RNG Management Services RFP_SE Questions_SMB Reponses_FINAL.pdf

(v.12/06/2021)

Request for Proposals # 274-2024-RNGMS

Title: Renewable Natural Gas (RNG) Management Services

Issue Date: March 28, 2024

Due Date: April 26, 2024, no later than 5:00PM EST

*LATE PROPOSALS WILL NOT BE ACCEPTED*

Issuing Department: Raleigh Water

Direct all inquiries concerning this RFP to:

Stephen Balmer Fiscal Manager

Email: Stephen.Balmer@raleighnc.gov

(v.07-10-23)

Table of Contents

1. Introduction

1.1 Purpose

1.2 Background

1.3 RFP Timeline

1.4 Pre-Proposal Conference

1.5 Proposal Question

1.6 Proposal Submission Requirements & Contact Information

1.7 MWBE Participation Form

1.8 Rights to Submitted Material

1.9 Communications

1.10 Lobbying

1.11 Conflicts of Interest

1.12 Proposer Expenses

1.13 Proposer Acceptance

2. Proposals

2.1 Request for Proposals Required Document Format

2.2 RFP Documents

3. Proposal Evaluation

3.1 Proposal Evaluation Criteria (Stage 1)

3.2 Interview/Demonstration (Stage 2)

3.3 Final Selection

3.4 Notice to Proposers Regarding RFP Terms & Conditions

3.5 Contract Term…………………………………………………………….15

4. Scope of Services

Appendix I – Proposal Cost Form

Appendix II – Proposer Questionnaire

Appendix III – MWBE Participation Form

Appendix IV – Contract Standard Terms & Conditions

Appendix V – Exceptions to RFP

1 INTRODUCTION

1.1 Purpose

The City of Raleigh (COR) is solicitating proposals from one or more firm(s) with which to contract for the following services:

The City is issuing this Request for Proposal (RFP) for Renewable Natural Gas (“RNG”) Management Services in regards to the sale of RNG and related environmental attributes arising from the RNG production facility being constructed at the City’s Neuse River Resource Recovery Facility (NRRRF).

The City is requesting proposals that provide pricing which captures both the economic value of the RNG commodity as well as the value of environmental attributes related to the use of RNG as vehicle fuel. The environmental attributes may include Renewable Identification Numbers (RINs) per the Federal Renewable Fuel Standard Program (RFS/RFS2) or other potential carbon offset incentives.

The RNG Management Services will be provided in three phases as more fully defined in Section 4 - Scope of Services. The phases are:

Phase I: Pre-operational planning and organization during RNG Facility construction. Contractor’s duties include becoming familiar with the City RNG systems; providing selected Approved Pooling Shipper(s) for the RNG sales and setting up RNG tracking and revenue management systems with City of Raleigh Water and City of Raleigh Transit Services (GoRaleigh).

Phase II: Transitional operations during the RNG Facility start-up and commissioning/initial RNG production. Contractor’s duties include making all necessary arrangements and coordinating with the Shipper for the initial Daily Nominations, final delivery pathways and for initiating and accounting of these new revenue streams.

Phase III: Post start-up commercial operations of the RNG facility. Contractor’s duties include tracking injection of City RNG into pipeline, sales of City RNG to City Transit Services or other CNG/LNG dispensers within allowable pipeline Pooling Agreements; preparing /submitting all necessary federal and pipeline reporting, sale of the physical RNG and the associated environmental attributes, and disbursement of the funds back to the City of Raleigh.

A detailed scope of services is provided in Section 4 of this document.

All information related to this solicitation, including any addenda, will be posted to the North Carolina electronic Vendor Portal (eVP) at https://evp.nc.gov/.

All questions related to this solicitation must be submitted in writing (via email) to the following individual:

https://evp.nc.gov/

Contact Name Email Address Stephen Balmer Stephen.Balmer@raleighnc.gov

Questions submitted via telephone will not be answered.

1.2 Background

The City of Raleigh, the Capital City of North Carolina, remains one of the fastest growing areas in the country. A great economy, top educational institutions, and exceptional health care facilities are some of the characteristics that attract people to the triangle area. The mild climate, diverse work force and proximity to Research Triangle Park combine to make Raleigh a great place to live.

Raleigh is a 21st Century City of Innovation focusing on environmental, cultural, and economic sustainability. The City conserves and protects our environmental resources through best practice and cutting-edge conservation and stewardship, land use, infrastructure and building technologies. The City welcomes growth and diversity through policies and programs that will protect and enhance Raleigh’s existing neighborhoods, natural amenities, history, and cultural and human resources for future generations. The City leads to improve quality of life for neighborhoods and standard of living for all citizens.

The City works with universities, colleges, citizens, and local partners to promote new technology, create new job opportunities, and encourage local businesses and entrepreneurs. The City enlists and prepares 21st Century staff with the skill sets to carry out the duties of the City through transparent civic engagement and by providing the very best customer service to our citizens.

The City is seeking a Request for Proposal (RFP) for an RNG Management Services provider. The City is constructing a digester gas treatment system (the “RNG Facility”) at its Neuse River Resource Recovery Facility (NRRRF). The RNG Facility will convert biogas from the wastewater anaerobic digestion process into RNG meeting pipeline quality specifications. The treated RNG will be injected to a nearby Dominion natural gas pipeline through an interconnection station located adjacent to the digester gas treatment system in which RNG will be received and directed to the natural gas pipeline.

Upon completion, the RNG Facility is expected to initially produce approximately 400 MMBTU/day on an annual basis commencing in approximately Summer to early Fall 2024. Monthly biogas production will vary throughout the year by as much as 20 percent. RNG production is anticipated to increase by approximately 2 to 4% annually for the next 20 years.

The RNG injected into the Dominion natural gas pipeline will primarily be used to fuel the City of Raleigh’s GoRaleigh CNG bus fleet. As part of these services, the RNG Manager will contract with an Approved Shipper that will purchase the RNG under a Pooling Agreement with Dominion that will provide for allotted capacity in the pipeline and allows Shipper to identify additional transportation uses within North Carolina for any excess monthly RNG that exceeds the monthly fuel demand for the GoRaleigh CNG bus fleet. As explained further in Section 4.0, there will be an established pass-through rate for the RNG used for GoRaleigh Transit Services and the RNG Manager will only be allowed a pass-through fee to transact RNG sales to GoRaleigh Transit Services.

1.3 Request for Proposal (RFP) Timeline

Provided below is a list of the anticipated schedule of events related to this solicitation.

The City of Raleigh reserves the right to modify and/or adjust the following schedule to meet the needs of the service. All times shown are Eastern Time (EST):

1.4 Pre-Proposal Conference

If the City of Raleigh elects to conduct a Pre-Proposal Conference or Site Visit, attendance by prospective proposers is strongly encouraged but is not mandatory. Prospective Proposers are encouraged to submit written questions in advance.

The Pre-Proposal Conference will be held April 4, 2024 at 1:00pm EST via Microsoft Teams. Meeting access will be via Meeting ID: 258 134 956 682 with Passcode: D4LX3n.

1.5 Proposal Questions

Requests for clarification and questions to this RFP must be received by the City not later than the date shown above in the RFP Timeline (Section 1.3) for the submittal of written inquires. The firm’s failure to request clarification and submit questions by the date in the RFP Timeline above shall be considered to constitute the firm’s acceptance of all City’s terms and conditions and requirements. The City shall issue addenda reflecting questions and answers to this RFP, if any, and shall be posted to North Carolina electronic Vendor Portal (eVP). No information, instruction or advice provided orally or informally by any City personnel, whether made in response to a question or otherwise in connection with this RFP, shall be considered authoritative or binding. Respondents shall be entitled to rely only on written material contained in an Addendum to this RFP.

RFP Process Date and Time

RFP Advertisement Date March 28, 2024

Pre-Proposal Conference (Microsoft Teams Meeting) April 4, 2024 at 1:00pm EST

Deadline for Written Questions April 12, 2024 City Response to Questions (anticipated) April 19, 2024

Proposal Due Date and Time April 26, 2024

Evaluation Meeting (anticipated) May 10, 2024

Interviews (if required) May 30, 2024

Selection Announced (tentative) May 24, 2024 or June 5, 2024

It is important that all Respondents submitting to this RFP periodically check eVP for any Addenda. It is the Respondents responsibility to ensure that all addenda have been reviewed and, if required signed and returned.

All questions related to this solicitation must be submitted in writing (via email) to the following individual:

Contact Name Email Address Stephen Balmer Stephen.Balmer@raleighnc.gov

Questions submitted via telephone will not be answered.

1.6 Proposal Submission Requirements and Contact Information

Proposals must follow the format as defined in Section 2 (PROPOSALS), and be addressed and submitted as follows:

DELIVERED BY US POSTAL SERVICE

MAIL:

DELIVERED BY OTHER DEIVERY

SERVICES:

City of Raleigh City of Raleigh

ATTN: Stephen Balmer ATTN: Stephen Balmer Raleigh Water – Administration PO Box 590 One Exchange Plaza | Suite 620 Raleigh, NC 27602-0590

Raleigh Water – Administration PO Box 590 One Exchange Plaza | Suite 620 Raleigh, NC 27602-0590

RFP No. 274-2024-RNGMS RFP No. 247-2024-RNGMS

Proposals must be enclosed in an envelope or package and clearly marked with the name of the submitting company, the RFP number and the RFP Title.

Proposers must submit:

A. one (1) signed original;

B. one (1) electronic version of the signed proposal and;

C. and five (5) copies of the signed proposal.

The electronic version of the Proposal must be submitted as a viewable and printable Adobe Portable Document File (PDF) on a USB Flash Drive. Both hard copy and electronic versions must be received by the City on or before the RFP due date and time provided in RFP Timeline (Section 1.3). Proposals received after the RFP due date and time will not be considered and will be returned unopened to the return address on the submission envelope or package.

Any requirements in the RFP that cannot be met must be indicated on Appendix VI:

Exceptions to the RFP and submitted with the proposal. Proposers must respond to the entire Request for Proposals (RFP). Any incomplete proposal may be eliminated from competition at the discretion of the City of Raleigh. The City reserves the right to reject any or all proposals for any reason and to waive any informality it deems in its best interest.

Proposals that arrive after the due date and time will not be accepted or considered for any reason whatsoever. If the firm elects to mail in its response, the firm must allow sufficient time to ensure the City’s proper receipt of the package by the time specified in the RFP Timeline (Section 1.3). Regardless of the delivery method, it is the responsibility of the firm to ensure that their proposal arrives at the designated location specified in this Section by the due date and time specified in the RFP Timeline (Section 1.3).

1.7 MWBE Participation Form

The City of Raleigh prohibits discrimination in any manner against any person based on actual or perceived age, race, color, creed, national origin, sex, mental or physical disability, sexual orientation, gender identity or expression, familial or marital status, religion, economic status, or veteran status. The City maintains an affirmative policy of fostering, promoting, and conducting business with women and minority owned business enterprises.

Complete and submit the MWBE Participation Form (Appendix IV) with your proposal.

1.8 Rights to Submitted Material

All proposals and supporting materials, as well as correspondence relating to this RFP, shall become the property of the City. The content of all submittals will be held confidential until the selection of the firm is made. Proposals will be reviewed by the Evaluation Team, as well as other City staff and members of the general public who submit public record requests. Any proprietary data must be clearly marked. In submitting a Proposal, each Prospective Proposer agrees that the City may reveal any trade secret materials contained in such response to all City staff and City officials involved in the selection process and to any outside consultant or other third party who serves on the Evaluation Team or who is hired by the City to assist in the selection process.

The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the proposer of the conditions contained in this Request for Proposals. Proposals marked entirely as “confidential”, “proprietary”, or “trade secret” will be considered non-responsive and will be removed from the evaluation process.

1.9 Communications

All communications of any nature regarding this RFP with any City staff, elected City officials, evaluation committee members, are strictly forbidden from the time the solicitation is publicly posted until award. Questions must be submitted in writing to the individual designated in Section 1.1 (Purpose), prior to the deadline provided in the RFP Timeline (Section 1.3). Violation of this provision may result in the firm’s proposal being removed from consideration.

1.10 Lobbying

By responding to this solicitation, the firm certifies that is has not and will not pay any person or firm to influence or attempt to influence an officer or employee of the City or the

State of North Carolina, or any elected official in connection with obtaining a contract as a result of this RFP.

1.11 Conflicts of Interest

City of Raleigh contracts are controlled by three conflict of interest provisions.

First, federal procurement standards provide in 2 CFR 200.318 (c)(1), No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or a firm which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.

Similarly, the North Carolina General Statutes provides a criminal statute for conflicts of interest in public contracting. N.C.G.S. § 14-234(a):

(1) No public officer or employee who is involved in making or administering a contract on behalf of a public agency may derive a direct benefit from the contract except as provided in this section, or as otherwise allowed by law. (2) A public officer or employee who will derive a direct benefit from a contract with the public agency he or she serves, but who is not involved in making or administering the contract, shall not attempt to influence any other person who is involved in making or administering the contract. (3) No public officer or employee may solicit or receive any gift, favor, reward, service, or promise of reward, including a promise of future employment, in exchange for recommending, influencing, or attempting to influence the award of a contract by the public agency he or she serves.

City of Raleigh Charter Section 3.9 regulates private transactions between the City and its officials and employees. The Charter states:

No member of the City Council, official, or employee of the City of Raleigh shall be financially interested, or have any personal beneficial interest, either directly or indirectly, as agent, representative, or otherwise, in the purchase of, or contract for, or in furnishing any materials, equipment or supplies to the City of Raleigh, nor shall any official or employee of the City of Raleigh accept or receive, or agree to accept or receive, directly or indirectly, from any person, firm or corporation to whom any contract may be awarded or from whom any materials, equipment or supplies may be purchased by the City of Raleigh, by rebate, gift, or otherwise, any money or anything of value whatsoever, or any promise, obligation or contract for future reward or compensation, for recommending or procuring the uses of any such materials, equipment or supplies by the City of Raleigh; no member of the City Council, official or employee of the City of Raleigh shall for his own personal benefit operate, directly or indirectly, any concession in any building or on any lands of the City of Raleigh, nor shall any official or employee of the City of Raleigh bid for or be awarded any contract granting concessionary rights of any nature or kind from the City of Raleigh; it shall be unlawful for any member of the City Council, official or employee of the City of Raleigh to bid for or to purchase or to contract to purchase from the City of Raleigh any real estate, equipment, materials, or supplies of any nature or kind whatsoever, either directly or indirectly, at either public or private sale, either singly, or through or jointly with any other person.

1.12 Proposer Expenses

The City of Raleigh will not be responsible for any expenses incurred by any Proposer in the development of a response to this Request for Proposal or any other activities associated with this procurement including but not limited to any onsite (or otherwise) interviews and/or presentations, and/or supplemental information provided, submitted, or given to City of Raleigh and/or its representatives. Further, the City of Raleigh shall reserve the right to cancel the work described herein prior to issuance and acceptance of any contractual agreement/purchase order by the recommended Proposer even if the awarding authority for each entity has formally accepted a recommendation.

1.13 Proposer Acceptance

Submission of any proposal indicates a Proposer’s acceptance of the conditions contained in this RFP unless clearly and specifically noted otherwise on Appendix VI Exceptions to RFP and submitted with proposal. Furthermore, the City of Raleigh is not bound to accept a proposal on the basis of lowest price, and further, the City of Raleigh has the sole discretion and reserves the right to cancel this RFP, and to reject any and all proposals, to waive any and all informalities and/or irregularities and reserves the right to re-advertise this RFP with either the identical or revised scope and specifications if it is deemed to be in the best interests of the City of Raleigh to do so. The City of Raleigh reserves the right to accept or reject any or all of the items in the proposal, and to award the contract in whole or in part and/or negotiate any or all items with individual Proposers if it is deemed in the best interest of the City of Raleigh to do so. Moreover, the City of Raleigh reserves the right to make no selection if proposals are deemed to be outside the fiscal constraint or not in the best interest of the City of Raleigh.

2 PROPOSALS

Responses must follow the format outlined below. The City may reject as non-responsive at its sole discretion any proposal that does not provide complete and/or adequate responses or departs in any substantial way from the required format.

2.1 Request for Proposals Required Document Format

Responses should be divided using tabs to separate each section, listed sequentially as follows:

Tab 1: Cover Letter Provide an introduction letter summarizing the unique proposal of your firm to meet the needs of this service requirement. This letter should be presented on the firm’s official letterhead and signed by an authorized representative who has the authority to enter into a contract with the City on behalf of the firm. Additionally, include the name, address, telephone and email address of the individual who serves as the point of contact for this solicitation.

Tab 2: Corporate Background and Experience Include background information on the firm and provide detailed information regarding the firm’s experience with similar projects. Provide a list of all similar contracts performed in the past 5 years, accompanied by at least 5 references of similar contracts, preferably with city municipalities (contact persons, firm, telephone number and email address).

Include the total contract amount for each listed project, the length of the project, and list of those involved in the project who are also proposed for the subject project named in this solicitation. Failure to provide a list of all similar contracts in the specified period may result in the rejection of the firm’s proposal. The evaluation team reserves the right to contact any or all listed references, and to contact other public entities regarding past performance on similar projects.

Tab 3: Financial Information Review and provide one of the following three (3) financial statement options:

1. Recent audited or reviewed financial statements prepared by an independent certified public accountant (CPA) that shall include, at a minimum, a balance sheet, income statement (i.e., profit/loss statement) and cash flow statement and, if the audited or reviewed financial statements were prepared more than six (6) months prior to the issuance of this RFP, the Proposer shall submit its most recent internal financial statements (balance sheet, income statement and cash flow statement or budget with entries reflecting revenues and expenditures from the date of the audited or reviewed financial statements to the end of the most recent financial reporting period (i.e., the quarter or month preceding the issuance date of this RFP)).

OR

2. Recent compiled financial statements prepared by an independent CPA that shall include, at a minimum, a balance sheet, income statement (i.e., profit/loss statement) and cash flow statement and, if the compiled financial statements were prepared more than three (3) months prior to the issuance of this RFP, the Proposer shall submit its most recent internal financial statements (balance sheet, income statement and cash flow statement or budget with entries reflecting revenues and expenditures to date), and other evidence of financial stability such as most recently filed income tax return, evidence of a line of credit/loans/other type of financing with statement of amount in use/outstanding balance (e.g., a complete copy commitment letter, loan agreement, billing statement reflecting the line of credit or statement from lender acknowledging the commitment to fund the Proposer’s stated financing), personal guaranty with copies of personal income tax filing and statement of net worth or such other evidence that is accurate, reliable and trustworthy regarding the Proposer’s financial stability.

OR

3. Include a certified, signed statement from a licensed CPA regularly engaged in the review of the firm’s financial information verifying the financial viability of the firm.

All financial information, statements and/or documents provided in response to this solicitation shall be kept confidential provided that EACH PAGE is marked as follows:

“CONFIDENTIAL – DO NOT DISCLOSE EXCEPT FOR THE EXPRESS PURPOSE OF

PROPOSAL EVALUATION.“

“Recent” shall be defined as financial statements that were prepared within the 12 months preceding the issuance date of this RFP.

Consolidated financial statements of the Proposer’s parent or related corporation/business entity shall not be considered, unless: (1) the Proposer’s actual financial performance for the designated period is separately identified in and/or attached to the consolidated statements, (2) the parent or related corporation/business entity provides the State with a document wherein the parent or related corporation/business entity will be financially responsible for the Proposer’s performance of the contract and the consolidated statement demonstrates the parent or related corporation’s/business entity’s financial ability to perform the contract, financial stability and/or such other financial considerations identified in the evaluation criteria; and/or (3) Proposer provides its own internally prepared financial statements and such other evidence of its own financial stability identified above.

The firm’s failure to provide any of the above-referenced financial statements may result in the proposal being removed from consideration. Proposers are also encouraged to explain any negative financial information, and to provide documentation supporting those explanations and demonstrating the financial strength of the firm.

Tab 4: Project Understanding, Approach and Schedule Provide a comprehensive narrative, outline, and/or graph demonstrating the firm's understanding and approach to accomplishing the tasks outlined in the Scope of Work section of this RFP. A description of each task and deliverable and the schedule for accomplishing each shall be included.

Tab 5: Team Firm, Experience and Certifications This section must include the proposed staffing, deployment and firm of personnel to be assigned to this project. The Proposer shall provide information as to the Proposals and experience of all executive, managerial, legal, and professional personnel to be assigned to this project, including resumes citing experience with similar projects and the responsibilities to be assigned to each person. A project-specific firm chart which clearly illustrates the roles, responsibilities, and the reporting relationships of each team member should be included.

Scoring of the RFP submittals will address the services to be provided as described as below:

5.1 Qualifications and Experience of the RNG Management Project Team (maximum 15 weight)

a) Describe the RNG Management Service Provider’s and specifically, the proposed management team’s unique qualifications and experience as it relates to this project, including knowledge of the RNG markets.

b) Provide a brief, one or two paragraph description and background of each of the key team members (including affiliates and subcontractors), and their affiliations that will be directly involved in providing the services. Describe their role(s) in Phase I, Phase II, and Phase III of the Project. For each key team member, include the person’s qualifications, education, certifications, and work experience (specifically RNG, natural gas, and RIN/environmental attribute monetization).

c) Provide, an organization chart showing the proposed project team with key assignments and lines of authority and communication for each team member (including any affiliates or subcontractors) directly involved in the Project. This chart should indicate changes to team staffing and management for Phases I, II, and III Services. The chart may include written explanations, as necessary.

d) Describe the points of contact, level of authority, and the communication process along with how the management team(s) will interact with City staff during Phase I, Phase II, and Phase III.

5.2 Similar RNG Management Experience (maximum 10 weight)

Provide a table of RNG and transportation fuel end-user related work performed within the last three (3) years where the firm and/or proposed Project Team provided services that are comparable in scope, scale, and complexity to the City project. In table format, at a minimum, describe for each project:

a) The RNG producer name, location and feedstock;

b) RNG volumes;

c) RNG end-user(s); and

d) Environmental attributes involved.

5.3 RNG Market Knowledge and Project Approach (maximum 15 weight)

Clearly describe specifics of establishing the RNG Management program including, but not limited to:

a) RFS compliance;

b) Identifying and executing on RNG sales opportunities in North Carolina;

c) RNG management operations;

d) RIN management;

e) QAP coordination; and

f) RIN monetization.

Services provided in each phase (Phase I, Phase II, and Phase III) are to be described individually.

5.4 RNG Management Approach and Plan Framework (maximum 10 weight)

a) Identify key tasks and activities to be performed by the RNG Management

Services Provider, its affiliates, and its subcontractors during each Phase of the Project.

b) Include a general description of tasks and activities to be completed in each Phase of the Work.

d) Provide a Preliminary Schedule for Phases I and II based on an September 1, 2024, commercial operations date.

5.5 Execution Plan (maximum 10 weight)

a) Summarize the steps to be taken in organizing and implementing key activities for each Phase of the Work.

b) Identify the key success factors and activities critical to each Phase of the Work and explain how these Work components will maximize revenues to the City from the sale of RNG and associated environmental attributes.

c) Describe interaction with the City’s RNG project team for each Phase of the Work.

d) Describe Work anticipated to be self-performed versus Work to be performed by affiliates and/or subcontractors.

e) Describe your RFS compliance management and quality assurance plans.

f) Describe your overall project management and coordination approach, including key interfaces with the QAP Services provider.

5.6 Presentations/Interviews (maximum 20 weight), if conducted

The City will advise the short-listed firms of the time and place in writing approximately two (2) weeks in advance. Presentation/Interviews are anticipated to be sixty (60) minutes per firm. The City will provide an agenda or outline in advance of the interview covering any additional requirements to be addressed by the shortlisted firms.

The date(s) for presentations/interviews with the short-listed firm(s), if deemed necessary, are tentatively scheduled for the week of May 30, 2024.

In addition to a presentation and response to interview questions, shortlisted firm’s may be required to provide additional materials, responses to additional follow up questions or provide examples of the professional quality of the firm’s previous work for similar projects. If required, additional material will be requested formally in writing by the City.

Presentations/Interviews/additional materials will be scored at 40 maximum points using the same general criteria as outlined above for written proposals.

The total score for written proposals will be added to the total score for presentations/interviews to arrive at the final score to determine the highest ranked firm.

Tab 6: Cost In a separate sealed envelope provide a minimum of five (5) complete copies of cost schedule. Hourly rates shall be fully burdened to include all costs, all applicable overhead and profit (including lodging, meals, and transportation). Attach any additional pricing details.

2.2 RFP Documents

This RFP is comprised of the base RFP document, any attachments, and any addenda released before Contract award. All attachments and addenda released for this RFP in advance of any Contract award are incorporated herein by reference.

3 PROPOSAL EVALUATION

3.1 Proposal Evaluation Criteria (Stage 1)

This is not a bid. There will not be a public opening. The Proposals received in response to this RFP will be evaluated and ranked, by the Proposal Evaluation Committee in accordance with the process and evaluation criteria contained below. Responses will be evaluated in light of the material and substantiating evidence presented in the response, and not on the basis of what is inferred. After thoroughly reading and reviewing this RFP, each Evaluation committee member shall conduct his or her independent evaluation of the proposals received and grade the responses on their merit in accordance with the evaluation criteria set forth in the following table.

The maximum interview/demonstration points a Proposer can receive is five (5) points.

The Proposers selected for interviews/demonstrations under this section will be notified in writing of the date and time. The Proposers’ interview/demonstrations shall be based solely upon information provided in each Proposer’s original proposal. No new information may be presented.

Criteria (a) Weight

(b) Score (0-3)

(a) x (b) Weighted Score

Qualifications and Experience of the RNG Management Project Team 15

Similar RNG Management Experience 10 RNG Market Knowledge and Project Approach 15

RNG Management Approach and Plan Framework 10

Execution Plan 10

Firm Financial Stability 5

Proposed Cost 15

Total Score (without Interview)

Interview/Demonstration (if conducted) 20

Final Score (with Interview)

Score Points 0- Missing or Does Not Meet Expectation 2- Meets Expectation 1- Partially Meets Expectation 3- Exceeds Expectation

Cost Formula: The cost criterion is rated by giving the proposal with the lowest total cost the maximum number of Cost points available. The remaining proposals are rated by applying the following formula:

1 - B - A x C = D A

A—the lowest Proposer’s cost.

B—the Proposer’s cost being scored.

C—the maximum number of cost points available.

D—Proposer’s cost score (points).

Note: If the formula results in a negative number (which will occur when the Offeror’s cost is more than twice the lowest cost), zero points shall be assigned.

3.2 Interview/Demonstration (Stage 2)

A short-list of firms may be invited to Stage 2 of the evaluation process, the Interview/ Demonstration. Interview/demonstrations are an important aspect of the evaluation process that offers the City an opportunity to see how the proposer’s solution meets the critical components of the RFP.

3.3 Final Selection

Proposals will be evaluated and ranked according to the criteria and weighted values set forth in Section 3.1. Either a final selection for recommendation will be made at this time or the short-list of firms will be invited to participate in Stage 2 of the evaluation process.

If Stage 2 is implemented, each firm will be evaluated and assigned a score to determine the best firm for recommendation.

After which negotiations of a contract with the most qualified firm will commence. If negotiations are unsuccessful, the City will then pursue negotiations with the next most qualified firm. All Proposers will be notified of their standing immediately following the City’s decision.

The City shall not be bound or in any way obligated until both parties have executed a contract. The City also reserves the right to delay the award of a contract or to not award a contract.

3.4 Notice to Proposers Regarding RFP Terms and Conditions

It shall be the Proposer’s responsibility to read the Instructions, the City’s Standard Contract Terms and Conditions (Appendix V), all relevant exhibits, attachments, and any other components made a part of this RFP and comply with all requirements and specifications herein. Proposers are also responsible for obtaining and complying with all Addenda and other changes that may be issued in connection with this RFP.

3.5 Contract Term

The Contract shall have an initial term of three (3) years, beginning on the date of the Contract award (the “Effective Date”). At the end of the Contract’s current term, the City shall have the option, in its sole discretion, to renew the Contract on the same terms and conditions for up to a total of two (2) additional one-year terms. The City will give the Contractor written notice of its intent whether to exercise each option no later than ninety

(90) days before the end of the Contract’s then-current term. In addition, the City reserves the right to extend a contract term for a period of up to 180 days in 90-day-or-less increments.

4 SCOPE OF SERVICES

Awarded Contractor shall provide services, all as set forth in this RFP and more particularly described in this Section 4.

The City’s objectives for RNG Management Services are as follows:

a) Maximize revenues (net of costs and revenue sharing) to the City from the sale and use of RNG including, but not limited to D3 RINS. This goal will not impact the pass-through rate established for sales of RNG to City of Raleigh Transit Services (GoRaleigh).

b) Compliance: Provide the City with compliance of the regulatory requirements for the production and sale of RNG including, but not limited to the Renewable Fuel Standard (RFS) Quality Assurance Protocol.

c) Assist with providing necessary gas storage and associated documentation of storage during EPA registration process (if allowed).

RNG Management Services Provider will, at a minimum, deliver the following services:

• Identify opportunities for the sale and use of RNG that maximize revenues (net of costs and revenue sharing) to the City including, but not limited to:

o D3 RINs o Other environmental advisory services (as applicable)

• Ongoing analysis and assessment of market conditions and opportunities for the sale of RNG

• Ongoing analysis and assessment of market conditions and opportunities, and timing for the monetization of RINs and other environmental attributes

• Selection of shipper and review of associated agreements and ensuring agreements meet requirements for RFS

• Selection of the QAP services provider

• Collaborate with entity performing independent engineering evaluation to assist with registration of the RNG Facility in the EPA’s EMTS system

• Identify, document, and register with the USEPA the pathway(s) required for the sale and use of RNG as transportation fuel

• Support City’s third party RNG engineer who will be responsible for registering the

City as a Biogas Producer and Renewable Fuel Producer

• Preparation and submittal of all EPA required reports for RIN generation and RFS compliance

• Manage all RNG project registrations and certifications required for other non-RIN environmental attributes

• Selection of and manage the RNG Project’s QAP services provider

• Manage the registration and tracking of RINs

• Provide transportation end user RNG volume data to the EPA as required for the creation and receipt of D3 RINs

• Manage the creation, tracking, and transfer of RINs in the City’s EMTS account

• Market RINs and other environmental attributes as directed by the City and arrange for RIN brokerage services to complete/monetize the sale of RIN,

• Manage the distribution of financial proceeds from RINs, and other environmental attributes (as applicable) to the applicable parties

• Obtain all permits, licenses, and other authorizations necessary for Provider to work in North Carolina.

• The RNG Manager will need to contract with a Shipper from Dominion Energy’s approved list (https://www.dominionenergy.com/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/approved-shippers-list.pdf?la=en&rev=79f269e3f1934fa5baa56db57b80dd9d)

The RNG Manager and Shipper will need to abide by the pooling agreement executed between the Shipper and Dominion Energy (https://cdn-dominionenergy-prd-001.azureedge.net/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/ngt-transportation_pooling_agreement.pdf?rev=07158c06a0a94a4f826342811ccab01f) . The RNG Manager/Shipper will not have to pay for the transportation tariffs paid on gas sold to GoRaleigh.

• RINs are a commodity that would typically be sold at market on a monthly basis.

The City’s preference is to sell RINs on a monthly basis and not to hold them until market conditions are optimal to maximize revenue. However, the City would be open to dialog on this subject.

https://www.dominionenergy.com/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/approved-shippers-list.pdf?la=en&rev=79f269e3f1934fa5baa56db57b80dd9d https://www.dominionenergy.com/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/approved-shippers-list.pdf?la=en&rev=79f269e3f1934fa5baa56db57b80dd9d https://www.dominionenergy.com/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/approved-shippers-list.pdf?la=en&rev=79f269e3f1934fa5baa56db57b80dd9d https://cdn-dominionenergy-prd-001.azureedge.net/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/ngt-transportation_pooling_agreement.pdf?rev=07158c06a0a94a4f826342811ccab01f https://cdn-dominionenergy-prd-001.azureedge.net/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/ngt-transportation_pooling_agreement.pdf?rev=07158c06a0a94a4f826342811ccab01f https://cdn-dominionenergy-prd-001.azureedge.net/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/ngt-transportation_pooling_agreement.pdf?rev=07158c06a0a94a4f826342811ccab01f https://cdn-dominionenergy-prd-001.azureedge.net/-/media/pdfs/north-carolina---gas/transportation/natural-gas-transportation/ngt-transportation_pooling_agreement.pdf?rev=07158c06a0a94a4f826342811ccab01f

• Describe proposed payment/remittance schedule for delivering revenues to the City.

• Work performed by the City:

• Operate RNG Facility and inject RNG into Dominion Pipeline.

• Provide Estimated Daily Nominations

• RIN Generator

The following will be the sequence for the NRRRF RNG Sales (see flow chart for reference):

1. Working with NRRRF and the RNG Manager, the Shipper will prepare Daily Nominations of the NRRRF RNG Supply Source.

2. The RNG Manager will purchase the RNG and the Environmental Attribute (RIN) from the City of Raleigh at the NRRRF

3. The designated Shipper will purchase and take title of just the RNG (measured in MMBTU); the RIN will stay with the RNG Manager.

4. These two transactions will happen simultaneously at the Dominion Meter Station to be located at the NRRRF.

5. The Shipper will then sell the RNG and give title back to the RNG Manager at the GoRaleigh CNG Dispenser Station(s) to be used for Transportation fuel. The Daily Nominations will be based on GoRaleigh maximum expected CNG usage.

6. In preparing the monthly reports, if there is excess RNG volume after the

GoRaleigh Daily Nominations, the Shipper will contract with other CNG Dispenser(s) within the boundaries of the PSNC Pooling Agreement that will purchase the RNG for Transportation fuel. In the event that this is a shortage of RNG Volume to meet the GoRaleigh Daily Nominations, the Shipper will provide alternative natural gas supply per the PSNC Pooling Agreement to meet the demands of the GoRaleigh CNG buses.

7. RNG Manager and Shipper will prepare the Daily Nominations for those other

CNG Dispensers for the excess RNG volume.

The Shipper will balance the Daily Nominations of the NRRRF RNG supply source with the corresponding CNG sales over a month. As discussed, while the NRRRF RNG production will be fairly steady over a 24-hour period on a day-to-day basis, the CNG sales will mostly be during weekday evenings.

The shipper is responsible for taking title of the RNG from the supplier and delivering to the CNG buyers. However, the shipper will only take title of the molecules (measured in MMBTU or dekatherms), the RNG Manager will retain title of Environmental Attributes.

Under the agreement between the RNG Manager and Shipper, there will be specific rate structure for all RNG sales, including a pass-through rate for the GoRaleigh Transit Services for the final sales volumes; the RNG Manager will be allowed just a pass-through fee (as a %) to transact that sale. For the other CNG buyers, the RNG Manager is expected to sell the natural gas commodity at market value and provide a split as provided in Appendix I.

Flow Chart

Biogas Producer -

NRRRF

RNG Producer -

NRRRF

RNG Pipeline Injec�on Dominion Energy

Transporta�on End Users

RFS RIN

Generated

Biogas Treatment

RIN & RNG

Transferred

RFS RIN

Separated Transporta�on

Sales Records

RIN Sold

NRRRF

RNG

Manager

LEGEND

FM

Neuse River Resource Recovery Faci l i ty

Ci ty of Ra leigh Contractor

FM

FM

Flow Meter

Contractual Gas Transfer

RNG Producer -

NRRRF

Secondary RNG End Users – Other Transporta�on

Services

Shipper*

Primary RNG End User – GoRaleigh

Transit Service

Dominion Energy

Daily Nomina�ons

RNG Pipeline Injec�on

Daily Nomina�ons

Shipper reports daily RNG volumes from NRRRF to Dominion

Shipper also reports daily nomina�ons for the RNG End-Users & RNG End-Users

FM

* Shipper contracts with RNG Manager

FM

FM

APPENDIX I

PROPOSAL COST FORM

Awarded Contractor shall perform the services to be performed as set forth in this RFP and more particularly described in Section 4 for a not to exceed amount for the three year contract term, assuming 400 MMBTU/day on an annual basis, possible biogas production variability as much as 20%, and production growth of approximately 2 to 4% annually.

Proposer shall attach proposal cost breakdown to this Appendix I Proposal Cost Form.

Firm Name: ____________________________________________________________

Authorized Signature _______________________________Date__________________

Signed by: _____________________________________________________________

[Type or Print Name]

Title of Signer: __________________________________________________________

APPENDIX I

City of Raleigh is requesting clarification of cost proposals to be submitted in a format that clearly differentiates fixed fees from commissions. Submissions shall represent Contractor’s best and final offer.

Table 1. Commission Cost Proposal

Cost Proposal

Contractor Commission

City Share %

Multiple

Contractor Total ($)

RNG Commodity (Go Raleigh) *

Not Applicable

$100,000.00

RNG Commodity (other CNG buyers)

$100,000.00

D3 RIN $100,000.00

Other Environmental Attributes (if applicable) (Specify)

$100,000.00

Total Base Bid $ *For RNG Commodity Gas sold to GoRaleigh, there will be a pass-through rate for the GoRaleigh Transit Services for the final sales volumes. The Contractor Commission % for this row should represent the pass-through fee (as a % of the pass-through rate) to transact that sale.

Table 2. Fixed Fee Cost Proposal Fees shall be delineated for services such as technical assistance with RFS Registration and 3rd party audit of RIN transactions. All associated fees must be clearly identified. Fees not listed are assumed to be included in Contractors commission rate.

Fixed Fee Description

Frequency (1x, or annual)

Cost examples Technical Assistance with RFS Registration With EPA 3rd Party Audit (Attest Engagement) of RIN Transactions

Annually

Quality Assurance Plan under the EPA RFS Program Other Items (Specify) Other Items (Specify) Other Items (Specify)

Total Base Bid $

Table 3. Diversification

Please provide an estimation of production diversifications for attaining maximum yield while minimizing risk.

MMBTU/Day Year 1 Year 2 Year 3 Year 4 Year 5

D3 RIN

Other Environmental Attributes (if applicable) (Specify)

Table 4. Estimated Compensations Please provide an estimation of annual revenues resulting from the diversification strategies depicted in Table 4 based on actual RIN market values for 4th quarter 2023 for reference.

Diversification

Year 1 Revenues

Year 2 Revenues

Year 3 Revenues

Year 4 Revenues

Year 5 Revenues

D3 RIN $ $ $ $ $

Other (Specify) Total Revenue $ $ $ $ $

Table 5. Proposed Basis for Pricing for Natural Gas Provided to GoRaleigh in Event that RNG Production is Less than GoRaleigh CNG Bus Demands (i.e., during periods of maintenance for digester gas treatment system). If propose to base on an Index, please explain proposed index to be used for establishing pricing.

$/MMBtu (Dth): Year 1 Year 2 Year 3 Year 4 Year 5 Basis Price or Index

This is to be considered “swing volume gas” during the month under the rate 175. Suppliers should quote NYMEX LDS + $ X or an Index + $ scenario.

Payment Terms

Payment terms for both fixed fees and RIN sales must be clearly described to facilitate adherence with City of Raleigh Procurement and Finance rules and regulations. Please indicate the method of invoice submittals and whether these will be submitted monthly or as deducts from monthly sales revenues.

Example Scenario

Assuming annual gas generation of 400 MMBTU/day, and estimating 1,600,000 RINs/year, please provide example calculations including twelve-month estimates.

RIN Gross Revenue: $ (show calculations) Minus Estimated Expenses: $ (fixed costs from Table 2) Net RIN Proceeds: $ (show calculations) City of Raleigh’s Share of Net RIN Proceeds: $

APPENDIX II

PROPOSER QUESTIONNAIRE

The following questions must be answered, and data given must be clear and comprehensive. If necessary, questions may be answered on separate sheets. The Proposer may submit any additional information desired.

Company Name: d/b/a (if applicable)

Street / PO Box:

City: State: Zip:

Phone: Fax: E-Mail:

Website (if applicable):

Sole Proprietor Partnership Corporation Other

Number of years in business under company’s present name:

Fed Tax ID #: DUNS # Are you registered with the North Carolina Secretary of State to conduct business (if required)? (Check One) YES: NO: Not Applicable:

Are you properly licensed/certified by the Federal and/or State of North Carolina to perform the specified work?

YES: NO: Not Applicable: ATTACH COPY OF ALL APPLICABLE LICENSING/CERTIFICATION DOCUMENTS Are/will you be properly insured to perform the work? YES: NO:

Contact for this Contract: Title:

Phone: Fax: E-Mail:

Have you ever defaulted or failed on a contract? (If yes, attach details) YES: NO:

List at least three (3) references for which you have provided these services (same scope/size) in the past three years - preferably government agencies. Do not include City of Raleigh as a reference to meet the requirement of listing at least (3) references.

PROPOSERS ARE RESPONSIBLE FOR SENDING REFERENCE QUESTIONNAIRE (APPENDIX III) TO THEIR

REFERENCES.

1. Company:

Contact Person: Title:

Phone: Fax: E-Mail:

Describe Scope of Work:

2. Company:

Contact Person:…