REQUEST FOR PROPOSAL (RFP) ENERGY SAVINGS PERFORMANCE CONTRACTING PROJECT INSTRUCTIONS TO BIDDERS 1. INTRODUCTION Van Dyke Public Schools is requesting proposals from Energy Services Companies (ESCOs) for the implementation of Facility and Energy Efficiency Improvements on a Performance Contracting basis that is in accordance with Michigan Legislation. For the purpose of this RFP, ESCO refers to any company that is qualified to provide a turnkey energy conservation program that includes all services listed in this RFP. Van Dyke Public Schools intends to use this RFP to select a firm to perform the proposed energy conservation retrofits. Van Dyke Public Schools has the legal right to select the best solution for the District. The best solution is defined by the most concise and cost effective program developed. It may or may not be the lowest cost. Van Dyke Public Schools is a public school district located in Macomb County, Michigan. Based in Warren, Michigan, Van Dyke Public Schools serves parts of Warren and a small portion of Center Line as well as being a school of choice to Macomb County Residents. The District has eleven (11) separate buildings that educate over 2700 students. The nine (9) schools and facilities to be included in this project are the following: Lincoln High School Lincoln Middle School Lincoln Elementary School Carlson Elementary School McKinley Elementary School Kennedy Early Childhood Center Administration Building Service Building Thompson Community Center 2. TENTATIVE TIMELINE RFP issued: February 19, 2016 Mandatory pre-bid meeting: Monday, February 29, 2016 at 10am Deadline for written requests for clarification: March 4, 2016 at 5pm Questions will be answered by: March 7, 2016 Proposal Anticipated Board Action: March 21 st, 2016 Final Contract Review: April 2016 Project Begins: June 2016 Project Completion: September 2016 1
3. SUBMISSION OF BIDS & REQUIREMENTS A. Due Date: Sealed bids clearly labeled RFP for Energy Savings Project will be received by Van Dyke Public Schools until Friday, March 11, 2016 at 1pm local time, at which time bids will be publicly opened and read. Bids must be submitted in a sealed envelope, clearly labeled RFP for Energy Savings Project, and delivered by the date and time stated above to: Van Dyke Public Schools Attn: A. Agrusa, Director of Business & Operations 23500 MacArthur Blvd. Warren, MI 48089 B. Late Proposals: Proposals received after the date and time stated above will not be accepted or considered. The School District is not liable for any delivery or postal delays. All proposals received after the deadline will be returned unopened. C. Signed Original Proposal: Each proposal submitted must be an original hard copy and signed by an authorized member of the company. This member should be the highest-ranking officer at the local level. No oral, faxed or emailed proposals will be accepted. To be considered, each proposal must include all of the following: a. RFP Response per section 9 & Appendix A of this document b. Attachment A Familial Relationship Disclosure Statement c. Attachment B - Iran Linked Business Affidavit d. Attachment C Legislation e. Bid Bond/Certified Check D. Copies of Proposal: The bidder shall also submit with its original proposal, three (3) complete copies of the signed original proposal and one (1) electronic copy of the response. E. Mandatory Pre-Bid Meeting: There is a mandatory pre-bid meeting on Monday, February 29, 2016 at 10am local time. We will meet at the Service Building, 11387 E. Nine Mile, Warren, MI 48089. F. Questions: Questions concerning the bid specifications may be emailed to Ed Fuhs at fuhs.ed@vdps.net. Deadline for questions is March 4, 2016 at 5pm. Questions will be answered by March 7, 2016. A Q&A document will be posted on the district website at www.vdsp.net under District Info/Bids & RFPs. G. Addenda to this RFP: If it becomes necessary to revise any part of this RFP, all addenda will be posted on the School District s website and all addenda shall become a part of the RFP. Each Contractor must in its Proposal, acknowledge all addenda which it has received. The failure of a Contractor to receive, or acknowledge receipt of, any addendum shall not relieve the Contractor of the responsibility for complying with the terms thereof. H. Good Faith Deposit: Each Proposal must be accompanied by a bid bond or certified check in an amount equal to 5%, as a guarantee of bidder s good faith. The good faith deposit shall be forfeited to the district as liquidated damages, not a penalty, if the bidder withdraws its 2
proposal after the due date, or upon award of its proposal, the bidder fails to execute the form of the contract and provide insurance acceptable to the School District, within fifteen (15) days of awarding the RFP. I. Reservation of Rights: The School District reserves the right to accept or reject any or all bids, to award to other than the low bidder, to accept any and all alternates, to split award by items, to waive irregularities and/or informalities, and, in general, to make the award in any manner deemed by it, in its sole discretion, to be in the best interest of the School District. Van Dyke Public Schools is not liable for any cost incurred by any person or firm responding to this RFP. J. Irrevocability of Proposals: Bids prices will be considered firm and may not be withdrawn for a period of one hundred eighty (180) days after the scheduled time of opening bids. K. Award: It is the intent of the district to award the bid by March 22 nd, 2016. Submission of a bid will be construed as a conclusive presumption that the bidder is thoroughly familiar with the Instructions to the Bidders and that bidder understands and agrees to abide by each and all of the stipulations and requirements contained therein. 4. SUMMARY OF WORK A. For this RFP, Van Dyke Public Schools is interested in Energy Services Companies (ESCOs) providing the identification, engineering, design, installation, training, maintenance and financing of approved Energy Conservation Measures (ECMs) in a fixed cost scenario for the Van Dyke Public Schools facilities B. All ECMs considered shall be proven, commercially available and result in verifiable energy savings. C. All equipment provided by the ESCO for this program shall have a history of successful operating experience in similar installations and shall be in new and unused condition. This equipment shall be of the newest generation with readily available replacement parts. All equipment used for this program shall be approved by Van Dyke Public Schools prior to installation. D. It is understood that the district is a governmental unit, and as such, is exempt from the payment of all State and Federal Taxes applying to the products specified in this document. Therefore, the prices quoted by the Bidder should not include any allocation for taxes. E. BIDDER S LIABILITY INSURANCE 1) Certificates of Insurance acceptable to the Van Dyke Schools business office shall be filed with the Van Dyke Schools business office prior to commencement of the work. The certificates shall contain a provision that coverage afforded under the policies will not be terminated, altered or further endorsed without at least thirty (30) days' written notice by registered or certified mail to the Van Dyke Public Schools. All insurance shall be carried with companies authorized to do business in the State of Michigan with Certificates of Insurance coverage insured to the Van Dyke Public Schools. Failure to 3
provide the Certificate of Insurance may be considered material breach of the agreement and may be grounds for terminating the agreement. 2) The successful bidders and their Subcontractors shall, at their option, separately insure all their respective equipment such as tools, equipment, scaffolding towers, staging and other temporary buildings owned, borrowed or rented and all materials which do not become part of the construction. 3) If by the terms of this insurance any mandatory deductibles are required, or if the successful bidders should elect to increase the mandatory deductible amounts or purchase this insurance with voluntary deductible amounts, the successful bidders shall be responsible for payment of the amount of the deductible in the event of a paid claim. 5. GUARANTEED CONTRACTING A. Van Dyke Public Schools is interested in contracting for a full range of services. These services may include but are not limited to: 1) Complete engineering study of selected schools 2) Design and installation of new HVAC, lighting, controls, electrical and other energy conservation systems that meet all State & Local Codes as well as other standards outlined later in the RFP 3) Guaranteed Energy Savings 4) On-going auditing, and support of energy conservation measures 5) Monitoring of energy costs 6) Financing for the project B. Improvements must result in a guaranteed minimum savings that pays for program on an annual basis. The contractor will be required to provide financing for the program either internally or through a third party entity. The yearly payments cannot exceed the guaranteed savings. The program cannot exceed fifteen (15) years in length. 1) Operational Savings can include: Reduction in Energy Costs Reduction in Maintenance Costs due to new, high efficiency systems Reduction in Cost of Outside Contracts due to new, high efficiency systems Other real, tangible and measurable savings that result from the installation of new systems 2) The successful contractor must provide guarantees on the following: Project Costs Future Energy Savings System Performance C. No proposal shall exceed fifteen (15) years in duration and payment is subject to annual appropriations. 4
6. ELIGIBLE BIDDERS A. Eligible bidders are limited solely to companies who have a proven record of experience and are willing and able to guarantee the cost, performance and savings associated with the proposed projects. At a minimum the eligible ESCO must: a. Be a certified ESCO with NAESCO (National Association of Energy Service Company) b. Must have performed at least 5 Energy Saving Performance Contracts and can be used as a reference with the Michigan Public Schools. School references outside the State of Michigan will not be eligible for consideration on this project. c. Must have a local office and full time employees within 100 Miles of Van Dyke Public Schools. 7. SELECTION PROCESS RFP Evaluation Interested ESCOs responding to this RFP with a response must provide the information requested in Section 9 and Appendix A. Van Dyke Public Schools will evaluate submittals internally and choose the ESCO who best meets the Districts needs and objectives in both financial and facility improvement areas. Final Scope Agreement Once Van Dyke Public Schools selects the ESCO, the Van Dyke Public Schools will review the scope of work, energy and financial analysis, conceptual engineering design, products being proposed, final pricing and the implementation plan for a comprehensive energy conservation program submitted within this RFP. It is anticipated the Final Agreement on the program will be completed within one month of the RFP submittal. Negotiating and Signing of Contract Upon final agreement on scope, an Energy Savings Performance Contracting (ESPC) Agreement will be drawn up between Van Dyke Public Schools and the ESCO. Upon acceptance of the ESPC Agreement by the Organization s Administration & Board of Education, the ESPC Agreement will be signed and the program will commence. 5
8. SELECTION CRITERIA All ESCO s that respond to this solicitation will be evaluated using the following selection criteria. Organization & Supplemental Information Submission conforms to the requirements of this solicitation. Supplemental information is pertinent to the goals and objectives of this procurement. Van Dyke Program Details Scope of Work / ECM Viability Scope of Work Addresses Van Dyke School Needs Project Financials Cash Flows Financing of Project Personnel Qualifications Quality of personnel assigned to this project and degree of pertinent experience. Project Plan Comprehensiveness and rationale of the ESCO s project management plan. Method employed to establish baseline energy use in individual buildings and facility-wide Method of measurement and verification used to demonstrate energy use reduction and cost savings as guaranteed Explain your engineering methodology of selecting equipment Your financial plan demonstrates your ability to help meet our needs and goals Prior Project Performance Experience with implementing the project plan similar to Van Dyke Public Schools. Experience taking responsibility for the full range of roles contemplated for this project (e.g. identification and analysis of ECMs, design, installation, operation, training, financing, savings verification, etc.) References from prior and current clients. Business and Financial Qualifications Business unit dedicated to providing guaranteed energy savings programs. Business unit dedicated to ensuring project performance Years in business Financial viability of entity proposed to provide technical and financial guarantees NAESCO Accreditation ESCO corporate headquarters must reside within the 50 United States ESCO shall provide audited financial statements including income statement, balance sheets and statements of cash flow for the two (2) most recent completed fiscal periods. 6
9. RFP RESPONSE FORMAT Responses must be submitted in the format outlined in this section. Each response will be reviewed to determine if it is complete prior to actual evaluation. Van Dyke Public Schools reserves the right to eliminate from further consideration any response which is deemed to be substantially or materially unresponsive to the requests for information contained in this section. The intent of the Owner is that all responses follow the same format in order to evaluate each respondent fairly. RFP FORMAT: A. TABLE OF CONTENTS: Responses shall include a Table of Contents properly indicating the appropriate sections. B. EXECUTIVE SUMMARY: Responses shall include a concise abstract of no more than three (3) pages stating the respondent s understanding of the owner s goals and objectives. The ESCO s submission should identify unique qualifications and capabilities for this project that satisfy these goals and objectives. C. COMPANY BACKGROUND: 1. Company Information / History of Organization 2. Provide verification of corporate headquarters residing within the 50 United States a) Provide Local Office Location and Number of employees in local office 3. Provide NAESCO accreditation 4. Project Organization Chart 5. Resumes of Individuals that will be working on the Van Dyke Public Schools project 6. Contractor Profile Form Appendix A 7. Provide your two (2) most recent Annual Reports D. COMPANY EXPERIENCE: 1. References: Provide a minimum of at least 5 references of Energy Savings Programs your organization has completed for Michigan Public Schools in the past 5 years. All References will be contacted. Provide the owner s name, address, telephone number and contact person for each reference. Only references for projects which are complete through the installation of all equipment and systems are acceptable. Also provide project costs, scope of work and savings associated with the reference. 7
2. Case Studies: Provide Case Studies of at least 10 projects you have completed in past 5 years. Case Study information shall include project costs, scope of work, and savings associated with the project. E. TECHNICAL SUMMARY for Van Dyke Public Schools Program 1. Complete Descriptions of all energy conservation measures (ECM) being proposed for each school. Each School must have its own section. 2. ECM Summary Table 3. Project Time Table / Project Implementation Plan 4. Special Project Conditions / Disclaimers on Project F. PROJECT FINANCIALS for Van Dyke Public Schools Program 1. Provide a detailed annual cash flow of the programs costs and savings associated with the scope of work proposed and the estimated financing interest rate from the banking firm. 2. Provide a detailed cash flow of the programs costs and savings associated with the scope of work proposed and the estimated financing interest rate from banking firm. G. FINANCIAL APPROACH 1. Provide a detailed description on your firm s possible arrangements for financing of this project what bank(s) are involved, responsibilities of each party and any special conditions associated with financing this project. a) Provide a letter from each banking firm acknowledging their interest in financing the program for Van Dyke Public Schools. 2. Provide a detailed description of the type of financial guarantees that can be offered through your organization and what is typically used by your organization. Specifically what methodologies, technologies, etc. are used to create baselines and overall savings objectives and reporting of the guarantee? What sorts of guarantees (IPMVP: A, B, C, D) are offered by your company and what will you recommend to Van Dyke Public Schools? Provide sample bonding form and bonding limits. H. PROJECT MANAGEMENT - Responses shall include your organizations approach to project management. Specifically explain your ability to overcome obstacles and keep the project ontime. Explain your methodology of communicating with the client. How does your firm handle warranty issues? Provide a description of the services to be performed by full-time employees of the ESCO, i.e. which services are self-performed vs contracted. I. LEGAL DOCUMENTS - Provide a sample contract for both the project and the annual guarantee. 8
J. ON-GOING SUPPORT AND SERVICES 1. What ongoing services can your firm provide? List no less than five (5) commercial references within 50 miles of Van Dyke Public Schools to indicate the service quality of the responding firm. In the event your firm doesn t provide ongoing services, how do you propose handling warranty issues or service needs? Each reference shall demonstrate local facility service and repair experience. Provide the owners name, address, telephone number, and contact person for each reference. 2. Customer Satisfaction: Describe the type of ongoing customer satisfaction reports available to the owner. Provide a sample report with owners name, address, telephone number and contact person. The owner may be contacted to verify accuracies. 3. Environmental Services: Describe your ability to provide professional environmental services, specifically in regard to Indoor Air Quality and Energy Star Certification. 4. Training: Describe the type of training available to the Owner. 5. Energy Auditing Services: Describe how you would perform an energy audit. Provide a sample audit. 9
ENERGY CONTRACTOR PROFILE FORMAT APPENDIX A Energy Contractor Profile Form In paragraph format, please include the following information in the order it is requested (This attachment is not intended to be used as a form). A. OVERVIEW OF FIRM 1. Firm Name, Business Address, City, State, District, Zip Code 2. Names and titles of two contact people 3. Outline your Company History 4. What is your firm's Core Business? (as described in Business Journals). 5. If your firm manufactures/distributes a product (such as chillers, HVAC equipment, facility controls, etc.) and such products are being recommended on this project, will you consider other manufacturers? Describe a prior Guaranteed Energy Savings Program when you have implemented a competitor s product and where this has occurred. i. Provide at least 3 references where this has occurred Describe the evaluation and bidding process used in selecting Were the bidding tabulation sheets shared with the Owner? If your firm is providing equipment / products manufactured by your firm, firm must provide a detailed list of each product being provided, the list price and the guaranteed price for Van Dyke Schools in this project and guaranteed price for Van Dyke Public Schools for the next 5 years. 6. Provide any corporate background on misconduct. Provide a list of all projects nationally where there was a criminal investigation, indictment or a conviction relating to the conduct of a performance contract. This includes officers and representatives of the company as well as public officials connected with the project. 7. Provide an explanation if a dispute with a client has ever gone to arbitration or litigation over a Guaranteed Energy Savings Agreement. What was the outcome? 8. Federal Employee Identification Number 9. Are you willing to provide an on-site tour of your firm s local office? 10
ATTACHMENT A FAMILIAL RELATIONSHIP DISCLOSURE STATEMENT Important: This disclosure statement must be included with your bid as required by state law (Public Act 232 of 2004). As required by Public Act 232 of 2004, all bids shall be accompanied by a sworn and notarized statement disclosing any familial relationship that exists between the owner and any employee of the bidder and/or any member of the Van Dyke Board of Education or the Superintendent of Schools. The Board of Education shall not accept a bid that does not include this sworn and notarized disclosure statement. The undersigned, the owner or authorized officer of (the Bidder ), pursuant to the familial disclosure requirement provided in the Van Dyke Public Schools invitation to bid, hereby represent and warrant, except as provided below, that no familial relationships exist between the owner(s) or any employee of the company and any member of the Van Dyke Board of Education or the Superintendent of Schools. (Listing of names follows.) If such a Van Dyke relationship exists, please explain: Signature: Printed Name/Title: Company Name: Date: Subscribed and Sworn to Before Me: This day of, 20 A.D., in and for the County of, Michigan. My commission expires. Signature of Notary 11
ATTACHMENT B AFFIDAVIT OF COMPLIANCE IRAN ECONOMICS SANCTIONS ACT Michigan Public Act 517 of 2012 Important: This disclosure statement must be included with your bid as required by state law (Public Act 517 of 2012). The undersigned, the owner or authorized officer of the below-named bidder (the Bidder ), pursuant to the compliance certification requirement provided in the Van Dyke Public Schools (the district ) Request For Proposal (the RFP ), hereby certifies, represents and warrants that the Bidder (including its officers, directors and employees) is not an Iran linked business within the meaning of the Iran Economic Sanctions Act, Michigan Public Act No. 517 of 2012 (the Act ), and that in the event Bidder is awarded a contract as a result of the aforementioned RFP, the Bidder will not become an Iran linked business at any time during the course of performing services under the contract. The Bidder further acknowledges that any person who is found to have submitted a false certification is responsible for a civil penalty of not more than $250,000.00 or two (2) times the amount of the contract or proposed contract for which the false certification was made, whichever is greater, the cost of the School District s investigation, and reasonable attorney fees, in addition to the fine. Moreover, any person who submitted a false certification shall be ineligible to bid on a request for proposal for three (3) years from the date that it is determined that the person has submitted the false certification. Signature: Printed Name/Title: Company Name: Date: Subscribed and Sworn to Before Me: This day of, 20 A.D., in and for the County of, Michigan. My commission expires. Signature of Notary 12
LEGISLATION ATTACHMENT C The undersigned, the owner or authorized officer of (the Bidder ), certifies to Van Dyke Public School District, that any and all persons who will work directly or indirectly for the Bidder, including, but not limited to, Bidder s employees, agents, vendors, subcontractors or consultants, and who will work at or on any District property, shall at all times be in compliance with MCL. 380.1230, 380.1230a, 380.1230c, 380.120d, and 380.1230g and have not been convicted of any listed offenses. The Bidder further warrants and represents that all persons who work directly or indirectly for the Bidder, including, but not limited to, Bidders employees, agents, vendors,, subcontractors or consultants, and who will work on or at the Districts property, shall at all times be in compliance with MCL 380.1230, 380.1230a, 380.1230c, 380.1230d and 380.1230g. In this regard, Bidder agrees, without limitation, to report within three (3) business days to the District when any such person is charged with a crime listed in Section 1535a(1) of the Revised School Codes or a subsequently convicted, pled guilty or pled no contest to that crime. Bidder: By: Its: 13