Phase_VIII_CDCR_RFP_01-13-2016.doc

State of California • Governor Edmund G. Brown Jr.

Government Operations Agency

DEPARTMENT OF GENERAL SERVICES

Real Estate Services Division – Energy & Environmental 707 Third Street ( West Sacramento, CA 95605 ( www.dgs.ca.gov

January 8, 2016, updated January 13, 2016 REQUEST FOR PROPOSAL for SOLAR PV ENERGY

PHASE VIII - CDCR

Notice to the Qualified Pool of Solar Service Providers

Established Under the RFQ for Solar Photovoltaic Energy 2015 All Qualified Pool members are invited to review and respond to this Request for Proposal (RFP) for the installation and operation of solar photovoltaic (PV) energy generation systems under a third party ownership power purchase agreement business model. In submitting your response you must comply with all instructions as provided in this RFP.

Please refer to the template agreements that are attachments to this RFP, as they include the State’s General Terms and Conditions and the Contractor Certification Clauses, GTC 610 and CCC 307, which may also be viewed and downloaded at Internet site www.ols.dgs.ca.gov/standard+language. The template agreements attached to this RFP represent the form of agreements that will be entered into for this project award. The State reserves the right to modify this RFP prior to execution. Such modifications will be published on the Fi$Cal California State Contracts Register (CSCR) as Addenda to this RFP. Interested bidders are strongly encouraged to review these template agreements and submit questions in accordance with the prescribed instructions.

In the opinion of the Department of General Services (DGS) this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, the RFP Administrator for this RFP is:

Gonzalo Caceres, RFP Administrator Department of General Services

707 3rd Street, 4th Floor

West Sacramento, CA 95605-2811

Gonzalo.Caceres@DGS.CA.Gov

(916) 375-4892 All questions and requests for information must be submitted in writing as instructed in this RFP. Please note that no verbal information will be binding upon the State unless such information is subsequently issued in writing as an official addendum.

All response submittals to this RFP must be received by the RFP Administrator by 5:00 p.m. Pacific Standard Time (PT) by Friday, February 5, 2016 at the address listed above.

TABLE OF CONTENTS

PAGE

1.0

OVERVIEW

1.1 Purpose

1.2 Summary

1.3 Definitions

1.4 Schedule of Events

1.5 Issuing Authority and Rationale ..6

1.6 Time Period Covered by Agreements

1.7 Eligible Bidders/Teams

1.8 Roles and Responsibilities

1.9 Required Documentation

1.10 Other Considerations 2.0

PRODUCTS AND SERVICES REQUESTED

2.1 Required & Permissible Products and Services

2.2 State Solar PV System Installation Requirements

2.3 Solar PV System Specifications

2.4 Guaranteed Electricity Production

2.5 Form of Price Bid………………………… 3.0

EVALUATION PROCESS / PROPOSAL SELECTION

3.1 Price Review Criteria

3.2 No Confidential or Proprietary Bidder Information

3.3 Award 4.0

STATE PROCUREMENT REQUIREMENTS

4.1 General Rules

4.2 Solar Power Purchase Agreement Template 4.3 Site License Agreement Template 4.4 Insurance 4.5 Contractor’s License Information

4.6 Prevailing Wages 4.7 Performance and Payment Bonds 4.8 Worker’s Compensation Certification 4.9 Small Business Preference .21

4.10 Disabled Veterans Business Enterprise (DVBE) ……………..…….……21 5.0

BIDDER PROPOSAL REQUIREMENTS

5.1 Mandatory Format of RFP Response

ATTACHMENTS

PAGE

1. RFP Site List………………………………………………………………..

Required Proposal Response Forms To Request Site Visit:

2. Contact Information Letter………………………….………………...…….…… With Bid Proposal:

3. Veracity Statement..…………………………….…………………..………

4. Darfur Contracting Act………………………………………….……..……

5. General Installation Requirements……………………………………………

6. Technical & Installation Specifications……………………….………………

7. Proposal Form 1 – Technology Description ……………………...…..…

8. Proposal Form 2 –Price Bid Form & Exhibits 8-1, 8-2, 8-3……………...….

9. Proposal Form 3 – Contractor Documentation…………………….….… Attachments 10 and 11 included for informational purposes only

10. Solar Power Purchase Agreement Template………..………......……

11. Site License Agreement Template……………………………......……

12. General Terms and Conditions……………………………......……

13. Aerial Photo of Host’s Project Site……………………………......……

14. Billing Information……………………………......……

1.0 OVERVIEW

1.1 PURPOSE

The purpose of this Request for Proposals (“RFP”) is to solicit bid responses from the Qualified Pool of solar PV energy service providers (“Qualified Pool”) that will result in project awards for the installation of a commercially available solar photovoltaic energy generating system (“solar PV system”) at the California Department of Corrections and Rehabilitation (CDCR) sites listed on ATTACHMENT 1 of this RFP. The solar PV system is to be installed, operated and maintained utilizing a third party ownership power purchase agreement business model. The project awards will include a non-exclusive license to use a portion of the State owned property to install the solar PV systems (“Licensed Area”). The electricity generation output (“solar PV energy”) will be sold to CDCR under a power purchase agreement.

1.2

SUMMARY

Interested bidders must propose to finance, design, engineer, construct, install, operate, maintain, and ultimately remove a third party owned solar PV system at any or all of the sites listed on ATTACHMENT 1 of this RFP with the awarded bidder(s) to sign a long-term Solar Power Purchase Agreement (“SPPA”) and Site License Agreement (“SLA”) with the State for each site. Bidders are reminded that they will be responsible for all costs related to and necessary for the implementation of the solar PV system, including all costs imposed by the utility for distribution and transmission system upgrades that the utility installs to interconnect the system. Bidders should reference Exhibit “N” of the SLA (ATTACHMENT 11 of this RFP) for identification of State project administration related costs (“Transaction Fees”).

Bidders are advised that the listed sites are existing facilities located on state-owned property at the address(es) shown on ATTACHMENT 1. The proposed solar PV project is a free-standing system. The estimated solar PV project size varies by site and is determined in Megawatts Alternating Currency (MW AC) or kilowatt hours (kWhr) first year output.

Energy consumption information provided is based on historical utility billing information, refer to ATTACHMENT 14 (this information will be provided as an Addendum).

Qualified bidders will be requested to submit a fixed price rate over the life of the Agreements with no annual price escalators. See ATTACHMENT 8 – PRICE BID FORM for more information.

Projects will be awarded based on greatest Net Present Value (“NPV”) of savings as established by Exhibit 8-3 submitted for the solar PV energy sold to the State host facility. Interested bidders should refer to Section 2.0 and Attachment 1 of this RFP for the scope of required services being requested under this RFP.

1.3 DEFINITIONS

1 “Contractor” or “CONTRACTOR” means the solar power energy provider identified in this RFP.

2 “Host” or “HOST” means the State agency operating a facility at the location identified in this RFP.

3 “LICENSEE” means the entity which holds the license to use the Licensed Area for the Permitted Use pursuant to the SLA.

4 "Meter" means a device capable of collecting electricity consumption data that includes kWh AC and fifteen (15) minute or less kW AC and KVAR demands as recorded and may be transmitted or collected via telephone lines or wireless telephone.

5 "Net Energy Metering, or NEM" means a Utility tariff or rule under which customers with qualifying renewable energy projects may “bank”(carry forward a credit) the value of renewable energy produced in periods when such production exceeds the customer’s usage during that period and allows the customer to benefit from such “banked” value during periods when the renewable energy production is less than the customer’s usage.

6 "Notice to Proceed" means written notification from the DGS to LICENSEE that LICENSEE may begin construction of the System.

7 "Price" means the Price, expressed to the nearest hundredths of a cent ($.0000), to be paid by HOST to CONTRACTOR in each Contract Year for the Electricity generated by the System and delivered to HOST as provided in Section 2.2 of the SPPA.

1.4

SCHEDULE OF EVENTS

Listed below are important event dates and times associated with this RFP. The State reserves the right to change this schedule and/or events and actions at any time during the RFP period by releasing Addenda.

Site visits will only be offered upon written request from bidder(s). If requesting a site visit, please submit Attachment 2 – Contact Information to the RFP administrator by 5:00 p.m. Pacific Time on January 13, 2016 if a site visit is requested, an addendum will be issued via CSCR with site visit information and a revised schedule of events.

Interested bidders should email questions to the RFP Administrator by the date and time as listed above. Responses to questions will be posted as addenda in CSCR.

1.5 ISSUING AUTHORITY AND RATIONALE

This RFP is being issued under the relevant statutory authority granted to the Director of the Department of General Services in Public Utilities Code Section 388.

The DGS, in conjunction with the participating State agencies, designed this program to install solar PVs at State facilities where feasible utilizing the third party ownership power purchase agreement business model to achieve executive and legislative policy goals and objectives related to energy and the environment at no cost to the State. The current cost of procuring and operating solar PV systems makes it difficult if not impossible for State agencies to justify the purchase of solar PV systems when compared to the cost of electricity purchased under the otherwise applicable utility tariffs from the serving utilities.

Also, applicable federal tax credits and accelerated depreciation allowances as established by the federal government are un-accessible by State agencies. These are understood to be significant incentives which help to reduce the net cost of procuring and installing clean and/or renewable energy generating systems.

The rationale for pursuing this business model is to allow qualified private sector companies, such as those responding to this RFP, to pass on these incentives to the Host through comparable solar PV energy costs on a cents per kilowatt hour (kWh) basis, kilowatt representing 1,000 watts capacity measured in alternating current. An additional advantage to the State is that the operations and maintenance of the solar PV is the responsibility of the third party at their expense with no impact to the State host facility’s maintenance and operations budget.

1.6 TIME PERIOD COVERED BY AGREEMENTS

The term of the solar PV agreements for the installation of the proposed solar PV project and sale of solar PV energy shall be 20 years from the establishment of the Commercial Operation Date (COD), the date that LICENSEE notifies the DGS the System is operational.

1.7 ELIGIBLE BIDDERS/TEAMS

As this RFP is being released to the qualified pool, all pool members are reminded to update and submit the Veracity Statement (ATTACHMENT 3). The bidder or bidding team that was qualified through the RFQ for Solar Photovoltaic Energy 2015 and was selected to be a member of the Qualified Pool will be delivering the solar PV system for the awarded project under this RFP. Any changes to the bidder or bidding team responding to this RFP made since the Qualified Pool was established will be subject to the review of the State. The State reserves the right to reject the substitute or added team member and the proposal in its entirety, which may lead to a disqualification and removal from the Qualified Pool. Each responding bidder to this RFP must declare in the Veracity Statement (see ATTACHMENT 3) whether they have or have not changed, added, or subtracted from their team as it was originally selected as a member of the Qualified Pool. If changes were made, these changes must be noted in the Veracity Statement, which may then be subject to request for additional information for review.

1.8 ROLES AND RESPONSIBILITIES

State Agency/Host Site/Department

· Nominate and approve candidate sites.

· Provide information and relevant data as requested.

· Facilitate Host site visits, if any.

· Review site-specific proposals, including technical description, installation plans, system operations and solar PV power prices.

· Make final acceptance decision on proposed projects and price offers.

· Execute solar PV agreements.

· Make best efforts to facilitate and support the installation of the solar PV in accordance with the solar PV agreements.

· Pay for the solar PV energy pursuant to the terms of the power purchase agreement.

· Manage partnership with third party pursuant to the solar PV agreements.

Department of General Services

· Prepare the RFP and solar PV agreements.

· Manage the RFP solicitation process and proposal review panels.

· Work with State agencies and/or Departments to obtain Department of Finance transaction approvals for each State site as necessary.

· Manage the processing and execution of the solar PV agreements for each project.

· Recover costs of DGS program support services through Transaction Costs.

· Manage tasks for each project’s due diligence, environmental, and design review, and construction inspection and acceptance.

· By arrangement with host site, and pursuant to the solar PV agreements, review billings where there are disputes, special requests, and/or to monitor program performance.

· Provide program support and assistance as necessary and requested.

3rd Party Solar PV Service Providers

· Determine technical and economic feasibility of proposed projects and submit price offers pursuant to the RFP.

· Execute the solar PV agreements after project award.

· Finance the system installation.

· Pay transaction costs pursuant to the energy agreements.

· Pay all costs imposed by the utility for distribution and transmission system upgrades that the utility installs to interconnect the system.

· Design the installation for site-specific conditions and provide complete information and documentation to facilitate reviews and construction inspections.

· Apply for and secure any and all environmental permits as necessary and/or required.

· Construct and install system equipment in compliance with approved plans, specifications and applicable California Building Codes and regulations, including the California Environmental Quality Act as applicable, as well as any and all State host facility requirements.

· Apply for and obtain incentives and interconnection pursuant to utility or incentive program requirements, including NEM interconnection agreements.

· Install system metering and interconnection to utility grid pursuant to requirements.

· Own, maintain and operate the system for the term of the solar PV agreements.

· Bill host site for solar PV energy produced.

· Be familiar with, and knowledgeable of, all requirements of the solar PV agreements, and adhere to these requirements.

In all cases each participating State agency or Department retains the final decision whether to enter into an agreement for the installation of a solar PV system and purchase of solar PV energy for each listed State host facility.

1.9 REQUIRED DOCUMENTATION

The following documents will be required of the winning bidder for the eventual transactions in this program:

· Site License Agreement (SLA) between HOST, DGS, and 3rd Party (see ATTACHMENT 11).

· Solar Power Purchase Agreement (SPPA) between HOST and 3rd Party (see ATTACHMENT 10).

· Design and installation documentation (see SLA Exhibit F - Project Design & Installation Process).

· Proof of contractor’s liability and workman’s compensation insurance (see Section 4.4 Insurance). Insurers shall have a current A.M. Best’s ratings of no less than A:X.

· Performance bond (see SLA Section 7.6) for each solar PV system for State host facility staff.

Winning bidder will be responsible for obtaining several utility documents that need to be processed in order to install the solar PV system. These include the following:

· Incentive application for solar PV incentives, if any.

· NEM Interconnection agreements.

· Any documents related to Proof of Project Advancement.

· Incentive agreement and award, if any.

The State host facility and/or Department will receive from the winning bidder copies of the final executed documents for each document listed above as well as hard copy and electronic As Built plans for each installed solar PV system.

The State will not accept alternative language for the SLA or SPPA from a prospective bidder. A proposal with such language will be considered a counter proposal and may be rejected on that basis alone at the sole discretion of the State. The State’s General Terms and Conditions are not negotiable.

After the awards have been made, the State will designate or identify a single DGS contact person to coordinate subsequent discussion with the final successful bidder(s), coordinate site access, facilitate detailed design and installation determinations, and execute the solar PV agreements. The DGS will originate and coordinate the execution of the solar PV agreements, and any other tasks and activities as requested or designated by each State host facility and/or Department.

1.10 OTHER CONSIDERATIONS

California Solar Initiative (CSI) Incentive Program or Other Incentive

Applicability and Limitations

The program assumes that all participating State host facilities and/or Departments will take maximum permissible advantage of California solar PV incentives for the installation of solar PV systems, as offered by each utility service entity or any other granting authority. All bidders should seek to take maximum advantage of any other applicable incentives, such as state and federal tax credits and any allowable accelerated depreciation. To the extent that the utility customer of record must apply for any California incentives, this RFP assumes that the State host facilities or Departments will assign these to the final successful bidder as per the solar PV agreements.

Bidders should anticipate that reservation requests or applications for utility incentives related to solar PVs (i.e. the California Solar Initiative Incentive Program) have not been submitted nor secured for the State host facilities listed in ATTACHMENT 1. The State will not be responsible for the payment of any incentive deposits or fees. It is recommended that bidders account for the required solar PV incentive reservation deposit as a part of the project cost.

In the event that the rules and regulations associated with the California Solar Initiative (CSI) Incentive Program or other relevant incentive program change, as mandated by the California Public Utility Commission (CPUC) and as it relates specifically to any energy efficiency requirements, and if the State host facility is deemed to not be in compliance with any new requirements as such, the State host facility will evaluate the feasibility and timing of complying with these new requirements, and at their sole discretion will decide to either implement the necessary energy efficiency requirements, or terminate the Solar PV agreements.

Taxes on Solar PV Power Sales

Bidders are advised that they are responsible for any and all tax obligations associated with the sale of solar PV power to the State host facilities including any city energy/utility users tax on solar PV energy purchased from 3rd Party on-site solar PV service providers. The State typically does not pay these fees, and no such fee will be collected for solar PV power generated and sold by the 3rd Party.

Transaction Cost Payments

The State host facilities and Departments that are participating in this RFP and subsequent solar PV projects will incur costs to administer these projects. These costs will be recovered by inclusion in the bidder’s project costs and paid by invoice submitted by the State agency and/or Department or DGS to the Contractor. Each bidder should include in its cost analysis and price bid an allowance for the costs listed in Table 1 to be paid by the final successful bidder over the course of the design and installation of each project.

Construction Inspection costs include travel time. The weekly cost is based on an estimate of having a construction inspector on site 8 hours per day for the entire working week (5 days). The actual construction inspection cost will be calculated prior to issuing the Notice to Proceed to Construction and submitted as a line item on the invoice request for payment.

Transaction Costs will be identified and calculated on a per project basis. Should the project be abandoned by the Contractor during the construction and installation of the solar PV system, Transaction Costs paid to the State are refundable only to the extent they have not been incurred.

Bidders will also be responsible for all costs associated with the electrical interconnection as required by the serving utility, including any costs associated with required studies and interconnection fees, including all NEM equipment required to interconnect and operate in parallel to the utility grid, including metering and the required interconnection protective relays and event recording devices in accordance with the applicable utilities NEM Interconnection Guidelines. Please see CPUC Resolution E-4753 (PG&E), Resolution E-4725 (SCE), as well as SCE Advice Letter 3093-E-A and Advice Letter 3221-E, and PG&E Advice Letter 4617-E and Advice Letter 4724-E..

CPUC Resolution E-4753 for PG&E Advice Letter 4724-E: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M156/K212/156212128.PDF CPUC Resolution E-4725 for SCE Advice Letter 3221-E: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M153/K449/153449668.PDF Table 1 - Project Transaction Costs to be Reimbursed to DGS Fixed Cost per PV System Type

Weekly Costs per PV System Type

2.0 PRODUCTS AND SERVICES REQUESTED

2.1

REQUIRED & PERMISSIBLE PRODUCTS AND SERVICES

Project Description System Design – Ground Mount and Parking Canopy PV system Project Finance, Design and Installation

The products and services required by this RFP are for the finance, design and installation of a solar PV system at the CDCR sites listed on ATTACHMENT 1 of this RFP, and the sale of the power generated by the solar PV systems to the State host facility under a power purchase agreement. The final successful bidder(s) is expected to own, operate and maintain the solar PV system for the term of the agreements. Bidders must clearly identify in their bid response the member of the bidding team who will retain ownership. Bidders should review SLA Section 5 regarding the State’s requirements as it pertains to the financing of the solar PV system.

All solar PV systems will be designed and installed in accordance with all applicable California Building Codes, State host facility or Department requirements, and any other applicable rules or regulations. The interconnection facility will be designed to meet the current NEM interconnection requirements of the serving utility, see CPUC Resolutions, Resolution E-4753 (PG&E), Resolution E-4725 (SCE), as well as SCE Advice Letter 3093-E-A and Advice Letter 3221-E, and PG&E Advice Letter 4617-E and Advice Letter 4724-E. All solar PV systems will be installed under a Net Energy Metering and Renewable Electrical Generating Facility Interconnection Agreement, or equivalent. It is intended that all of the solar PV energy will be entirely consumed by the State host facility on an annual basis. The solar PV system, by definition, includes the interconnection facility, for which the solar PV system owner retains ownership as well as full and complete responsibility. It is the Contractor’s obligation to ensure that the solar PV system commences operation in time to qualify for NEM tariff and agreement.

Because the interconnection of the solar PV system must be installed under the applicable utility’s current net energy metering tariff and agreement, the successful bidder must also comply with Section 3.3 of the SPPA (ATTACHMENT 10 of this RFP). Bidders should also be advised that the solar PV agreements require that the Contractor is at all times, during the term of the agreements, responsible for the entire solar PV system, which includes the interconnection facility.

Please review the approved CPUC Advice filings posted on the SCE and PG&E utility’s websites. Advice Filing Subject: Supplemental Filing to Modify Advice 3093-E, Tariff Modifications Necessary to Implement the Net Energy Metering Provisions of Senate Bill 862 for the California Department of Corrections and Rehabilitation.

Tier 2 Information pertaining to Rule 21 The Link for SCE Advice Letter 3093-E-A https://www.sce.com/NR/sc3/tm2/pdf/3093-E-A.pdf The link for PG&E Advice Letter 4617-E http://www.pge.com/nots/rates/tariffs/tm2/pdf/ELEC_4617-E.pdf Tier 3 Information pertaining to Interconnection Agreements

The Link for SCE Advice Letter 3221-E https://www.sce.com/NR/sc3/tm2/pdf/3221-E.pdf The link for PG&E Advice Letter 4724-E http://www.pge.com/nots/rates/tariffs/tm2/pdf/ELEC_4724-E.pdf Exhibit F - Project Design and Installation Process and Milestone Schedule, of the SLA, explains the State’s process for the design, review, installation and acceptance of the equipment being installed and modifications to the State host facilities.

Bidders should assume that no pre-feasibility study has been conducted to evaluate the location and conditions of the State host facilities offered in this solicitation. Interested bidders will be responsible for evaluating relevant site conditions based on information made available via the CDCR administered dropbox site which contains site specific information for each Host facility project to ascertain solar PV system installation conditions prior to submitting price offers. The State includes the listed State host facilities in an “as is” state of condition, and bidders should not anticipate that the State host facilities will make any accommodations or efforts to assist in establishing feasibility of installation of the solar PV system. Interested bidders are advised that any and all costs associated with the design, installation and construction, operation, and maintenance of the solar PV system are the responsibility of the Contractor.

To request access to the CDCR administered dropbox, please contact the RFP administrator.

Alternating Current Power Delivery Only

All proposals must be for solar PV power delivered on an alternating current (AC) power basis and interconnected into the State host facility. The power delivered to the State host facility will meet established standard requirements for power delivery and consumption in terms of voltage levels, voltage frequency, amperage, and power quality. The required voltage service level for delivering electricity to each State host facility will be made available on a CDCR administered dropbox site.

No Provision For A “Solar PV/Energy Efficiency Bundle”

No bundling of energy efficiency measures will be permitted in this procurement. Bidders should assume that each State host facility has either conducted an energy audit in the past three years, will be conducting an energy audit, has recently installed energy efficiency measures, or will be installing energy efficiency measures, in line with any requirements associated with any applicable California incentive program (for the utility service territories affected by these requirements).

No Discouragement of Separate Efficiency or Distributed Generation Actions

Recognizing the value of energy efficiency, no terms of a solar PV system installation shall discourage or prohibit a State host facility from separately undertaking additional energy efficiency or other distributed generation actions. As noted in the SLA, the State maintains the right to engage in the implementation of energy efficiency measures at each State host facility, as well as any other activity necessary to maintain the facility through additions, modifications, or renovations of the facility, as long as these activities do not interfere with the operations of the solar PV system.

2.2 STATE SOLAR PV SYSTEM INSTALLATION REQUIREMENTS

Bidders are advised to review ATTACHMENT 5, General Installation Requirements for participating State facilities, for additional information regarding solar PV installation specifications that will be required at each State host facility. Each State host facility may further communicate any additional special installation specifications and requirements which will be documented as addenda in CSCR, and included in specifications for the SPPA and/or SLA.

2.3 SOLAR PV SYSTEM SPECIFICATIONS

Bidders are advised to review ATTACHMENT 6, Technical & Installation Specifications, for additional information regarding solar PV technical and installation specifications that may be required at each State host facility. Each State host facility will further communicate any additional special installation specifications and requirements which will be documented as addenda in CSCR and included in specifications for the SPPA and/or SLA. Responses to this RFP must include all processes and equipment needed to produce solar PV generated electric power suitable for use by the electrical system of the State host facility. Solar PV system specifications shall be in compliance with any and all requirements for the installation of solar PV systems as established by the California Solar Initiative Incentive Program, the California Public Utilities Commission (CPUC), the California Energy Commission (CEC), or any other authority having relevant jurisdiction. The design of integrating the solar PV system with other existing on site power sources (e.g. emergency back up generation) or building systems will be the responsibility of the Contractor. Final project installation proposals must include all costs to achieve commercial operation.

2.4 GUARANTEED ELECTRICITY PRODUCTION

The State has an expectation with regards to the amount of solar PV energy that will be delivered by each solar PV system based on awarded projects and as per the executed solar PV agreements. Each bidder must state a quantity of power (expressed in kWh) they expect to deliver during commercial operations. Moreover, each bidder must be prepared to guarantee a minimum output performance from the solar PV system for each fiscal year during the term of the solar PV agreements, at a minimum level equal to 80% of the stated expected performance output (see ATTACHMENT 7 - Proposal Form 1 – Technology Description and ATTACHMENT 8 - Proposal Form 2 – Bid Price Form). Bidders should review SPPA Section 6 for more information regarding the Guaranteed Electricity Production (GEP).

2.5 FORM OF PRICE BID

This RFP seeks price offers on a cents per kWh basis, for the generation and delivery of solar PV energy to the metered point of electrical interconnection, for a contractual term of 20 years from the establishment of the Commercial Operation Date. The price will include any/all Renewable Energy Credits (RECs) generated by the final system installation. Bidders are to submit firm and specific price bids in accordance with this section and Proposal Form 2 – Price Bid Form and Exhibit 8-1, Exhibit 8-2 and Exhibit 8-3.

Refer to ATTACHMENT 8, Proposal Form 2 – Price Bid Form. The required form of the price bid for the solar PV energy delivered and sold as per the SPPA to State host facilities listed in this RFP is a fixed price rate with no annual escalation factor (cents per unit of energy) for each unit of energy delivered to and metered at the point of interconnection, including the value of any environmental attributes, for the duration of the Agreements. This will be the fixed price rate.

Price offer submittals are due on February 5, 2016 pursuant to the RFP Schedule of Events. Bidders will submit Proposal Form 1 – Technology Description, Proposal Form 2 – Price Bid Form, and Proposal Form 3 – Contractor Documentation in order to be deemed a complete price offer submittal.

Effective Period of Price Bids:

Bid prices must remain in effect for at least 90 days from the required date of proposal submission. Bid prices must also remain in effect for 120 days after bid award to the final successful bidder to complete the solar PV agreements.

3.0

EVALUATION PROCESS/ PROPOSAL SELECTION

3.1

PRICE REVIEW CRITERIA

Prices will be reviewed to ensure that they meet the price bid form as established in Section 2.5 of this RFP. The RFP project award will be based on the greatest NPV of savings described below.

The savings offered will be calculated by multiplying the fixed unit price by the annual expected electricity production from the solar PV system and comparing it against the benchmark price ($0.08/kWhr) identified in Exhibit 8-3. This calculation will be repeated for each year of the term, taking into account the annual expected rate of degradation of the solar PV system. These annual calculations for each year together will determine the total contract savings, see Exhibit 8-3.

The total contract savings for the term of the contract will be adjusted for Net Present Value. The Contractor with the greatest NPV of savings will be awarded for each project site. In the event of an exact tie, an award will be determined by coin toss.

Bidders must provide information that validates the annual expected solar PV power output submitted with their bid response (ATTACHMENT 7 - Proposal Form 1 – Technology Description and ATTACHMENT 8 – Proposal Form 2 – Price Bid Form).

Bidders are advised that the State reserves the right to accept or reject any and all price bids submitted under this RFP. The acceptance or rejection of a project award will be made by each Department or State agency.

3.2

NO CONFIDENTIAL OR PROPRIETARY BIDDER INFORMATION

After the Notice of Intent to Award is published, all RFP responses become public records and shall be released or withheld in accordance with the California Public Records Act (Government Code Section 6250 et seq.) in the State’s sole discretion. Bidders are cautioned not to mark any portion of their proposal as confidential or proprietary.

3.3

AWARD

Notice of Award

The Notice of Intent to Award shall be posted in a public place in the office of DGS Procurement Division for five (5) business days prior to awarding the project and signing agreements. Additionally, the Notice of Award will be posted on CSCR.

If no protest is received in writing or email within these five (5) business days, the protest period ends and the project award becomes official.

4.0

STATE PROCUREMENT REQUIREMENTS

4.1 GENERAL RULES

Submission of RFP Response

All RFP responses must be submitted in a sealed package and delivered to the RFP Administrator by the date and time as established in Section 1.4 Schedule of Events. RFP responses not submitted in a sealed package will be rejected. Four (4) copies (original plus three copies) and one electronic copy on CD or DVD must be submitted.

The sealed package must be plainly marked with the RFP number and title, must show the firm name and address, and must be marked with “DO NOT OPEN”, as shown in the following example:

RFB for Solar PV Energy – CDCR Portfolio Attention: Gonzalo Caceres, RFP Administrator

Department of General Services

707 Third Street, 4th Floor, MS 4134 West Sacramento, CA 95605-2811

DO NOT OPEN

RFP responses will only be accepted from qualified pool members.

General RFP Administrative Requirements

a) Any questions, interpretations or clarifications, either administrative or technical, about this RFP must be submitted in writing no later than the date indicated in the Schedule of Events. All written questions should be submitted via email to the RFP Administrator, which shall be collected and published on CSCR as Addenda to the RFP. In no event can a bidder rely on oral representations.

b) All RFP responses shall include the documents identified in Section 5 of this RFP. Responses not including the required documents may be deemed non-responsive.

c) An RFP response may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The State may reject any or all RFP responses.

d) In the event all RFP responses are rejected or the State determines alternative solutions are in its best interest, the State may cancel this RFP and pursue alternative sourcing options. The State is not required to issue an award under this RFP.

e) Costs incurred for developing RFP responses and in anticipation of award are entirely the responsibility of the bidder and shall not be charged to the State of California.

f) A bidder may modify an RFP response after its submission by withdrawing its original RFP response and resubmitting a new RFP response prior to the RFP response submission deadline. Bidder modifications offered in any other manner, oral or written, will not be considered.

g) A bidder may withdraw its RFP response by submitting a written withdrawal request to the State, signed by the bidder or an authorized agent. A bidder may thereafter submit a new RFP response prior to the RFP response submission deadline. RFP responses may not be withdrawn without cause subsequent to RFP response submission deadline.

h) The State may modify the RFP prior to the date fixed for submission of RFP Responses by the issuance of a written addendum to all registered bidders. Addenda will be dated and posted to CSCR.

i) The State may make such investigations as deemed necessary to determine the ability of the responding firm to perform the work as indicated in this RFP, and the responding firm shall furnish all such information and data for this purpose. The State reserves the right to reject any RFP Response made pursuant to this RFP if the evidence submitted by, or investigation of, such responding firm fails to satisfy the State that such responding firm is properly qualified to carry out the obligations of the solar agreements and to implement the work specified.

j) The State does not accept alternate contract language from a prospective contractor. A RFP Response with such language will be considered a counter proposal and will be rejected. The terms of the SLA, SPPA, and the State’s General Terms and Conditions (GTC) are not negotiable.

k) If selected for award of this project, the awarded bidder shall not issue without prior written consent from HOST and DGS, any news releases or other statements pertaining to the award.

One Proposal per Project per Bidder A bidder may submit only one response for any/all project(s) as described in this RFP.

Duration of Proposals The prices and capacities indicated in responses to this RFP shall be deemed to continue in effect as per Section 2.5 of this RFP, unless the State agrees in writing to a change.

Delivery of Proposals Each bidder is solely responsible for assuring the timely submittal of its bid response. Late bid responses will not be accepted.

Authorized Signature An individual who is authorized to bind the proposing firm contractually shall sign all documents including the CCC-307 – Contractor Certification Clauses (ATTACHMENT 11 – SLA, Exhibit M). The signature must indicate the title or position that the individual holds in the firm. An unsigned proposal may be rejected.

Bidder Due Diligence

Before submitting a response to this solicitation, bidders should thoroughly review and identify any and all errors or omissions for clarification and confirm compliance requirements with the RFP. Bidders should submit relevant inquiries to the RFP, RFP requirements, and solar PV agreements in a timely manner in accordance with this RFP and the RFP schedule.

4.2

SOLAR POWER PURCHASE AGREEMENT TEMPLATE

A Solar Power Purchase Agreement (“SPPA”) template is presented in ATTACHMENT 10. The terms of the SPPA include a definition of the scope of work, pricing mechanism, billing requirements, general terms and conditions, and special terms and conditions, including termination rights, events of default, default remedies, and assignment of solar PV agreements. Bidders shall clearly identify the person or persons or business entity that will sign and be responsible for complying with the terms and conditions of the SPPA.

4.3

SITE LICENSE AGREEMENT TEMPLATE

A Site License Agreement (“SLA”) template is presented in ATTACHMENT 11. The terms of the SLA include the term of the agreements, requirements for the use of the State host facility, construction and installation requirements, operations and maintenance provisions, insurance requirements, and end of term provisions, including option to buy out. The attached exhibits to the SLA further describe the solar PV systems to be installed, and facility access procedures. Bidders should note in particular Exhibit N -Transaction Costs and Exhibit F - Design and Installation Process and Milestone Schedule. Bidders shall clearly identify the person or persons or business entity that will sign and be responsible for complying with the terms and conditions of the SLA.

4.4 INSURANCE

Bidder shall submit information clearly demonstrating the ability to obtain insurance requirements as outlined below. This information shall be in the form of a letter from the bidder’s insurance coverage provider or broker.

Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII.

Verification of Coverage Upon contract award, Contractor shall furnish the State with original certificates from Contractor’s insurance provider ensuring the Contractor is insured, current on payment of insurance, and meets minimum requirements as stated below:

· General Liability (including operations, products, and completed operations): $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

· Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

· Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

· Property Insurance: Fire and Extended Coverage in an amount sufficient to reimburse LICENSEE for the cost of replacing and reinstalling all of its equipment, fixtures, and personal property located on or in the Licensed Area.

Subcontractors The State reserves the right to evaluate and approve subcontractors. LICENSEE shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the State of California and DEPARTMENT for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.

4.5 CONTRACTOR’S LICENSE INFORMATION

Bidders will be required to comply with the Special Conditions requirements (Contracting License and Worker’s Compensation). See Proposal Form 3 - Contractor Documentation (ATTACHMENT 9).

The Contractor shall be an individual or firm licensed to do business in California and shall obtain at his/her expense all license(s) and certification(s) required by law for accomplishing any work required in connection with the solar PV agreements.

The following license(s) is required for this solicitation:

· At a minimum, the installation contractor must have a C-10 Electrical Contractor or C-46 Solar Contractor license.

· Any licensing or certification requirements as developed and required by the California Energy Commission (CEC) for the receipt of California Solar Initiative solar incentives. These may include, but not necessarily limited to, an active A (General Engineering Contractor, where applicable to unique projects), B (General Contractor), C-10 Electrical Contractor license, or a C-46 Solar Contractor license for photovoltaic systems. For ground-mounted solar installations, a Class B license is required.

· Any company that sub-contracts installation work to a C-10 or C-46 contractor must have a “B” license.

In addition to these contractor license requirements, the Contractor will be required to submit all solar PV system plans, engineering calculations, soils testing/geotechnical analysis reports, and drawings with the stamp of the engineer of record, in order to receive approval from the State and be issued a Notice to Proceed to construction. The engineer of record must be a professionally licensed engineer with an active license to practice engineering in the State of California, and must be in good standing.

4.6 PREVAILING WAGES

The Contractor, and any subcontractor thereof, shall pay the rate of wages for regular, overtime and holiday work plus employer payments for all benefits generally prevailing in the locality in which the work is to be performed, in accordance with California prevailing wage law, as per the solar PV agreements. This requirement shall include all crafts, classifications or types of workmen used on the ordering agency premises at the point of delivery by the Contractor, or subcontractor, for the assembly and installation of the materials purchased and/or services provided under this agreement including operations and maintenance for the duration of the contract. Contractor shall comply with the Laws and Regulations governing the payment of prevailing wage as identified in the Labor Code and applicable law.

Bidders are advised that the determination and establishment of prevailing wage requirements for each project are the responsibility of the final successful bidder(s).

Payee Data Record (STD 204)

Upon execution of the agreement, Contractor must complete and submit to the awarding agency the Payee Data Record (STD 204), to determine if the Contractor is subject to state income tax withholding pursuant to California Revenue and Taxation Code Sections 18662 and 26131. This form can be found on the Internet at http://www.documents.dgs.ca.gov/osp/pdf/std204.pdf. No payment shall be made unless a completed STD 204 has been returned to the awarding State agency or Department.

4.7 PERFORMANCE AND PAYMENT BONDS

Before starting construction and installation, the Contractor must provide a Performance and Payment Bond in an amount sufficient to complete construction or remove the PV system, at the state’s option. The actual amount will be determined after the design plans have been approved and prior to the issuance of the Notice to Proceed to Construction.

4.8 WORKER’S COMPENSATION CERTIFICATION

By signing and submitting a proposal, the bidder certifies that they are aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workman’s compensation or to undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the work of the solar PV agreements, and submit evidence to meet this requirement. Any and all relevant documents and/or certifications that demonstrate compliance with this requirement shall be submitted upon request.

4.9 SMALL BUSINESS PREFERENCE

Bidders may apply for the Small Business preference. Please refer to the following link for more information: http://www.pd.dgs.ca.gov/smbus/default.htm 4.10

DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

The DVBE requirements are waived for this RFP.

5.0

BIDDER PROPOSAL REQUIREMENTS

5.1 MANDATORY FORMAT OF RFP RESPONSE

Preparation

The RFP response shall be prepared in accordance with this section. Bidders should submit only the documents as required by this section. Bidders should utilize the required documents as attached to this RFP in the ATTACHMENTS, or as downloaded from the provided links.

RFP Response Format

All submittals are required to follow the mandatory format presented below. RFP responses shall be presented in 8.5 in. by 11 in. format, unstapled and unbound. Do not include any colored displays or promotional materials in the RFP Response. RFP responses shall comply with the requirements of Section 4 of this RFP.

RFP Response Elements

To Be Submitted with your Bid Proposal:

The following documents must be submitted to the RFP Administrator by 5:00 pm PT, Friday, February, 5, 2016.

Cover Letter

All bidders are required to submit a signed cover letter to be attached to the front of their RFP response document. The signature on the cover letter shall be from the lead bidder or a duly authorized party representing the bidder and the bidder’s proposal. The cover letter shall include the following information:

· Name of the RFP for which the response is submitted

· Name, address and phone number of bidder

· Name, phone number and email address of contact person

· Date submitted

Do not include price offer information in the cover letter. The cover letter should identify the documents that are attached as part of the RFP response.

The cover letter shall include the following statement:

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