQ. Customer will contact at least two prior clients of each ESCO to inquire about the performance of

the firm and its work in situations similar to those faced by Customer.

Customer reserves the right to reject any or all submissions and to waive informalities and minor irregularities

in submissions received and to accept any submissions if deemed in the best interest of Customer to do so.

Customer will select no more than three (3) ESCOs for further competition.

ESCO Interviews and Ranking. Each of the selected ESCOs will participate in a detailed oral interview to

answer questions from the Project Evaluation Team and more fully discuss how its approach to this project

satisfies the evaluation criteria set forth in this RFQ. All persons with major responsibility for the project's

technical design, management and contract negotiation should be present at the interview. Each oral interviewmay be tape-recorded. A more complete description of the interview process and format will be sent to each of

the selected ESCO. Based on results from both the written responses to the RFQ and the oral interviews, the

Project Evaluation Team will rank the ESCOs such that contract negotiations will proceed with the top-ranked

ESCO.

Preliminary Contract Negotiations. The top-ranked ESCO will be required to disclose a description of the

intended pricing methodology in addition to general cost markup information. Markups, inclusive of all fees, for

all cost categories will be required, such as markups for direct labor and direct materials as well as markups on

both labor and materials related to profit overhead, subcontractors and contingencies. Cost categories can be

specified by the ESCO. Customer will honor the confidentiality of all information that is marked "confidential"

by the ESCO. These markups will be used in any subsequent technical energy analysis cost projections and in

any final performance contract. Customer has the right to reject the top-ranked ESCO if costs are not determinedreasonable. In that event, Customer has the right to begin negotiations with the second-ranked ESCO.

Development of Technical Energy Analysis and Project Development Agreement. Customer intends to

negotiate a contract for the technical energy analysis as described in the Attachment to this RFQ. If an acceptable

technical energy analysis and project development agreement cannot be reached within 30 days from the date of

ESCO selection, negotiations with the next-ranked ESCO may be initiated.

Development of Energy Performance Contract. Following successful completion of the technical energy

analysis, Customer intends to negotiate a performance contract to implement the projects. Customer has the

option to decline any or all performance contract agreements. This agreement is also known as an Energy

Services Agreement.

This procurement and contracting process ensures that Customer gets the maximum value for its dollar by

requiring open book pricing, full disclosure of mark-ups, and the use of stated markups in the subsequent pricing

structure. The inclusion of these requirements prevents an ESCO from withholding critical information necessary

for Customer to negotiate fair and reasonable prices in the performance contract.


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DESCRIPTIONOFTHEPROCUREMENTPROCESS

It is anticipated that the process for the procurement of these energy services will proceed in three stages.

1) SUBMISSION OF WRITTEN QUALIFICATIONS: through its designated

representatives will review and evaluate the written responses to this Request for Qualifications (RFQ)

in accordance with the evaluation criteria identified in Attachment A. will select no more than

three qualified ESCOs to proceed to the competitive oral interview stage of the procurement process.

2) ORAL INTERVIEW: Each of the three qualified firms will participate in a detailed oral interview to

more fully discuss how their approach to this project satisfies the evaluation criteria set forth in

Attachment B. ESCOs will be required to answer questions posed by the Project Evaluation Team. It

will be the sole responsibility of the Project Evaluation Team to make the final selection of a Project

Contractor based upon the evaluation of written responses to the RFQ, and the oral responses received

during the interview process. A more complete description of the interview format and logistical

arrangements will be mailed to the three finalists.

3) SELECTION OF ESCO TO DEVELOP CONTRACT: Based on the opinion of the Project EvaluationTeam, will select the best qualified ESCO to conduct a complete Energy Analysis

of the facility and propose contract terms concerning a complete set of proposed energy improvements,

the timetable for completing engineering and construction work, a detailed description of services to be

provided, specific financing arrangements and terms, and an estimate of energy savings, as well as

special conditions offered by the company. intends to negotiate a final contract for these

services, which includes a minimum savings guarantee. If an acceptable contract cannot be reached

within 90 days from the date of ESCO selection, negotiations with the second-ranked ESCO may be

initiated.

We recognize that detailed financial projections of project benefits are dependent upon the scope of

technical retrofits finally selected and installed. It is premature to place a major emphasis on projected

financial benefits prior to the completion of a detailed engineering study and negotiation of the projectstructure. Respondents are encouraged to carefully review the evaluation criteria in the RFQ under

Financial Approach and to respond as fully as possible.

SITEVISITS

will arrange walk-through inspection tours of their buildings upon request, prior to the

submission of qualifications. Site representatives will be available to answer questions about the operation of

the buildings. All ESCOs are encouraged to carefully evaluate the building profile data contained in the technical

appendix and to visit the facility in order to enhance their understanding of existing building conditions and

retrofit opportunities.

To make arrangements to tour , please contact:______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________


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SUBMITTALFORMAT

Companies who wish to be considered by _________________________________ must submit an original and

__________ copies of Attachment D & E (the ESCO Profile Form and ESCO Qualifications & Approach to

Project) to __________________________________ . All submissions become the property of

_________________________ and will not be returned to the ESCO. The three highest ranked firms will be

notified by phone to schedule their appearance at the oral interview.

__________________________________________ reserves the right to reject any or all proposals and to

waive informalities and minor irregularities in submissions received and to accept any submissions if deemed in

the best interest of __________________________________________ to do so. All costs associated with

submission preparation will be borne by the submitting company.

TO AID ORGANIZATIONS IN THEIR RESPONSE TO THIS REQUEST, THE FOLLOWING ITEMS ARE

ATTACHED:

OVERVIEW OF ATTACHMENTS

To aid companies in their response to this request the following items are attached:

Attachment A: Proposed Project Schedule

Attachment B: Evaluation Criteria

Attachment C: Contract Terms and Conditions

Attachment D: ESCO Response

Attachment E: Technical Facility Profile

Attachment F: Technical Energy Analysis and Project Development Agreement

Attachment G: Measurement & Verification Requirements & Recommendations


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RFQ - Attachment A: Proposed Project Schedule 9 of 46

A T T A C H M E N T AA T T A C H M E N T A

PROPOSED PROJECT SCHEDULE

The following schedule is the proposed schedule, and may change during the project.

ACTIVITY DATE

Issue RFQ Week 1

Site Visit (to be arranged) Week 1-5

Proposals Due Week 6

Proposal Review and Selection of Finalists Week 6-7

ESCO Interviews and Ranking Week 7-8

(includes Board approval of ESCO if required)

Preliminary Contract Negotiations Week 9-10

Development of Technical Energy Analysis Contract Week 11

(includes negotiation and signing)

Technical Energy Analysis, Project Analysis Week 11-22

Development of Performance Contract Week 23-30

(includes negotiation, Board approval if required, submissionto MDECD-Energy Division and signing)


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RFQ - Attachment B: Evaluation Criteria 11 of 46

j. Communication Skills. Quality of communication skills of the ESCO's representatives at the

oral interview.

2. Technical Approach (Scoring Weight: 40%)

a. Understanding of Conditions. Understanding of the existing building conditions, systems,

operations and schedules.

b. Technical Qualifications. Qualifications and relevant experience of the technical design staff.

c. Technical Approach. Comprehensiveness and clarity of the technical approach to this project

based on improvements likely to be included. Quality of conceptual design presented in oral

interview.

d. Responsiveness of Strategies. Approach to adapting control strategies, equipment, and

maintenance practices in response to changes in utility rates, technology, and building conditions

in order to enhance project performance.

e. Experience of Key Personnel. Number of past projects completed by the person(s)

responsible for this project's technical design that include technical measures proposed for this

project.

f. Quality of Technical Energy Analysis. Quality of a sample technical energy analysis for a

similar type of facility completed by the person(s) responsible for project technical design.

g. Baseline Calculation Methodologies. Reasonableness of the typical baseline energy and water

use calculation methodology.

h. Approach to Maintenance Contracts. Approach to maintenance contracts, including requiredlength and relationship to performance guarantee.

i. Extent of Customer Involvement. Willingness to allow Customer's staff to perform

installation or maintenance on equipment.

j. Past Project Performance. Documented energy savings of previous projects managed by the

ESCO.

k. Reference Checks. Reliability of equipment performance of ESCO's past performance

contracting projects, based on reference checks.

3. Financial Approach (Scoring Weight: 15%)

a. Financial Soundness. Financial soundness and stability of the ESCO. Completeness and

strength (financial viability) of most recent annual financial statements.


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RFQ - Attachment B: Evaluation Criteria 12 of 46

b. Performance Guarantee. Terms of the guarantee of the project's financial performance.

c. Financing Capability. Demonstrated ability to provide or arrange project financing.

d. Insurance Capability. Provide documentation that your firm can comply with the minimum

insurance requirements for this project.

e. Proposed Financing Arrangement. Sample financing arrangement proposed for this project.

f. Cost Savings Calculations. Quality and clarity of the intended financial savings calculations.

g. Invoice Clarity. Clarity of the sample project invoice.

h. Open Book Pricing Approach. Approach and experience in providing open book pricing.

Note: Pricing methodology and cost markups will be evaluated during ESCO selection (see "Procurement Process" of this RFQ).

4. Legal Approach (Scoring Weight: 10%)

a. Contract Quality. Quality of sample legal agreement.

b. Adjustments to Baseline. Contractual provisions to accommodate changes in building energy

use regarding occupancy, operating schedule, weather, etc., including adjustments to the energy

use baseline.

c. Contract Flexibility. Flexibility of contract to accommodate needs of Customer.

d. Early Termination Provisions. The quality of provisions for early termination of the contract

at the initiative of either party.

5. Technical Energy Analysis Cost (Scoring Weight: 10%)

Cost of the technical energy analysis.


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RFQ - Attachment C: Contract Terms and Conditions 13 of 46

A T T A C H M E N T CA T T A C H M E N T C

CONTRACT TERMS AND CONDITIONS

The minimum conditions Customer will accept from the selected ESCO are described below. This section defines

the scope of services related to the technical requirements that will be included in any final contract. It also

defines the key contractual provisions.

1. Scope Of Services (Technical Requirements)

The Scope of Services must be included in any performance contract Customer enters into, and must

include the following items at a minimum:

a. Technical Energy Analysis. The ESCO's proposed contract terms must include the

performance and presentation of results from a detailed technical energy analysis of acceptable

quality to Customer. The proposed analysis terms and conditions are specified in an

Attachment to this RFQ. The minimum annual energy, water and O&M cost savings and

financing period will be negotiated. If Customer decides not to enter into a contract after theanalysis has been accepted, Customer agrees to pay the cost of the analysis as stated in the

submitted proposal, provided that the proposed contract terms offered by the ESCO meet all the

conditions set forth in this RFQ. The technical analysis must include estimates of savings for

each measure. Also, the cost estimate for each measure must include an estimate of all costs

including design, engineering, installation, maintenance, repairs and debt services.

b. Standards of Comfort. Specific standards of comfort, safety and functionality will not be

degraded from the existing condition and/or shall meet minimum established industry standards.

The ESCO will be responsible for maintaining the levels of comfort for each building as

specified in the RFQ or in any final agreement. Persistent failure to maintain the defined climate

and lighting conditions will constitute a default.

c. Professional Engineer Involvement. A registered professional engineer must, at a minimum,

review and approve design work done under this contract. The engineer may be an employee

of the ESCO and may be registered in a state other than the state in which the work is

accomplished.

d. Guaranteed Savings. Customer requires a minimum annual guaranteed level of combined

savings and improved performance approach to the project. If the project does not generate the

guaranteed level of savings in any given year, the ESCO will be responsible for reimbursing

Customer the amount of the short fall necessary to pay for annual project financing and all

related contract obligations. Excess savings will not be used to reimburse the ESCO for any

payments made due to shortfalls in other years.

e. Construction Management. The ESCO will be required to work with current building

management and maintenance personnel in order to coordinate construction and provide

appropriate training in operations and maintenance of all installed improvements. No

equipment or other improvements will be installed that would require Customer to hire

additional personnel unless contract negotiations produce an explicit exemption for a specific

installation. Maintenance responsibilities shall be proposed in detail in the contract.


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f. Equipment Standardization. All equipment installed that is comparable to similar equipment

at other sites operated by Customer shall be of the same manufacturer for standardization of

equipment agency wide, unless excepted by Customer.

g. Maintenance Manuals. At least three (3) maintenance manuals for each site will be provided

for all equipment replacements and/or upgrades at each location. Manuals are subject to

approval of Customer.

h. As-Built Drawings. Where applicable, ESCO must provide mylar, reproducible "as built" and

record drawings (or such electronic equivalents as may be agreed to with Customer) of all

existing and modified conditions associated with the project, conforming to typical engineering

standards. These should include architectural, mechanical, electrical, structural, and control

drawings and operating manuals within 30 days of completion of installation.

i. Follow-up Monitoring and Maintenance Services. Following the installation and

implementation of improvements, the ESCO will be responsible for maintaining and monitoring

the measures to ensure optimal performance; however, Customer has the option to decline these

services or negotiate for a reduced term of services.

j. Customer Activities. Customer reserves the right to make energy and water improvements to

the work sites and to monitor the performance of the installations independently of the ESCO.

Additionally, Customer may wish to integrate other identified capital needs with ESCO projects,

which may or may not contain energy and water saving opportunities.

2. Contractual Provisions

Key elements that must be provided for in any performance contract that Customer enters into will, at

a minimum, include the following:

a. Proposal Submissions. The contents of the ESCO's submissions in response to this solicitationwill become part of any final agreement between Customer and the contractor.

b. Meeting Project Schedule. The ESCO must provide a final schedule of project milestones

including equipment-servicing and preventive maintenance provisions that will become part of

any final contract. ESCO is responsible for meeting schedule deadlines. In the event any

milestone or service provision is not met as scheduled without prior approval from Customer,

Customer reserves the right to consider it a default and withdraw from all contractual

obligations without penalty.

c. Customer Inspection. Customer must have the right to inspect, test and approve the work

conducted in the facilities during construction and operation. Customer shall have the right and

access to the account books, records, and other compilations of data that pertain to theperformance of the provisions and requirements of this agreement. If the contract negotiations

call for cost-plus or open book pricing, then the accounting books of the ESCO must be

accessible by Customer. Records shall be kept on a generally recognized accounting basis, and

calculations will be kept on file in legible form and retained for three years after close-out.

Customer retains the right to have its representative visit the site during the analysis and

implementation phases of the project, and to attend relevant on-site or off-site meetings of the


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ESCO and/or its subcontractors.

d. Final Approval of Customer. Customer retains final approval over the scope of work and all

end-use conditions. Customer may delay the initiation of savings payments until approved.

e. Property of Drawings, Reports and Materials. All drawings, reports and materials prepared

by the ESCO specifically in performance of this contract shall become the property of Customer

and will be delivered to Customer as needed or upon completion of construction.

f. Compliance. All work completed under this contract must be in compliance with all applicable

federal, state and local laws, rules and regulations such as building codes and appropriate

accreditation, certification and licensing standards. Work must be in accordance with sound

engineering and safety practices and in compliance with all Customer regulations relative to the

premises. The ESCO and its subcontractors will be responsible for obtaining any and all

required governmental permits, consents and authorizations, and for payment of any and all

state and city required taxes and fees which result from is contract.

g. Handling of Hazardous Materials. All work completed under this contract must be incompliance with all applicable federal, state and local laws, rules and regulations regarding

waste disposal and treatment/disposal of any hazardous materials that could result from this

project. Work must also be in accordance with sound engineering and safety practices, and in

compliance with all reasonable Customer rules relative to the premises. In the event the ESCO

encounters any such materials, the ESCO shall immediately notify the project manager and stop

work pending further direction from the project manager. The State may, in its sole discretion,

suspend work on the project pending removal of such materials or terminate this Agreement.

h. Methodology to Adjust for Changes. The contract must contain a mutually acceptable clause

whereby unanticipated changes in facility use, occupancy, schedule and/or utility rates can be

accommodated in a fair manner agreeable to both parties. The ESCO's proposed method for

adjusting the energy use baseline should be identified in the RFQ response and listed in aschedule to the contract.

i. Hiring and Wage Requirements. The ESCO will comply with all requirements for the

payment of prevailing wages, and for minority and women-owned business enterprises.

j. Subcontractor Approval. Customer retains the right to approve any ESCO selected

subcontractor prior to its commencement of work on this project. Names and qualifications

must be submitted at least two weeks in advance.

k. Bonding Requirements. The ESCO will provide to Customer assurance of completion in the

form of separate performance and labor and material payment bonds, each in the sum of 100

percent of all subcontracts. If necessary, ESCO bonding requirements should also be specifiedincluding the types of bonds required, the amount of each bond and the specific milestones that

trigger bonding requirements and bond release.

l. ESCO Insurance. Prior to the commencement of work, the ESCO must provide evidence of

insurance for both the construction and operations phases of the project. (If possible, this should

be specified as to type and dollar amount required. The respondents may be asked to provide


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this information in a schedule attached to the proposal.)

m. Guaranteed Cost Savings. Improvements and services must result in guaranteed minimum

annual energy, water and O&M savings option, as well as guaranteed minimum levels of

occupant comfort and operations and maintenance and/or any ancillary services. A guarantee

is required to equal the calculated savings attributable to all energy saving measures for each

year during the contract period, per Mississippi Revised Statute 31-7-14. The combinedsavings achieved by the installed projects must be sufficient to cover all project costs including

debt service and contractor fees maintenance, monitoring and other services, for the duration of

the contract term. At a minimum, the savings guarantee should be structured to correspond to

the annual financing costs associated with the project. Payments must be linked to actual

measured post-retrofit improvements as compared to building performance before the

installation of any energy systems and service improvements. Payments for capital

improvements and continuing services shall be structured as constant, level payments to be

made by Customer through the term of the guaranteed savings must be achieved each year.

Annual cost savings derived from such improvements beyond the guaranteed minimum savings

will be held by Customer, and will not be allocated to shortfalls in other years.

n. Applicability of O&M savings. Any O&M cost savings related to maintenance and operation

of the facilities will be rigorously reviewed and, if agreed to, will be limited to those that can be

thoroughly documented and approved by Customer.

o. Open Book Pricing. Open book pricing will be required, such that the ESCO will fully

disclose all costs.

p. Disclosure of Cost Markups. The pricing methodology and individual cost markups disclosed

during preliminary contract negotiations will be required to be applied in costs presented in any

subsequent technical analysis or performance contract.

q. Annual Reconciliation. Annual savings will be verified at a specified time each year in orderto determine if the ESCO's guarantee needs to be exercised.

r. Contract Term. No contract shall exceed years in duration and is

subject to annual appropriations.

s. Contract Expiration and Renegotiation. At the time of contract expiration, Customer will

have the option either to renegotiate the contract or terminate it without penalty.

t. Prepayment Non-Penalty. The contract must permit Customer to prepay the contractor, in part

or in whole, without penalty.

u. Expanded Contract (Master Contract) Capability. To reduce transaction costs, Customerseeks to select an ESCO that can provide continuing services under this RFQ and subsequent

energy performance contract. This arrangement is intended to allow Customer to expand energy

services to other buildings and facilities as listed in the Attachment to this RFQ and clearly

marked as possible future projects or facilities to be addressed at the option of Customer.


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addressed now and those that could be addressed later.> The ESCO must present both the

terms of a Master Contract and the process for negotiating services that can be provided for

individual buildings and facilities under this agreement.

v. Contract Renegotiation. Customer reserves the right to renegotiate the awarded contract if

warranted, due to changes in the regulatory or utility climates or in Customer's use of energy

and/or the desire to add sites not included in the initial contract.

w. Post-Contract Preventive Maintenance Schedule.Upon completion of the contract, the

ESCO shall provide to Customer a single comprehensive schedule of necessary preventive

maintenance for all installations for the five (5) years following contract close-out.

x. Disputes Resolution. The contract should contain a disputes resolution clause specifying

arbitration or other methods to seek outside guidance short of legal proceedings. The American

Arbitration Association is often specified, with arbitrators selected from the Association of

Energy Engineers.

y. Deposit to Board or Contract of Insurance. The ESCO must deposit with the Board of an amount of money equal to all payments to be made by the board

during the first year of the contract or a contract of insurance guaranteeing payment to such

board of the amount, if any, by which such payments exceed such actual savings of energy costs

for the first year. The ESCO will forfeit the amount by which actual savings fall short of

guaranteed savings. Any amount not forfeited will be returned to the ESCO upon contract

termination.

z. Assignment Approval. Customer will have the right of approval for assignment of the

performance contract to a different ESCO.

aa. Non-Appropriations Clause. Payments will be subject to annual appropriation.


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RFQ - Attachment D: ESCO Response 18 of 46

A T T A C H M E N T DA T T A C H M E N T D

ESCO RESPONSE

This attachment provides information about the required response from the ESCO. The first section provides

details about submitting the proposal, including what must be sent, the number of copies and the time and date

of the deadline. The next two sections: ESCO PROFILE and ESCO QUALIFICATIONS AND APPROACHTO PROJECT provide forms that must be filled in and submitted by the ESCO as part of the ESCO response.

PROPOSAL SUBMITTAL INFORMATION

General Information:

Refer to "Procurement Process" in the body of the RFQ for more detailed information on proposals.

Failure to complete any question in whole or in part, or any deliberate attempt by the proposer to mislead

Customer, may be used as grounds to find the proposing ESCO ineligible.

All submissions become the property of Customer and will not be returned to the ESCO.

All costs associated with submission preparation will be borne by the submitting ESCO.

Please use double-sided copying where possible to reduce paper use.

Submit The Following:

a. Attachment D: "ESCO Profile" and "ESCO Qualifications and Approach to Project"

Quantity:, including original.

b. Sample Technical Energy Analysis

Quantity: one (1) copy

c. Cover Sheet to accompany each of the above submittal, as given below.

To: , Attention:

RE: Response to RFQ - Energy Performance Contracting Services

Date: ______________________

From: _____________________

Firm Name: _______________________________________

Address: _________________________________________

General Phone Number: ______________________________

Contact Person

Name: _______________________________________


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Title: ________________________________________

Phone: _______________________________________

Fax: _________________________________________

e-mail Address (if applicable): _____________________

Submit To:

,Attention:

Address for over night or hand-delivery:

Mailing address:

Due Date:

Submittal must be received at the above address on or before by .

For further information, please contact:


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____________________________________________________________________________

____________________________________________________________________________

c. How many years has your firm been involved in energy-related business?

Years_____

d. Please identify all states in which your firm is legally qualified to do business.

___________________________________________________________________

9. PERSONNEL INFORMATION

a. Please attach the resumes of the principal individuals who will be directly responsible for this

project. Please indicate the specific qualifications of each individual and the role they will play

for the duration of the contract. Clearly identify who will have the primary responsibility for

the technical analysis and design of the project.

b. Please give the number of years of design and construction experience for each of the above

individuals and describe all supervisory responsibilities; please provide a list of all projects each

individual has been associated with during the last five (5) years, including type of project and

$ size.

c. Please identify your firm's legal counsel for this project. Give the name and address of the

primary individual responsible for contract negotiation.

10. FINANCIAL REFERENCES

a. Please attach your firm's most recent annual report.

b. Please attach the most recent year-ending Statement of Financial Conditions, including balance

sheet and income statement, dated within twelve months of filing this ESCO Profile Form.

c. Please provide the name, address, and the telephone number of firm(s) that prepared Financial

Statements.

11. PROJECT HISTORY

On separate sheets of 8-1/2" x 11" paper please briefly describe five (5) energy performance contractsor related projects which your firm has managed. Please put an asterisk by those project references

involving buildings similar to the building(s) described in the technical appendices. Number each

heading as follows:

a. Project

b. Location


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c. Project $ Amount (installed project costs)

d. Source of Funds

e. Type of Contract (i.e., shared-savings, lease purchase, guaranteed savings)

f. Owner

g. Designer: Name(s) of primary technical design personnel

h. Start and End Dates

I. Projected Annual Energy Savings (Therms, KWH, KW, Gallons)

j. Achieved Annual Energy Savings (Therms, KWH, KW, Gallons)

k. ESCO Notes or Comments

l. Please provide the names and telephone numbers of the owner(s)' representatives with whom

you have done business on each of the projects listed in your summary.

NOTE: All questions must beaddressed by theESCO in order for this qualification form to be properly completed. Failure of the contractor to answer

any question, or comply with any directive contained in this form may be used as grounds to find them ineligible. If a question or directive does not

pertain to your organization in any way, please indicate that fact with the symbol N/A. For additional space attach 8-1/2" x 11" sheets and indicatereference number (i.e., 12a, 12b, etc.) to correspond with each question.

12. AUTHORIZATION

a. Dated at this day of 19 .

Name of Organization:

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

By_________________________________________________________________

Title _______________________________________________________________

13. ATTACHMENTS

List all attachments created to address additional information. List by number and heading in

this ESCO Profile. If a computer-generated form is used, detail descriptions can be included in

the appropriate section rather than prepared as an attachment.

Item# Heading Name

Attachment for # ___________ _________________________________

Attachment for # ___________ _________________________________

Attachment for # ___________ _________________________________


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14. NOTARY STATEMENT

a. Mr./Ms.________________________________________ being duly sworn deposes and says

that he/she is the______________________________of ______________________, ESCO,

and that answers to the foregoing questions and all statements therein contained are true and

correct.

b. Subscribed and sworn before me this _______ day of___________ 19_________.

Notary Public _______________________________________________________

My Commission Expires ______________________________ 19_____________.


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ESCO QUALIFICATIONS AND APPROACH TO PROJECT

Please provide answers to each category listed below. Provide your responses on 8-1/2" x II" sheets of paper and

number and title each answer to the corresponding category. All pages in your response to this attachment should

be numbered sequentially.

1. GENERAL QUALIFICATIONS

a. Project History. Briefly describe all energy performance contracts or related projects which

your firm has managed within the last three (3) years. (Do not include projects/contracts

managed by team members or subcontractors.) Identify those project references involving

buildings similar to the building(s) describe in the technical appendices.

NOTE: If this response is submitted by a branch office or division of a parent company, please

provide project histories for those that have been managed directly by the specific branch or

division. Projects that have been managed by individuals who will be specifically assigned to

this project should also be included and identified.

Include the following information on each project:

1) Project Identification. Name the project owner, state the type of project (generic

building type such as hospital, school, etc.), provide the location (city, state).

2) Project Dates. Project Actual Construction Start and End Dates.

3) Project Size. Number of buildings and total square footage.

4) Project Dollar Amount. Provide the total contract amount and the total project

capital expenditure amount.

5) Source of Funds. State the source of funds used for the project and your firm's

role, if any, in securing those funds.

6) Contract Terms. State the type of Contract (shared-savings, lease purchase,

guaranteed savings), the duration of the contract terms, and the financing

arrangement.

7) Technical Design Personnel. Include name(s) of primary technical design

personnel.

8) Project Schedule. Indicate if the project was completed on schedule. If not, please

explain.

9) List of Improvements. List the retrofits and operational improvements related to

energy, water and O&M cost savings.

10) Projected Annual Savings. State the projected annual energy, water and O&M

savings (Therms, kWh, kW, Gallons, etc.). (See sample form below.)


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11) Guaranteed Savings. State the amount of the guarantee (see sample form below).

Also describe how the guarantee functioned and if your firm was required to pay

funds to meet the guarantee.

12) Actual Annual Savings. State the actual annual energy, water and O&M savings

(Therms, kWh, kW, Gallons). Also describe if savings were measured or stipulated.

(See sample form below.)

13) Summarize savings results in a format similar to that shown here:

Project Name: ____________________________________________

Projected Annual

Energy Savings

Guaranteed Energy Actual Energy Savings

KWh KWh Year 1 Year 2 Year 3 Year 4 Year 5

Therms Therms

KW KW

Gal Gal

14) Comments. Comment on any special features, services, conditions, etc.

15) References. Provide the names and telephone numbers of the owner(s)

representatives that can supply references.

b. Personnel Information. Provide the following information as it relates to your approach to the

proposed project.

1) Full-Time Personnel. Indicate the number of full-time personnel employed by your

firm and the percent available to work on this project. (Can be answered as part of item

"b" below.)

2) Qualifications and Experience. Identify who will have the primary responsibility for

each task and phase of the project including technical analysis, engineering, design,

construction management, construction, training and post-contract monitoring. For

each of the individuals listed, indicate the following: name, title, intended role and

responsibilities for the duration of the contract, educational background, specific

qualifications related to role and responsibilities, past relevant experience, number of

years of relevant experience, supervisory responsibilities (if relevant to role), list of

projects individual was associated with during the last five (5) years including type of

project and project cost, resume.

3) Areas of Expertise. List all areas of expertise related to potential energy and water


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improvements in facilities. Include specialized areas of expertise in areas that might

be relevant to the project (swimming pools, laboratories, renewable energy system

application or rehabilitation, daylight design, etc.) Also describe the professional and

skilled trades that your firm customarily performs with employees.

4) Contract Negotiations Personnel and Legal Counsel. Give the name and address

of the person who will have primary responsibility for contract negotiations. Alsoidentify your firm's legal counsel for this project.

5) Subcontractors. Describe the nature of work generally conducted by subcontractors

and discuss your flexibility in hiring subcontractors recommended by Customer or in

selecting local subcontractors in Customer's geographic area.

2. GENERAL APPROACH

a. Project Summary (not to exceed 5 pages). Summarize the scope of. services (auditing, design,

construction, monitoring, operations, maintenance, training, financing, etc.) that would be

offered for this project. Include a brief description of your firm's approach to management andthe specific benefits your firm can offer Customer. Propose a preliminary project schedule.

b. Training Provisions. Describe your firm's capabilities in providing technical training for

Customer's facility personnel and experience on past projects. Describe your firm's involvement

in developing training manuals for facility staff.

c. Engineering Design. Describe your firm's approach to the technical design of this project.

d. Monitoring and Verification. Describe the methodology proposed for ongoing monitoring

and savings verification of each recommended project's performance, including the frequency

of such efforts. Note if an industry standard such as the International Monitoring and

Verification Protocol is used and describe the preferred method.

e. Cost of Analysis. Estimate the total cost of the technical analysis to Customer. This will be

the reimbursable cost if no performance contract is negotiated, providing the analysis meets the

requirements described in the Attachment to this RFQ.

f. Baseline Calculation Methodology. Describe in detail the methodology your firm normally

uses to compute baseline of energy and water use as well as performance.

g. Adjustment to Baseline Methodology. Describe the method(s) used to adjust the energy,

water and O&M baseline due to such factors as weather and facility use changes. Describe

factors that would necessitate adjustment. Please refer to the Technical Facility Profile of

Attachment F which describes that some buildings will have substantial changes in use, andaddress these issues in particular.

h. Savings Calculations. List all procedures, formulas and methodologies including special

metering or equipment your firm will use to calculate energy, water and O&M savings. Include

assumptions made in the calculations.

I. Dollar Savings Calculations. Describe the procedure to assign dollar values to the O&M and


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energy and water savings.

j. ESCO Fee Calculation. Describe your methods for calculating your firm's fees as a function

of the projects total combined savings. Describe the specific services for which your firm will

be paid over the contract term. Describe the method by which your firm will be paid for those

services and how often payment will be made.

k. Maintenance Contract Flexibility. Describe the types of services included in the maintenance

contract. Comment on whether Customer's maintenance staff can perform some of these duties

if desired, and describe any impact on the guarantee. (These duties could include programming

and maintaining the control system, installing lighting retrofits, maintaining HVAC equipment,

etc.). Describe the required length of the maintenance contract and the relationship with the

guarantee in the event that Customer chooses to terminate the maintenance contract prior to the

end of the performance contract.

l. Cost Savings Guarantee Calculations. Describe your firm's procedures and schedule for

measuring financial performance of projects. Describe how the guarantee provisions work in

the event that project results vary from projections. Also describe how excess savings will be

documented for Customer's benefit.

m. Open Book Pricing. Describe your firm's approach and experience in providing open-book

pricing.

n. Billing and Invoices. Describe your standard billing procedures and attach a sample invoice.

o. Provision of Financing. Briefly describe the types of financing arrangements provided by your

firm for past performance contracting projects. Include a brief description of the source of funds

and the potential dollar amounts currently available to your firm to finance these types of

projects. Indicate what representative interest rates may be available, financing terms and other

variable economic factors associated with each method. Please comment on how you would

work with Customer to utilize tax-exempt financing or other methods to keep financing costsat a minimum.

p. Provision of Insurance. Describe level and types of all insurance policies applicable to the

project.

q. Environmental Liability. State your firm's position with respect to the acceptance of liability

for any hazardous materials encountered during the course of the project. If the firm is willing

to accept any level of environmental liability, state the level and provide a cost analysis.

r. Provision of Warranties. State the nature and terms of all warranties that will apply to the

project.

s. Equipment Ownership and Service Responsibility. Describe the status of equipment

ownership and service responsibility at contract expiration.

t. Sample Technical Energy Analysis and Project Development Agreement. Describe any

modifications you recommend or require regarding the Technical Energy Analysis and Project

Development agreement in this RFQ.


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u. Sample Contract Agreement. Briefly explain how your Master Contract Agreement and

Performance Contract Agreements for specific facility improvements work. Attach a sample

of both types of contracts offered by your firm. However, note that State agencies are required

to use a state-issued contract.

v. Sample Technical Energy Analysis. Briefly describe your approach to auditing a facility.

Submit a sample technical analysis conducted by your firm for a similar project (as directed in

the Proposal Submittal information). This analysis must include detailed energy and economic

calculations.

3. SITE SPECIFIC APPROACH

a. Technical Site Analysis. Based on your preliminary assessment of the information provided,

describe any equipment modifications, installations or replacements at the facility that your firm

would consider installing as a part of this project. Address energy, water and O&M

opportunities. Also describe any special features, renewable technologies, or advanced

technologies that might be applicable. Describe your approach to achieve standardization of

equipment in the facilities to be addressed. Describe any special features or services associatedwith your proposed improvements that would add value to Customer.

b. Operations and Maintenance. Describe any major changes in operations or maintenance of

Customer's facilities that yourfirm foresees based on the information provided. Briefly describe

the maintenance responsibilities of your firm and Customer. Describe how your firm would

provide appropriate training in operations and maintenance of installed improvements.

c. Standards of Comfort. Describe standards of comfort and functionality that will be used for

light levels, space temperatures, ventilation rates, etc. in the intended facilities. Also describe

how those standards will be maintained throughout the contract term.

d. Construction Management. Describe how your firm would work with current buildingmanagement and maintenance personnel in order to coordinate construction and avoid conflicts

with the building's operation and use. Describe your flexibility and/or any limitations regarding

possible Customer activities such as: Customer's management of additional energy and water

projects, Customer's monitoring of installation and performance of ESCO projects, Customer's

integration of other identified capital needs with ESCO projects which may or may not contain

energy and water saving opportunities.

e. Project Financing. Describe your firm's preferred approach to providing or arranging

financing for the proposed project. Describe the mechanics of the financing arrangement

including projected interest rate, financing terms with formulas used to determine periodic

payments, equipment ownership, responsibilities/liabilities of each party, security interest

required and any special terms and conditions that may be associated with the financing of thisproject.


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RFQ - Attachment E: Technical Facility Profile 30 of 46

A T T A C H M E N T EA T T A C H M E N T E

TECHNICAL FACILITY PROFILE

Note to Customer: The energy service companies (ESCOs) wi ll need a descr ipt ion of the faci li ties that ar e

candi dates for energy eff iciency impr ovements in order to evaluate the opportun ity to implement a

successfu l energy perf ormance contract. Whi le it wi ll not be practical to provide every technical detail acertain min imum level of in formation must be contained in the RFQ. ESCOs shoul d also be prepared to

respond to more specif ic questions from the ESCOs about the bui ldings. Please provi de the foll owing for

each bui lding under your ownership (where you pay all util ity bil ls).

The information in this technical facility profile is provided to inform the ESCO about the condition of theCustomer's facilities. The information was prepared with diligence by the Customer. The ESCO is responsiblefor verifying the accuracy, as necessary.

1. GENERAL FACILITY DATA

C Name of buildingC Address of buildingC

Primary use of buildingC Total square footage of conditioned space. (If the total areas which are heated and cooled differ in size,

please describe their respective sizes.)C Number of floors.C Year constructedC Year of any major modifications.C Building operator name & telephoneC Building engineer name & telephoneC Building manager name & telephone

2. PAST ENERGY IMPROVEMENT EFFORTS

C Describe any major energy-related changes made during the past ten years.C

State if any previous analyses were conducted.

3. FUTURE PLANS

C Briefly describe any major changes to building operation or structure during the last four years whichsignificantly affected annual building energy use. What was done? What were the effects on energy use?

C Describe any major change planned to occur during the next five years that could significantly affectannual energy use. What change? Anticipated effects?

4. OPERATING INFORMATION

C Describe the typical hours of operation for your facility, including weekday/weekend and seasonalchanges.

C Describe the janitorial hours and describe habits regarding turning off lights and other equipment.

C State the general summer and winter temperature set points and any special temperature, humidity orventilation requirements.

5. BUILDING ENVELOPE DESCRIPTION

C Briefly describe the predominant wall and roof construction.


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RFQ - Attachment E: Technical Facility Profile 32 of 46

electricity, gas, etc. for each facility or meter for both winter and summer. If under contract for naturalgas, provide the fuel purchase agreement and a monthly price history, if available.

9. MAINTENANCE DATA

C Describe the general maintenance practices and schedule for the building and its energy-related systems.

C Include information sufficient to quantify all continuing maintenance costs, including staff and laborhours, materials and supplies, etc.

C Describe any known maintenance problems and/or needs associated with deferred maintenance.

10. IMPROVEMENT OPPORTUNITIES

C Briefly describe any comfort problems.

C Describe maintenance problems related to energy-using systems in your buildings, including ability ofexisting maintenance staff or contractors to address problems.

C

Describe maintenance problems related to water systems in your buildings. Include water qualityproblems.

C Identify any major equipment scheduled for replacement during the next five years.

C Briefly list any major energy conservation options identified by a previous analysis of your building.

C Describe any building improvements that you would like to investigate during this project.

11. ADDITIONAL SITE DATA AVAILABLE FROM CUSTOMER UPON REQUEST

C Additional utility bill information.

C More detailed information on major mechanical equipment and control systems.

C Copies of any previous technical analysis or recommendations of energy conservation options in yourbuilding.

C Detailed documentation relating to your energy management system.


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RFQ - Attachment F: Sample Technical Energy Analysis & Project Development Agreement 33 of 46

A T T A C H M E N T FA T T A C H M E N T F

Sample Technical Energy Analysis and Project Development Agreement

This Technical Energy Analysis & Project Development Agreement (the "Agreement") is made and entered into

as of , between (ESCO), having its principal offices at , and include complete name and Board name if applicable> (Customer).

WITNESSETH

WHEREAS, ESCO is a company with experience and technical and management capabilities to provide for , the

discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of Energy

Efficiency Measures at facilities similar in size, function and system type to Customer's facilities; and

WHEREAS, ESCO has submitted a response to Customer's Request for Qualifications ("RFQ") pertaining to

the discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of

Energy Efficiency Measures at Customer's facilities; and

WHEREAS, Customer has selected, ESCO to provide the services described herein; and WHEREAS, Customer

desires to enter into an agreement to have ESCO perform a Technical Energy Analysis to determine the feasibility

of entering into an Energy Performance Contract to provide for the installation and implementation of Energy

Efficiency Measures at Customer's facilities.

WHEREAS, if Energy Efficiency Measures are determined to be feasible, and if the amount of savings can bereasonably sufficient to cover all costs associated with an energy performance contracting project, the parties

intend to negotiate an energy performance contract under which the ESCO will design, procure, install,

implement, maintain and monitor such Energy Efficiency Measures.

THEREFORE, the parties agree as follows:

I. Technical Energy Analysis

ESCO agrees to perform a Technical Energy Analysis in accordance with the Scope of Work described below.

The Technical Energy Analysis must meet, but is not limited to the guidelines set by the Mississippi Departmentof Economic and Community Development, Energy Division. A copy of the guidelines is attached. ESCO agrees

to complete the Technical Energy Analysis and present to Customer a final report within

calendar days from the execution of this Agreement.

Customer agrees to assist the ESCO in performing the Technical Energy Analysis in accordance with the Scope

of Work described below. Customer agrees to work diligently to provide full and accurate information.


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ESCO agrees to work diligently to assess validity of information provided and to confirm or correct the

information as needed.

ESCO agrees to offer in the Technical Energy Analysis a proposal of Energy Performance Contract terms and

conditions, based on a recommended package of Energy Efficiency Measures selected by the ESCO. The

proposal will include details as specified in the Scope of Work below.

II. Compensation To ESCO

Except as provided for below, within days after ESCO's submission of the final

Technical Analysis report, Customer shall compensate ESCO for performance of the Analysis by payment to

ESCO of $ :

a. Customer shall have no up-front payment obligations under this Agreement, but acknowledges that the

fee indicated above shall be incorporated into ESCO's project costs, in the event ESCO and Customer

execute an Energy Performance Contract within days, or such longer period as the

parties may mutually agree, after submission of the final Technical Energy Analysis report and Project

Development Agreement by ESCO to Customer.

b. Customer shall have no payment obligations under this Agreement in the event that ESCO's final

Technical Energy Analysis report does not indicate an annual energy cost avoidance of at least 15 percent

for Energy Efficiency Measures which can be financed over a maximum year

period.

c. Should the ESCO determine any time during the Technical Energy Analysis that the savings above

cannot be attained, the Technical Energy Analysis will be terminated. In this event this Agreement shall

be canceled and Customer shall have no obligation to pay the amount specified.

III. Scope of Work

The Technical Energy Analysis and Project Development Agreement shall be performed as described below:

CUSTOMER WILL:

A. Furnish to the ESCO upon its request: accurate and complete data concerning energy usage and

operational expenditures for the premises, for the most recent three years from the effective date of this

Agreement as follows. Customer agrees to work diligently to provide full and accurate information, and

will also allow ESCO reasonable access to facility staff to ensure understanding of existing, systems and

opportunities.

1) Utility company invoices

2) Occupancy and usage information


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3) Description of all energy-consuming or energy-saving equipment used on the premises

4) Description of energy management procedures utilized on the premises

5) Description of any energy-related improvements made or currently being implemented

6) Description of any changes in the structure of the facility or energy-using or water-using

equipment

7) Description of future plans regarding building modifications or equipment modifications and

replacements.8) Drawings, as available (may include mechanical, plumbing, electrical, building automation and

temperature controls, structural, architectural, modifications and remodels)

9) Original construction submittals and factory data (specifications, pump curves, etc.), as

available

10) Operating engineer logs, maintenance work orders, etc., as available

11) Prior energy Analyses or studies, if any

ESCO WILL:

B. Perform an inspection survey to:

1) Interview the facility manager, maintenance staff or others regarding facility operation,

maintenance problems, comfort levels, equipment reliability, etc.

2) Identify the occupancy and use schedules for the facility and specific equipment. Identify and

characterize comfort or maintenance problems.

3) Inspect major energy-using equipment, including:

a) Lighting (indoor and outdoor)

b) Heating and heat distribution systems

c) Automatic temperature control systems and equipment

d) Air distribution systems and equipmente) Outdoor ventilation systems and equipment

f) Exhaust systems and equipment

g) Hot water systems

h) Electric motors, transmission and drive systems, special systems (kitchen/dining

equipment, swimming pools, laundry equipment, etc.)

I) Renewable energy systems

k) Other energy using systems

1) Water consuming systems (restroom fixtures, water fountains, irrigation systems, etc.)

4) Perform "late-night" surveys outside of normal business hours or on weekends to confirm

building system and occupancy schedules, if deemed necessary.

5) Consider the following for each system:

a) Energy use, loads, proper sizing, efficiencies and hours of operation

b) Current operating condition

c) Remaining useful life

d) Feasibility of system replacement

e) Hazardous materials and other environmental concerns


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f) Customer's future plans for equipment replacement or building renovations

g) Facility operation and maintenance procedures that could be affected

6) ESCO agrees to work diligently to assess validity of information provided and to confirm or

correct the information as needed.

C. Establish base year consumption and reconcile with end use consumption estimates.

1) Examine utility bills for the past 36 months and establish base year consumption for electricity,

gas, steam, water, etc. in terms of energy units (kWh, kW, CCF, Therms, gallons, or other units

used in bills) and in terms of dollars. Describe the process used to determine the base year

(averaging, selecting most representative contiguous 12 months, etc.). Consult with facility

personnel to account for any anomalous billings that could skew the base year representation.

2) Estimate loading, usage and/or hours of operation for all major end uses representing over five

percent of total facility consumption including, but not limited to:

C Lighting C HVAC motors (fans and pumps)

C Heating C Plug loads

C Cooling C Kitchen equipment Other/miscellaneous

Where loading or usage are highly uncertain (including variable loads such as cooling), ESCO

will use its best judgment or take direction from the Customer to use spot measurements or

short-term monitoring.

3) Reconcile annual end-use estimated consumption with the annual base year consumption to

within five percent for electricity (kWh), fuels and water. Also reconcile electric peak demand

(kW) for each end use within five percent. The miscellaneous category can be no greater than

five percent. This reconciliation will place reasonable limits on potential savings.

D. Determine cost and savings factors allowed by Customer

1) Customer will provide ESCO with sufficient guidance to develop savings estimates.

2) Savings estimates may include:

a) Energy savings

b) Customer material/commodity savings, including scheduled replacement of parts

c) Outside labor cost savings, including maintenance contracts

3) Savings estimates will not include:

a) Customer in-house labor costs

b) Customer deferred maintenance costc) Offset of future customer capital cost

4) The following items may be negotiated:

a) Escalation rates for natural gas, electricity, water, material/commodity cost savings,

and allowable labor savings

b) Interest rates (municipal tax-exempt rates)


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5) The following items may not be negotiated:

6) In the Technical Energy Analysis and subsequent Energy Performance Contract, ESCO will use

all markups and pre-disclosed and negotiated costs that were approved prior to this Agreement,as listed below:

Cost category % of capital cost Fixed Cost

$

$

$

$

E. Develop a preliminary analysis of potential Energy Efficiency Measures (EEMs):

1) Identify EEMs which appear in the judgement of the ESCO to be likely to be cost effective and

therefore warrant detailed analysis

2) For each EEM, prepare a preliminary estimate of energy cost savings including description of

analysis methodology, supporting calculations and assumptions used to estimate savings.

3) The Customer's rejection of calculations of savings, or potential savings allowed, shall be at therisk of the ESCO.

F. Meet with Customer to present preliminary resultsincluding assessment of energy use, savings

potential, retrofit opportunities, and potential for developing an energy performance contract. Describe

how the projected project economics meet the customer's terms for completing the Analysis report.

G. Analyze each Energy Efficiency Measure (EEM)

1) Consider technologies in a comprehensive approach including, but not limited to: lighting

systems, heating/ventilating/air conditioning equipment and distribution systems, controls

systems, building envelope, motors, kitchen equipment, pools, renewable energy systems or

other special equipment.

2) For each EEM:

a) Use costs provided prior to contract negotiations in all cost estimates.

b) Follow the methodology of ASHRAE or other nationally-recognized authority and be

based on the engineering principle(s) identified in the description of the retrofit option.

c) Use best judgement regarding the employment of instrumentation and recording

durations so as to achieve an accurate and faithful characterization of, energy use.


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d) Develop a preliminary measurement and verification plan for each EEM

3) Prepare a detailed report as described below

H. Prepare a draft "Final Technical Energy Analysis" which shall include:

1) Overviewa) Contact information

b) Summary table of recommended EEMS, with each EEM's design and construction cost,

annual maintenance costs, the first year cost avoidance (in dollars and energy units),

and simple payback

c) Summary of annual energy use and costs of existing or base year condition

d) Calculation of annual percentage savings expected if all recommended EEMs were

implemented

e) Description of the existing facility, mechanical and electrical systems

f) Summary description of Energy Efficiency Measures, including estimated costs and

savings for each as detailed above

g) Discussion of measures considered but not investigated in detail

h) Conclusions and recommendations

2) Full description of each EEM including:

a) Written description

(1) Existing conditions

(2) Recommendations. Include discussion of facility operations and maintenance

procedures that will be affected by EEM installation/implementation

b) Base year energy use

(1) Summary of all utility bills

(2) Base year consumption and description of how established

(3) End use reconciliation with base year (include discussion of any unusual

findings)c) Savings calculations

(1) Base year energy use and cost

(2) Post-retrofit energy use and cost

(3) Savings estimates including analysis methodology, supporting calculations and

assumptions used.

(4) Savings estimates must be limited to savings allowed by the Customer as

described above.

(5) Percent cost-avoidance projected

(6) Description and calculations for any proposed rate changes

(7) Explanation of how savings duplication or interaction between retrofit options

is avoided.

(8) Operation and maintenance savings, including detailed calculations anddescription

(9) If computer simulation is used, include a short description and state key input

data. If requested by Customer, access will be provided to the program and all

assumptions and inputs used, and/or printouts shall be provided of all input

files and important output files and included in the Technical Energy Analysis

with documentation that explains how the final savings figures are derived

from the simulation program output printouts


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RFQ - Attachment G: Measurement and Verification Requirements and Recommendations 41 of 46

A TT AC H M E N T G

MEASUREMENT AND VERIFICATION REQUIREMENTS AND

RECOMMENDATIONS (M&V)

MDECD-ED recognizes that Measurement and Verification of savings are central to determining the satisfactory

performance of Energy Performance Contracts. Separation of the measurement from the effects of the

measurement on those performing it being a long respected scientific prerequisite, MDECD-ED recommends

Third Party M&V or Third Party M&V review on projects valued at more than $500,000 or with savings

estimated at more than $100,000 per year. MDECD-ED recognizes that the choice of M&V provider is primarily

an administrative decision and that the circumstances and capabilities of the parties involved are widely varied.

The M&V Plan, its implementation, and the Periodic Energy Project Savings Report may be provided by the

Organization, the ESCO, a Third Party Contractor or some combination of these determined by contract

agreement. The requirements set forth in this document apply regardless of the provider.

The M&V Plan must be submitted along with the Technical Energy Analysis, periodic Energy Project

Savings Report, and the Energy Performance Contract for MDECD-ED review and approval .

The periodic Energy Project Savings Report must be submitted to MDECD-ED within sixty (60) days of the end

of the period to which it applies. The Periodic Energy Project Savings Report will be reviewed based on the

following criteria.

a. Are the savings greater than or equal to those estimated or guaranteed in the Technical Energy Analysis

and the contract ? (If the estimated and guaranteed savings are not the same, both numbers must be

shown throughout the documents.)

b. Does the report contain the required elements ?

c. Does the Report present the data elements, calculations and results as set forth in the M&V Plan?

d. Do the parties (i.e. Organization, ESCO, Third Party Contractor) have any disputes or concerns

regarding the report ?

If the answers to the above questions are satisfactory to MDECD-ED, the report wil

request for esco contract.pdf

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