SOLICITATION/ADVERTISEMENT City of Homewood, Alabama will receive responses to a Request for Proposals for the selection of an Energy Services Company (ESCO). City of Homewood, Alabama intends to select the most qualified ESCO per the evaluation criteria herein with whom it will enter into a performance contract. City of Homewood, Alabama will be accepting responses to the Request for Proposals until 4:30 pm on April 16, 2018. Please submit one (1) original and five () copies of the responses completed according to the format prescribed by City of Homewood, Alabama. Final selection will be made in accordance with the policies and administrative directive of City of Homewood, Alabama and other applicable statutory provisions. All questions concerning this request pack including general information, instructions, and selection criteria can be obtained from: City Clerk s Office City of Homewood, Alabama 280 19 th Street South Homewood, AL 3209 (20) 332-6108 Published March Project selection timeline Advertisement Dates March, 2018 Request for Proposals Due April 16, 2018 Final Selection June 1, 2018
City of Homewood, Alabama Request for Proposals for Energy Services Performance Contracting Professional Services Prepared by: City of Homewood, Alabama 280 19th Street South Homewood, AL 3209 (20) 332-6108 Issue Date: March, 2018
TABLE OF CONTENTS SECTION I Page Section I General Requirements 1 A. Purpose and Scope 1 1. Purpose 1 2. Scope of Work 2 B. Council s Intent and Process Overview 2 C. RFP/Q Procedures 3 1. Contacts and Queries 2. Amendment and Clarification Procedures 3. Submission Requirements 4. Preparation of Proposals. Submittal Deadline for Responses 4 6. Disposition of Proposals 7. Proprietary Data 8. Modification or Withdrawal of Responses 9. Cost of Response Preparation 10. General Contract Requirements 11. Evaluation and Selection Procedures D. Selection Criteria 6 1. Energy Committee Proceedings 2. Formal Evaluation of Respondents Section II ESCO Response Guidelines 8 A. Table of Contents 8 B. Executive Summary 8 C. ESCO s Qualifications 8 1. Profile Data 8 2. Capability of ESCO 9 3. Financial Condition of ESCO 4. Project Team. Project History 6. Comparable Project Construction/Renovation History 9 7. ECM History 10 i
TABLE OF CONTENTS (Contd.) SECTION I Page D. Technical Approach 10 1. Energy Audit 2. Savings Evaluation Method 3. Baseline Adjustments 4. Installation, Design & Construction. Operations and Maintenance 6. Monitoring 7. Training 11 E. Financial Considerations 11 1. Project Financing Experience 2. Savings Allocation Procedures 3. Financial Risk Mitigation and Public Awareness Strategies 4. Contract Negotiations F. Other Benefits 11 G. Immigration 11 ii
City of Homewood, Alabama Request for Proposals/Qualification for Energy Service Performance Contracting Professional Services Section I General Requirements A. Purpose & Scope City of Homewood, Alabama (herein referred to as the City ) is a municipality interested in receiving responses to a Request for Proposals/Qualification/Proposals (RFP/Q) from interested and qualified energy service companies (hereinafter referred to as ESCO ). The council s purpose is to ultimately contract with one ESCO that will provide comprehensive energy services. 1. Purpose Responses are requested from ESCO s capable of providing comprehensive energy management and energy-related capital improvements services, including, audit, design and implementation services necessary to reduce energy related costs at City facilities and to achieve and maintain energy savings and to serve other related needs. The City is interested in any and all energy conservation measures (ECM s) or services that could be included in projects whereby the ESCO guarantees a specific cost savings, in accordance with the Alabama Legislative Act No. 2006-93, the Guaranteed Energy Cost Savings Act (the Act). That the services and improvements requested from the ESCO are to be delivered to the City on a performance contracted basis which may allow the City to: a. Incur no capital cost, b. Achieve significant long-term savings which are measured and verified, c. Obtain an annual savings guarantee which will be equal to or greater than the total annual project costs, d. Obtain consistent levels of occupant comfort and system functionality, e. Capture environmental benefits such as hazardous material disposal, and f. Finance the project through an installment payment or a lease purchase agreement over an extended contract term not to exceed 20 years in compliance with the statutory provisions of the available financing as contained in the Act, as amended. The ESCO will be required to structure projects which provide the greatest possible energy, water, and operational maintenance (O&M savings) and the most beneficial project scope for the City. The City is interested in essential services and improvements that will reduce City facilities energy consumption, upgrade energy 1
related capital equipment, improve building O&M, save costs through fuel switching, improve demand management, alternative utility tiers or alternatively commodity purchases, and aid in meeting the City s environment management responsibilities. 2. Scope of Work The ESCO selected as a result of this RFP/Q will be expected to provide comprehensive energy conservation services for the buildings and assets owned and operated by the City. a. Services required may include, but shall not be limited to the following: i. Comprehensive energy demand and/or supply auditing. ii. iii. iv. Design and installation of modifications to improve infrastructure without sacrificing comfort or existing equipment reliability. Training of City operations and maintenance personnel in energy efficient practices. Maintenance and service of the installed measures. v. Financing for the transaction. b. Selected ESCOs will be required to provide economic evaluations in accordance with the city s procedures. Project shall have a favorable net present value with an acceptable resulting return on investment based on the City s economic evaluation criteria. c. Successful ESCO will perform evaluation studies and implement the projects as per a mutually agreed schedule. Such schedule will be developed and included in a contract between the City and an ESCO. d. The ESCO must demonstrate technical and mechanical capacities to provide a comprehensive set of energy and/or water services, including, but not limited to an investment grade audit, design acquisition, installation, training and commissioning of new and/or existing energy systems as well as project monitoring and saving measurement and verification. Initial services may include operational maintenance of all improvements and/or training of the City staff on routine maintenance and operation of systems. Monitoring and verification services shall include appropriate measurement and timely reporting of performance and savings from each project as designated by the City and agreed to by the ESCO. B. Council s Intent and Process Overview ESCOs are asked to submit a response to this RFP/Q documenting the experience of the firm and its assigned personnel pursuant to requirements in Section II of this RFP/Q. The City intends to award a negotiated contract to a firm to provide audit, design and implementation services. It is the City s intent to develop projects such that operating cost savings will offset project costs. 2
The City will enter into a contract(s) which is determined to be most favorable to the City, in the City s sole discretion. Contract award will be based, primarily, on selection criteria set forth in this RFP/Q. The City reserves the right to select ESCOs and make an award to any firm of its choosing, based solely on the council s criteria and judgment, or to make no award at all. Once a qualified provider has been selected, a project development agreement shall be negotiated and executed for professional services to determine final scope of work, guaranteed energy savings and project costs, pursuant to the Act. The intention of the City is to negotiate and enter into a project implementation agreement and project maintenance and monitoring agreement to furnish and install the recommended solution on a turnkey basis with financing assistance and an energy savings guarantee over a period not to exceed 1 years, pursuant to the Act. C. RFP/Q Procedures 1. Contacts & Queries This RFP/Q is issued by the City. The following person should be contacted for additional information regarding this RFP/Q: Charles Zanaty at 20-223-6002 and at czanaty@msn.com. 2. Amendment and Clarification Procedures Inquiries about this RFP/Q must be received, in writing, no later than five () working days prior to the established submittal deadline. All responses from the City, both question(s) and response(s), will be issued to all ESCOs of record prior to the submittal deadline. If an amendment, deemed significant by the City, is required during the last 24 hour period to the deadline, the City reserves the right to delay the submittal deadline. Verbal clarification may be offered by City representatives. Such communications, however, by employees or representatives of the City, shall not be binding on the City and shall in no way excuse the respondent from obligations as set forth in this RFP/Q or in any way amend the provisions of this RFP/Q. The City or its representatives reserves the right, at any time, to request clarification and additional information from any or all respondents to this RFP/Q. 3. Submission Requirements Proposers should submit an original and five () copies of their written proposals. Submittals shall be complete and include all the information listed in Section II of this document. Proposals and all conditions therein shall remain in effect for at least sixty (60) days after the submittal deadline. 4. Preparation of Proposals Responses to this RFP/Q must be complete and in writing. Elaborate qualifications and brochures are not desired. Clarity and concise, orderly information is important. Submittals shall be included in 3-ring binders with tabs to separate each major section. 3
The ESCO is expected to respond to all items in as much detail as necessary for the City to make a fair evaluation of their firm s proposal. ESCOs should, though, respond to each specific item as concisely as possible. Responses, which are incomplete, not properly endorsed, or otherwise are contrary to the guidelines of this RFP/Q, may be deemed as non-responsive and rejected.. Submittal Deadline for Responses RESPONSES MUST BE RECEIVED ON OR BEFORE 4:30 P.M., ON APRIL 16, 2018 AT THE FOLLOWING ADDRESS: City Clerk s Office City Hall City of Homewood, Alabama 280 19 th Street South Homewood, AL 3209 Attn: Melody Salter All responses shall be provided in sealed packages and clearly marked Response to Energy Service Performance Contracting RFP/Q. No proposals will be opened until after the submittal deadline. The City will return, unopened, any responses received after the time and date specified. 6. Disposition of Proposals All responses become the property of the City and will be returned only at the ESCO s expense. In any event, one copy of each response will be retained for the City official files. 7. Proprietary Data If a response includes any proprietary data or information that the ESCO does not want disclosed to the public, such data or information must be specifically identified as Confidential. Information marked as such will only be used by the City for the purpose of evaluating responses and conducting contract negotiations. All responses, exclusive of sheets designated Confidential will become a matter of public record. 8. Modification or Withdrawal of Responses Any response may be withdrawn or modified by written request of the ESCO, provided such request is received by the City at twenty-four (24) hours prior to the submittal deadline. Modifications received after the due time and date will not be considered. 9. Cost of Response Preparation The cost of preparing a response to this RFP/Q is at the sole cost of the responding party with no reimbursement of any kind by the City. 4
10. General Contract Requirements All engineering design shall be done by engineers licensed in the State of Alabama. Installation and construction work shall be done by contractors licensed in the State of Alabama. The following conditions will also be incorporated in any contracts: a. Contract Terms No contract shall exceed 1 years duration and may be subject to annual appropriations. Duration of the contract will be mutually determined between ESCO and the City based on final project scope and financial factors. b. Guaranty The project must result in a guaranteed minimum annual energy, water or O&M savings as well as defined levels of occupant comfort, maintenance, monitoring, training, and other services. The goal of the City s projects is to achieve savings sufficient to cover all project costs including lease or installment payments and fees for maintenance, monitoring, training and other services, on an annual basis for the duration of the contract term. c. Financial Review Detailed financial projections of financial benefits are dependent upon the scope of technical measures finally selected and installed. It is premature to place a major emphasis on projected financial benefits prior to completion of investment grade energy audits and negotiations of project structure. d. Choice of Law The agreement shall be governed in all respects by the laws of the State of Alabama. e. Insurance The successful respondent shall procure, and maintain in effect during the life of the agreement, commercial general liability insurance in the amount not less than $2,000,000 each occurrence, comprehensive automotive liability insurance in an amount not less than $2,000,000, and workers compensation insurance in accordance with Alabama law. The insurance provider shall be qualified to provide insurance in the State of Alabama and shall carry at least a Best s B+ rating. f. Negotiations The City reserves the right to negotiate with the successful ESCO any terms and conditions which may be necessary or appropriate to accomplish the purpose and scope of this RFP/Q. 11. Evaluation and Selection Procedures All responses will be evaluated by the City Council or a committee designated by the City Council. The City Council shall determine the most acceptable ESCO, in the City s sole discretion. Subsequent to the determination of the most beneficial
ESCO to the City, a letter of intent will be sent to the selected ESCO. The letter of intent will state the time period during which the selected ESCO and those representing the Council will negotiate a satisfactory contract. If the parties fail to agree on terms of a contract within the allocated time period, the Council reserves the right to terminate all negotiations with the previously selected ESCO and either select one of the other finalists, issue a new RFP/Q, or cancel these and related proceedings and reject the RFP/Q as not being in the best interest of the City, in the City s sole discretion. D. Selection Criteria 1. City Council Proceedings The City Council or its designee shall evaluate each response. Each response will be reviewed prior to initiating the selection process for completeness and adherence to format. A response will be considered complete if all requested sections are included in proper order. Each Section will, however, be considered separately as detailed below. The City may select up to three finalists, in the City s sole discretion. The City reserves the right to reject any and all submissions and to waive informalities and minor irregularities in submissions received and to accept any submission if deemed in the best interest of the City to do so, in the City s sole discretion. a. Grading System The executive summary of each response will be read to give an overview. Then, each section will be evaluated, by the City Council, for completeness and content. Points shall be given for each section based on the following criteria: i. If the section provides the requested information. ii. If the information provided in the section demonstrates that the respondent has adequate capability or experience. Respondents will be ranked based on total points. 2. Formal Evaluation of Respondents a. Submittals Evaluation The evaluation process will grade the submittals on their merit. Responses will be evaluated in light of the material and not on the basis of what is inferred. The evaluation process may include verification of references, verification of project team resumes, confirmation of financial information, and may also include site visits or other information as directed by the City. b. Grading System Each section or subsection of the response will be considered separately and will be graded individually. All scores will be summed to give the grand total score. Respondents will then be ranked based on total points. 6
c. Criteria Firm s Qualifications Profile Data Capability of ESCO Financial Condition of ESCO Project Team Project History Comparable Construction/Renovation Project History Energy Conservation Measure (ECM) History Technical Approach Energy Audit Savings Evaluation Methods Baseline Adjustments Installation, Design and Construction Operations & Maintenance Monitoring Training Financial Considerations Points 3 3 3 3 10 7 3 3 10 Reasonableness of Audit Costs Project Financing Experience Savings Allocation Procedure Financial Risk Mitigation & Public Awareness Strategies Bonding Capacity Contract Negotiations 7 Other Benefits 3 d. Notification The City will give public notice as required by applicable law and notify all the firms of the notice of the award. The successful ESCO shall begin the work under the project development agreement within thirty (30) days after the execution of the contract. The work shall be completed in accordance with project schedule included in the contract. 7
Section II ESCO Response Guidelines ESCO s interested in providing a response to this RFP/Q must respond in writing by the date specified above. All submissions become the property of the City and will not be returned to the ESCO. Each ESCO response will include five () copies of the response to be received on or before 4:30 p.m. on April 16, 2018 at the City Clerk s office of the City of Homewood located at 280 19 th Street South, Homewood, Alabama 3209. The responses will be opened on the day of April, 2018 at the City Clerk s office on the second floor of the Homewood City Hall located at 280 19 th Street South, Homewood, Alabama 3209. Each of the written responses shall contain the information as outlined hereinbelow. Each ESCO response is required to fully respond to the outline set out hereinbelow as relates to each category listed below. Responses shall be set on 8-1/2 x 11 sheets of paper and the number and title of each answer to the corresponding outline set out below shall be included. All pages in the response should be numbered sequentially. ESCO must also include a table of contents which indicates a section page numbers corresponding to the information included as outlined below. A. Table of Contents B. Executive Summary of Proposal of Services Explain in detail the proposed services to be provided and the manner of the provision of such services. C. ESCO s Qualifications 1. Profile Data a. ESCO s Name & Address b. Name, Title, Phone and Fax Number of Two Contact People c. Type of ESCO Discuss the type of entity your firm represents (i.e., corporation, partnership, etc.), and whether your firm is the parent company, a division, subsidiary or branch office of another entity. d. ESCO Philosophy Discuss what you believe distinguishes your firm in the industry. e. Federal Employee Identification Number f. Statement of ESCO s Compliance with this RFP/Q Provide statement stating that any related contracts with the City will comply with criteria defined in this RFP/Q, and that all material, dates and conditions contained in the ESCO s response to this RFP/Q shall remain in effect for at least sixty (60) days. 8
2. Capability of ESCO a. Number of years in business in Alabama (minimum of years) and number of years ESCO has provided performance contracting services. b. Type of services your firm intends to offer on this project. c. General discussion of your firm s approach to performance contracting. d. Discuss your firm s activities within the State of Alabama. 3. Financial Condition of ESCO Provide an Annual Report for your company. If no Annual Report is available, attach the most recent audited statements of financial condition, income statement and cash flow, dated no earlier than two years prior to RFP/Q submittal deadline. Additionally, provide 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 projects. Also enclose bonding references, including company, address, contact person, telephone number, information on your firm s maximum bonding capacity and any and all terms, conditions or restrictions relating to your firm s capabilities. 4. Project Team Clearly indicate the personnel that will be assigned to City Projects and their specific project responsibilities. Indicate their qualifications, including degrees, special training, licenses, and years of experience and special areas of expertise that will enable them to meet these responsibilities effectively. The current team must have extensive local government performance contracting experience in Alabama. A full resume for each assigned person should be included.. Project History Provide a brief description of at least three (3) performance based projects your firm has performed in Alabama/Southeast in the last ten (10) years that had an energy savings guarantee. Please include the contract values of those projects. Present the information on each project as follows: a. Customer (Name, Address) b. Contractor Name c. Type and Terms of Performance Contract d. Project Size (Installation cost, Facility information Sq. Ft.) e. Project Description (include listing of all ECMs implemented) f. Construction Completion Date g. Contract End Date h. Projected Savings i. Achieved cost savings and methodology used to calculate savings 6. Comparable Project Construction/Renovation History Provide a brief description of at least three (3) comparable construction/renovation projects your firm has completed. These projects listed should involve a significant 9
amount of mechanical work. Describe how your firm has handled shutdowns and tie-ins of critical mechanical and electrical systems in similar environments (healthcare, research and education). Indicate whether these projects were handled at the local or branch office or through a regional or national office. 7. ECM History Provide a brief description of construction/renovation projects your firm and/or team members have completed that would be proposed. 8. Additional Documents Please provide a sample agreement of proposed energy audit agreement as well as a sample of a proposed contract between your firm and any other third party that relates to the services contemplated by this RFP/Q. D. Technical Approach 1. Energy Audit Provide a description of energy audit methods to be used, including measuring and evaluation methods, standards and test equipment used. Please provide an estimate of the cost of investment grade energy audits to be provided to the City which will include all provisions relating if no contract is negotiated between the City and your firm. 2. Savings Evaluation Methods Describe methodology you will use to compute project savings. List all procedures, formulas and methodologies, including any special metering equipment to be used. 3. Baseline Adjustments Describe methods you will use to adjust the baseline due to such factors as weather and facility use changes. 4. Installation, Design & Construction Describe the procedure your firm will use to design, purchase and install those ECM s proposed by your firm. Describe how your firm addresses safety on the construction site and how your firm will assure code compliance in all work undertaken.. Operations & Maintenance Describe the operations and maintenance services to be provided by your firm on the proposed ECM s along with warranty coverage. 6. Monitoring Describe your firm s monitoring procedures that will be implemented to ensure ongoing project performance. 10
7. Training Describe the type and level of training that will be provided by your firm to the City. E. Financial Considerations 1. Project Financing Experience Describe and provide specific examples of those types of financing arrangements provided by your firm on prior performance-based projects and that would be available for the City projects. 2. Savings Allocation Procedures Describe the proposed method of determining the value of savings. Also describe the method of determining savings allocation, between ESCO and City. 3. Financial Risk Mitigation and Public Awareness Strategies Describe the strategies your firm will implement to mitigate financial risk for the City. Describe the type of public awareness strategies your firm has provided on past projects (i.e. energy conservation awareness programs). 4. Contract Negotiations F. Other Benefits Describe your firm s process of negotiating a performance-based contract. Describe how energy savings and construction costs will be determined for each energy conservation measure. State the method of establishing the contract term. Indicate options available to the City for contract termination. Describe any public relations or staff awareness plans and assistance your firm has provided that encourage significant energy conservation on past projects. G. Immigration Law Compliance Requirement An ESCO submitting a response to this RFP shall as a condition for the award of any contract or grant by the City be in full compliance with all state and federal laws, rules and regulations relating to illegal immigration. In particular, any subsequent contract entered into between the selected ESCO and the City will incorporate the terms, conditions and provisions of Chapter 13 of Title 31 of the Code of Alabama (197) entitled Illegal Immigration and the ESCO shall fully comply with all terms and conditions relating to local, state and federal laws relating to illegal immigration during the term of any contract or work performed for the City as a result of this RFP. 11