Energy_Sourcing_Study_(Addendum_#3_Revision).pdf

CITY OF TUCSON

REQUEST FOR QUALIFICATIONS

240069

ENERGY SOURCING STUDY

Due Date: Friday, December 15, 2023

City of Tucson

255 W Alameda St

Tucson, AZ 85701

Procurement portal https://secure.procurenow.com/portal/tucson-az

Public Portal https://secure.procurenow.com/portal/tucson-az/projects/62281

PUBLISH DATE: November 8, 2023 https://secure.procurenow.com/portal/%7Bproject.government.code%7D https://secure.procurenow.com/portal/%7Bproject.government.code%7D/projects/%7Bproject.id%7D https://secure.procurenow.com/portal/%7Bproject.government.code%7D/projects/%7Bproject.id%7D

CITY OF TUCSON REQUEST FOR QUALIFICATIONS NO. 240069

BUSINESS SERVICES DEPARTMENT Page 2 of 38 SHARED SERVICES PROCUREMENT DIVISION RESPONSIBLE CONTRACT OFFICER: Joseph Palacino

255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PH: (520) 837-4126

Attachments:

A - OFFER_AND_ACCEPTANCE_RFQ

C - Tucson Resilient Together - Climate Action and Adaptation Plan D - Tucson Resilient Together- Final Technical Memo E - City of Tucson, Current Franchines Agreement

BUSINESS SERVICES DEPARTMENT Page 3 of 38

A. Notice of Request for Qualifications

A.1. City of Tucson

NOTICE OF REQUEST FOR QUALIFICATIONS NO. 240069

Energy Sourcing Study

Notice is hereby given that the City of Tucson, hereinafter referred to as "COT" is conducting a competitive One-Step Process to retain ONE (1) Firm(s) to provide Professional, technical, and economic consulting services. . The City is seeking firms (hereinafter referred to as “Consultant”) to provide consultant services in the form of a multi-disciplinary team. The estimated annual budget for this project is THREE HUNDRED THOUSAND (300,000.00).

COT invites interested firms to submit written Statements of Qualifications (SOQ’s) relating to this solicitation. A Screening Committee will evaluate firms’ qualifications and experience with similar projects. The firm determined to be best qualified will then be invited to enter into negotiations with COT for billing rates under the contract. (Selection Plan: i.e.One Primary (with likely subs) will be selected.)

Questions must be addressed to the Contract Officer listed in the solicitation.

SUBMITTAL DUE DATE: Friday, December 15, 2023 AT 2:00 pm LOCAL AZ TIME

PRE-SUBMITTAL CONFERENCE DATE:Friday, November 17, 2023

TIME: 11:00 am

LOCATION: MICROSOFT TEAMS VIRTUAL MEETING

Meeting ID: 294 723 559 135

CALL IN (AUDIO ONLY):+1 213-293-2303,,359136128# United States, Los Angeles Phone Conference ID: 359 136 128#

QUESTIONS SHALL BE DIRECTED TO: Joseph Palacino

(520) 837-4126 joseph.palacino@tucsonaz.gov https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZDFiODU2YzctZTU4Yy00MGQ0LWEyNDQtODM2ZGRjMmE3MTdm%40thread.v2/0?context=%7b%22Tid%22%3a%22d21e59ec-c208-43eb-aaf1-cf06d9a196e0%22%2c%22Oid%22%3a%22515dd020-9697-4f29-8db6-8bde6619c72c%22%7d tel:+12132932303,,359136128

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B. Introduction

B.1. Summary

The City of Tucson, Arizona, invites proposals from qualified consulting firms to provide professional, technical, and economic consulting services. The objective of this Energy Sourcing Study is to analyze various options to source 100% renewable power for the Tucson community.

Options to be analyzed will include:

A. A feasibility study on the formation of a public power utility;

B. Opportunities and barriers to co-forming a Community Choice Aggregation (CCA) Program;

C. Opportunities for solar service agreements (SSAs) or virtual power purchase agreements (PPAs) to meet the City's power needs for municipal operations; and, D. The ability to deploy micro-grids to support the clean energy transition.

B.2. Background

The final report should be an unbiased and decision-supportive analysis of the topics in the Scope of Work. This initiative is part of our commitment to transition to a sustainable energy future and support the implementation of Tucson Resilient Together, specifically Climate Actions: E-3.2 Work with community advocates and other jurisdictions to co-form a community choice energy program or joint powers authority to procure 100% renewable power for Tucson, E-3.3. Commission a feasibility study on the formation of a public power utility, ahead of Tucson Electric Power's franchise agreement expiration (2025), and E-3.4 Pursue solar service agreements (SSAs) or virtual power purchase agreements (PPAs) to meet the City's power needs for municipal operations.

B.3. Contact Information

Joseph Palacino Contract Officer

255 W. ALAMEDA,

Tucson, AZ 85701 Email: joseph.palacino@tucsonaz.gov Phone: (520) 837-4126 Department:

EGSD

mailto:joseph.palacino@tucsonaz.gov tel:(520)837-4126

BUSINESS SERVICES DEPARTMENT Page 5 of 38

C. Scope of Work

C.1. Feasibility Study on Public Power Utility

The selected consultant will complete a feasibility study on the formation of a public power utility. This study is crucial as we approach the expiration of TEP’s franchise agreement in 2025. The study should provide a comprehensive analysis of the economic, technical, and regulatory aspects of forming a public power utility.

C.2. PHASE 1

Phase 1 of the study should, at a minimum, consider (collect data on):

A. Feasibility

1. A comprehensive feasibility study is the first step. This study should assess the economic, technical, and regulatory feasibility of forming a public power utility. It should include an analysis of the current energy infrastructure, potential costs of acquiring or building new infrastructure, and the projected costs and benefits of operating a municipal utility.

B. Legal and Regulatory Considerations

1. The City would need to understand the legal and regulatory landscape for municipal utilities in Southern Arizona. This should include analysis of the Arizona Corporation Commission (ACC) and other regulations around the acquisition of infrastructure, environmental regulations, and regulations around the sale and distribution of electricity.

C. Financial Considerations

1. Municipalizing energy distribution will require significant upfront investment. The study needs to work with Business Services and the City Manager’s Office to assess its ability to finance the acquisition or construction of energy infrastructure. This could involve issuing bonds, securing loans, or other financing mechanisms. The City would also need to consider the ongoing costs of operating and maintaining the utility, these costs as well as potential savings should be outlined as well.

2. TEP’s SEC Filing

a. https://www.sec.gov/Archives/edgar/data/100122/000010012222000012/tep- 20220331.htm#i47e182ccbbd246689e0ea7eca5516af2_106

D. Energy Sources

1. The City would need to decide what types of energy sources it wants to use. Because the goal is to transition to 100% renewable energy, the City would need to consider the feasibility and cost of sourcing energy from renewable sources like wind and solar, and other carbon-free power. This assessment should consider the role of a variety of energy storage solutions to meet the goals outlined in TRT, specifically, achieving carbon neutrality by 2045 for the Tucson community.

E. Governance and Operations:

https://www.sec.gov/Archives/edgar/data/100122/000010012222000012/tep-20220331.htm#i47e182ccbbd246689e0ea7eca5516af2_106 https://www.sec.gov/Archives/edgar/data/100122/000010012222000012/tep-20220331.htm#i47e182ccbbd246689e0ea7eca5516af2_106

BUSINESS SERVICES DEPARTMENT Page 6 of 38

1. A high level analysis of a suitable governance structure for the municipal utility. This could include a utility board or commission, and would involve hiring staff to operate and manage the utility. The City would also need to establish processes for billing, customer service, and other operational tasks.

F. Risk Assessment:

1. Finally, the consultant would need to conduct a thorough risk assessment on behalf of the City. This should include potential operational risks, financial risks, and regulatory risks.

The report should also include strategies to mitigate these risks.

C.3. PHASE 2

Phase 2 of the study, following the successful completion of Phase 1, should, at a minimum, include:

A. Community Outreach

1. Public support is crucial for the success of a municipal utility. The consultant/City would need to engage with the community, educate residents about the benefits of a municipal utility, and address any concerns or objections.

B. Transition Plan

1. Transitioning from a private utility to a municipal utility is a complex process that can take several years. The consultant would need to develop a detailed transition plan, including timelines for each stage of the process.

C.4. Community Choice Aggregation (CCA) Program

Concurrent with the Public Power Feasibility Study, the consultant will work with community advocates and staff to develop a strategy for co-forming a Community Choice Aggregation (CCA) Program. This program will aim to procure 100% renewable power for Tucson, contributing to our goal of achieving city-wide carbon neutrality by 2045. The analysis should include the following:

A. Existing Programs

1. Review and analyze existing CCA programs, including their structure, successes, and challenges.

B. Cost Analysis

1. Analyze the cost difference between traditional grid supply energy and CCA energy for the entirety of any existing program. Please note, this should include both commodity and transportation and delivery charges.

C. Regulatory Environment

1. Understand the regulatory environment for CCA programs in the state and region, including any legal or regulatory barriers to forming a CCA program.

D. Community Interest, Engagement, and Support

1. Assess the level of community support for a CCA program and develop strategies for engaging with the community and building support for the program.

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C.5. Scope for Solar Service Agreements (SSA’s) and Virtual Power Purchase Agreements (VPPA’s)

Evaluate the feasibility and cost/benefit of the City utilizing SSA’s and VPPA’s as a means of reducing its carbon footprint.

A. Definition and Overview

1. Offer a detailed explanation of VPPAs, where the City agrees to purchase a fixed amount of electricity from a renewable energy project at a predetermined price. Evaluate the current SSA’s the City has in its portfolio and if this is a sufficient strategy with the inclusion of VPPA’s to meet the City’s renewable energy needs.

B. Economic Implications

1. Provide a detailed cost-benefit analysis of entering into SSA’s and virtual PPAs. This should consider potential risks and rewards, including market volatility.

C. Duration and Flexibility

1. Examine the average duration of virtual PPAs and the flexibility they offer in terms of adjusting contract terms or quantities of energy procured.

D. Environmental Impact

1. Highlight the potential for carbon offset and the positive environmental implications of utilizing virtual PPAs.

C.6. Microgrids

Microgrids, a localized group of electricity sources and loads that can disconnect from the traditional grid and operate autonomously, can also play a pivotal role in supporting the clean energy transition.

As part of the study, please provide information on the following:

A. Definition and Benefits

1. Begin by defining microgrids and emphasizing their advantages in terms of energy reliability, resilience, and flexibility.

B. Economic Considerations

1. Break down the costs of deploying microgrids, including equipment, installation, and maintenance. Additionally, analyze the potential economic benefits, such as energy savings, increased reliability, and potential revenue streams if excess energy is sold back to the main grid.

C. Technical Analysis

1. Evaluate the specific technologies involved in microgrid deployment, including distributed energy resources (solar, wind, energy storage), advanced control systems, and potential integration with existing infrastructure.

D. Regulatory Landscape

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1. Delve into the current regulations governing microgrid deployment in Arizona. This should encompass issues such as interconnection standards, utility franchise rights, and any incentives or subsidies available for microgrid development.

E. Case Studies

1. Provide examples of successful microgrid projects, either within Arizona or in similar regions. These case studies can offer insights into best practices, challenges faced, and strategies to overcome them.

F. Implementation Strategy

1. Offer a detailed roadmap for the City of Tucson to move forward with microgrid deployment, if deemed feasible. This strategy should consider timelines, potential partners, financing options, and milestones.

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D. Instructions to Offerors

D.1. DEFINITION OF KEY WORDS USED IN THE SOLICITATION

For purposes of this solicitation and subsequent contract, the following definitions shall apply:

City: The City of Tucson, Arizona

Contract: The legal agreement executed between the City and the Contractor/Consultant.

Contractor/Consultant: The individual, partnership, or corporation who, as a result of the competitive solicitation process, is awarded a contract by the City.

Contract Representative: The City employee or employees who have specifically been designated to act as a contact person or persons to the Contractor, and is responsible for monitoring and overseeing the Contractor's performance under this Contract.

Director of Business Services: The contracting authority for the City, authorized to sign contracts and addenda thereto on behalf of the City.

May: Indicates something that is not mandatory but permissible.

Offeror: The individual, partnership, or corporation who submits a proposal in response to a solicitation.

Shall, Will, Must: Indicates a mandatory requirement. Failure to meet these mandatory requirements, if they constitute a substantive requirement, may, at the City’s sole discretion, result in the rejection of a proposal as non-responsive.

Should: Indicates something that is recommended but not mandatory. If the Offeror fails to provide recommended information, the City may, at its sole option, ask the Offeror to provide the information or evaluate the proposal without the information.

D.2. PRE-SUBMITTAL CONFERENCE

If scheduled, the date and time of a Pre-submittal conference is indicated on the cover page of this document. Attendance at this conference is not mandatory. Written minutes and/or notes will not be available, therefore attendance is encouraged. If an Offeror is unable to attend the Pre-submittal Conference questions may be submitted in writing. Offerors are encouraged to submit written questions, via electronic mail or facsimile, at least five days prior to the Request for Qualifications due date to the Contract Officer listed above. The purpose of this conference will be to clarify the contents of this Request for Qualifications in order to prevent any misunderstanding of the City's position. Any doubt as to the requirements of this Request for Qualifications or any apparent omission or discrepancy should be presented to the City at this conference. The City will then determine the appropriate action necessary, if any, and may issue a written addenda to the Request for Qualifications. Oral statements or instructions will not constitute an addendum to this Request for Qualifications.

D.3. INQUIRIES

Any question related to the Request for Qualifications shall be directed to the Contract Officer. An offeror shall not contact or ask questions of the department for whom the requirement is being procured.

The Contract Officer may require any and all questions be submitted in writing. Offerors are encouraged

BUSINESS SERVICES DEPARTMENT Page 10 of 38 to submit written questions via the Question and Answers section or electronic mail, at least five days prior to the submittal due date. Any correspondence related to a solicitation should refer to the appropriate Request for Qualifications number, page and paragraph number. Oral interpretations or clarifications will be without legal effect.

D.4. ADDENDUM OF REQUEST FOR QUALIFICATIONS

The Offeror shall acknowledge receipt of a Request for Qualifications Addendum through the City’s online bidding system by the specified due date and time.

D.5. FAMILIARIZATION OF SCOPE OF WORK

Before submitting a statement of qualifications, each Offeror shall familiarize itself with the Scope of Work, laws, regulations and other factors affecting contract performance. The Offeror shall be responsible for fully understanding the requirements of the subsequent Contract and otherwise satisfy itself as to the expense and difficulties accompanying the fulfillment of contract requirements. The submission of a statement of qualifications will constitute a representation of compliance by the Offeror.

There will be no subsequent financial adjustment, other than that provided by the subsequent Contract, for lack of such familiarization.

D.6. PREPARATION OF STATEMENT OF QUALIFICATIONS

A. All submittals shall be on the forms provided in this Request for Qualifications package. It is permissible to copy these forms as required. Facsimiles or electronic mail proposals shall not be considered.

B. At a minimum, your statement of qualification should include the signed Offer form, acknowledgement of any solicitation addenda and your response to all evaluation criteria.

C. The Offer page shall be signed by a person authorized to submit an offer. An authorized signature on the Offer Page, solicitation Addendum(s), or cover letter accompanying the submittal documents shall constitute an irrevocable offer to sell the good and/or service specified herein. Offeror shall submit any additional requested documentation, signifying intent to be bound by the terms of the agreement.

D. The authorized person signing the submittal shall initial erasure, interlineations or other modifications on the submittal.

E. It is the responsibility of all offerors to examine the entire Request for Qualifications package and seek clarification of any requirement that may not be clear and to check all responses for accuracy before submitting a response. Negligence in preparing a submittal confers no right of withdrawal after due date and time.

F. The City shall not reimburse the cost of developing, presenting, submitting or providing any response to this solicitation.

G. Offeror must list any subcontractors to be utilized in the performance of the services specified herein. For each subcontractor, details on respective qualifications must be included.

BUSINESS SERVICES DEPARTMENT Page 11 of 38

D.7. SUBMITTAL FORMAT

A statement of qualifications should be submitted on the forms and in the format specified in the solicitation. Any information that the offeror requested to be held as confidential shall be clearly marked as such. The material should be in sequence and related to the solicitation. The sections of the submittal should be organized, clearly identifiable, and should include a minimum of the following sections: the completed Offer Form, all signed addenda, and the offeror’s response to the Evaluation Criteria. Failure to include the requested information may have a negative impact on the evaluation of the offeror's submittal

D.8. EXCEPTIONS TO CONTRACT PROVISIONS

A response to any Request for Qualifications is an offer to contract with the City based upon the contract provisions contained in the City's Request for Qualifications, including but not limited to, the specifications, scope of services and any terms and conditions. Offerors who wish to propose modifications to the contract provisions must clearly identify the proposed deviations and any proposed substitute language in their submittal. However, the provisions of the Request for Qualifications cannot be modified without the express written approval of the Director or his designee. Proposed modifications or exception to the indemnification language herein shall not be considered. If an offer is returned with modifications to the contract provisions that are not expressly approved in writing by the Director or his designee, the contract provisions contained in the City’s Request for Qualifications shall prevail.

D.9. PUBLIC RECORD

All statements of qualifications submitted in response to this Request for Qualifications shall become the property of the City and shall become a matter of public record available for review subsequent to the award notification.

D.10. CONFIDENTIAL INFORMATION

The City of Tucson is obligated to abide by all public information laws. If an Offeror believes that any portion of a submittal, offer, specification, protest or correspondence contains information that should be withheld, a statement advising the Contract Officer of this fact should accompany the submission and the information shall be so identified wherever it appears. The City shall review all requests for confidentiality and may provide a written determination to designate specified documents confidential or the request may be denied. If the confidential request is denied, such information shall be disclosed as public information, unless the offeror submits a formal written objection.

D.11. CERTIFICATION

By signature on the Offer page, solicitation Addendum(s), or cover letter accompanying the submittal documents, Offeror certifies:

A. The submission of the offer did not involve collusion or other anti-competitive practices.

B. The Offeror shall not discriminate against any employee or applicant for employment in violation of Federal or State law.

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C. The Offeror has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, meal or service to a public servant in connection with the submitted offer.

D. The Offeror hereby certifies that the individual signing the submittal is an authorized agent for the Offeror and has the authority to bind the Offeror to the Contract.

D.12. WHERE TO SUBMIT STATEMENT OF QUALIFICATIONS

In order to be considered, Offeror must, no later than the Offer Submittal Deadline, submit its Offer electronically through the City’s online bidding system, https://procurement.opengov.com/portalucson-az.

NOTE: THE ENTIRE OFFER MUST BE IN "SUBMITTED" STATUS IN THE CITY’S ONLINE BIDDING

SYSTEM IN ORDER TO BE CONSIDERED. RESPONSES THAT HAVE BEEN CREATED IN THE

SYSTEM, BUT THAT ARE NOT IN "SUBMITTED" STATUS BY THE OFFER SUBMITTAL DEADLINE

WILL NOT BE CONSIDERED.

D.13. LATE SUBMITTALS

Late submittals will be rejected.

D.14. OFFER PERIOD

In order to allow for an adequate evaluation, the City requires an offer in response to this solicitation to be valid and irrevocable for ninety (90) days after the submittal due date and time.

D.15. WITHDRAWAL OF SUBMITTAL

At any time prior to the specified solicitation due date and time, an offeror may formally withdraw the submittal by a written letter or electronic mail from the Offeror or a designated representative.

Telephonic or oral withdrawals shall not be considered.

D.16. CONTRACT NEGOTIATIONS

At the completion of the evaluation process, the City may enter into negotiations with the top ranked Offeror(s) to determine fees, and to negotiate any other portion of the Contract deemed by the City to be necessary. In the event that the City is not able to negotiate successfully with the top ranked Offeror(s), the City shall cease negotiations with that Offeror(s) and either begin negotiations with the next ranked Offeror(s) or may choose to cancel the solicitation in its entirety. In the event that the City is not able to negotiate successfully with the next ranked Offeror(s), the City shall cease negotiations with that Offeror(s) and either begin negotiations with the third ranked Offeror(s) or may choose to cancel the solicitation in its entirety. Award shall be made to the Offeror(s) whose submittal and subsequent negotiation is most advantageous to the City https://procurement.opengov.com/portalucson-az https://procurement.opengov.com/portalucson-az

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D.17. VENDOR APPLICATION

Prior to the award of a Contract, the successful offeror shall register with the City’s Business Services Department. Registration can be completed at http://www.tucsonprocurement.com/ by clicking on Vendor Registration for Purchase Orders. Please note that email notifications of newly published solicitations and addenda will be provided to those vendors that select email as their preferred delivery method in their vendor record through the City's Online Bidding System.

D.18. CITY OF TUCSON BUSINESS LICENSE

In order to be eligible for award of a Contract, Offeror must:

A. Register with the City’s Business Services Department. Registration can be completed at https://procurement.opengov.com/portalucson-az.

B. Obtain a City of Tucson Business License or a written determination from the City's Business License Section that a license is not required. For questions contact the City's Business License Section at

(520) 791-4566 or email at license@tucsonaz.gov

D.19. UPON NOTICE OF INTENT TO AWARD

The apparent successful offeror(s) shall sign and file with the City, within five (5) days after Notice of Intent to Award, all documents necessary to the successful execution of the Contract.

D.20. AWARD OF CONTRACT

Notwithstanding any other provision of the Request for Qualifications, the City reserves the right to:

A. waive any immaterial defect or informality; or

B. reject any or all proposals, or portions thereof; or

C. reissue the Request for Qualifications.

A response to this solicitation is an offer to enter into negotiations and contract with the City based upon the terms, conditions, and specifications contained in the City's solicitation. Submittals do not become contracts unless and until they are executed by the City's Director of Business Services and the City Attorney. All of the terms and conditions of the solicitation shall be incorporated in the Contract, unless any of the terms and conditions are modified by a solicitation addendum, a contract addendum, or by mutually agreed terms and conditions in the final contract documents

D.21. SUBMITTAL RESULTS

The name(s) of the successful offeror(s) will be posted on the Business Services Department’s Internet site at https://procurement.opengov.com/portalucson-az/contracts upon issuance of a Notice of Intent to Award or upon final contract execution.

https://procurement.opengov.com/portalucson-az mailto:license@tucsonaz.gov https://procurement.opengov.com/portalucson-az/contracts

BUSINESS SERVICES DEPARTMENT Page 14 of 38

D.22. PROTESTS

A protest shall be in writing and shall be filed with the Director of Business Services. A protest of a Request for Qualifications shall be received at the Business Services Department not less than five (5) working days before the Request for Qualifications due date. A protest of a proposed award or of an award shall be filed within ten (10) days after issuance of notification of award or issuance of a notice of intent to award, as applicable. A protest shall include:

A. The name, address, and telephone number of the protestant;

B. The signature of the protestant or its representative;

C. Identification of the Request for Qualifications or Contract number;

D. A detailed statement of the legal and factual grounds of protest including copies of relevant documents; and

E. The form of relief requested.

D.23. REQUEST FOR QUALIFICATIONS

A. An appropriately qualified selection committee shall evaluate the statements of qualifications and performance data that are submitted in response to the City’s request for qualifications for the proposed contract.

B. If determined by the City and included by the City in the request for qualifications, conduct discussions with at least the number of persons or firms to be included on the short list as stated in the request for qualifications but not more than the number of persons or firms to be included on the short list plus two as specified in the request for qualifications regarding the contract and the relative methods of approach for furnishing the required professional services or construction services.

C. In order of preference, based on criteria established and published by the selection committee and included in the request for qualifications, select a short list of persons or firms the selection committee deems to be the most qualified to provide the professional services or construction services. The number of persons or firms on the short list shall be the number of persons or firms specified in the request for qualifications. Those firms may then be asked to provide Presentations/Interviews with the selection committee. Criteria for the Presentation/Interviews may be different than those listed in the RFQ with the Interviewees being provided the criteria and weighting prior to the Presentations/Interviews.

D. The City shall enter into negotiations for a contract with the highest qualified person or firm for the professional services or for the construction services. The negotiations shall include consideration of compensation and other contract terms that the City determines to be fair and reasonable to the City. In making this decision, the City shall take into account the estimated value, the scope, the complexity and the nature of the professional services or construction services to be rendered. If the City is not able to negotiate a satisfactory contract with the person or firm considered to be the most qualified at compensation and other contract terms the City determines to be fair and reasonable, the City shall formally terminate negotiations with that person or firm. The City may undertake negotiations with the next most qualified

BUSINESS SERVICES DEPARTMENT Page 15 of 38 person or firm in sequence until an agreement is reached or a determination is made to reject all persons or firms on the short list.

E. The contract file shall contain the basis on which the award is made.

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E. Selection Process

E.1. SELECTION PROCESS

The selection process is provided below:

• One-Step - Statement of Qualifications (SOQ) o For One-Step solicitations, a qualified committee will evaluate the SOQ’s submitted and determine the offeror(s) most qualified to enter into negotiations for a contract.

E.2. General

A. Additional Investigations:

1. The City reserves the right to make such additional investigations as it deems necessary to establish the competency and financial stability of any firm submitting a response to this Request for Qualifications.

B. Prior Experience:

1. Experiences with the City and entities that evaluation committee members represent shall be taken into consideration when evaluating qualifications and experience.

C. Other Information:

1. Information that evaluation committee members have about a Offeror beyond what is provided in the SOQ may be taken into consideration during the evaluation process.

BUSINESS SERVICES DEPARTMENT Page 17 of 38

F. Special Terms and Conditions

F.1. CONTRACT TERM AND RENEWAL

The term of this contract shall commence upon award and shall remain in effect for a period of ONE

(1) year, unless terminated, canceled or extended as otherwise provided herein. The Consultant agrees that the parties shall have the right, to renew the Contract for FOUR (4) periods, or portions thereof. In the event that the parties exercise such rights, all terms, conditions, and provisions of the original contract shall remain the same and apply during the renewal period with the possible exception of price and minor scope additions and/or deletions.

F.2. ADVICE AND CONSULTATION

The Consultant shall be available to the City for advice and consultation on the interpretation of the plans and specifications on questions which may arise during the course of this Contract.

F.3. COMPENSATION AND METHOD OF PAYMENT

In consideration of the performance of the services described in the Scope of Services, the City shall pay the Consultant in accordance with the negotiated contract rates, and the Consultant shall charge the City only in accordance with those same rates.

The City will pay the Consultant following the submission of itemized invoice(s). Each itemized invoice must bear a written certification by an authorized City representative confirming the services for which payment is requested.

F.4. PROJECT AWARD

The City intends to request project specific Statements of Qualifications (SOQs) from all firms awarded under the contract. City staff will review, score and rank the SOQs with highest ranked firm invited to submit a fee proposal and enter into negotiations for the project. Should the City be unable to reach an agreement with the highest ranked firm, negotiations will be terminated and the City may enter into negotiation with the next highest ranked firm for the project.

If this is impracticable, the City may elect to direct select a firm without project SOQs by reviewing initial SOQs submitted during the selection process for evaluation relative to the project requirements. The City will then enter into negotiations the firm deemed be the best qualified for the project.

The City shall not reimburse consultants for the cost of proposal preparation. Each project shall be negotiated and approved by the City Project Manager or designee prior to issuance of Notice to Proceed. The consultant shall not begin any work prior to receipt of Notice to Proceed

Individual projects not to exceed FIVE HUNDRED THOUSAND ($500,000.00) unless a written wavier is approved by the Business Services Department.

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F.5. COOPERATIVE PURCHASING

Any Contract resulting from this solicitation shall be for the use of the City of Tucson. In addition, public and nonprofit agencies that have entered into a Cooperative Purchasing Agreement with the City of Tucson's Business Services Department are eligible to participate in any subsequent Contract. See http://www.tucsonprocurement.com/coop_partners.aspx and click on Cooperatives for a list of the public and nonprofit agencies that have currently entered into Cooperative Purchasing Agreements with the City of Tucson. Additionally, this contract is eligible for use by the Strategic Alliance for Volume Expenditures (SAVE) cooperative. See http://www.maricopa.gov/Materials/PubDocuments/SAVE-members.pdf for a listing of participating agencies. The parties agree that these lists are subject to change.

Any orders placed to, or services required from, the successful Contractor(s) will be requested by each participating agency. Payment for purchases made under this agreement will be the sole responsibility of each participating agency. The Contractor may negotiate additional expenses incurred as a result of participating agencies’ usage of this contract (i.e., freight charges, travel related expenses, etc.). The City shall not be responsible for any disputes arising out of transactions made by others.

The Contractor(s) will provide an electronic copy of the complete Contract to the City of Tucson Business Services Department upon receipt of the Notice of Intent to Award. At the City's request, the successful Contractor(s) may also be requested to provide an electronic copy of the complete Contract to a participating agency.

F.6. KEY PERSONNEL

It is essential that the contractor provide adequate experienced personnel, capable of and devoted to the successful accomplishment of work to be performed under this contract. The City encourages the Contractor to hire or subcontract if necessary in order to provide the best personnel. The Contractor must agree to assign specific individuals to the key positions.

The Contractor agrees that, once assigned to work under this contract, key personnel shall not be removed or replaced without written notice to the City. If key personnel are not available for work under this contract for a continuous period exceeding thirty calendar days, or are expected to devote substantially less effort to the work than initially anticipated, the Contractor shall immediately notify the City, and shall, subject to the concurrence of the City, replace such personnel with personnel of substantially equal ability and qualifications.

F.7. DIRECT EXPENSES

Estimated direct expenses shall be submitted to the Project Manager prior to authorization to proceed.

All direct expenses will be compensated at cost with no markup. Travel, mileage and per diem expenses shall be in accordance with General Services Administration (GSA) rates for the Tucson area or for the area that travel is taking place. Vehicle usage, lodging, and per diem expenses for the Contractor’s out of town staff or sub-consultants must be identified and approved in the Contractor’s cost proposal.

Estimated travel expenses shall be submitted to the Project Manager for approval prior to authorization of specific travel. Contractor will make every effort to minimize or eliminate the need for direct expenses and will actively pursue options to consolidate travel/lodging expenses whenever possible.

http://www.tucsonprocurement.com/coop_partners.aspx http://www.maricopa.gov/Materials/PubDocuments/SAVE-members.pdf http://www.maricopa.gov/Materials/PubDocuments/SAVE-members.pdf

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Contractor shall not be reimbursed for normal business use mileage within Pima County. Contractor shall consider normal computer and telephone usage for daily activities as a part of overhead.

Travel expenses are limited to the total expense resulting from traveling directly to the destination and staying only the number of days necessary to conduct official business. The Contractor is encouraged to arrive earlier or stay longer than is necessary if doing so will result in savings to the City. In some cases, because of airline discount terms, an additional day(s) of travel will result in substantial airfare savings -- enough savings to offset additional lodging and per diem costs. The Contractor shall fly coach when the flight includes both coach and first-class seats. First-class seats may be allowed if coach seats are not available and no other flight can be substituted. Additional fees or fares incurred during air travel must be substantiated by a receipt. The total reimbursement for vehicular transportation shall in no case exceed the amount that would be incurred using air transportation. Travel by personal vehicle shall be reimbursed in accordance with the current Federal per diem rates. All vehicular parking or storage costs will be reimbursed. Receipts are not required. Vehicle expense reimbursements will be paid only to the vehicle owner. Passengers are not entitled to vehicular expense reimbursement.

Miscellaneous expenses include local phone calls, snacks, and gratuities. Miscellaneous expenses are included in the per diem rate. Contractor is responsible for utilizing the appropriate per diem rates for locations outside of Tucson where travel is taking place. In addition, Contractor is responsible for utilizing updated Per Diem Rates for subsequent Fiscal Years.

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G. Insurance Requirements

G.1. INSURANCE PROVISIONS OVERVIEW

The Contractor agrees to:

A. Obtain insurance coverage of the types and amount required in this section and keep such insurance coverage in force throughout the life of this contract. All policies will contain an endorsement providing that written notice be given to the City at least thirty (30) calendar days prior to termination, cancellation, or reduction in coverage in any policy.

B. The Commercial General Liability Insurance and Commercial Automobile Liability Insurance policies will include the City as an additional insured with respect to liability arising out of the performance of this contract. Such additional insured shall be covered to the full limits of liability purchased by the Contractor, even if those limits of liability are in excess of those required by this Contract. The Contractor agrees that the insurance hereunder will be primary and that any insurance carried by the City will be excess and not contributing.

G.2. Commercial General Liability

Policy shall include Bodily Injury, Property Damage, Personal Injury and Broad Form Contractual Liability:

Each Occurrence: $1,000,000

General Aggregate: $2,000,000

Products & Completed Operations Aggregate: $2,000,000

Personal and Advertising Injury: $1,000,000

Blanket Contractual Liability: $1,000,000

G.3. Commercial Automobile Liability

Policy shall include Bodily Injury and Property Damage, for any owned, Hired, and/or Non-owned vehicles used in the operation, installation and maintenance of facilities under this agreement.

Combined Single Limit: $1,000,000

G.4. Worker's Compensation (Applicable to the State of Arizona)

Per Occurrence: Statutory

Employer's Liability: $1,000,000

Disease Each Employee: $1,000,000

Disease Policy Limit: $1,000,000

*Sole Proprietor/Independent Contractor designation is given to those who desire to waive their rights for workers’ compensation coverage and benefits as outlined in ARS§ 23-901 and specifically ARS §

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23-961 (O). If applicable, please request the Sole Proprietor/Independent Contractor form from the Contract Officer listed in the solicitation.

G.5. Professional Liability (Errors & Omissions)

Each Claim: $1,000,000

Annual Aggregate: $2,000,000

G.6. CLAIMS MADE INSURANCE COVERAGE

If any or part of the required insurance is written on a claims-made basis, any policy retroactive date must precede the date of the contract and the Contractor must maintain such coverage for a period not less than three (3) years following contract expiration, termination or cancellation.

G.7. ADDITIONAL INSURANCE REQUIREMENTS

All policies shall include, or be endorsed to include, the following provisions:

A. A waiver of subrogation endorsement in favor of the City of Tucson, for losses arising from work performed by or on behalf of the Contractor.

B. The insurance afforded the contractor shall be primary insurance and that any insurance carried by the City of Tucson and its agents, officials or employees shall be excess and not contributory.

C. Coverage provided by the Contractor shall not be limited to the liability assumed under the indemnification provisions of this Contract.

G.8. NOTICE OF COVERAGE MODIFICATIONS

Any changes material to compliance with this contract in the insurance policies above shall require (30) days written notice to the City of Tucson. Such notice shall be sent directly to the Business Services Department.

G.9. ACCEPTABILITY OF INSURERS

Contractors insurance shall have an “A.M. Best” rating of not less than A:VII. The City of Tucson in no way warrants that the required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

G.10. VERIFICATION OF COVERAGE

Contractor shall furnish the City of Tucson with certificates of insurance (ACORD form or equivalent approved by the City of Tucson) as required by this Contract. The certificates for each insurance policy are to be signed by an authorized representative.

All certificates and endorsements are to be received and approved by the City of Tucson before work commences. Each insurance policy required by this Contract must be in effect at or prior to commencement of work and remain in effect for the duration of the contract and two (2) years after

BUSINESS SERVICES DEPARTMENT Page 22 of 38 completion. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal upon the City’s request, is a material breach of contract.

All certificates required by this Contract shall be sent directly to the Business Services Department.

The City of Tucson project/contract number and project description shall be noted on the certificate of insurance. The City of Tucson reserves the right to require complete copies of all insurance policies required by this Contract at any time.

G.11. SUBCONTRACTORS

Contractors’ certificate(s) shall include all subcontractors as insured under its policies or Contractor shall furnish to the City of Tucson separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to the minimum requirements identified above.

G.12. EXCEPTIONS

In the event the Contractor or sub-contractor(s) is/are a public entity, then the Insurance Requirements shall not apply. Such public entity shall provide a Certificate of Self- Insurance.

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H. Standard Terms and Conditions

H.1. ADVERTISING

Contractor shall not advertise or publish information concerning this Contract without prior written consent of the City’s Director of Business Services.

H.2. AFFIRMATIVE ACTION

Contractor shall abide by the provisions of the Tucson Procurement Code Chapter 28, Article XII.

H.3. AMERICANS WITH DISABILITIES ACT

The Contractor shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101, et seq.) and applicable Federal regulations under the Act.

H.4. APPLICABLE LAW

This Contract shall be governed, and the City and Contractor shall have all remedies afforded to each, by the Tucson Procurement Code and the law of the State of Arizona. State law claims shall be brought only in Pima County Superior Court.

H.5. ARBITRATION

It is understood and agreed that no provision of the Contract relating to arbitration or requiring arbitration shall apply to or be binding upon the City except by the City's express written consent given subsequent to the execution of the Contract. However, if both parties agree, disputes may be resolved through arbitration. The dispute shall be resolved as provided for in A.R.S. Sec. 12-1501, et seq. Consultant shall continue to render the services required by this Contract without interruption, notwithstanding the provisions of this section.

H.6. ASSIGNMENT-DELEGATION

No right or interest in this Contract shall be assigned by the Contractor without prior written permission of the City, and no delegation of any duty of the Contractor shall be made without prior written permission of the City's Director of Business Services. The City shall not unreasonably withhold approval and shall notify the Contractor of the City's position by written notice.

H.7. CHILD/SWEAT-FREE LABOR POLICY

The Contractor shall comply with all applicable provisions of the United States Federal and State Child Labor and Worker's Right laws and agrees if called upon to affirm in writing, that they, and any subcontractor involved in the provision of goods to the City, are in compliance.

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H.8. CLEAN UP

The Contractor shall at all times keep the contract area, including storage areas used by the Contractor, free from accumulation of waste material or rubbish and, prior to completion of the work, remove any rubbish from the premises and all tools, scaffolding, equipment and materials not property of the City.

Upon completion of the repair, the Contractor shall leave the work and premises in clean, neat and workmanlike condition.

H.9. COMMENCEMENT OF WORK

The Contractor is cautioned not to commence any billable work or provide any material or service under this Contract until Contractor receives purchase order or is otherwise directed to do so, in writing, by the City.

H.10. CONFIDENTIALITY OF RECORDS

The Contractor shall establish and maintain procedures and controls that are acceptable to the City for the purpose of assuring that no information contained in its records or obtained from the City or from others in carrying out its functions under the Contract shall be used by or disclosed by it, its agents, officers, or employees, except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the City. Information pertaining to individual persons shall not be divulged other than to employees or officers of Contractor as needed for the performance of duties under the Contract, unless otherwise agreed to in writing by the City.

H.11. CONFLICT OF INTEREST

Subconsultants who design and/or develop specifications for materials for this project will be precluded from contract award for that item if a solicitation is issued for the item.

H.12. CONTRACT MODIFICATIONS

No work outside of the contracted scope of work shall begin without an executed Contract Addendum and a written Notice to Proceed. Contractor shall notify COT immediately when projected hours for individuals under contract are within no less than 20% of exceeding the proposed hours. All direction regarding tasks, deliverables and level of effort shall originate with the designated City Project Manager/Contract Representative or the Business Services Department. No direction shall be taken from, nor shall any work commence with direction from, any other party.

H.13. CONTRACT ADDENDA

The Business Services Department has the sole authority to:

A. Amend the contract or enter into supplemental verbal or written agreements;

B. Grant time extensions or contract renewals;

C. Otherwise modify the scope or terms and provisions of the contract.

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This Contract shall only be modified with the approval of the Business Services Department. Except in the case of a documented emergency, approval must be granted prior to performance. Any contract modification not explicitly approved by the Business Services Department through a written contract addendum or change order is performed at the sole risk of the Contractor and may not be eligible for payment by the City.

H.14. CONTRACT

The Contract shall be based upon the Request for Qualifications issued by the City and the Offer submitted by the Contractor in response to the Request for Qualifications. The offer shall substantially conform to the terms, conditions, specifications and other requirements set forth within the text of the Request for Qualifications.