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STATE OF MICHIGAN

Request For Proposal No. 200000001376 Renewable Energy Systems Pilot Program Oden Fish Hatchery Isolation Building and Visitor Center (Optional) Department of Natural Resources

SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

BACKGROUND

The Michigan Department of Natural Resources (DNR) aims to integrate renewable energy resources into the daily operations of state parks and state fish hatcheries. DNR will begin these efforts under a new pilot program at Oden Fish Hatchery and intends to expand to additional facilities over time. DNR manages 103 state parks and six fish hatcheries throughout Michigan. This pilot project continues Michigan’s progress in converting from non-renewable to renewable energy to implement environmental sustainability across state government.

SCOPE

The State prefers no capital outlay for this pilot project and intends to enter into a Power Purchase Agreements (PPA) of up to 25 years for the output (electricity, capacity and all associated attributes such as Renewable Energy Credits). The State seeks proposals from solar providers to design, build and finance services for the installation of solar photovoltaic (PV) systems at the Oden Fish Hatchery Isolation Building, sized to optimize power production and offset or reduce grid electricity use/electricity bills within the space and logistical constraints specified in this RFP. The Oden Fish Hatchery Visitor Center may be included strictly as an addition to the PPA. The State reserves the right to modify the Contract(s) resulting from this RFP to meet future needs for PV systems at other DNR locations.

To bid on a turnkey solar installation at the Oden Fish Hatchery Visitor Center please refer to a separate RFP No. 200000001377.

REQUIREMENTS

1. General Requirements

1.1. Project Description

The pilot project consists the Oden Fish Hatchery Isolation Building and an optional second PPA proposal for the Isolation Building and the Visitor Center

Oden Fish Hatchery The project site is located at: 3377 Oden Rd., MI 49764

· Description of Site: Oden State Fish Hatchery is a modern fish culture facility that was completely rebuilt in 2002. The hatchery sits on 130 acres of land in Emmet County’s Littlefield Township. The hatchery operates using well water from five 12-inch production wells, each capable of producing about 1,000 gallons of water per minute.

· The hatchery’s buildings include an Isolation Building and Visitor Center. A PPA proposal must only include the Isolation Building. A second, optional PPA proposal may be considered for the Isolation Building and the Visitor Center. Additional buildings with other separate meters are also on the property, but not considered as part of the project. A forested area west of the Isolation Building can be considered for clearing as a potential project site if it is suitable for PV panel installation. DNR is willing to coordinate and remove timber and clear as necessary based on proposals and final design. DNR will expect bidders to clarify all civil works and DNR will discuss division of responsibilities with the successful bidder.

· General location maps with identified buildings and land assumed suitable/available are included as Exhibit 1 – Oden Iso Building PV Map which shows proposed acceptable PV locations.

· Desired System Size: The solar system must be comprised of an array of photovoltaic panels and electrical equipment components sized to maximize savings and/or typically replace or offset up to 100% of facility annual energy use. The Contractor should include all costs and work necessary to install the system and initiate generation, including any studies required by the utility, registration with the Federal Energy Regulatory Commission, (if needed), and interconnection charges. The Oden Fish Hatchery Isolation Building meter is billed as Consumers Energy’s “General Service Secondary Rate GS” and has moderate energy consumption because of regular flow from pumps for fish rearing. Total annual energy consumption has fluctuated significantly, with a range of 52,000 kWh – 90,000 kWh. Given the variation, we anticipate a 50 KW solar array to be suitable for this location. Interval data and energy usage is available in Exhibit 2 and example utility bills are available in Exhibit 3.

· Optional: The Visitor Center (VC) total metered usage under Consumers Energy’s “General Service Secondary Rate GS” in 2019 was approximately 12,000 KWh from the single meter. Current electrical costs are at $0.137 per kWh. Total usage averaged 11,000 kWh per year from 2005-2019. Summer loads are characteristically higher during visitor hours due to cooling loads. Interval data and energy usage is available in Exhibit 2 and example utility bills are available in Exhibit 3. We anticipate a 10 KW solar array to be the maximum size for annual net zero energy consumption.

· Description of Desired Solar System: DNR will consider a ground mount array only. The semi-forested areas located west of the Isolation Building (about 27,000 square feet) could be cleared for use for ground arrays by the Contractor if needed for the installation. These areas are shown on Exhibit 1 – Oden Iso Building PV Map.

· Project Financing: Power Purchase Agreement (PPA) structure is the preferred financing option being considered in this RFP. Current electrical energy costs billed are at $0.137 per kWh; PPAs above current costs will not be favored. DNR is not considering ownership of a turnkey project for the Isolation Building but will request a reference purchase price. DNR may consider a buyout, years after project completion.

· System Ownership Information: The Contractor will own the system if the State procures a system through a PPA. The State will own the system if a future purchase price is negotiated per PPA terms.

· Operation & Maintenance: The Contractor will provide operation and maintenance services for the duration of the PPA. Please include indicative O&M costs and specifics of O&M services.

· Monitoring – Proposal should include remote monitoring capability to observe daily power generation and system information.

1.2 Project Requirements

1.2.1 Overview

The Contractor must be a solar service provider capable of designing, building and the installation of solar PV systems at the locations specified in Section 1.1. The goal of this RFP is to identify a solar partner with the necessary experience to ensure a fully managed and well executed process. The successful bidder will have demonstrated experience financing, designing, planning, scheduling, permitting and constructing, interconnection and owning a solar PV system. The Contractor is responsible for all permitting. For this Pilot Program, Bidders will be preferred whom have worked with Consumers Energy customers on similar projects. For future projects, Bidders with associated public utility customers on similar projects are weighted favorably. Contractors must provide project financial analysis in their proposals and have established onsite safety standards. The State’s goals for this project include:

· Demonstrating a commitment to onsite energy use

· Replacing or reducing on-site non-renewable energy use.

· Maximizing savings from the proposed energy system, relative to current average annual energy costs.

1.2.2 System Design and Construction Requirements

Contractor must consider the following guidelines and construction requirements when designing the solar system.

Only projects that utilize solar PV systems to generate electricity are eligible under this RFP:

PV systems for the Oden Fish Hatchery must be ground mount arrays.

Industry standard setbacks from buildings and roads will apply but it is up to the bidder to develop a site design that meets reasonable standards and requirements for DNR properties.

Allowable locations for on-site projects are identified in the maps in Exhibits 1 and 2. Proposals for projects at other locations at the facilities will not be considered. The DNR does not guarantee that all the identified locations will end up being suitable for installation site projects.

Ground Mounted Systems The Bidder’s proposal may include ground mounted solar systems. If included in the project proposal, the bidder must develop a design for the proposed photovoltaic system(s) using new components. Not all locations identified need to be used. It is the responsibility of the Contractor to assess site topography and geotechnical attributes to estimate costs related to project installation. The Contractor is responsible for securing the environmental permits necessary to install a ground-mounted system and all costs and work related to such permits must be included in the bid price.

· Mounting system must be either directly anchored into the ground (driven piers, concrete footers, ground screws, etc.) or ballasted on the surface without ground penetration. Mounting system design needs to meet applicable local building code requirements with respect to snow, wind, and earthquake factors.

· Mounting system can either be fixed tilt or tracking systems. Bidders must specify which type (fixed or tracking) in their project proposal.

· Fixed panels’ orientation or azimuth must be within 20-30 degrees of due south.

· Panels’ tilt must be based on site latitude and wind conditions.

· Ground cover and vegetation management must be included in the proposal.

· Storm water management and erosion control management plan must be included in the proposal.

· All lines interconnecting solar arrays to point of interconnection must be underground.

· Security fencing (galvanized chain link or similar) shall be installed around systems .

· The Contractor must include a quote in each proposal for the cost of removal and disposal of the system at the end of the PPA or service life. Bidders should be clear if this cost is not assumed in the PPA.

Additional Construction Requirements

· Soil borings are not provided. If the professional engineer determines soil borings are required, they will be the responsibility of the Contractor. The bidder’s proposal shall include all associated work if deemed necessary by the Engineer, such as a geotechnical evaluation and/or topographical survey.

· Design plans and specifications shall be submitted. The mounting systems must meet application snow loads, wind loads, frost heave, and earthquake factors. The design calculations must be provided to verify these loads are met. The bidder shall evaluate the buildings to determine whether the roof is appropriate to support the necessary load of the panels and associated equipment and provide any structural or building envelope upgrades as required for the new system.

· All PV modules and electrical components shall be required to be listed or recognized by an appropriate safety laboratory (e.g. Underwriters Laboratories (UL)). The electrical design and installation for the PV system shall conform to the National Electric Code (NEC) standard for power system safety. All electrical components, including over current protection, disconnects, surge suppression devices, conduit, wiring and terminals must have a UL or equivalent listing and have appropriate voltage, current and temperature ratings for this application. All PV modules must be UL listed or certified by an equivalent rating agency. All conduit, wiring, fuse and/or disconnect boxes, installation, site preparation, and any additional electrical or other components for a complete operating system should be included in RFP.

· All power generation and transmission equipment must be UL listed for its designed use. Construction must comply with current adopted State Building Code, which includes: International Building Code, National Electric Code (NEC), Michigan Electrical Code (MEC) Part 8 rules which adopts by reference the 2011 NFPA70/NEC with modifications and State Fire Marshall (if applicable).

· Solar Panel Modules: System modules must be UL1703 listed, and CEC-listed

· Inverters: Must be UL1741 listed and must be CEC-listed with an efficiency of 95% or higher

· Functional start-up and performance testing must be completed by the Contractor prior to final acceptance of the PPA or turnkey system, per the startup and performance testing plan specified below in Section 1.2.3. If deficiencies are noted during testing, the Contractor must take steps to remedy the deficiencies, and repeat start-up performance testing to prove that the system performs as designed. A performance testing report is required as specified below in Section 2.1 Reporting.

The Contractor is required to provide:

· Design concepts, submittal and completion of net metering agreement

· Construction documents and engineering calculations that are signed and sealed by a professional engineer licensed in the state of Michigan

· Submittals for materials and products

· Construction materials, equipment and labor

· Design and construction supervision. Must have a full-time site superintendent during site construction.

· Quality control plan (QCP) including inspections and testing (QCP should, at a minimum, conform to “IEC 62446 Grid Connected Photovoltaic Systems – Minimum Requirements for System Documentation, Commissioning Tests, and Inspections.”

· Safety Plan

· Manuals (design, operation/maintenance, shop drawings, etc.). Please include snow load management.

· Commissioning of project

· Mentoring and training of building operating staff for any operation and maintenance

· System Electrical Calculations, system energy production calculation showing estimated monthly and yearly energy output for each array

· As-built drawings and specifications and warranties/guarantees. Close out report including the following information: system nameplate size, the overall installed cost of the system and estimated and guaranteed annual kilowatt hour (kWh) production (if applicable).

Bidder shall check the box below, confirming agreement to Section 1.2.2 System Design and Construction Requirements

I have reviewed the above requirements and agree.

1.2.3 Proposal Requirements

For each proposal, Contractor must describe their technical approach to the design and construction of the solar project at one or both facilities designated for this pilot project including:

· A description of the renewable energy system proposed.

· Technical approach, design, equipment details and specifications, installation. Include all work necessary to begin operation of the renewable energy system, including any costs of land clearing and site preparation for ground arrays. For ground arrays, include a description of all prep work that needs to be done to clear existing vegetation, prepare the site for panel installation and stabilize the site after installation is complete. The State’s preference is for low maintenance ground treatment

· Panel, inverter, racking specifications

· Conceptual layout drawing of the installation site showing the location of all equipment.

· Report indicating the amount of power production of the proposed system, and any renewable energy credits (RECs) generated.

· Describe the installation schedule and methods to be used to make sure all necessary installations are performed in a timely, quality, and efficient manner with no disruption to the facility.

· A description of how the grid interconnection requirements will be met

· A description of the controls, monitors, and instrumentation to be used for the system

· A description of the expected longevity of components used in the proposed systems, including inverters, solar panels, and other components of the PV systems offered.

· Contractor’s proposal for functional system start-up testing and performance testing procedures and evaluation criteria that validate the performance of the system. The contractor must provide a functional testing plan, timeline and testing period to perform testing of the installed system and prove that it performs as designed.

· Plan for minimizing power interruptions, and disruption of park/hatchery operation and visitors. The selected vendor must coordinate with facility staff to select dates for power interruption during the installation process and minimize the impact of project work on facility operation and visitors.

· An analysis and summary of projected savings, including an explanation of the savings calculations, that the DNR will realize for each facility’s proposed installations over a 25-year period, or the term of the PPA. The State prefers proposals that maximize savings relative to each facility’s current energy costs. This analysis must be based on:

· The DNR’s average annual energy cost for each facility

· The Contractor must specify the rate of average annual electricity cost increase that they use in the projected savings calculations (e.g., 1.25% per year), and justification or basis for that rate.

· The analysis should include consideration of:

· Solar resource data for each location as accurate as National Renewable Energy Laboratory (NREL) data or better.

· Expected performance and life expectancy of the panels, inverters and other components over time, and appropriate replacement costs for those components that must be replaced within the 25-year analysis period.

· For project structures where the power produced will be used on-site to reduce electricity purchases from the utility, indicate whether the project would be participating in net metering or other utility program, and include calculations showing the projected reduction in utility bills.

· Cost of the bidder’s proposed annual maintenance and operation service, over a 25-year contract term.

· Calculation of a simple pay-back period for turnkey proposals for systems installed at each location, based on the anticipated savings detailed above, operation and maintenance service proposal cost, and the total cost of the installation contract.

· Permits/approvals/studies required - The bidder must explain their understanding of what studies, approvals, and permits would be required (or recommended) for your proposed project(s), if any. Project must meet all applicable Michigan building code requirements. It will be the responsibility of the successful bidder to obtain all building code and other required permits.

· The Contractor’s proposal for end-of-service decommissioning and/or removal of the solar PV system, including disposal and recycling of system components.

Bidder response: Bidder must describe their proposed monitoring system/solution for the solar project in response to Section 1.2.3 Proposal Requirements:

1.2.4 PPA, Land Lease, and Turnkey Purchase Terms and Conditions

PPA Terms and Conditions Proposals may be for a PPA of up to 25 years for the output (electricity, capacity and all associated attributes such as Renewable Energy Credits (RECs)). A PPA is defined as a sale and purchase agreement requiring transfer of title of the physical power produced by the generating asset from the seller to the buyer at the designated delivery point along with other defined attributes (including RECs, environmental and capacity attributes). Proposals must include the costs to operate and maintain the system for the term of the agreement. Bidders may propose their own form of PPA. PPA proposals must include a detailed pricing schedule and show the calculation of the flat (levelized or escalation) price submitted on the bid sheet. Current electrical energy costs billed are at $0.137 per kWh; PPAs above current costs will not be favored. DNR is not considering ownership of a turnkey project for the Isolation Building but will request an optional purchase price. DNR may consider a buyout years after COD.

Bidders are advised that the State has not determined the form of PPA that will be used in this RFP; however, bidders are advised that:

· The PPA will include such provisions as are required to comply with the budgetary laws applicable to the State of Michigan. Among other things, this will require a provision which provides that all payments shall be subject to appropriation.

· Current electrical energy costs are at $0.137 kWh, PPAs above current costs will not be favored. Flat rate PPA prices are preferred, while alternative proposals with escalation rates should be limited to 2% or less.

· The State will not provide any financial security (i.e., letter of credit, guarantee, etc.) to secure its obligations under the PPA.

· The State will not indemnify any party as part of the PPA or otherwise.

· The prices established in the PPA will not be subject to adjustment during the term of the PPA, other than any agreed upon escalation provided for in the PPA, including, but not limited to, any changes to the selected developer’s costs as a result of state or Federal incentives, tax credits, bonus depreciation or similar items that are not achieved or received.

· The PPA will provide for liquidated damages if the project does not begin commercial operations in accordance with the agreed upon schedule. Such liquidated damages must be guaranteed by a parent guarantee, letter of credit or other security acceptable to the State.

· The State reserves the right to terminate consideration or negotiations if the bidder makes significant changes to its key internal or external team members during or after negotiation of the PPA.

· The Contractor will be required to enter into a Land Lease Agreement with the State per Schedule C Land Lease Agreement attached.

· Bidders may consider a minimum lease value of one dollar.

To assist the State, each bidder is required to submit the form of PPA it would propose to be used. Bidders are cautioned that nothing herein shall require the State to use any particular form of PPA.

After the technical evaluation is completed, the State reserves the right to negotiate its own form of PPA and Land Lease Agreement.

Bidder Response: (Bidder must confirm agreement with PPA requirements above and submit Bidder’s proposed form of PPA)

Bidder Response: (Bidder must confirm agreement with Land Lease requirements as specified in Schedule C Land Lease Agreement attached):

1.2.5 System Monitoring

Monitoring of system performance and providing public education and outreach is an important element of this RFP. The system should display and analyze historical and live solar electricity generation data. Additionally, the regularly collected data should reflect, but not be limited, to the following:

· Average monthly and accumulated output (total kWh)

· Yield and Capacity factor

· Air quality emissions averted (and real-world equivalents conversion)

The awarded bidder must design and install a solar monitoring system, including the ability to remotely monitor.

Bidder must describe their proposed monitoring system/solution for the solar project:

1.2.6 Operation and Maintenance of System

For turnkey proposals, the Contractor is required to provide a proposal for operation and maintenance of all components of the solar energy system for 25 years. An Operation and Maintenance Plan is also required for the term of PPA proposal. Operation and maintenance services include:

· Remote system monitoring

· Performance monitoring, notification, and troubleshooting – must notify the DNR Program Manager of a system failure or a significant decrease in system production.

· Power production monitoring

· Corrective maintenance to mitigate any risk to the system or minimize down time

· System Performance Reports that compares actual production to predicted production

· Preventative maintenance and inspections to identify and fix problems before they occur, including infrared photography for hot spots, manufacturer recommended maintenance, hardware torque checks, and array cleanings, if needed.

· Weed abatement and/or vegetative management for ground mount

· Management and division of responsibilities for snow removal.

· Maintenance plan for the life of the project (under a PPA)

· Operation plan for the life of the project (under a PPA)

· The State’s preference is for low maintenance ground treatment

If the State elects to own the system, prior to system start-up, the successful bidder must supply the State with two copies of all Component Product Data and Component Operation and Maintenance manuals. The information must be sufficient for the State to evaluate and ensure appropriate Operation and Maintenance is being completed over the life of the system. Examples of components include solar panels, conduit, inverter, net metering equipment, etc.

Note: Bidder must price Operations and Maintenance Plan separately from cash purchase option.

Bidder must describe their proposed Operations and Maintenance Plan and how they comply with the above requirement.

Bidder Response:

1.2.7 Production Guarantee

Contractor must describe the performance guarantee including the first year’s guaranteed performance and the expected annual performance degradation for the duration of the PV panel warranty. Contractor must describe the PV system’s warranties and guarantees for performance for the PV panels, inverters, and associated equipment.

Bidder must describe how they comply with the above requirement.

Bidder Response:

1.3 Final System Design

The final design package and documents must include the following within 60 days after Contract execution.

· Pilot Project Location

· Description of the solar system

· Construction documents and engineering calculations that are signed and sealed by a licensed architect or engineer

· Layout drawing of installation site providing location of all equipment

· Equipment details and specifications

· Schedule for equipment procurement and installation

· Description of how Consumer Energy grid interconnection requirements will be met

· Description of controls, monitors, and instrumentation to be used for the solar system

· Equipment and installation manuals

· Safety plan

· Quality control plan

· Operations and Maintenance manuals for system operations and performance monitoring over the life of the contract

· Web-based monitoring for up to 25 years

· Project as-builts that detail location of all above and underground utilities and components must be submitted within 30 days of system start-up.

Bidder must describe how they comply with the above requirement.

Bidder Response:

1.4. Warranties

The Contractor’s standard system warranty coverage should cover solar panel modules, inverter, racking and workmanship. The State prefers longer rather than shorter warrantee periods. The following are warranty criteria that should be described in each proposal:

· Solar Panel Modules: 25-Year Power Output & 10 Workmanship Limited Warranty

· Inverter: 10-Year Limited Warranty, Provide a price and/or plan for inverter replacement in year 11 and beyond

· Racking: 25-Year Limited Warranty priority

· Workmanship: 1 Year Limited Warranty

The Contractor must describe their equipment and workmanship warranties included in the bid and explain the process for reporting warranty issues and how the Contractor will handle any repairs or replacements.

The State reserves the right to require additional warranties other than those identified by the Contractor in its response to this RFP.

Bidder Response to Section 1.4 Warranties

1.5. Recall Requirements and Procedures

The Contractor must describe any recall procedures.

Bidder Response to Section 1.5 Recall Requirements and Procedures

1.6. Quality Assurance Program

Explain your Quality Assurance Program(s).

Bidder Response to Section 1.6 Quality Assurance Program

1.7 Other Requirements and Conditions

· The DNR will not assume any risk that incentives, grants, tax credits, bonus depreciation or similar items are not achieved (i.e., no price adjustments).

· All proposals must include Renewable Energy Credits (RECs) that would be generated from the project that is proposed in the bid. No substitutions.

· The DNR prefers to avoid taking down trees in Parks where possible, including those in parking lots, so designs should seek to minimize tree loss.

· All references to megawatts (MW) refer to MWac, kilowatts (KW) refer to KWac if not otherwise stated.

· For PPAs, the DNR will require that the bidder meet either stringent tests of mechanical availability and power curve for generation equipment or a minimum quantity to be negotiated, all of which will be based on then current industry-standard requirements for recent solar PPAs.

· For PPAs, the DNR will pay only for energy actually delivered to the Delivery Point except for quantities of energy that would otherwise have been delivered but for a Buyer-directed curtailment. The DNR will not be obligated to pay for electricity that could have been delivered but could not be accepted by the DNR due to a transmission grid outage recognized by the grid operator or Regional Transmission Organization (RTO).

Bidder shall check the box below, confirming agreement to Section 1.8 Other Requirements and Conditions

I have reviewed the above requirements and agree.

2. Service Levels

2.1. Reporting

The Contractor must submit to the DNR Program Managers the following written reports:

For all proposals, the Contractor is required to submit a report documenting start up and performance testing procedures, evaluation criteria, expected/designed system performance and actual system performance achieved per the functional start up testing and performance testing plan specified in Section 1.2.3 Proposal Requirements. This report must document any deficiencies, and steps taken to correct them by the Contractor. This report must be submitted within seven (7) days of completion of the required startup and performance testing.

For PPA and (future turnkey system proposals under an Operation and Maintenance Agreement), the Contractor must submit annual reports on system performance including detailed monthly power production over the reporting period, in comparison to previous year’s power production, and in comparison, to expected annual power production for the system. The reports should also document any issues or problems that occurred over the reporting period with operation of the system and any outstanding issues going forward.

Bidder Response to Section 2.1 Reporting

2.2. Meetings

The Contractor must attend the mandatory design kick-off meeting in person within 30 calendar days of the Contract Effective Date. Contractor must attend other meetings including design check points during construction and bi-weekly progress meetings.

The State may request other meetings as it deems appropriate.

Bidder Response to Section 2.2 Meetings

3. Staffing

3.1. Contractor Representative

The Contractor must appoint a State Project Manager, specifically assigned to each project State of Michigan account, that will respond to State inquiries regarding the Contract Activities, answering questions related to ordering and delivery, etc. (the “Contractor Representative”).

The Contractor must notify the Contract Administrator at least 30 calendar days before removing or assigning a new Contractor Representative.

Bidder Response to Section 3.1 Contractor Representative

3.2. Key Personnel

The Contractor must appoint a qualified site superintendent and other individuals who will be directly responsible for the day to day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquires within 8 hours.

The Contractor may not remove or assign Key Personnel without the prior consent of the State. Prior consent is not required for reassignment for reasons beyond the Contractor’s control, including illness, disability, death, leave of absence, personal emergency circumstances, resignation, or termination for cause. The State may request a résumé and conduct an interview before approving a change. The State may require a 30-calendar day training period for replacement personnel.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

Bidder Response to Section 3.2 Key Personnel

3.3. Non-Key Personnel

The Contractor must notify the Contract Administrator at least 10 calendar days before removing or assigning non-key personnel.

Bidder Response to Section 3.3 Non-Key Personnel

3.4. Organizational Chart

Provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Bidder Response to Section 3.4 Organizational Chart

3.5. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities. Provide copies of relevant solar certifications the subcontractor holds.

The relationship of the subcontractor to the Contractor.

Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Bidder Response to Section 3.5 Disclosure of Subcontractors

3.6. Security

The Contractor will be subject the following security procedures:

The Contractor must explain any security measures in place to ensure the security of State facilities.

The bidder must: (a) explain how it intends to ensure the security of State facilities, (b) whether it uses uniforms and ID badges, etc., (c) identify the company that will perform background checks, and (d) the scope of the background checks. The State may require the Contractor’s personnel to wear State issued identification badges.

Bidder Response to Section 3.6 Security

4. Pricing

4.1. Price Term

Bidders must submit price proposals under Schedule B Pricing to include all costs.

The State prefers no capital outlay for this pilot project and intends to enter into one or more Power Purchase Agreements (PPA) of up to 25 years for the output (electricity, capacity and all associated attributes such as Renewable Energy Credits). Current electrical costs are at $0.137 kWh, PPAs above current costs will not be favored. Flat rate PPA prices are preferred, while escalation rates should be limited to 2% or less.

Bidders are to provide a PPA price bid for their proposed system(s) as a flat (levelized) price on the bid sheet, and include a detailed pricing schedule in their proposal, including frequency of payments. The State prefers pricing based on actual production - power delivered to the point of interconnection at each facility.

Pricing is firm for the entire length of the Contract. There will be no price adjustments.

Bidder Response to Section 4.1 Price Term

5. Ordering

5.1. Authorizing Document

The appropriate authorizing document for the Contract will be a signed Master Agreement.

6. Acceptance

6.1. Acceptance, Inspection and Testing

The State will use the following criteria to determine acceptance of the Contract Activities:

· The Contractor must conduct functional system start-up testing and performance testing to validate the performance of the system. The contractor must provide a functional testing plan that includes a description of procedures, evaluation criteria, timeline and testing period to perform testing of the installed system. The results of this testing, any deficiencies discovered, steps to remedy the deficiencies, and the results of repeated testing must be documented in a performance testing report as specified in Section 1.2.2 Additional Construction Requirements, Section 1.2.3 Proposal Requirements, and Section 2.1 Reporting.

· The State will accept the final performance testing report if it meets the criteria specified in Section 2.1 Reporting.

Bidder Response to Section 6.1 Acceptance, Inspection and Testing

6.2. Final Acceptance

Final acceptance will be granted in writing within 30 days of the following documentation, and will be based on:

· Satisfactory completion of functional start up and performance testing of the installed system. The installed system must perform as designed and specified in the Contractor’s proposal.

· Submission of all required documentation for the installed system within 30 days of system start-up, including project as-builts that detail location of all above and underground utilities and components.

Bidder Response to Section 6.2 Final Acceptance

7. Invoice and Payment

7.1. Invoice Requirements

All invoices submitted to the State must include: (a) date; (b) purchase order; (c) quantity; (d) description of the Contract Activities; (e) unit price; (f) shipping cost (if any); and (g) total price.

For the turnkey option, in addition to the above, refer to Schedule D - Sample Contract Terms for Turnkey Purchase, Section 3. Payments. Payment requests shall be made using DTMB-440 Payment Request Form with detailed schedule of value breakdown, as approved by DTMB, as back up. Payments shall be made at project milestones dates as negotiated, final payment shall be subject to final performance testing and proven output production of the system and shall further be subject to reduction if production fails to meet proposal/contract threshold.

Bidder Response to Section 7.1 Invoice Requirements

7.2. Payment Methods

The State will make payment for Contract Activities by EFT.

7.3. Procedure

For the generation component of any PPA, the State will be responsible only for payment for delivery of generation and RECs to the delivery point at a negotiated rate and shall not be responsible under that PPA for any other payments during the life of the resulting Contract, including network upgrades, environmental costs, fees or similar items up to and including the delivery point that might not yet be identified or may arise after PPA execution or commercial operation.

For the turnkey option, in addition to the above, refer to Schedule D - Sample Contract Terms for Turnkey Purchase, Section 3. Payments. Payment requests shall be made using DTMB-440 Payment Request Form with detailed schedule of value breakdown, as approved by DTMB, as back up. Payments shall be made at milestone dates as negotiated, final payment shall be subject to final performance testing and proven output production of the system and shall further be subject to reduction if production fails to meet proposal/contract threshold.

Bidder Response to Section 7.3 Procedure

8. Project Plan Time is of the essence; preference will be given to proposals that can be completed by December 31, 2020, or in as short a timeframe as possible.

Bidders must include a detailed project timeline in their proposals that identifies, at a minimum tentative date for:

· System design

· Procurement of components

· Initiation and completion dates for on-site construction, including any land clearing

· System startup/initiation of power generation

· Post-construction performance testing and inspections

· Projected system hand-off (under a turnkey proposal) or system acceptance under a PPA, The DNR will give preference to proposals for the Park that will be initiated before Consumers Energy’s net metering program application window expires.

Bidders must include provisions in their project plans Plan for minimizing power interruptions, and disruption of park/hatchery operation & visitors. The selected vendor must coordinate with facility staff to select dates for power interruption during the installation process and minimize the impact of project work on facility operation & visitors.

Onsite work at parks must minimize interference with park operation and disruption to park visitors. Some onsite work may be permissible during the use season (May-September), however interruption of power to the park must be avoided during this time period. Power interruptions for less than 4 hours during the use season may be acceptable with prior park approval.

Contractor to propose a preliminary project implementation plan and timeline, detailing key project implementation tasks from permit applications through installation and start-up of generation. A timeline is required that lists calendar dates for key project milestones.

The Contractor will carry out this project under the direction and control of the Program Manager. Within 30 calendar days of the Effective Date, the Contractor will submit a project plan to the Program Manager for final approval. The plan must include: (a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and (b) the project breakdown showing sub-projects, tasks, and resources required.

Bidder Response to Section 8. Project Plan, including the submission of a detailed project timeline

9. Licensing Agreement The Contractor must provide a copy of any applicable licensing agreement.

Bidder Response to Section 9. Licensing Agreement

10. Liquidated Damages Late or improper completion of the Contract Activities will cause loss and damage to the State and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. Therefore, if there is late or improper completion of the Contract Activities the State is entitled to collect liquidated damages in the amount of $5,000 and an additional $100 per day for each day Contractor fails to remedy the late or improper completion of the Work.

For PPA proposals, after installation has been completed and post-installation performance testing has been approved, the Contractor must make all efforts to ensure that the system operates as proposed and minimize system down-time during peak generation time periods. If the system does not achieve the designed performance within each reporting period (calendar year) evaluated, the Contractor will pay the State the following liquidated damages for non-renewable power purchased to make up for the shortfall:

· If the system produces less 80% of designed production capacity on an annual basis, the Contractor will be charged double the cost of power purchased to make up the difference between 80% of designed capacity and the quantity of power actually produce by the system in the reporting period.

Bidder shall check the box below, confirming agreement to Section 10. Liquidated Damages

I have reviewed the above requirements and agree.

11. Additional Requirements

11.1. Environmental and Energy Efficient Products

The Contractor must identify any energy efficient, bio-based, or otherwise environmentally friendly products used in the products. Contractor must include any relevant third-party certification, including the verification of a United States department of agriculture certified bio-based product label.

Bidder Response to Section 11.1 Environmental and Energy Efficient Products

11.2. Hazardous Chemical Identification

In accordance with the federal Emergency Planning and Community Right-to-Know Act, 42 USC 11001, et seq., as amended, the Contractor must provide a Material Safety Data Sheet listing any hazardous chemicals, as defined in 40 CFR §370.2, to be delivered. Each hazardous chemical must be properly identified, including any applicable identification number, such as a National Stock Number or Special Item Number.

The Contractor must identify any hazardous chemicals that will be provided under any resulting contract.

Bidder Response to Section 10.2 Hazardous Chemical Identification

11.3. Mercury Content

Pursuant to MCL 18.1261d, mercury-free products must be procured when possible. The Contractor must explain if it intends to provide products containing mercury, the amount or concentration of mercury, and whether cost competitive alternatives exist. If a cost competitive alternative does exist, the Contractor must provide justification as to why the particular product is essential. All products containing mercury must be labeled as containing mercury.

Bidder Response to Section 11.3 Mercury Content

11.4. Brominated Flame Retardants

The State prefers to purchase products that do not contain brominated flame retardants (BFRs) whenever possible. The Contractor must disclose whether the products contain BFRs.

Bidder Response to Section 11.4 Bromated Flame Retardants

Version 2 Revised Date: 2/2019