1184807_RFP 03-22 Leachate Evaporation System.pdf

REQUEST FOR PROPOSAL

for

Heat Assisted Leachate Evaporation System

RFP 03-22

Issued: December 15, 2021

Pre-Proposal: January 5, 2022

Due Date: January 28, 2022

Southeastern Public Service Authority (SPSA) 723 Woodlake Drive, Chesapeake, VA 23320

757.420.4700 www.spsa.com

TABLE OF CONTENTS

SECTION I

PURPOSE

BACKGROUND

SCOPE OF WORK

TENATIVE PROCUREMENT SCHEDULE

SECTION II

PROPOSAL PREPARATION AND SUBMISSION INSTRUCTIONS

SECTION III

SPECIFIC PROPOSAL INSTRUCTIONS

SECTION IV

EVALUATION AND AWARD CRITERIA

SECTION V

GENERAL TERMS AND CONDITIONS

SECTION VI

SPECIAL TERMS AND CONDITIONS

SECTION VII

APPENDIX A

PROPOSAL FORM

CONFLICTS OF INTEREST LIST

SIGNATURE SHEET

PROOF OF AUTHORITY TO TRANSACT BUSINESS IN VIRGINIA

PERFORMANCE BOND

LABOR AND MATERIAL PAYMENT BOND

REFERENCE FORM

APPENDIX B: ATTACHED AS SEPARATE FILES

PERFORMANCE REQUIREMENTS

ATTACHMENT 1 – OVERALL AND EXISTING CONDITIONS PLAN

ATTACHMENT 2 – PAGES FROM SPSA PHASE 1 AS-BUILT

DRAWINGS

ATTACHMENT 3 – PAGES FROM SPSA PHASE 2 AS-BUILT

DRAWINGS

-1- RFP 03-22

SECTION I

PURPOSE

The purpose of this Request for Proposal (RFP) is to solicit sealed proposals from qualified vendors to provide and operate a Heat Assisted Leachate Evaporation System with the capacity to evaporate up to 60,000 gpd with an option for installation of a second system of equal capacity.

BACKGROUND

SPSA is the regional solid waste collection and disposal agency for over one million residents in the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the counties of Isle of Wight and Southampton, all located in the Commonwealth of Virginia. SPSA’s disposal system includes a Regional Landfill in Suffolk and nine transfer stations in various locations throughout the geographic territory served by SPSA, accompanied by a transportation operation, a fleet maintenance facility, a tire shredder facility, a white goods program, and a household hazardous waste program. Please see SPSA’s website for more information, available at www.spsa.com.

SPSA owns and operates the Regional Landfill (Landfill) located in Suffolk, Virginia. The Landfill property is comprised of approximately 833 acres; of which 376 acres represents the facility boundary currently permitted by the Virginia Department of Environmental Quality (VDEQ) under solid waste Permit No. 417. Permit No. 417 includes seven landfill cells comprised of about 244 lined acres for waste disposal. Cells I-IV have been closed with a final cover system. Cells V and VI are Subtitle D landfills and are permitted and operated as one contiguous landfill unit. Cell VII is also a Subtitle D landfill and is permitted to be contiguous with Cell V but has not yet been constructed. All waste currently accepted at the Landfill is disposed of in Cells V and VI. Cell VII-Phase 1 (38 acres) is anticipated to be constructed and operational by April 2026. The landfill receives both MSW, special wastes, and waste to energy ash residue for disposal. It is anticipated that receipt of ash residue will cease in mid-2024. Concurrent with this project, SPSA is proceeding with another Vendor for treatment and processing of landfill gas to a renewable natural gas and decommissioning of the existing landfill gas to energy facility.

The landfill currently generates approximately 40,000 gallons per day of leachate on average. SPSA also utilizes the existing leachate pre-treatment facility for the disposal of 5,000 gallons of leachate from its transfer stations and the domestic wastewater from the on-site facilities. Expansion of the landfill through the construction of Cell VII and future cells will increase the daily average volume of leachate to be managed. Appendix B includes an overall site plan of the Regional Landfill facility and an existing conditions plan depicting the existing leachate pretreatment facility and proposed location of the evaporation facility.

The Southeastern Public Service Authority (SPSA) discharges landfill leachate to the Hampton Roads Sanitation District (HRSD) through an existing leachate forcemain to its

-2- RFP 03-22

Nansemond Wastewater Treatment Facility and via truck hauling to alternate HRSD treatment facilities. HRSD has imposed restrictions on discharge of just 20,000 gpd over 24 hours via the forcemain to the Nansemond facility primarily due to bromide loading.

SPSA had been participating with HRSD for the permitting and construction of a new leachate forcemain to an alternate facility, however this project is no longer moving forward. In order to reduce the volume of leachate requiring treatment or disposal, SPSA is seeking to contract with a Vendor for the design, construction and operation of leachate evaporation facility at the site.

The proposed improvements are to be located at the Regional Landfill site that is located at 1 Bob Foeller Drive, Suffolk, VA. The proposed project shall be completed in general conformance with the RFP-Performance Requirements included in Section VII-Appendix B.

SCOPE OF WORK

SPSA is requesting a Leachate Evaporation System with the capacity to evaporate up to 60,000 gpd with an option for installation of a second system of equal capacity. Qualified vendors must have existing permitted operating facilities in the region (VA, NC, SC, MD) with a minimum treatment capacity of 50,000 gallons per day.

The system shall be capable of reducing the volume of the residual to be disposed (either on-site or off-site) to less than 10% of the influent flow rate. Additionally, SPSA is seeking a five-year contract to operate the System and manage all residuals. The landfill evaporation equipment and operations contract will allow SPSA to cease discharging landfill leachate to HRSD. The system will be fed from the existing leachate pump station wet well or from the discharge forcemain. SPSA will need to maintain the ability to bypass the System through the existing forcemain or to the leachate loadout station by owner for times when leachate generation exceeds the evaporation system capacity. Disposal of the residue (concentrate) generated by the system will be the responsibility of the Vendor.

Straight recirculation of concentrate back to the landfill is not under consideration and is not allowed under the solid waste permit. Vendor may solidify the residue so that is passes the paint filter test after which it can be landfilled on-site or it can be removed for off-site disposal.

SPSA anticipates preparing and submitting the solid waste minor permit modification application to Virginia Department of Environmental Quality (VADEQ) and completing the City of Suffolk Site Plan application. Vendors shall assist with the permitting process by providing site layout, facility performance and other information required for permit approvals.

SPSA will provide the following:

• Natural gas and/or landfill gas feed for use in heat assisted units

• Electrical service capacity at existing Electrical Building serving the leachate pump station and loadout facility and ongoing electric usage cost

• Domestic (non-potable) water supply

-3- RFP 03-22

• Use of existing leachate loadout containment pad for loading of residue for off-site disposal. Residue discharge shall not be connected to existing loadout forcemain piping.

• VADEQ minor solid waste permit modification and Title V permit modification

• Local site plan and erosion sediment and control permitting

The work to be included in the scope of work includes but is not limited to:

• Design o 60% and 90% Design Review o Construction Documents

• Building Permit Applications (if applicable)

• Grubbing

• Erosion and Sediment Control

• Site preparation and utility relocation in project area

• Concrete Installation for foundation and containment pads for chemical, leachate day tanks and residue storage tank areas and enclosures

• Enclosures for temperature sensitive chemical storage and any dosing equipment

• Enclosures for operations, controls and communications equipment

• Equipment Procurement and Installation

• Utility Extensions will be by SPSA, Vendor to make connections at the limits of work

• Process Connections

• Site SCADA Integration

• Performance Testing

• Emissions monitoring

• Facility Operations and Maintenance

TENATIVE PROCUREMENT SCHEDULE

The following is a tentative schedule for key procurement milestones. SPSA reserves the right to modify this tentative schedule as needed.

1. RFP issuance: December 15, 2021

2. Pre-Proposal Conference: January 5, 2022

3. Proposals due: January 28, 2022

4. Optional interviews: February 7 - 9, 2022

5. Proposal evaluation period: January 28 – February 18, 2022

6. Notice of Intent to Award: February 25, 2022

7. Submit recommendation to award: March 11, 2022

8. Notice to Proceed: March 28, 2022

-4- RFP 03-22

SECTION II

PROPOSAL PREPARATION AND SUBMISSION INSTRUCTIONS

1. REQUEST FOR PROPOSAL (RFP) RESPONSE: Proposals will be received at the Purchasing Department of the Southeastern Public Service Authority of Virginia, in the Regional Office Building, 723 Woodlake Drive, Chesapeake, Virginia 23320, until 2:00 P.M. on January 28, 2022 in accordance with the specifications and other terms and conditions set forth herein.

Proposals shall be delivered to SPSA in a sealed envelope showing on the outside the RFP number, time, date, and RFP description. OR

Offerors shall submit one (1) original and three (3) complete copies of their proposal to SPSA plus an electronic copy on either a CD or flash drive.

2. PRE-PROPOSAL CONFERENCE: A mandatory pre-proposal conference will be held at the SPSA Regional Landfill, Administrative Offices, 1 Bob Foeller Drive, Suffolk, VA 23434 at 10:00 A.M on January 5, 2022 to clarify and answer any questions regarding this proposal. Any changes determined necessary which may affect the responses to this RFP will be formally addressed via addenda issued by

SPSA.

3. PROPOSAL SOURCE/CHANGES TO THE RFP:

Any changes to the terms and conditions of this Request for Proposal determined necessary by SPSA, in its sole discretion, will be formally addressed via addenda issued by SPSA. No purported modification of any term or condition of this RFP shall be binding upon SPSA unless it is made in strict accordance with this paragraph. Please direct all questions to SPSA via email at purchasing@spsa.com.

Offerors are solely responsible for ensuring that SPSA has valid contact information for the offeror, regardless of whether you received a copy of this RFP from SPSA or from any other source. If you receive a copy of this Request for Proposal from a source other than SPSA or eVA, please contact SPSA at the email address specified above (purchasing@spsa.com) and provide your name, address, telephone number, and email address. Please reference the RFP Number in the subject line of the email. Thereafter, you will be added to the offerors list and will receive any addenda to the RFP.

4. PROPOSAL PREPARATION:

(a) Proposals shall be signed by an authorized representative of the offeror.

(b) All information requested in this RFP should be included as part of the proposal. Failure by any offeror to submit all information requested may

-5- RFP 03-22

result in SPSA requiring prompt submission of missing information by each such offeror and/or giving a lowered evaluation of the proposal to each such offeror. Proposals that are substantially incomplete or lack key information may be rejected.

(c) Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of this RFP.

(d) Proposals should be organized in the order in which the requirements are presented in Section III of this RFP (Specific Proposal Instructions). All pages of the proposal should be numbered. Each section in the proposal should reference the corresponding section of this RFP. Please also cite the paragraph number, subletter, and repeat the text of the requirement as it appears in this RFP. If a response covers more than one page, the paragraph number and subletter should be repeated at the top of the next page. The proposal should contain a table of contents which cross-references the applicable RFP requirements. Information which the offeror desires to present that does not fall within any of the requirements of this RFP should be clearly identified as additional material and inserted at an appropriate place or be attached at the end of the proposal. Proposals that are not organized in this manner risk elimination from consideration if SPSA is unable to determine whether or not (or where) the applicable RFP requirements are specifically addressed.

(e) As used in this RFP, the terms “must”, “shall”, “should” and “may” identify the criticality of requirements. “Must” and “shall” identify requirements whose absence will have a significant negative impact on the suitability of the proposal. Items labeled “should” or “may” are highly desirable and would be useful, although they are not necessary and their absence will have a material impact on the review of the proposal. Depending on the overall response to this RFP, some individual “must” and “shall” items may not be fully satisfied, but it is the intent to satisfy most, if not all, “must” and “shall” requirements. The inability of an offeror to satisfy a “must” or “shall” requirement does not automatically remove that offeror from consideration;

however, it may significantly affect the overall rating of the offerors’ proposal.

(f) Each copy of the proposal should be bound or contained in a single volume where practical. All documentation submitted with the proposal should be contained in that single volume.

(g) Ownership of all data, materials, and documentation originated and prepared for SPSA pursuant to this RFP shall belong exclusively to SPSA and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Trade secrets or proprietary information submitted by an offeror shall not be subject to public disclosure under the Virginia Freedom

-6- RFP 03-22

of Information Act; however, the offeror must invoke the protections of § 2.2- 4342F of the Code of Virginia, in writing, either before or at the time the data or other material is submitted. The written notice must specifically identify the data or materials to be protected and state the reasons why protection is necessary. The proprietary or trade secret material submitted must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire proposal document, line-item prices, and/or total proposal prices as proprietary or trade secrets is not acceptable and will result in rejection of the proposal.

5. ORAL PRESENTATION: Offerors who submit a proposal in response to this RFP may be required to give an oral presentation of their proposal to SPSA. This provides an opportunity for the offeror to clarify or elaborate on the proposal. This is a fact finding and explanation session only and does not include negotiation.

Oral presentations are an option and may or may not be conducted, and SPSA’s Purchasing Department will schedule the time and location of these presentations to the extent (if at all) they are required.

-7- RFP 03-22

SECTION III

SPECIFIC PROPOSAL INSTRUCTIONS

Proposals shall be prepared in accordance with the format below and should be as thorough and detailed as possible so that SPSA may properly evaluate your capabilities to provide the required services. Offerors are required to and must submit the following items as a complete proposal:

1. A title page displaying the RFP subject, the name of the Vendor’s firm, address, telephone number, email address, name of the contact person, and date.

2. A Table of Contents must be provided, and pages must be numbered and double side print. Please limit proposal to 25 pieces of paper.

3. Project Understanding: Provide a narrative response describing the Offeror’s understanding of the goals and objectives of the Project and approach to assisting with acquiring all necessary permits for the project.

4. Technical Approach: Describe the Offeror’s technical approach for the Leachate Evaporation System. Include:

(a) Technical description of the proposed process

(b) A list of equipment included along with size, capacity, material of construction, etc.

(c) A list of projected utility requirements including electric, water, fuel (BTUs).

Fuel supply provided by SPSA may be 100% natural gas, or a mix of natural gas, landfill gas and or process gas from the planned Renewable Natural Gas facility to be located adjacent to the leachate treatment area.

(d) A dimensioned layout drawing showing the footprint the system will require

(e) A process flow diagram showing projected flow rates for influent, evaporation, concentrate, etc.

(f) The predicted performance of the proposed system as compared to the performance requirements listed in the RFP

(g) Identify proposed method of disposal of residue concentrate

(h) A list of design documents that will be provided

(i) Any variations from the performance requirements provided in the RFP

(j) Any information on where the technical approach would result in efficiencies to project schedule or construction costs.

5. Alternate bid information – describe how Alternate Bid with supply, installation and operation of a second 60,000 gpd capacity unit would be achieved including revised footprint, utility requirement, etc. Would any support equipment be shared between the systems?

6. Project Schedule: Provide a high-level project schedule. Assume a Notice to Proceed date of March 28, 2022.

-8- RFP 03-22

7. Statement of Qualifications demonstrating requisite experience for design, permitting, construction and operation of the evaporation system.

8. Project References including location, capacity, date installed, current status, permit status, etc. To qualify to bid, Offeror must have an existing permitted operating facility in the region (VA, NC, SC, MD) with a minimum treatment capacity of 50,000 gpd.

9. Lump Sum Fees: Provide individual lump sum fee proposal for all work and costs associated with the design, construction, and operation of the facility. Offeror shall also include a preliminary Schedule of Values with the proposal for review by SPSA. The Schedule of Values shall subdivide the Work into its respective parts and include the values for all items comprising the Work. The final Schedule of Values to be furnished following contract award would serve as the basis for monthly progress payments made to Vendor throughout the Work. The proposal for lump sum fees must be separately sealed from the technical proposal.

10. Ongoing Operating Fees: Provide fixed monthly fee (staff, administration, etc.) for the operation of the Leachate Evaporation System plus variable fee (chemical, electrical, residue management, etc.) in terms of dollars per thousand gallons treated. Price escalation (if required) shall be by Consumer Price Index.

11. Other Supporting Data: Include any other information you feel to be relevant to the selection of your firm.

12. Bonding Capacity of the Offeror: The Offerors shall have a current bonding capacity in excess of the proposed total lump sum price. Provide contact name and phone number for the bonding company in the Proposal. Selected Vendor shall be required to furnish Performance and Labor and Payment Bonds in the amount of 100% of the total lump sum fee proposal for design and construction.

Proposed pricing terms indicated on Pricing Schedule provided in Appendix.

13. Conflicts of Interest List in the form provided in Appendix A.

14. Proof of Authority to Transact Business in Virginia in the form provided in Appendix A.

15. Signature Sheet in the form provided in Appendix A.

-9- RFP 03-22

SECTION IV

EVALUATION AND AWARD CRITERIA

1. EVALUATION CRITERIA: Proposals shall be evaluated by SPSA using the following criteria and scoring:

(a) Economic Evaluation of proposed lump sum equipment design and installation costs and operating prices and schedule of values: up to 60 total points.

(b) Qualification and Experience of offeror for similar projects: up to 20 total points.

(a) Offeror’s Technical Approach: up to 20 total points.

2. AWARD: Selection shall be made of one or more offerors deemed to be fully qualified and best suited among those submitting proposals on the basis of the evaluation factors included in the Request for Proposals, including price, if so stated in the Request for Proposals. Negotiations shall be conducted with the offerors so selected.

Price shall be considered, but need not be the sole determining factor. After negotiations have been conducted with each offeror so selected, SPSA shall select the offeror which, in its opinion, has made the best proposal, and shall award the contract to that offeror. SPSA may cancel this Request for Proposals or reject proposals at any time prior to an award, and is not required to furnish a statement of the reasons why a particular proposal was not deemed to be the most advantageous (Code of Virginia, § 2.2-4359D). Should SPSA determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror. The award document will be a contract incorporating by reference all the requirements, terms and conditions of the RFP and the contractor’s proposal as negotiated.

-10- RFP 03-22

SECTION V

GENERAL TERMS AND CONDITIONS

1. COMMONWEALTH OF VIRGINIA PUBLIC PROCUREMENT ACT AND SPSA

PROCUREMENT POLICY: This Request for Proposal (RFP) is subject to the provisions of the Virginia Public Procurement Act and the SPSA Procurement Manual, including any revisions thereto in effect at the time of this Request for Proposal.

2. APPLICABLE LAWS AND COURTS: This RFP and any resulting contract shall be governed in all respects by the laws of the Commonwealth of Virginia, and any litigation with respect thereto shall be brought in the courts of the Commonwealth.

The contractor shall comply with all federal, state and local laws, rules and regulations that are applicable to this RFP and any resulting contract.

3. EMPLOYMENT DISCRIMINATION BY CONTRACTOR PROHIBITED: By submitting a bid, offerors certify to SPSA that they will conform to the provisions of the Federal Civil Rights Act of 1964, as amended, as well as the Virginia Fair Employment Contracting Act of 1975, as amended, and, where applicable, the Virginians With Disabilities Act, the Americans With Disabilities Act and § 2.2-4311 of the VPPA.

If an award is made to a faith-based organization, the organization shall not discriminate against any recipient of goods, services, or disbursements made pursuant to the contract on the basis of the recipient’s religion, religious belief, refusal to participate in a religious practice, or on the basis of race, age, color, gender, sexual orientation, gender identity, or national origin and shall be subject to the same rules as other organizations that contract with public bodies to account for the use of the funds; provided, however, if the faith-based organization segregates public funds into separate accounts, only the accounts and programs funded with public funds shall be subject to audit by SPSA. (Va. Code § 2.2- 4343.1(E)).

(a) During the performance of the contract, the contractor agrees as follows:

i. The contractor will not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

-11- RFP 03-22

ii. The contractor, in all RFPs or advertisements for employees placed by or on behalf of the contractor, will state that such contractor is an equal opportunity employer.

iii. Notices, advertisements and RFPs placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting these requirements.

(b) The contractor will include the provisions of clause (a) above in every subcontract or purchase order over $10,000, so that the provisions will be binding upon each applicable subcontractor or vendor.

4. ETHICS IN PUBLIC CONTRACTING: By submitting their proposal, offerors certify that their proposal is made without collusion or fraud and that they have not offered or received any kickbacks or inducements from any other offeror, supplier, manufacturer or subcontractor in connection with their proposal, and that they have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value was exchanged.

5. IMMIGRATION REFORM AND CONTROL ACT OF 1986: By entering into a written contract with SPSA, the contractor certifies that the contractor does not, and shall not during the performance of the contract; knowingly employ an unauthorized alien as defined in the federal Immigration Reform and Control Act of 1986.

6. DEBARMENT STATUS: By submitting their proposal, offerors certify that they are not currently debarred by the Commonwealth of Virginia from submitting bids or proposals on contracts for the type of goods and/or services covered by this RFP, nor are they an agent of any person or entity that is currently so debarred.

7. MANDATORY USE OF SPSA FORMS PROVIDED IN APPENDIX AND TERMS

AND CONDITIONS: Failure to submit a proposal on the SPSA form(s) provided for that purpose may be a cause for rejection of the proposal. Modification of or additions to the General and/or Special Terms and Conditions of the RFP may be cause for rejection of the proposal; however, SPSA reserves the right to decide, on a case-by-case basis, in its sole discretion, whether to reject such a proposal as nonresponsive. As a precondition to its acceptance, SPSA may, in its sole discretion, request that the offeror withdraw or modify nonresponsive portions of a proposal which do not affect quality, quantity, price, or delivery.

8. CLARIFICATION OF TERMS: If any prospective offeror has questions about the specifications in this RFP or other RFP documents, the prospective offeror should contact SPSA, via email, no later than five (5) working days before the due date for proposals. Any revisions to the RFP will be made only by addendum issued by

SPSA.

-12- RFP 03-22

9. PAYMENT:

(a) To Prime Contractor:

(i) Invoices for items ordered, delivered and accepted shall be submitted by the contractor directly to the payment address shown on the purchase order/contract. All invoices shall show the SPSA contract number and/or purchase order number. Payment shall be made following completion of project and acceptance by SPSA.

Progress billing may be provided.

(ii) Any payment terms requiring payment in less than 30 days will be regarded as requiring payment 30 days after invoice or delivery, whichever occurs last. This shall not affect offers of discounts for payment in less than 30 days, however.

(iii) All goods or services provided under this contract or purchase order, that is to be paid for with public funds, shall be billed by the contractor at the contract price.

(iv) The postmark date in all cases shall be deemed to be the date of payment.

(v) Unreasonable Charges. Under certain emergency procurements and for most time and material purchases, final job costs cannot be accurately determined at the time orders are placed. In such cases, contractors should be put on notice that final payment in full is contingent on a determination of reasonableness with respect to all invoiced charges. Charges which appear to be unreasonable will be researched and challenged, and that portion of the invoice held in abeyance until a settlement can be reached. Upon determining that invoiced charges are not reasonable, SPSA shall promptly notify the contractor, in writing, as to those charges which it considers unreasonable and the basis for the determination. A contractor may not institute legal action unless a settlement cannot be reached within thirty (30) days of notification.

(b) To Subcontractors:

(i) A contractor awarded a contract under this RFP is hereby obligated:

1. To pay the subcontractor(s) within seven (7) days of the contractor’s receipt of payment from SPSA for the proportionate share of the payment received for work performed by the subcontractor(s) under the contract; or

2. To notify SPSA and the subcontractor(s), in writing, of the contractor’s intention to withhold payment and the reason.

-13- RFP 03-22

(ii) The contractor is obligated to pay the subcontractor(s) interest at the rate of one percent per month (unless otherwise provided under the terms of the contract) on all amounts owed by the contractor that remain unpaid seven (7) days following receipt of payment from SPSA, except for amounts withheld as stated in (2) above. The date of mailing of any payment by U. S. Mail is deemed to be payment to the addressee. These provisions apply to each sub-tier contractor performing under the primary contract. A contractor’s obligation to pay an interest charge to a subcontractor may not be construed to be an obligation of SPSA.

(c) SPSA recognizes the importance of timely payments to our vendors.

Therefore, we offer our vendors the opportunity to enroll in our ePayables program. This program allows us to make card payments to our vendors and features an online portal to facilitate payments as well as reduce payment processing times. Our ePayables program is mutually beneficial and is our preferred method of payment. If you choose not to enroll in this program, payments will be made by check and mailed through the postal service which could impact how quickly you receive payments. Payment(s) made through the ePayables are processed every two weeks as compared to monthly in the form of a check. Contractor should let SPSA know if capable of accepting credit card payment(s) and SPSA will assist in enrolling contractor in the Bank of America’s ePayables Program ensuring faster payment transactions.

(d) For contracts for construction that provide for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least ninety-five percent of the earned sum when payment is due, with no more than five percent being retained to ensure faithful performance of the contract. All amounts withheld may be included in the final payment. Any subcontract for a public project that provides for similar progress payments shall be subject to the provisions of this section.

10. QUALIFICATIONS OF OFFERORS: SPSA may make such reasonable investigations as deemed proper and necessary to determine the ability of each offeror to perform the services solicited by this RFP, and the offeror shall furnish to SPSA all such information and data for this purpose as may be requested. SPSA reserves the right to inspect each offeror’s physical facilities prior to award to satisfy questions regarding the offeror’s capabilities. SPSA further reserves the right to reject any proposal if the evidence submitted by, or investigations of, an offeror fails to satisfy SPSA that such offeror is properly qualified to carry out the obligations of the contract and to provide the services contemplated therein.

11. TESTING AND INSPECTION: SPSA reserves the right to conduct any test/inspection it may deem advisable to ensure that goods and services provided under the contract conform to specifications.

-14- RFP 03-22

12. ASSIGNMENT OF CONTRACT: The contract shall not be assignable by the contractor in whole or in part without the written consent of SPSA.

13. CHANGES TO THE CONTRACT: The parties may agree in writing to modify the terms, conditions, or scope of the contract. Any additional goods or services to be provided shall be of a sort that is ancillary to the contract goods or services, or within the same broad product or service categories as were included in the contract award. Any increase or decrease in the price of the contract resulting from any such modification shall be agreed to by the parties as a part of their written agreement to modify the scope of the contract.

14. DEFAULT: In case of failure to deliver goods or services in accordance with the contract terms and conditions, SPSA, after due oral or written notice, may procure them from other sources and hold the contractor responsible for any resulting additional purchase and administrative costs. This remedy shall be in addition to any other remedies which SPSA may have.

15. TAXES: Sales to SPSA are normally exempt from State sales tax. State sales and use tax certificates of exemption, Form ST-12, will be issued upon request.

Deliveries against this contract shall usually be free of Federal excise and transportation taxes.

16. USE OF BRAND NAMES: Unless otherwise provided in this RFP, the name of a certain brand, make or manufacturer does not restrict offerors to the specific brand, make or manufacturer named, but conveys the general style, type, character, and quality of the article desired. Any article which the public body, in its sole discretion, determines to be the equivalent of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended, shall be accepted. The offeror is responsible to clearly and specifically identify the product being offered and to provide sufficient descriptive literature, catalog cuts and technical detail to enable SPSA to determine if the product offered meets the requirements of the RFP. This is required even if offering the exact brand, make or manufacturer specified. Normally in competitive sealed bidding only the information furnished with the bid will be considered in the evaluation. Failure to furnish adequate data for evaluation purposes may result in declaring a bid nonresponsive. Unless the offeror clearly indicates in its bid that the product offered is an equivalent product, such bid will be considered to offer the brand name product referenced in the RFP.

17. TRANSPORTATION AND PACKAGING: By submitting their bids, all offerors certify and warrant that the price offered for FOB destination includes only the actual freight rate costs at the lowest and best rate and is based upon the actual weight of the goods to be shipped. Except as otherwise specified herein, standard commercial packaging, packing and shipping containers shall be used. All shipping containers shall be legibly marked or labeled on the outside with purchase order number, commodity description, and quantity.

-15- RFP 03-22

9. INSURANCE: By signing and submitting a proposal under this RFP, the offeror certifies that, if awarded the contract, it will have the following insurance coverage at the time the contract is awarded. The offeror further certifies that the contractor and any subcontractors will maintain this insurance coverage during the entire term of the contract and that all insurance coverage will be provided by insurance companies authorized to sell insurance in Virginia by the Virginia State Corporation Commission.

(a) Employer’s Liability and Workers’ Compensation - Statutory requirements and benefits. Coverage is compulsory for employers of three or more employees, to include the employer. Contractors who fail to notify SPSA of increases in the number of employees that change their workers’ compensation requirements under the Code of Virginia during the course of the contract shall be in noncompliance with the contract.

(b) Commercial General Liability - $1,000,000 per occurrence and $2,000,000 in the aggregate. Commercial General Liability is to include bodily injury and property damage, personal injury and advertising injury, products and completed operations coverage. SPSA must be named as an additional insured and so endorsed on the policy.

(c) Automobile Liability - $1,000,000 combined single limit. Contractor must assure that the required coverage is maintained by the contractor (or third-party owner of such motor vehicle.)

18. DRUG-FREE WORKPLACE: During the performance of the contract, the contractor agrees to (i) provide a drug-free workplace for the contractor’s employees; (ii) post in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the contractor’s workplace and specifying the actions that will be taken against employees for violations of such prohibition; (iii) state in all RFPs or advertisements for employees placed by or on behalf of the contractor that the contractor maintains a drug-free workplace; and (iv) include the provisions of the foregoing clauses in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each applicable subcontractor or vendor.

For the purposes of this section, “drug-free workplace” means a site for the performance of work done in connection with a specific contract awarded to a contractor, the employees of whom are prohibited from engaging in the unlawful manufacture, sale, distribution, dispensation, possession or use of any controlled substance or marijuana during the performance of the contract.

10. DISCRIMINATION PROHIBITED: No offeror or contractor shall be discriminated against in the RFP or award of any contract because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, disability, status as a service disabled veteran, faith-based organization or any other basis prohibited by

-16- RFP 03-22

state law relating to discrimination in employment or because the offeror or contractor employs ex-offenders unless SPSA makes a written determination that employing ex-offenders on the contract is not in its best interest.

SPSA will facilitate the participation of small businesses, businesses owned by women, minorities, and service-disabled veterans, and employment services organizations in procurement transactions. Whenever direct RFPs to potential offerors or contractors are made, SPSA shall include businesses selected from a list made available by the Department of Small Business and Supplier Diversity, which list shall include all companies and organizations certified by the Department.

19. AVAILABILITY OF FUNDS: It is understood and agreed between the parties herein that SPSA shall be bound hereunder and under the contract only to the extent of the funds available or which may hereafter become available for the purpose of the contract.

20. AUTHORIZATION TO CONDUCT BUSINESS IN THE COMMONWEALTH: A

contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 of the Code of Virginia or as otherwise required by law. Any business entity described above that enters into a contract with SPSA pursuant to the Virginia Public Procurement Act shall not allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth, if so required under Title

13.1 or Title 50, to be revoked or cancelled at any time during the term of the contract. SPSA may void any contract with a business entity if the business entity fails to remain in compliance with the provisions of this section.

-17- RFP 03-22

SECTION VI

SPECIAL TERMS AND CONDITIONS

1. ACCEPTANCE PERIOD: Any proposal delivered in response to this RFP shall be valid for ninety (90) days (Acceptance Period). At the end of the Acceptance Period the proposal may be withdrawn at the written request of the offeror. If the proposal is not withdrawn at the end of the Acceptance Period, then it remains in effect until an award is made or the RFP is canceled.

2. CANCELLATION OF CONTRACT: SPSA reserves the right to cancel and terminate any contract, in part or in whole, without penalty, upon sixty (60) days written notice to the contractor. Any contract cancellation notice shall not relieve the contractor of the obligation to deliver and/or perform on all outstanding orders issued prior to the effective date of cancellation.

3. COOPERATIVE PROCUREMENT: This procurement is being conducted on behalf of the Southeastern Public Service Authority of Virginia (SPSA), and other public bodies in accordance with the provisions of §2.2-4304 of the Virginia Public Procurement Act.

A contract resulting from this procurement may be used by other public bodies to purchase at contract prices and in accordance with the contract terms, if approved by Contractor. The Contractor shall deal directly with any public body it approves to use the contract. Failure to extend a contract to another public body will have no effect on consideration of Contractor’s bid/proposal.

With the approval of the Contractor, any public body using the resultant contract has the option of executing a separate contract with the Contractor to add terms and conditions required by statute, ordinances, or regulations, or to remove terms and conditions which conflict with its governing statutes, ordinances, or regulations.

SPSA, its officials and staff are not responsible for placement of orders, invoicing, payments, contractual disputes, or any other transactions between the Contractor and any other public body, and in no event shall the SPSA, its officials or staff be responsible for any costs, damages or injury resulting to any party from use of a SPSA contract. If, when preparing such a contract, the additional terms and conditions of a public body seeking to purchase pursuant to cooperative procurement are unacceptable to the Contractor, the Contractor may withdraw its consent to extension of the contract to that particular public body.

SPSA assumes no responsibility for any notification of the availability of the contract for use by other public bodies, but the Contractor may carry out such notification.

-18- RFP 03-22

4. AS BUILT DRAWINGS: The contractor shall provide SPSA a clean set of reproducible “as built” drawings and wiring diagrams, marked to record all changes made during installation or construction. The contractor shall also provide SPSA with maintenance manuals, parts lists and a copy of all warranties for all equipment. All “as built” drawings and wiring diagrams, maintenance manuals, parts lists and warranties shall be delivered to SPSA upon completion of the work and prior to final payment.

5. CONTRACTOR REGISTRATION: If a contract for construction, removal, repair or improvement of a building or other real property is for $120,000 or more, or if the total value of all such contracts undertaken by offeror within any 12-month period is $750,000 or more, the offeror is required under Title 54.1-1100, Code of Virginia (1950), as amended, to be licensed by the State Board of Contractors a “CLASS A CONTRACTOR.” If such a contract is for $10,000 or more but less than $120,000, or if the total value of all such contracts undertaken by offeror within any 12-month period is $150,000 or more, but less than $750,000 or more, the offeror is required to be licensed as a “CLASS B CONTRACTOR.” If such a contract is over $1,000 but less than $10,000, or if the contractor does less than $150,000 in business in a 12-month period, the offeror is required to be licensed as a “CLASS C CONTRACTOR.” The board shall require a master tradesmen license as a condition of licensure for electrical, plumbing and heating, ventilation and air conditioning contractors. The offeror shall place on the outside of the envelope containing the bid and shall place in the bid over his signature whichever of the following notations is appropriate, inserting his contractor license number:

Licensed Class A Virginia Contractor No. _____ Specialty __________

Licensed Class B Virginia Contractor No. _____Specialty __________

Licensed Class C Virginia Contractor No. _____Specialty __________

If the offeror shall fail to provide this information on his bid or on the envelope containing the bid and shall fail to promptly provide said contractor license number to SPSA in writing when requested to do so before or after the opening of bids, he shall be deemed to be in violation of § 54.1 1115 of the Code of Virginia (1950), as amended, and his bid will not be considered.

If an offeror shall fail to obtain the required license prior to submission of his bid, the bid shall not be considered.

6. INDEMNIFICATION: Contractor agrees to indemnify, defend and hold harmless SPSA, its officers, agents, and employees from any claims, damages and actions of any kind or nature, whether at law or in equity, arising from or caused by the use of any materials, goods, or equipment of any kind or nature furnished by the contractor and/or any services of any kind or nature furnished by the contractor, unless such liability is solely attributable to the gross negligence or willful misconduct of SPSA.

-19- RFP 03-22

7. PERFORMANCE AND PAYMENT BONDS: The successful offeror shall deliver to SPSA executed Performance and Labor and Material Payment Bonds, each in the sum of the contract amount, with SPSA as obligee. The surety shall be a surety company or companies approved by the State Corporation Commission to transact business in the Commonwealth of Virginia. No payment shall be due and payable to the contractor, even if the contract has been performed in whole or in part, until the bonds have been delivered to and approved by SPSA. See Appendix for the form of bonds.

8. PRIME CONTRACTOR RESPONSIBILITIES: The contractor shall be responsible for completely supervising and directing the work under the contract and all subcontractors that it may utilize, using its best skill and attention. Subcontractors who perform work under the contract shall be responsible to the prime contractor.

The contractor is as fully responsible for the acts and omissions of its subcontractors and of persons employed by the subcontractors as it is for the acts and omissions of the contractor’s own employees.

9. WORK SITE DAMAGES: Any damage to existing utilities, equipment or finished surfaces resulting from the performance of this contract shall be repaired to SPSA’s satisfaction at the contractor’s expense.

10. STATE CORPORATION COMMISSION IDENTIFICATION NUMBER: Pursuant to Code of Virginia, §2.2-4311.2 subsection B, an offeror organized or authorized to transact business in the Commonwealth pursuant to Title 13.1 or Title 50 is required to include in its proposal the identification number issued to it by the State Corporation Commission (SCC). Any offeror that is not required to be authorized to transact business in the Commonwealth as a foreign business entity under Title

13.1 or Title 50 or as otherwise required by law is required to include in its proposal a statement describing why the offeror is not required to be so authorized. Indicate the above information on the SCC Form provided in Appendix. Contractor agrees that the process by which compliance with Titles 13.1 and 50 is checked during the RFP stage (including without limitation the SCC Form provided) is streamlined and not definitive, and SPSA’S use and acceptance of such form, or its acceptance of contractor’s statement describing why the offeror was not legally required to be authorized to transact business in the Commonwealth, shall not be conclusive of the issue.

11. HAZARD COMMUNICATION PROGRAM: The Southeastern Public Service Authority is required in accordance with 29 CFR 1910.1200 to inform all SPSA and contractor personnel that work centers within SPSA have hazardous chemicals on site. SPSA and contractor personnel may be exposed to these hazardous chemicals while working at SPSA work centers. A written Hazard Communication Program has been developed to inform personnel of the specific hazardous chemicals at the work centers and the related safety information, including protective measures, special precautions and emergency procedures to be observed. The Hazard Communication Program including Material Safety Data Sheets for each hazardous chemical at the work centers will be made available to

-20- RFP 03-22

contractors. Contractors are responsible for communicating the information contained in the Material Safety Data Sheets to their personnel working at each SPSA work center. Contractors or contractor personnel are in turn responsible for having Material Safety Data Sheets on any hazardous chemical that they will be using or storing at a SPSA facility. Furthermore, these Material Safety Data Sheets must be at the SPSA facility where they are being used and available for inspection by or on behalf of SPSA.

12. SPSA ENVIRONMENTAL PROCUREMENT POLICY: In 2003, SPSA implemented an environmental management system (EMS) that conforms to the elements of the ISO 14001 Environmental Standard. SPSA’s EMS is designed to assist it in managing and minimizing the environmental impacts of its processes and activities, which are called environmental aspects. SPSA will provide a list of the environmental aspects known to be associated with the planned/proposed activity in every RFP. Any contractor coming on any SPSA site to provide services to SPSA must comply with the policies, intent and/or procedures of SPSA’s EMS to manage these environmental aspects. This compliance will be demonstrated by the following:

(a) Agreeing in writing to comply with SPSA’s established emergency…