REFERENCE DOE IDIQ Section H4 H5 H6.pdf

REFERENCE ONLY: DOE Energy Savings Performance Contract DE-EE00080XX / 000 04/25/2017

H.4 Preliminary Assessment Content Requirements for Task Orders

H.4.1 Preliminary Assessment (PA) – The Contractor shall submit a PA to the ordering agency, which sets out the merits, technical feasibility, range of projected energy savings, economics, and conceptual price rang e of the project. The Contractor shall ensure a qualified / DOE approved PF has been assigned to the project prior to starting efforts to develop the PA, per Section C.1, Paragraph D. Renewable energy technologies shall be considered along with other ECMs. The ordering agency CO will respond to the Contractor, in writing, indicating whether or not the project will be pursued. If pursued, the ordering agency CO will issue a NOITA followed by a TO RFP, which identifies the ordering agency’s requirements. The ordering agency will not be responsible for any costs associated with PA audits or preparation of the PA unless the project addressed by the PA later becomes a TO award.

H.4.2 Contents – Unless otherwise specified by the ordering agency CO in accordance with Section H.3.12, Paragraph C, the Contractor’s PA shall include the following information and requirements:

A. The Contractor shall include technical and price assessments for developing recommended and potential ECMs. The PA shall include ECMs, divided into two groups: Recommended and Potential.

1. Recommended ECMs are those ECMs the Contractor is confident will be included in the proposal.

The PA shall include a range of expected implementation costs, cost savings, and energy savings based upon the Contractor’s experience with the Recommended ECMs at similar installations.

2. Potential ECMs are those ECMs the Contractor considers worthy of evaluation, but which require evaluation and verification of field conditions in the proposal development phase for the Contractor to complete a more accurate calculation to increase its confidence for inclusion in the proposal. For these ECMs, the Contractor shall provide a narrative description of each ECM, how they may save

REFERENCE SECTIONS BELOW FOR DOE UESC REQUIREMENTS:

Section H.4 - PA Report Requirements Section H.5 - IGA Report Requirements Section H.6 - Financing Competition Requirements energy for the site, and a conceptual-level estimate range of potential implementation costs, cost savings, and energy savings.

B. The PA length shall be no more than 35 pages , plus one page per recommended ECM, using the template provided in Attachment J-13. The potential ECMs only require a short narrative (1-2 paragraphs) and shall be included within the 35-page limit. The PA shall include at a minimum the following sections:

1. Project Overview

Executive Summary – At a minimum, the Executive Summary shall include a narrative description of the project, summarizing the project management plan, the recommended and potential ECMs, the energy, water, and related cost saving ranges, and conceptual range of implementation price.

2. Technical Assessment

i. Project Management Plan – The Contractor shall submit a project management plan that provides for the efficient development of a proposal for a project that effectively addresses the

Government’s objectives as set forth in the NOO.

ii. ECM Description – For each recommended ECM, the Contractor shall submit narrative information and estimated implementation price and savings ranges in the format specified in Attachment J-13. For each potential ECM, the Contractor shall provide a short narrative at a conceptual level.

iii. ECM Performance Measurement – Provide a general description for the M&V approach that will be proposed for the recommended ECMs in accordance with Section C.4.6, Paragraph A and the latest version of the FEMP M&V Guidelines: Measurement and Verification for Performance-Based Contracts. The M&V approach shall also include a general description of the recommended level of government witnessing that complies with the latest version of DOE FEMP’s “Guide to Government Witnessing and Review of Measurement and Verification

Activities.” (See Attachment J-17 for specific web link.)

If operation and maintenance savings are included in the PA, then the Contractor shall include a general description of the methods that comply with the latest version of “How to Determine and Verify Operating and Maintenance (O&M) Savings in Energy Savings performance Contracts”. In determining energy cost savings, the Contractor shall comply with the latest version of FEMPs “Guidance on Utility Rate Estimations and Weather Normalization in an ESPC”. (See Attachment J-17 for specific web links.)

iv. TO Schedules – The Contractor shall submit completed financial and energy savings TO Schedules, using ePB, for all recommended ECMs, as well as documentation to support the TO

Schedules. Output from ePB shall be included in the PA documents provided to the agency. In completing the TO Schedules, the Contractor shall use numerical values (such as the average) agreed to or specified by the ordering agency to identify ECM costs and savings that are within the ranges provided in the ECM description. The ePB system instructions are provided in Attachment J-15.

H.5 Requirements for Task Order Proposals and Proposal Reviews

H.5.1 General – The Contractor shall submit a proposal, consisting of technical and price components, in electronic format, or as required in the TO RFP. If the Contractor is a large business and the ordering agency requires it, the proposal shall also contain tailored small business subcontracting goals, in accordance with FAR 52.219-9 and the individual small business subcontracting plan included as Attachment J-16. The tailored goals shall at least match the subcontracting goals DOE / EERE is currently required to meet, or the subcontracting goals that the ordering agency is required to meet, whichever goals are greater.

A. The technical component of the proposal shall include an Investment Grade Audit (IGA) and conceptual design that documents the overall technical credibility of the energy baseline and provides the methodology and results used to determine the guaranteed savings. Particular emphasis should be placed on assessment of renewable energy opportunities.

B. The price component of the proposal shall include completed project financial and energy-savings TO

Schedules, documentation to support the data in the TO Schedules, and any other supporting documentation required by the ordering agency.

C. Proposals will be reviewed in accordance with the FAR and ordering agency requirements. Additional guidance shall be provided by the ordering agency in the TO RFP.

D. The ordering agency will not be responsible for any costs incurred, such as proposal preparation costs or costs incurred in preparing the IGA, unless a TO is awarded or such costs are otherwise authorized for payment by the ordering agency CO.

H.5.2 Task Order Proposal Content – Unless otherwise provided by the ordering agency, the TO proposal shall include the following information and requirements :

H.5.2.1 Project Overview

A. Executive Summary – At a minimum, this shall include a narrative description of the project summarizing the ECMs, the energy, water, and related cost savings, implementation price and financial summary.

B. Site Description and Utility Summary – For the site, the Contractor shall submit narrative information for items, as applicable, in the format specified below:

1. Site Description

i. Overview, size, location, etc.

ii. Map of site showing major areas/designations

iii. Building/facility list, name/designator/number, type of facility, square footage, and hours for those included in the proposal

iv. Background/discussion regarding rationale or directive on which areas of site included in this

TO, etc.

v. Facility descriptions (For those buildings included in the ESPC and/or large consumers, etc.

Not all buildings may be included, depending on the nature of the site and the ESPC TO.)

Provide a general description of building condition and operations including overview of energy (mechanical/electrical) and water systems to include assessment of the system conditions, central plants and buildings served.

vi. Statement of coordination with the site’s Master Plan

2. Utility Summary

i. Overview/description of current utility systems on site: electrical, natural gas, fuel oils, water, sewer, etc. Include site diagrams/maps, as available.

ii. Description of metering systems for each utility.

Utility/revenue meters.

Sub-meters, advanced metering systems, as applicable.

iii. Summary of historical utility analysis

Summary tables and graphs for each utility for defined usage period (in text of report) with supporting detailed information and analysis included in an appendix to the proposal. As applicable, show information regarding sub-meters.

Reference to Attachment J-8, Section 8.1.2 Table 2, as applicable.

Rate discussion with reference to Attachment J-8, Section 8.2.2, as applicable, for details.

H.5.2.2 Volume I - Technical Proposal

A. ECM description - For each ECM proposed, the Contractor shall submit narrative information for items as applicable, in the format specified below:

1. ECM Title

2. ECM No. ____ and narrative description

3. Location affected

4. Energy baseline, detail on assumptions used to develop the baseline (e.g., hours of use or occupancy, weather baseline, etc.)

5. ECM implementation price, projected energy use, cost, guaranteed savings, and detail on assumptions

6. ECM Interface with ordering agency equipment and detailed description of existing energy consuming equipment and systems

7. Proposed equipment identification including manufacturer, model number and optional equipment proposed for each ECM component.

8. Physical changes – List major physical changes to equipment or facilities required to install the proposed ECM such as relocation or removal of equipment. Include manufacturer’s literature and specifications for each ECM component proposed.

9. Utility interruptions – Specify the extent of any utility interruptions needed for the installation of the proposed ECM.

10. Ordering agency support required – Specify any ordering agency support required during implementation of the ECM.

11. Describe potential environment impacts and coordination that has occurred with the site National Environmental Policy Act (NEPA) Compliance Officer

12. Utility rebate or system benefit fund financial and tax incentive – If applicable, specify ECM financial incentive(s) available, source, estimated payment amount, how and when payment or financing reduction will be applied and impact on project cash flow (e.g., ancillary payment before acceptance, reducing implementation price (ePB TO Schedule 2) and tax-based financing amount), and proposed estimated financial incentive payment or financing reduction of the Contractor guarantees during the post-acceptance performance period (ePB TO Schedule 3).

13. Key parameters used to determine savings in M&V.

14. ECM project schedule – Provide a detailed logically linked, critical path methodology project schedule to include the duration of the following key phases:

i. Engineering/design

ii. Equipment procurement/lead time (i.e., date required to acquire equipment and delivery on-site)

iii. Installation, commissioning, and post-installation M&V report

iv. Project acceptance

B. ECM Performance Measurement (SEE PERFORMANCE ASSURANCE PLANNING IN LOI ATTACHMENT Continuous Design-Level Performance of Each Energy Conservation Measure in a Utility Energy Service Contract is Fundamental to Achieving Projected Results, dated February 2019).

N/A - Measurement & Verification Plan – The Contractor shall prepare a severable portion of Volume I that describes a complete M&V plan. The M&V plan shall be completed using the template and outline provided in Attachment J-8 and the current standards in the latest version of the DOE FEMP M&V Guidelines. The

M&V plan shall include an electronic version of the methods for calculating the ECM energy savings for the ordering agency’s review and approval. The M&V plan will include a description of the recommended level of government witnessing that complies with the latest version of FEMP’s "Guide to Government

Witnessing and Review of Review of Measurement and Verification Activities." (See Attachment

J-17 for specific web link.)

If operation and maintenance savings are included, then the Contractor shall include a description of the methods that comply with the latest version of “How to Determine and Verify Operating and Maintenance (O&M) Savings in Energy Savings performance Contracts”. In determining energy cost savings, the Contractor shall comply with the latest version of FEMPs “Guidance on Utility Rate Estimations and Weather Normalization in an ESPC”. (See Attachment J-17 for specific web links.)

2. ECM Commissioning Plan – The Contractor shall prepare a severable portion of Volume I that describes the ECM Commissioning Plan for each of the proposed ECMs. (See Commissioning Guidance for DOE ESPCs on the DOE FEMP website; the specific address is provided in Attachment J-17.)

C. Project Management Plan

1. Communication Plan – Provide a communication plan to include progress updates during the implementation and operation periods for promoting communication between the ordering agency, DOE, and the Contractor throughout the implementation and operations periods.

2. Organization – Show the organization for implementing and managing the TO project through the use of an organizational chart. The proposed organization shall contain the responsibilities of each element. Identify personnel integral to the performance of the ESPC project, by name within each element. Show the lines of authority within the organization. If portions of the project are to be subcontracted (e.g., design of an energy conservation system), identify the subcontracted function, and which element of the Contractor’s organization will manage the subcontract(s).

3. Risk, Responsibility and Performance Matrix – The Contractor shall complete and submit a Risk, Responsibility and Performance Matrix detailing its proposed approach or method to address each area in the matrix. The format and content for the Risk, Responsibility and Performance Matrix is provided at Attachment J-7.

4. Operations, Maintenance, Repair, and Replacement – Show the organizational structure and describe the approach for performance of the proposed ECM operations, maintenance, and repair and replacement requirements, including at a minimum the ECM-specific preventative maintenance requirements and their frequency of performance. For each ECM, identify the organization(s) (ordering agency or Contractor/subcontractor) performing the O&M of Contractor-installed equipment. Detail how duties or actions are shared or reference where this information is located.

Identify reporting requirements of ordering agency or Contractor during the performance period.

Responsibilities, performance, and risks of operations shall be briefly defined in the Risk, Responsibility and Performance Matrix.

5. ECM Training – Describe in detail how training for each ECM will be provided for ordering agency personnel. The approach shall be customized depending on the level of O&M responsibility to be assumed by ordering agency personnel.

H.5.2.3 Volume II - Price Proposal – The selected Contractor shall complete project financial and energy-savings TO Schedules using the eProject Builder System. These completed TO Schedules shall be provided in the price proposal submitted to the ordering agency, along with supporting documentation, organized as follows:

A. Project-level expenses from project development through TO award (no ECM breakout required).

B. Pricing of implementation and construction phases, allocated by ECM.

C. Post-acceptance performance period expenses aligned with proposed TO Schedule 3 line item expenses.

D. A summary of the finance offer being proposed. At a minimum, the finance summary shall include the Investor Deal Summary (IDS), selected financier’s Standard Finance Offer (SFO), all non-selected financiers’ SFOs, and Selection Memorandum as explained in more detail in Section H.6.

H.5.2.4 eProject Builder System – The TO Schedules shall be developed using the eProject Builder (ePB)

System. See Attachment J-15 for instructions and use. The Contractor is responsible for validating that ePB-produced documents are correct.

H.5.2.5 Tailored Small Business Subcontracting Goals – If required by the ordering agency, each selected large business Contractor shall provide tailored small business subcontracting goals in accordance with FAR

52.219-9 procedures and the Individual Small Business Subcontracting Plan included in this IDIQ contract as Attachment J-16. The tailored goals shall at least match the subcontracting goals DOE / EERE is currently required to meet, or the subcontracting goals that the ordering agency is required to meet, whichever goals are greater.

H.6 Requirements for Competitive Financing Acquisition for Task Orders

H.6.1 Investor Deal Summary (IDS) – Concurrently with the submission of the proposal, the Contractor shall submit the IDS (Attachment J-11N/A), along with the Contractor’s point of contact information, electronically in Microsoft Word format to the ordering agency CO for review unless otherwise directed by the ordering agency CO.

H.6.2 Competitive Financing Offers Based on Investor Deal Summary (IDS) and Standard Financing Offers (SFO)

A. The Contractor shall solicit and select financing offers through a documented competitive selection process.

The Contractor shall:

1. Solicit offers from a minimum of three reputable finance companies. This process must incorporate the IDS and any other relevant information the Contractor believes will enhance the competitive offer.

2. Provide financing offerors with a reasonable period of time to respond in order to encourage more effective competition.

3. Require financing offers to be in the form of the SFO, as set out in Attachment J-12 to this IDIQ contract.

4. Perform an analysis of financing offers that, at a minimum, compares rates offered and total estimated finance costs (interest and other factors) to the TO. Analysis of other factors may include, but is not limited to, available terms and conditions.

5. Determine the most advantageous offer based on analysis, and establish the reasonableness of the proposed interest and other financing costs to be included in the proposal submitted to the ordering agency.

6. Once the Contractor completes this process and a selection is made, the Contractor shall prepare a Selection Memorandum describing the selection process including the number of offers solicited and received, the rationale for selecting the financier, and the reasons why the selection is the best value for the Government. The Selection Memorandum shall state whether any interest rate locks or hedge costs are included in the proposals, and the terms and costs of such. If the financier with the lowest total interest and other financing costs is not selected, the Selection Memorandum shall describe the Contractor’s reason for selection, and how price reasonableness was established. This process may be subject to audit by the ordering agency and/or by DOE as administrator of the IDIQ contract.

B. The Contractor shall certify to the ordering agency that the contents of the Selection Memorandum are true and correct and in accord with best business practice.

C. Rate update process – Because interest rates are subject to frequent and sometimes significant changes, the

Contractor shall describe in the Selection Memorandum the process it will use after proposal submission to monitor interest rate changes, assess the impact of rate changes on the proposed TO project, update proposals immediately prior to award to reflect interest rate changes, and establish the reasonableness of any revised interest and financing costs.

D. The Contractor shall submit the IDS, SFO, Selection Memorandum and certification with its price proposal to the ordering agency.

H.6.3 Debt Modifications/Refinancing – During the term of the TO, the Contractor is encouraged to periodically (e.g., every 3 to 5 years after acceptance) consider and evaluate the potential for refinancing, restructuring, or modification of its TO project loan agreements (collectively “debt modification”). Because the Government is not a contractual party to such financing agreements, responsibility rests with the Contractor to initiate communication with its financier regarding possible debt modifications. The Contractor is encouraged to provide a debt modification evaluation plan to the ordering agency with its proposal or shortly after TO award, as requested by the ordering agency. The Contractor is also encouraged to provide a copy of each periodic evaluation for potential debt modification and the resulting determination to the ordering agency within a time frame to be specified by the ordering agency. When these documents are provided to an ordering agency, DOE requests that the Contractor also upload them to the EERE PMC database.

When determined to be reasonable, feasible, and/or advisable, the Contractor is encouraged to refinance and/or otherwise modify its TO debt obligations and consider applying some or all of the resulting financial proceeds to benefit the TO project. Consistent with applicable procurement rules and requirements, such benefits may potentially include, but are not limited to, restructuring of annual payments to shorten the overall payback period of the TO, and/or the incorporation of additional project ECMs, particularly ones that were removed from the original scope of the TO project due to cost limitations.