9109_REM LITE_Special Procurement Request_Executed.pdf

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OREGON HOUSING AND COMMUNITY SERVICES

REQUEST FOR SPECIAL PROCUREMENT

No. OregonBuys #REQ-91400-00105677 (OHCS #9109)

PART A – REQUEST (completed by the Contract Administrator)

1. Date of Request: March 4, 2026

2. Contract Administrator: Andy Ortiz, andy.ortiz@hcs.oregon.gov

3. Title: Weatherization Energy Audit Software

4. Total Estimated Cost: $550,000 over the course of 5 years

5. Proposed Contract Timeframe: from 2026-2031, with an option to extend at Agency’s discretion if the selected audit tool remains compliant with DOE requirements

6. Request, Background, and Justification:

(a) Request:

The Energy Services section requests approval of a Special Procurement to direct award a contract to REM/Rate LLC for Rem/ Rate Lite. REM/ Rate Lite is the replacement version of OHCS’ current energy audit tool, REM/ Design, and is identified on the U.S. Department of Energy’s (DOE) expedited energy audit list for usage on Weatherization Assistance Program (WAP) projects. The list can be found on the internet under “Additional Documents” at the following link:

https://www.energy.gov/scep/wap/articles/weatherization-program-notice-23-6-revised-energy-audit-approval-procedures

REM/ Design is no longer supported by the contractor and no longer meets DOE’S requirements. This proposed Special Procurement will allow OHCS to direct award a contract to REM/Rate LLC to obtain the replacement version of OHCS’ current energy audit tool for use by OHCS and its WAP network.

(b) Background:

Energy audits are a critical step to qualify homes for upgrades and to ensure compliance with federal funding requirements. To ensure DOE WAP federal funds are used to install only cost-effective weatherization measures, DOE requires the use of authorized software that conducts an analysis of energy savings based on a variety of complex factors, including the cost of measures that a low-income dwelling needs compared to the achieved savings gained by making those investments.

mailto:andy.ortiz@hcs.oregon.gov https://www.energy.gov/scep/wap/articles/weatherization-program-notice-23-6-revised-energy-audit-approval-procedures https://www.energy.gov/scep/wap/articles/weatherization-program-notice-23-6-revised-energy-audit-approval-procedures

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Pursuant to 10 CFR 440.21, Oregon’s energy audit procedures and priority lists must be approved by DOE every five years for use on each major dwelling type that represents a significant portion of the state’s weatherization program.

In 2011, OHCS procured REM/ Design, which is no longer supported by the contractor. As a result, OHCS must obtain the replacement tool, REM/ Rate Lite, in order to remain in compliance with its energy audit protocols.

(c) Justification for Use of Special Procurement:

Energy audit tools that are independently third-party verified for energy modeling accuracy and currently approved for use on DOE WAP projects qualify for expedited review. The approval process for new tools can be lengthy and complex, which could slow production for this essential program and delay services to vulnerable households.

REM/ Rate Lite is the replacement version of OHCS’ current energy audit tool. OHCS’ audit protocols, technical manuals, and training materials are built around the current software.

Choosing an alternate tool would require significant updates to OHCS’ audit protocols and retraining for the WAP network. By selecting, purchasing, and using a tool that is already approved by DOE and that is already in use by the WAP network, OHCS can implement the tool more quickly, ensuring that energy audits and subsequent improvements can begin without delay and will bring the Oregon WAP back into compliance with its energy audit protocols.

7. Findings to Satisfy the Required Standards:

This proposed Special Procurement:

(a) Will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

Procuring the replacement version of OHCS’ current energy audit tool is unlikely to encourage favoritism or substantially diminish competition for the following reasons:

1. Continuity and Compatibility.

• The replacement version is a direct continuation of the currently deployed solution, ensuring alignment with existing audit protocols and policies.

• Transitioning to a different solution would require substantial revision of policies and retraining, introducing unnecessary risk of further non-compliance and cost.

2. Market Limitation for Equivalent Upgrades.

• The replacement version of the current tool is proprietary to the original vendor and is not available through alternative suppliers.

• The replacement version does not introduce materially different functionality that would warrant a competitive solicitation.

https://www.ecfr.gov/current/title-10/section-440.21

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3. No Substantial Diminishment of Competition.

• REM/Rate LLC’s REM tool is on DOE’s list of approved audit software. DOE uses standardized criteria to evaluate and approve audit tools. This ensures that all tools on the approved list meet the same rigorous standards, reducing potential favoritism.

• The DOE-approved list includes a variety of tools from different developers. As shown in the chart above, there are only a few available audit software products on the DOE-approved list.

AND

(b) Will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055 (Competitive Sealed Bidding), 279B.060 (Competitive Sealed Proposals), 279B.065 (Small Procurements), or 279B.070 (Intermediate Procurements), or any rules adopted thereunder because:

Procuring the replacement version of OHCS’ current energy audit tool is determined to be the most cost-effective and expedient solution for several reasons:

1. Pre-Approved and Compliant. REM/ Rate Lite has already undergone evaluation by the

DOE to ensure it meets federal standards and guidelines. Choosing a pre-approved product eliminates the need for OHCS to conduct additional vetting, saving both time and resources.

2. Cost Savings. OHCS’ audit protocols, training, and technical policies are all based on using the current audit tool. Obtaining the replacement version of OHCS’ current audit tool reduces the costs and time for extensive training and rework of policies to align with a new tool.

3. Proven Effectiveness. DOE-approved tools have a track record of effectiveness, ensuring the money spent on weatherization measures will yield reliable energy savings. This reduces the risk of investing in unproven or less effective tools.

PART B – PROCUREMENT (completed by the Procurement Specialist)

1. Procurement Specialist: Amanda King, amanda.king@hcs.oregon.gov

2. Request Type: Class Special Procurement Contract-specific Special Procurement

3. Proposed Contracting Procedure:

To remain compliant with DOE requirements for WAP funding and to continue to ensure cost-effective weatherization measures are installed in homes, we propose to direct award a contract mailto:amanda.king@hcs.oregon.gov

DAS SpecProcRequest_rev08-19-2021.docx Page 4 of 4 (AMK) to REM/Rate LLC. As part of this process, OHCS will issue a public notice of its intent to procure REM/ RATE Lite.

• Notice will be open for 7 days

• Protests will be allowed

PART C - APPROVALS (completed by the DPO and the Executive Director)

1. Designated Procurement Officer:

Recommends approval Does not recommend approval

By: Date:

Phillip Andrews, Designated Procurement Officer

DPO’s conditions of approval, if any:

2. Executive Director Approval:

By: Date:

Andrea Bell, Executive Director

03/04/2026

3/12/2026