REQUEST FOR PROPOSAL GUARANTEED ENERGY SAVINGS CONTRACT. Dallas School District 2000 Conyngham Avenue Dallas, PA Addendum 2

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1 REQUEST FOR PROPOSAL GUARANTEED ENERGY SAVINGS CONTRACT Dallas School District 2000 Conyngham Avenue Dallas, PA Addendum 2 Introduction The Dallas School District is requesting Proposals for Energy Conservation Measures through a Guaranteed Energy Savings Contract. Date issued: December 15, 2014 All questions are to be directed to: Dallas School District Frank Galicki

2 PART I. GENERAL INFORMATION I-1. PURPOSE. This Request For Proposal (RFP) contains the information and requirements for interested Energy Service Companies (ESCOs) to prepare and submit to the Dallas School District professional qualifications and a technical proposal for a guaranteed energy savings contract, in accordance with the guaranteed energy savings contract requirements of Act 57 of 1998, 62 Pa. C.S ( Act 57 ) as amended under Act 77 of 2004 and Act 39 of 2010 for the Dallas School District. This RFP, with any amendments, contains the only instructions governing the proposals and material to be included therein; a description of the service to be provided; general evaluation criteria; and other proposal requirements. I-2. ISSUING OFFICE. This RFP is issued by the Dallas School District by the District Services Office listed below. The District Services Office through the Superintendent is the sole point of contact for this RFP. Frank Galicki Dallas School District 2000 Conyngham Avenue Dallas, PA I-3 PROJECT. The Dallas School District is interested in contracting for a full range of energy services and energy-related improvements ("energy conservation measures" or "ECMs"), financed through a guaranteed energy savings contract. The ECMs may include but are not limited to: the design, acquisition, installation, modification, maintenance and training in the operation of existing and new equipment, which will reduce energy consumption and related costs associated with the heating, ventilation and air conditioning system, lighting systems, building envelope, the hot water systems, water consumption, sewage costs and other energy using devices; as well as for savings which would not reduce consumption per se but are aimed at cost savings, such as fuel switching, demand reductions, onsite generation, utility bill auditing, utility rate changes, distribution upgrades etc. Final ECMs may also include the training of facility staff with respect to routine maintenance and operation of all improvements. ECMs must result in a guaranteed minimum energy and operational savings with the ESCO payments linked to actual documented energy and cost reductions. Any stipulated energy and/or operational cost savings that may be attributed to this project will be rigorously reviewed and, if agreed to, will be limited to those that can be thoroughly documented and verified by the ESCO and approved by the Dallas School District. In accordance with law, no contract shall exceed fifteen (15) years in duration and must comply with applicable statutes, regulations, and procurement laws. The savings achieved by the ECMs must be sufficient to cover all project costs including annual maintenance and monitoring fees on an annual basis for the duration of the contract term. The contract must provide that the savings in any year are guaranteed to the extent necessary to make payments under the contract during that year

3 I-4 DESCRIPTION OF THE PROCUREMENT PROCESS. It is anticipated that the process for the procurement of these energy services will proceed as follows: 1.) SUBMISSION OF WRITTEN PROPOSALS. ESCOs will be required to present their qualifications to the Dallas School District as specified in this RFP. The Dallas School District will review and evaluate proposal submissions in accordance with the evaluation criterion specified in Part III of the RFP. 2.) SELECTION OF ESCO. The Dallas School District will select the best qualified ESCO to negotiate a final contract scope, specific financing arrangements and terms. I-5 REJECTION OF PROPOSALS. The Dallas School District reserves the right to reject at any time any and all proposals received, or to negotiate separately with any and all competing ESCOs. I-6 INCURRING COSTS. The Dallas School District is not liable for any cost or expenses incurred by ESCOs in the preparation of their written responses or for attendance at any conferences and meetings related to this RFP. Any cost or expense incurred by ESCOs in performing any analysis associated with this RFP shall be borne by the ESCO. I-7 AMENDMENT TO THE RFP. If it becomes necessary to revise any part of this RFP, an amendment will be issued to all proposers who received the basic RFP. I-8 RESPONSE DATE. One (1) original and two [2] copies of ESCO proposals must be delivered to the location designated below, no later than January 30, 2015 at 11:00 AM. In addition, digital copies shall also be supplied with the hard copies. Proposals delivered after that time will not be considered. Late or incomplete proposals will not be accepted regardless of the reason. Frank Galicki Dallas School District 2000 Conyngham Avenue Dallas, PA I-9 CONFIDENTIALITY. To the extent allowed by law, proposals will be held in confidence by the Dallas School District. I-10 RESTRICTION OF CONTACT. From the issue date of this RFP until a determination is made regarding the final selection of the Project ESCO, all contacts with Dallas School District personnel concerning this RFP, must be made through the Issuing Office only. Any unauthorized board contact may result in rejection of proposal

4 I-11 PROPOSALS. To be considered, proposals must be a complete response to the RFP. Proposals are to be straightforward, concise presentations without extraneous material. Font size may be no smaller than 10 point. I-12 PAYMENT AND PERFORMANCE BOND. The successful ESCO shall be required to provide payment and performance bonds in the amount of 100% of the total final contract amount. I-13 PRIME CONTRACTOR ACCOUNTABILITY: The ESCO who is selected as the project contractor under this RFP will be considered the prime contractor. The ESCO will be required to assume full responsibility for delivery of all services for each facility under the final contract. Further, the selected ESCO will be the sole point of contact concerning all contractual matters for the duration of the contract term. I-14 SITE VISITS. The Dallas School District will arrange inspection tours of the buildings to be audited. Site visits for each of the buildings may be scheduled thru the District Services Office. PART II. PROPOSED SCHEDULE Issue RFP December 15 Site Visits December 15-January 15 Receipt of Proposals January 30 Interviews February Anticipated Selection of ESCO February Approval of Contract February Begin Construction March - 4 -

5 PART III. EVALUATION CRITERIA Evaluation of Proposals: Applications will be evaluated based on the completeness of the information provided. Failure to provide any of the requested information may result in disqualification. The criteria listed below will be used in the evaluation of the written proposals, client references and responses of the short listed ESCOs during final selection interviews, as appropriate. Company A. Length of time and stability of company as an ESCO B. Ability for ESCO to support district throughout the life cycle of the facilities. Including but not limited to: performance assurance, emergency service, ongoing preventative maintenance and service, equipment and technology upgrades, and construction design and implementation C. Size and density of truck based service D. Number and type of support personnel E. Knowledge of local construction community F. Support and training capabilities and offerings for district personnel G. Company integrity and ethical policies, procedures and awards H. Diversity and social responsibility efforts Experience A. Qualifications and experience of ESCO's personnel with implementing guaranteed energy savings contracts. Personnel position titles and responsibilities pertaining to the k12 market as well as responsibilities in other market sectors. B. Quality and completeness of documentation of achieved energy savings from previous projects. C. Reliability of equipment performance on past projects. D. Quality of execution of complex multi-phase projects integrated with the school facilities master plan and construction professionals. E. Level of customer satisfaction through verbal interviews Project Management A. Clear assignment of responsibility for various project tasks to specific individuals. B. Ability to effectively manage project construction and complete the project on schedule. C. ESCO market approach to management of personnel. D. Demonstration of ESCO communication process and policies E. Level of in-house capabilities and approach to sub-contracted services F. Software support systems and safe guard policies G. Level of ongoing training of personnel H. Historical record of project safety and policies and procedures I. Quality of communication skills during oral interview Technical Approach A. Quality of approach to savings calculations, measurement and verification B. Integrity of measurement and verification team and reporting structure - 5 -

6 C. Demonstration of a comprehensive life-cycle approach to facilities management D. Integration of sustainable design practices including district educational enrichment E. Level of ESCO industry leadership F. Depth of ESCO knowledge and resources G. Quality of ESCO software tool set H. Project development process and demonstration of inclusion of all stake holders I. Assurance of efficient usage of administration time while maintaining a customer validated scope of work J. Integrity and visibility of project costs and payback K. ESCO s cost competitiveness: national buying agreements, in-house capabilities, and knowledge/usage of local construction market L. ESCO s core competencies: 1. Engineering services 2. Commissioning 3. BAS and Energy Management 4. Security 5. Fire 6. Information technology and Network Information Systems 7. Measurement and verification 8. Heating, Ventilation, and Air Conditioning maintenance and Mechanical/Electrical/Plumbing services 9. Equipment products and services 10. Lighting 11. Demand Response 12. Facilities Management 13. Operations Training and Management Training Courses 14. LEED accredited professionals and knowledge 15. Rebate Success and Grant Knowledge Financial A. Financial soundness and stability of the ESCO. B. Demonstrate ability to provide or arrange project financing. C. Integrity demonstrated by ESCO for missed guarantees, outcomes and general business practices

7 Part IV-1. SCOPE OF SERVICES--TECHNICAL REQUIREMENTS, DESIGN PHASE After ESCO is selected, it will be required to provide the following: A. The Dallas School District reserves the right of final approval of any selected equipment or modifications proposed. Review and approval shall be conducted by the Dallas School District in a timely manner. B. No equipment shall be installed that will require the hiring of additional personnel by the Dallas School District unless contract negotiations produce an explicit exemption from this rule for a specific installation. D. ESCO must provide two (2) complete sets of reproducible "as built" and record drawings 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 to be submitted within 30 days of the completed installation. E. The ESCO shall be responsible for the proper removal offsite of all packaging materials and all replaced or demolished materials or equipment

8 PART IV-2 CONTRACTUAL PROVISIONS: A. The contents of the ESCO s final technical proposal shall become part of the final contract. B. The Dallas School District reserves the right of final approval over the scope of work and all end-use conditions.. C. All drawings, reports and materials prepared by the ESCO in performance of the contract shall become the property of the Dallas School District and shall be delivered to them as needed or within thirty (30) days after construction is completed and accepted by the Dallas School District that the project is fully installed and operating. D. The ESCO must secure all necessary licenses and permits and comply with all federal and state laws with respect to this project. All work completed under this contract must be in compliance with all building codes and appropriate accreditation, certification and licensing standards. E. The repayment obligation and term of the financing for this project must be arranged to coincide with the acceptance by the Dallas School District that the project is fully installed and operating. F. ESCOs will be required to guarantee energy and cost savings on an annual basis. Annual reconciliation of the achieved savings will be required. PART V. INFORMATION REQUIRED FROM PROPOSERS Each ESCO is required to fully answer all questions in each category listed below. Provide your responses on 8 ½ " x 11" sheets of paper and number and title each answer to the corresponding category. Font size should be no smaller than 10 point. All pages in your response should be numbered sequentially. ESCO s must also include a table of contents which indicates the section and page numbers corresponding to the information included

9 PROPOSAL FORMAT AND CONTENTS Section 1 - Executive Summary Please provide a summary and overviews of the scope of services and approach that your firm plans to provide should you be selected as the ESCO for this project. Section 2 ESCO Background and Qualifications Section ESCO Qualifications Form All questions must be addressed by the ESCO in order for this application form to be properly completed. Failure to answer any question, or comply with any directive contained in this form may be used by the Dallas School District as grounds to find the ESCO ineligible. 1. Firm Name Business Address City State County Zip Code 2. Names and Titles of Two Contact People 1) Phone ( ) 2) Phone ( ) 3. Submittal is for: Parent Company (List any Division or Branch Offices to be involved in this project) Division (attach separate list if more than one is to be included) Subsidiary Branch Office: (include all Pennsylvania locations with number of energy service professionals located at each site. Name of Entity: Address: 4. Date Prepared: 5. Type of Firm: Corporation Partnership Sole Ownership Joint Venture 6. Federal Employer Identification Number 7. Year Firm was Established 8. Name and Address of Parent Company, if applicable 9. Former Firm Name(s), if applicable - 9 -

10 10. Five Year Summary of Contract Values for Guaranteed Energy Savings Contracts Projects where your firm was the prime contractor with a first party written savings guarantee to the customer: 2019: $ 2018: $ 2017: $ 2016: $ 2015: $ 11. CORPORATE BACKGROUND/HISTORICAL DATA a. How many years has your firm been in business under its present business name? b. Please identify all states in which your firm is legally qualified to do business. c. Indicate all other names by which your organization has been known and the length of time known by each name. d. How many years has your firm developed, installed and guaranteed energy conservation projects? e. Certify that your company does not owe the Commonwealth any taxes. f. Certify that your company is not currently under suspension or debarment by the Commonwealth, or the federal government. g. Identify your firm's legal counsel for this project. Give the name and address of the primary individual responsible for contract negotiation. h. Indicate your firm s current annual gross revenues. I. For non-publicly traded ESCO s responding to this RFP, please list any indictments or convictions related to the firm or any individuals who have or have had an ownership stake in the firm for the last five years. This listing shall cover the last 5 years from the date of the issuance of this RFP. If any State (not limited to PA) or Federal indictments or convictions exist, please include copies of the indictments or convictions at the end of this section under a separate tab titled Indictments & Convictions. Publicly traded ESCO s must ensure that this information is available in the audited financial statements provided with this RFP. j. Describe at least one instance where your company had to pay a client due to missing a savings guarantee. Describe the circumstances and outcome of that situation. Section Corporate Overview Provide a comprehensive corporate overview describing the services provided by your firm. Please highlight any specific data that uniquely qualifies you as it relates to this project

11 a. Provide a copy of your firm s most recent annual report. Provide a Balance Sheet and Cash Flow statement not more than fifteen (15) months old. b. Please provide the name, address, and the telephone number of the firm that prepared the Financial Statements. c. Please enclose banking references including financial institution, address, contact person, telephone number, and specific information on your firm s credit that may be used to fund construction for large-scale projects. d. Enclose bonding references including company name, address, contact person, telephone number and information on your firm s maximum bonding capability. Section References Guaranteed Energy Savings Project History and Client References Include at least ten (10) projects in Pennsylvania that achieved substantial completion in the last five years that were procured under Pennsylvania s Guaranteed Energy Savings Act. For each of these projects, provide the following data: Customer name and address Number of buildings Summary of improvements Project value Customer contact name and phone number Contract terms (length of guarantee) Guaranteed savings Actual achieved versus guarantee The School District s right to contact the ESCO s references is assumed

12 Section 3 Technical Proposal Section 3.1 Utility Bill Analysis & Baseline Data For Electric Utilities provide the following Analysis 12 months of electric bills including both kw & kwh usage and cost for each facility. Determine the distribution of total energy usage for lighting, HVAC Fans, plug loads and, cooling, Graph 12 data of total kwh usage and cost for all 12 months For Fossil Fuels provide the following Analysis 12 months of fossil fuel bills including units of energy and cost for each facility. Determine heating usage and domestic hot water usage Graph data of total energy usage and cost for all 12 months Determine the distribution of total facility energy usage for electric and fossil fuel usage. Provide any observations resulting from the utility analysis Provide a summary comparison of each facilities energy usage Section 3.2 Field Survey Catalog the major existing equipment in each facility, recording nameplate data and condition for each. Gather site specific operational data for each facility through site conducted interviews Provide a photo tour of the field survey highlighting those areas of potential energy savings. Section 3.3 Energy Savings Determine potential energy savings incorporating field survey data, operational observations, and utility analysis on a per building basis. Provide a saving summary indicating total existing energy usage and cost compared to potential future usage usage and cost on a per building basis. Determine the environmental impact of the potential savings. Section 3.4 Facility Improvement Measures Provide a list of preliminary facility improvement measures that could be implemented are part of a guaranteed energy savings program. Section 3.5 Additional information Provide any additional technical information as desired about the ESCO s approach to the project

13 Section 4 Project Implementation Section 4.1 Describe your company s implementation plan and approach Section 4.2 Project team Briefly describe the relevant experience, qualifications and educational background for each individual team member assigned to this project including the information listed below. Do not include resumes of individuals that do not have a role in this specific project Include a organizational chart and Management Structure for this project and a description of each persons role and responsibilities. Name of Project Team Member: Current Job Title: Job responsibilities: Number of years with ESCO: Primary Office Location: Employment History Company Name: Primary job responsibilities: Educational Background: List all academic degrees, certifications, professional affiliations, relevant publications and technical training. List all energy performance contracting projects this individual has been involved with during past 5 years. Describe the specific role and responsibilities this individual had for each listed project. Describe any other relevant technical experience. Indicate the total years of relevant energy related experience for this individual. Section 4.3 Describe the training and support services included for this project and/or available as an option to this project. Section 5 Financial Information Provide an overview and description of the financial mechanism proposed. Provide a Business Case Analysis Total estimated capital costs and amortization schedule* Annual guaranteed energy savings** Annual operational savings***(not to be carried more than 10 years) Do not include prospective grants or rebates in the cash flow Annual M&V costs Any anticipated ongoing service cost required to maintain a guaranteed savings program. *For the purposes of this RFP show the cash flow over a 15 year time frame with a 3% interest rate with construction period payments capitalized. **For the purposes of this RFP use the following energy and escalation rates:

14 Building Sq Ft $/kwh $/Therm Middle School Escalation Rate (All Utilities) 162,085 $0.093 $ % Dallas ES 88,810 $0.093 $ % High School 223,643 $0.093 $ % Wycallis ES 65,371 $0.093 $ % Admin 5,050 $0.094 $ % Maintenance Shop 10,500 $0.113 $ % ***Any operational savings must be justified and delineated in a separate table All costs and savings are to be final and the ESCO should be prepared to execute a final contract in February with the scope and savings as outlined in the RFP response

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