RFP SOL-165-12-000005.pdf

Date Issued: 14 September 2012

Questions Due By:25 September 2012

Closing Date: 18 October 2012

Closing Time: 17:00 (KosovoTime)

SUBJECT: Request for Proposal (RFP) No. SOL-165-12-000005

Competitiveness Through Clean Energy Investment – Industrial Management Project –

USAID/Macedonia

Dear Sir/Madam:

The United States Government, represented by the U.S. Agency for International Development (USAID), Regional

Services Center (RSC) in Budapest, is seeking proposals from qualified Macedonian organizations interested in providing technical assistance and/or services to governmental and non-governmental organizations to improve Macedonia‘s competitiveness and energy security and reduce greenhouse gas emissions via greater clean energy investments, primarily through the introduction of a systematic energy management approach in the industrial sector. The reduction of energy use, combined with fuel switching to local and less expensive (relative to electric heating) sources improves business and individual capital liquidity, while also reducing dependence on foreign fuel and energy imports and limiting greenhouse gas emissions. Ultimately, the extra capital and reduced fuel price risk should improve the competitive position of local businesses and therefore encourage further investment.

This is a full and open competition, under which any type of Macedonian organization (large or small commercial [for profit] firms, educational institutions, and non-profit organizations) is eligible to compete. The procedures set forth in

FAR Part 15 shall apply.

For the purposes of this section, local entity means a corporation, a nonprofit organization, or another body of persons that--

(1) is legally organized under the laws of;

(2) has as its principal place of business or operations in; and

(3) either is--

(A) majority owned by individuals who are citizens or lawful permanent residents of; or

(B) managed by a governing body the majority of whom are citizens or lawful permanent residents of Macedonia;

For purposes of this section, `majority owned' and `managed by' include, without limitation, beneficiary interests and the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization's managers or a majority of the organization's governing body by any means.

USAID plans to award a fixed-priced contract paying fixed amounts for completion of milestones that the offeror shall propose in accordane with C, IV.Detailed Work Requirements. The contract is planned for a base period of three years with an option to extend by one more year. The total estimated cost is ranging between US $1.2 - $1.3 million for the three years base period and $300,000 to $400,000 for the one year option period, inclusive of fee, and subject to availability of funds.

Revealing the range of the Government cost estimate for the contract does not mean that Offerors should necessarily strive to meet the maximum amount.

Section C of this solicitation sets the activities required to be implemented. Section L of the RFP sets forth instructions for the preparation and submission of proposals and specifies the required contents of proposals. Please submit your proposal in accordance with the requirements in Sections C and L of this solicitation. Section M states the criteria by which proposals will be evaluated, and the award will be made.

Offerors should note that funds are not presently available for this contract. The Government‘s obligation under this contract is contingent upon the availability of appropriated funds from which payment for contract purposes can be made.

No legal liability on the part of the Government for any payment may arise until funds are made available to the

Contracting Officer and until the Contractor receives notice of such availability, to beconfirmed inwriting by the Contracting Officer.

Interested firms can register and use the Interested VendorList (IVI.) accessible through this solicitation on the FedBizOpps webpage, so that firms can contact one another for consideration ol"learning arrangements and/orsmall business subcontracting opportunities in response lo this solicilalion.

Anyamendments lo this solicilalion will be issued and postedon the website alongwith the RFP. Offerorsarc encouraged to checkthe FedBizOpps website(www Ibo gov ) periodically. It is the responsibility of theOfferor to ensure that solicitationor any amendments lo it has been received from the internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Questions

Potential Offerors may submit questions in writing, by email to Ms. Szidonia Szekcrcs at: ss/ekeres</umijiInov and Mr. Florenlin Emini at: Icmmii/ u>aid uovat the USAID Regional Contracting Office (RCO). Kosovo. The deadline for receipt of questions and/or requests for clarifications is the due date for questions reflected on ihe cover page of this letter. No questions will be accepted after this dale.

Issuanceof this solicitation does not constitute an award commitment on the part of the Government, nor does il commit the Government to pay for any costs incurred in the preparation or submission of a proposal. Furthermore, the Government reserves the right lo rejectany and all offers, if such action is considered lo be in the best interest of the (io\ eminent. Thank you for your interest in I 'SAID programs.

Contracting Officer

TBD SOL-165-12-000005

As specified in Section L.5

Szidonia Szekeres sszekeres@usaid.gov

X

X

X

X

X

R. Brian Aaron

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB) Date of Cover Letter REQ-165-12-000032

NEGOTIATED (RFP)

7. ISSUED BY

U.S. Agency for International Development

Regional Contracting Office

Ismail Qemali (Arberia), House no.1

Pristina, Kosovo 10000

CODE 8. ADDRESS OFFER TO (If other than Item 7)

NOTE: In sealed bid solicitations "offer" and "Offeror" mean "bid" and "bidder".

9. Sealed offers in ONE ORIGINAL and VIA EMAIL for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located in

Until the date and time specified on the cover letter local time

(Date) (Hour)

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All Offers are subject to all terms and conditions contained in this solicitation.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE

36-1-475-4914

NUMBER

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM 1 X I CONTRACT CLAUSES 48

B SUPPLIES OR SERVICES AND PRICES/COSTS 7 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT 10 X J LIST OF ATTACHMENTS 56

D PACKAGING AND MARKING 26 PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE 28 X

F DELIVERIES OR PERFORMANCE 29 X

G CONTRACT ADMINISTRATION DATA 36 X X L INSTR., CONDS., AND NOTICES TO OFFERORS 65

H SPECIAL CONTRACT REQUIREMENTS 40 X X M EVALUATION FACTORS FOR AWARD 78

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER 57

STATEMENTS OF OFFERORS

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In cmpliance with the above, the undersigned agrees, if this offer is accepted within 120 calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The Offeror acknowledges receipt of amendments to the

SOLICITATION for Offerors and related documents numbered and dated:

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER 15A. NAME AND

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

(4 copies unless otherwise specified) 10 U.S.C. 2304(a) ( ) 41 U.S.C. 253(c) ( )

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BY CODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

N/A 2 93

See Attached Table of Contents

RFP No. SOL-165-12-000005 Page 4 of 81

Competitiveness through Clean Energy Investment - Industrial Management Project – Macedonia

Table of Contents Page

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 PRICE, PAYMENT SCHEDULE AND OBLIGATED AMOUNT

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING STRATEGY

D.3 BRANDING AND MARKING POLICY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 MONITORING AND EVALUATION

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 REPORTS AND DELIVERABLES OR OUTPUTS

F.6 KEY PERSONNEL

F.7 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (JAN 2004)

F.8 REPORTING ON TAXATION OF U.S. FOREIGN ASSISTANCE (JULY 2007)

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER‘S REPRESENTATIVE (COR)

G.4 TECHNICAL DIRECTIONS

G.5 RELATIONSHIPS AND RESPONSIBILITIES

G.6 PAYING OFFICE

G.7 ACCOUNTING AND APPROPRIATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.3 LANGUAGE REQUIREMENTS

H.4 RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (JUNE 2008)

H.5 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

H.6 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPTEMBER 2006) ... 29

H.7 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES

H.8 GENDER CONSIDERATION

H.9 ORGANIZATIONAL CONFLICT OF INTEREST

RFP No. SOL-165-12-000005 Page 5 of 81

H.10 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF 1973

AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND

INFORMATION TECHNOLOGY ACCESSIBILITY

H.11 MANAGEMENT OF INFORMATION TECHNOLOGY RESOURCES

H.12 INVESTMENT PROMOTION

H.13 SPECIAL PROVISIONS

H.14 ENVIRONMENTAL COMPLIANCE

H.15 COMPETITION AND SUBCONTRACTING

H.16 GOVERNMENT PROPERTY

H.17 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.18 AUTHORIZED GEOGRAPHIC CODE

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.204-7 CENTRAL CONTRACTOR REGISTRATION AUG 2012

I.3 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (FEB 2012)

I.4 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.5 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.6 52.232-25 PROMPT PAYMENT (OCT 2008)

I.7 52.244-2 SUBCONTRACTS OCT 2010

I.8 52.244-5 COMPETITION IN SUBCONTRACTING (DEC 1996)

I.9 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.10 AIDAR 742.1170-4 PROGRESS REPORTING REQUIREMENTS AND CONTRACT CLAUSE 44

I.11 AIDAR 752.7016 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008)

I.12 752.7019 PARTICIPANT TRAINING (JAN 1999)

I.13 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (JAN 1990)

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS ... 47

K.1 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2012)

K.2 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB 2012)

K.3 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR

2005)

K.4 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.5 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.2 52.215-1 INSTRUCTIONS TO OFFERORS—COMPETITIVE ACQUISITION (JAN 2004)

L.3 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.4 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.5 GENERAL INSTRUCTIONS TO OFFERORS

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE BRANDING AND MARKING PLANS .. 62

RFP No. SOL-165-12-000005 Page 6 of 81

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL EVALUATION INFORMATION

M.2 EVALUATION CRITERIA

M.3 COST PROPOSAL EVALUATION

M.4 EVALUATION OF OPTIONS (JULY 1990)

M.5 DETERMINATION OF THE COMPETITVE RANGE AND CONTRACT AWARD

M.6 SOURCE SELECTION

ATTACHMENTS

ATTACHMENT 1- DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 2 – COST MATRIX

ATTACHMENT 3 - BRANDING IMPLEMENTATION PLAN

ATTACHMENT 4 - MARKING PLAN FOR THE USAID/ MACEDONIA INDUSTRIAL

MANAGEMENT PROJECT (TEMPLATE)

ATTACHMENT 5 - LIST OF REFERENCE MATERIALS

ATTACHMENT 6 - LIST OF ACRONYMS

RFP No. SOL-165-12-000005 Page 7 of 81

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to improve Macedonia‘s competitiveness and energy security and reduce greenhouse gas emissions via greater clean energy investments, primarily through the introduction of a systematic energy management approach in the industrial sector. The reduction of energy use, combined with fuel switching to local and less expensive (relative to electric heating) sources improves business and individual capital liquidity, while also reducing dependence on foreign fuel and energy imports and limiting greenhouse gas emissions.

Ultimately, the extra capital and reduced fuel price risk should improve the competitive position of local

B.2 CONTRACT TYPE

This is a fixed-price contract. For the consideration set forth below, the Offeror shall propose milestones of project implementation and fix amount payable for completion of each milestone, in accordance with deliverables or outputs described in Section C and F, and the performance standards specified in Section F.

B.3 PRICE, PAYMENT SCHEDULE AND OBLIGATED AMOUNT

(a) The fixed price for the performance of the work required hereunderfor the three-year base period is TBD, for the additional one-year option period is TBD.

Payment of fixed amounts associated with each milestone of contract completion shall be made to the Contractor based on the following schedule:

Milestone Amount Payable

1. TBD

2. TBD

3. TBD

4. TBD

Etc.

END OF SECTION B

RFP No. SOL-165-12-000005 Page 8 of 81

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

COMPETITIVENESS THROUGH CLEAN ENERGY INVESTMENT –

INDUSTRIAL MANAGEMENT PROJECT – MACEDONIA

I. INTRODUCTION

Macedonia has come a long way in its transition from a centrally-planned to a market economy, although reform efforts have been frequently interrupted by political instability. Since 2001 modest economic growth has resumed, structural reforms have been accelerated and macroeconomic stability in the country has steadily increased.

Macedonia is progressing in reforming its energy sector, exhibited by the recently adopted new Energy Law and the development of relevant secondary legislation in addition to several strategies and action plans on Clean

Energy that bring Macedonia closer to compliance with Energy Community requirements and the European Union energy-related Directives. However, as the existing strategies and plans in part identify, the country has still to overcome a number of serious problems attached to its development and the growing energy demand: strong dependence on energy imports, unfavorable energy mix, lack of investment in new energy generation facilities, particularly of alternative energy sources, high energy intensity and a high degree of inefficiency in energy production and use. In addition, Macedonia needs to make significant efforts and investment to meet the targets set forth in the Clean Energy Strategies, specifically on energy efficiency and renewable energy.

II. BACKGROUND

2.1 Overview of Energy Sector

Macedonia's economy is one of the most energy intensive in Europe due to obsolete and inefficient technologies.

It has limited supplies of commercial energy resources, with domestic energy production covering about 60% of the demand. The energy import in the country is high, in the range of 40%, and has been increasing during the last few years. Final energy use has been steadily increasing since 2001. The highest consumption of energy is in industry 33.8%; the residential sector accounts for about 29.2%; transport 20.5%; and commercial and service sector 13.1%. According to statistics, the final energy consumption per capita in Macedonia in 2006 was three times lower than the consumption in OECD countries, while the primary energy consumption per unit of GDP is almost four times higher. This is due to the heavy use of energy in the metal processing industry; low-efficiency power generation, supply and consumption; and the prevalence of using electricity for residential heating. The following figure displays Macedonia‘s primary energy consumption breakdown by source.

Macedonia Primary Energy Consumption in 2006

Recognizing the seriousness of the situation, the Government of Macedonia focused on the need for rationalizing energy production and consumption by developing major strategic and legislative frameworks for energy

RFP No. SOL-165-12-000005 Page 9 of 81 efficiency and renewable energy over the past few years. International support for developing an enabling environment for energy efficiency has been initiated. However, energy efficiency has not gained enough priority in the Government's implementation performance while the renewable energy project development process is recognized as complicated, and national capacity to develop low emissions strategies and access international climate change mitigation funding, including clean energy funding, is limited. To close the policy implementation gap and to begin to move the economy to a less energy intensive structure, specific action is needed to increase industrial efficiency and competitiveness by introducing energy management practices and thus reducing energy intensity of production processes. Focus also needs to be placed on strengthening governmental and institutional capacity; developing and/or strengthening the private sector energy service providers; continuing pricing reforms;

reducing electricity used for heating; increasing renewable energy utilization; reducing carbon emissions by introducing new technologies; and raising awareness.

An important influence on Macedonian energy policy is the overall country‘s objective of EU accession. After

2004, when the Stabilization and Association Agreement entered into force, Macedonia gradually moved towards meeting the EU requirements regarding the development of the energy sector. In 2006, Macedonia ratified the

Energy Community Treaty which requires all Contracting Parties to adopt core EU energy legislation (the acquis communautaire) in the area of electricity, gas, environment, competition, renewables and energy efficiency.

The

EU/Energy Community acquis on electricity also mandates that Contracting Parties unbundle their electricity generation and distribution systems, and establish transparent and competitive markets and networks for cross-border exchange of electricity. The strategic priorities of Macedonia in the energy sector are compliance with the

Energy Community Treaty and the EU Directives, which are to a large extent incorporated in the new Energy

Law.

The Government Program 2011-2015 signals national priorities through the inclusion of a number of activities related to renewable energy and energy efficiency, and activities related to transformation of the Public Enterprise

―MacedonianForest‖ and introduction of forestry information system and planned harvesting. Additionally, the

Industrial Policy includes measures that focus on Industrial Energy Efficiency, increasing awareness of private sector sustainable development, and realigning the public procurement to sustainable development.

2.2 Need to Reduce Energy Intensity and Improve Efficiency

Past USAID activities aimed at increasing the competitiveness of Macedonian companies focused on developing market linkages, obtaining internationally required certifications, new product development and business expansion. To date, no attention was paid to excessive energy costs, which significantly affect the companies‘ competitiveness, due to inefficiency of use. Further, the recent long, cold winter in Macedonia and the region, with unusually large amounts of snow, created power shortages, price increases, and rolling blackouts, leading some countries to ban the export of electricity to secure internal markets. With the rise in energy costs coupled with the ongoing economic and financial crises leading to reduced trade and business activity, companies need to look for ways of improving their competitiveness through internal cost reduction. Better energy management and efficiency can help with this. Industrial sector accounts for more than 28 percent of GDP and employs over 30 percent of labor force.

There is a lack of energy management in industrial plants, inadequate energy efficiency engineering services, limited awareness in the banking sector, and a lack of advocacy/

See: http://www.energy-community.org/portal/page/portal/ENC_HOME/ENERGY_COMMUNITY/Legal/EU_Legislation

Under the electricity acquis, Contracting Parties must meet “minimum requirements for public service obligations and customer protection, monitoring of supply, authorizations and tendering of new capacity, tasks for transmission and distribution system operators, unbundling of network operation and transparency, third-party access to networks, eligibility and market opening, and regulatory powers.” Energy Community Secretariat, Annual Report on the Implementation of the Acquis Under the Treaty Establishing the Energy Community, September 1, 2011. P. 17. (Energy Community 2011 Annual Report) http://www.energy-community.org/portal/page/portal/ENC_HOME/ENERGY_COMMUNITY/Legal/EU_Legislation

RFP No. SOL-165-12-000005 Page 10 of 81 promotion of energy management. Industry is not prepared for the anticipated rise in energy costs over the next four years due to the further market liberalization. Very limited budget is allocated for energy efficiency activities.

All significant funding of energy efficiency projects is done predominantly through international cooperation.

Some positive signs in general commercial financing over the last few years has not influenced energy efficiency financing so far. A number of barriers hamper the investment in energy efficiency both on the financial sector side, and on the customers‘ side. Major problematic areas in Macedonia, as far as energy efficiency is concerned, are the inefficient energy consumption in industry and the wide use of electricity for domestic heating. Potential energy efficiency improvement measures in Macedonian industry include increasing efficiency in motor drives and air compressors, efficient utilization at industrial boiler plants, waste heat recovery and other measures.

III. SCOPE OF WORK

The activities under this procurement will improve Macedonia‘s competitiveness and energy security and reduce greenhouse gas emissions via greater clean energy investments, primarily through the introduction of a systematic energy management approach in the industrial sector. The reduction of energy use, combined with fuel switching to local and less expensive (relative to electric heating) sources improves business and individual capital liquidity, while also reducing dependence on foreign fuel and energy imports and limiting greenhouse gas emissions.

Ultimately, the extra capital and reduced fuel price risk should improve the competitive position of local

IV. DETAILED WORK REQUIREMENTS

Objective

Using the ISO 50001 energy management standard as a guideline, the principles of industrial energy management will be introduced to select Macedonia industries. Candidate industries will be identified through an assessment during the inception phase of the project and in consultation with industrial associations and chambers of commerce, focusing on those industries that are energy intensive and indicate a willingness to participate and/or cost share in energy management programs.

A key aspect of this activity is working with industry in a systematic approach to track energy use and reduce costs, as opposed to a singular focus on one-time energy efficiency upgrades. Energy management requires the continuous monitoring of energy usage in key process areas and cost centers and the analysis of these data as part of a comprehensive evaluation and tracking of energy efficiency projects, which, when done correctly result in continuous process improvement and a greater energy and cost savings over the lifetime of a process or facility.

Because energy management systems require the installation of data collection and storage hardware, upfront costs are incurred before available data can be used to identify and prioritize specific energy and cost savings interventions. As such, the initial capital outlay with no immediate return on investment may reduce the appeal of energy management systems in spite of the long-term cost savings that could be achieved. Therefore, communications and demonstrations will be a focus of the activity so that the benefits of energy management can be demonstrated and disseminated on a broad scale.

Illustrative Activities and Expected Results

The project activities will occur over a three-year period with the potential for a one-year extension. The Contractor shall carry out the activities below in the initial three-year period. If available budget allows for a one-year option, these activities will continue into the additional time period. The option must be priced.

RFP No. SOL-165-12-000005 Page 11 of 81

Component 1: Industry Selection.

The contractor will screen industries to determine those that might be attractive for engagement in the program.

Industries will be selected and ranked based upon consultation with USAID to focus on energy management activities. Additional industries may be considered if there is local interest and if resources are available to support expansion of the program. The following actions will be part of this component:

Initial outreach. The contractor will prepare materials describing the program, and following

Contracting Officer‘s Representative (COR) approval will disseminate these materials to local chambers of commerce and industry associations. The contractor will arrange meetings with these groups to explain the requirements and benefits of energy management and to solicit interest in the program.

Analysis. In parallel with the initial outreach, the contractor will develop initial screening criteria for selecting industries, subject to approval by the COR. The screening criteria will include at a minimum, industry energy intensity; potential energy and cost savings from energy management programs in the industry; general interest in the program and the presence of champions that will increase the ability to leverage results for broader application in Macedonia. Based on this analysis, the contractor will recommend an industry for program focus.

Company Selection. Following confirmation of the target industry by the COR, the contractor will identify companies that are candidates for energy management pilot projects. The contractor will engage in targeted outreach and will disseminate information to companies through industry associations, working in conjunction with relevant governmental and non-governmental organizations in Macedonia.

Interested companies will be asked to respond with an expression of interest.

Component 2: Demonstration Projects.

After agreement on the targeted industrial sector(s), the contractor will forward a list of candidate industrial companies to the COR for approval. Based on the contractor‘s information, analyses and recommendations, the

COR will make a decision on the inclusion of the companies in the program. The number of companies to be included and the timing of the demonstration projects will be determined by the COR. The contractor shall be responsible to screen the companies for concerns on ownership, business practices, and profitability. Among the criteria that might be included are financial soundness of company, ability to cost-share energy management projects, willingness to share energy use and savings data with USAID, and general corporate behavior (e.g., environmental compliance, tax compliance, degree of transparency, etc.). An environmental mitigation and monitoring plan will be required for activities under this component.

Energy Management System Installation. After company selection, the contractor will install cost-shared energy management systems and provide training on the ISO 50001 energy management standard to plant managers and staff tasked with energy management-related activities, including accounting personnel and technical specialists that operate energy intensive equipment. Training materials will be provided to the COR for clearance prior to the first pilot project. The contractor will develop specifications for energy management systems, based on industry type and system costs. In coordination with the COR, energy management systems will be selected for installation.

Data Collection and Monitoring. After the project installation, the contractor will assist company personnel in the collection and evaluation of energy usage data for one year. The contractor will visit the project site at least once per quarter to provide mentoring to site staff.

Energy Efficiency Project Preparation. After collection of one year of data, the contractor will assist host companies in the development of energy efficiency projects. The contractor will obtain agreement from the industrial company on the energy efficiency improvements the company wants to pursue, and the company‘s willingness to share the cost of an energy efficiency audit, as well as willingness to seek

RFP No. SOL-165-12-000005 Page 12 of 81 external financing for the implementation of the energy efficiency upgrade. The contractor will conduct or subcontract audits, which along with the energy usage data from the energy management system, will form the basis of the project(s) to be implemented. The contractor will explore alternative financial options and will assist the host company in project preparation for approaching the financing sector and help promote the projects. The contractor will not be responsible for funding or installing the energy efficiency projects under the USAID scope of work. As noted in Component 3, in the process of developing the pilot projects, the contractor will also seek to educate financial institutions on energy efficiency due diligence and lending practices.

Continued Data Monitoring and Reporting. The contractor will collaborate with host companies in monitoring and verification of energy savings and greenhouse gas emissions reductions following installation of the energy efficiency project, accounting for changes in local weather, plant production and staffing schedules, and other factors determined in consultation with the COR.

Component 3: Training and Sector Development

As part of the theme of capacity building, activities in this scope of work are intended to address not only the target organizations and bankers, but also local engineering consulting and business consultants. The contractor will therefore maximize sub-contracts with local organizations for the installation and maintenance of energy management systems and provide training in the ISO 50001 energy management guidelines as well as in the installation and maintenance of the systems to the contractors and to the host organizations. For projects implemented outside of this scope of work by the trained organizations (i.e., energy management and energy efficiency projects the organizations were able to implement as a result of USAID training), the contractor will collect and report energy and greenhouse gas emissions savings for the duration of this project.

All sub-contracts will follow USAID guidelines, Federal Acquisition Regulation (FAR) 44.2, ‗Consent to

Subcontracts‘ and 52.244-2, ‗Subcontracts‘ (See Section I).

Component 4: Outreach

The contractor will promote energy management practices through industry associations, including the development of materials promoting the ISO 50001 energy management guidelines as well as energy management and energy efficiency best practices and project results. The contractor will attend industry association meetings and hold workshops to engage industry, local consultants, and the financial community.

Deliverables and Reports:

Based on the activities and expected results above, the Contractor shall provide the following deliverables:

Initial Three-Year Project Period

Component 1

Industrial Sector Report: Within 90 days of entering into the agreement, the contractor will submit a report that recommends industries for inclusion in the project. The report will include a list of the criteria used to evaluate industrial sectors and describe the rationale for making the recommendation.

Meeting Summary Report: Within two (2) weeks of meetings with industry associations, summary memorandums describing meeting outcomes.

Deliverable: At least seven (7) industrial sectors will be engaged regarding energy management activities as a result of outreach activities.

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Component 2

Company Report: Within 60 days of approval of the report required for Component 1, a prioritized list of companies for demonstration projects, including selection criteria and appropriate background information to justify the recommendations.

Deliverable: 10 energy management projects implemented within the first 24 months of the project and an additional 7 for a total of 17 by the end of year three; 6 energy efficiency demonstration projects by the end of year three, including training on the ISO 50001 energy management guidelines.

Pilot Project Reports: Following each energy management installation or energy efficiency audit, the contractor will provide a summary report describing the activities undertaken at each pilot project sites. The summary reports will describe the installed energy management systems or the energy audit results, the personnel trained, the activities undertaken and any difficulties experienced in meeting program goals.

Project reports can be submitted as an email or in such other format as the COR may specify.

Annual Report: The contractor will provide annual reports describing annual cost, energy, and greenhouse gas emissions savings for all pilot projects, including results from energy management activities and results from energy efficiency projects financed stemming from project assistance. It will also highlight the successes and any difficulties that the program experienced and actions taken to address the issue.

Component 3

Deliverable: By contract end the contractor will train at least two (2) companies, not including affiliates of the contractor or pilot project host companies, on the installation and maintenance of energy management systems. The trained companies will participate in the installation and maintenance of at least two (2) pilot projects each.

Annual Report: The contractor will provide annual reports describing annual cost, energy, and greenhouse gas emissions savings for all energy management and energy efficiency projects from organizations trained under this scope of work.

Component 4

Deliverable: The contractor will hold at least 9 workshops or trainings to disseminate energy management and energy efficiency best practices. At least 1 workshop will be held in the first contract year, with 4 workshops held in both Years two and three.

Deliverable: By contract end, the contractor will engage at least two (2) financial institutions to train staff on the benefits and needs related to financing of energy management and energy efficiency projects.

Workshop Reports: The contractor will provide a report summarizing attendance and contacts made at all workshops.

Deliverable: The contractor will train staff at no less than 40 non-participant industrial companies on the

ISO 50001 energy management guidelines.

Deliverable: In addition to those trained, the contractor will disseminate energy management and energy efficiency best practices to at least 40 additional non-participant industrial companies.

Additional One-Year Option Period

Component 1

No additional deliverables or reports.

Component 2

Deliverable: An additional 5 energy efficiency demonstration projects by the end of year four for a total of

11 projects, including training on the ISO 50001 energy management guidelines.

Pilot Project Reports: Following each energy management installation or energy efficiency audit, the contractor will provide a summary report describing the activities undertaken at each pilot project sites. The

RFP No. SOL-165-12-000005 Page 14 of 81 summary reports will describe the installed energy management systems or the energy audit results, the personnel trained, the activities undertaken and any difficulties experienced in meeting program goals.

Project reports can be submitted as an email or in such other format as the COR may specify.

Annual Report: The contractor will provide annual reports describing annual cost, energy, and greenhouse gas emissions savings for all pilot projects, including results from energy management activities and results from energy efficiency projects financed stemming from project assistance. It will also highlight the successes and any difficulties that the program experienced and actions taken to address the issue.

Component 3

No additional deliverables.

Annual Report: The contractor will continue to provide annual reports describing annual cost, energy, and greenhouse gas emissions savings for all energy management and energy efficiency projects from organizations trained under this scope of work.

Component 4

Deliverable: The contractor will hold at least 3 additional workshops or trainings to disseminate energy management and energy efficiency best practices.

Workshop Reports: The contractor will provide a report summarizing attendance and contacts made at all workshops.

Deliverable: The contractor will train staff at no less than 10 non-participant industrial companies on the

ISO 50001 energy management guidelines.

Deliverable: In addition to those trained, the contractor will disseminate energy management and energy efficiency best practices to at least 10 additional non-participant industrial companies.

Role of Counterparts/Partners/Other Donors

The COR and the contractor will coordinate with other donor efforts addressing the industrial sector.

The following proposed or active donor programs in Macedonia involve energy efficiency or energy management and offer opportunities for potential partnership.

The United Nations Industrial Development Organization (UNIDO). At the request of the Ministry of

Environment and Physical Planning, UNIDO is currently developing a concept note for Industrial energy efficiency to be submitted for funding by the Global Environmental Facility (GEF). The concept includes activities that are similar to those in this project. This project is expected to start in second half of 2013 at the earliest.

EBRD’s Business Advisory Services supports local consultants to provide energy audits for industrial companies.

In March 2009, EBRD launched two investment facilities that provide debt financing for renewable energy and industrial energy efficiency projects to small and medium-sized enterprises in the Western Balkans including

Macedonia, as follows:

Western Balkans Sustainable Energy Direct Financing Facility. €50 million to provide direct individual loans between €1 and €6 million to industrial energy efficiency and renewable energy projects. The facility is complemented with grant funding for Technical Assistance for project identification, preparation and implementation verification.

Western Balkans Sustainable Energy Credit Line Facility. €50 million to provide loans to participating banks for on-lending to sub-borrowers for energy efficiency and renewable energy investments up to €2 million per project in the industrial sector or in buildings used for commercial services. The facility is

RFP No. SOL-165-12-000005 Page 15 of 81 complemented with grant funding for marketing and awareness raising, establishing technical eligibility criteria, preparing/appraising projects, implementation verification, etc.

As regional facilities, Macedonian borrowers are eligible for the EBRD facilities but no country-specific targets are in place. The interest rates are market based. Collateral will be required and will depend on the type of the financing provided.

V. GENDER ANALYSIS AND ETHNIC INCLUSION

USAID is committed to strengthening women‘s rights and strives to increase the contributions women make to economic, political, and social development. By addressing gender inequities and constraints grounded in entrenched gender roles and power dynamics that impact both men and women, USAID will strengthen the effectiveness of its development programming.

The ADS 201.3.9.3 requires answers to the following questions: How will gender relations affect the achievement of sustainable results; and how will proposed results affect the relative status of men and women. In addition to these questions, the Mission has also considered the potential impact on ethnic inclusion. Generally, it is anticipated that the impact of the activities described herein are unlikely to have an obvious gender or ethnic bias.

However, special attention should be taken by USAID and the implementer to ensure equitable gender and ethnic participation when designing and implementing interventions where gender or ethnic differences could be negatively exploited. Programs to enhance clean energy investment should include a gender and ethnic inclusion analysis to ensure an equitable and positive impact. Proposed assistance and training activities to private companies and business associations, or the public and the media, should not only ensure equal participation to ethnic minority and gender-based organizations when appropriate, but also evaluate the potential gender and ethnic bias in training materials and the selection of instructors.

VIII. ENVIRONMENTAL CONSIDERATIONS

In accordance with the Macedonia Competitiveness through Clean Energy Investment Initial Environmental

Evaluation (DCN: 2011-MAC-017), activities under this Scope of Work to increase energy management investments have the potential to result in significant environmental effects unless appropriate mitigation measures are adopted.

Illustrative Activities under Program to Increase Energy Management Investments Potential Environmental Impacts

Illustrative Activities Potential Impacts

1. Promote energy management and disseminate energy management case studies through industry associations

None anticipated

2. Identify target demonstration organizations and establish energy management best practices None anticipated

3. Install cost-shared energy management systems within selected organizations – this consists of energy usage sensors, wires, and computer software to assist in improving procedures and methods resulting in energy efficiency gains in operations.

Occupational health and safety & waste management requiring best practices, e.g. ACM or other hazardous materials may be disturbed and/or expose installers to hazardous working conditions.

4. Provide ongoing technical assistance to selected organizations with respect to energy usage monitoring and consequent energy efficiency project evaluation, None anticipated

RFP No. SOL-165-12-000005 Page 16 of 81

Illustrative Activities under Program to Increase Energy Management Investments Potential Environmental Impacts

Illustrative Activities Potential Impacts while also providing ―on-the-job‖ training to local engineering and business consultants

5. Provide technical assistance with respect to energy efficiency project technical and financial preparation and approach to the financial community (ultimately assist in obtaining financing for small-scale energy management and energy efficiency projects).

Decreased energy consumption

(beneficial)

Changes to more efficient fuel sources and reductions in facility water usage

(beneficial)

6. Install cost-shared energy efficiency upgrades within selected organizations, such as equipment replacement, efficient lighting and heating equipment, and building envelope improvements.

Decreased energy consumption

(beneficial)

Changes to more efficient fuel sources and reductions in facility water usage

(beneficial)

Occupational health and safety & waste management requiring best practices, e.g. ACM or other hazardous materials may be disturbed and/or expose installers to hazardous working conditions.

7. Organize workshops to increase banker awareness and sophistication with respect to energy management and energy efficiency

None anticipated

Thus, these activities are subject to a negative determination with conditions pursuant to 22 CFR 216.3(a)(2)(iii) and as a result are subject to the following Conditions and Mitigation Measures:

The Contractor will develop an environmental report (an example ER template is a reference material for this RFP at http://macedonia.usaid.gov/en/index.html) that analyzes environmental impacts. The ER shall include an environmental mitigation and monitoring plan (EMMP) and shall cover items associated with small-scale energy management and energy efficiency projects, including health and safety & waste management requiring best practices, e.g. ACM or other hazardous materials may be disturbed and/or expose installers to hazardous working conditions. The ER shall also include a Site Specific Environmental Compliance Plan (ECP) template tailored to this particular set of activities and a Record of Compliance template (See attached to the IEE an example template). The ER shall be approved by the Mission Environmental Officer (MEO) and the BEO.

The implementer shall prepare an ECP for each of the Activity 3.3 subproject activities to be approved by MEO with a copy to the BEO. After completion of the subproject, the implementer shall submit a Record of

Compliance for each subproject to the COR, certifying adherence to the ECP. These records shall be kept in the project files and copied to the MEO. Copies of these documents must be made available to the BEO upon request.

The Contractor shall present USAID/Macedonia with summary compliance report relative to IEE DCN: 2011-

MAC-017 in its annual report.

The Contractor is required to ensure that appropriate resources are dedicated to comply with the Agency‟s environmental requirements. Please see “Instructions on Key Personnel” under Section L.6, „Instructions

For The Preparation Of The Technical Proposal‟ and L.6.3 ‟Instructions regarding Key Personnel‟.

END OF SECTION C

RFP No. SOL-165-12-000005 Page 17 of 81

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the Mission

Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with

Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the

Contracting Officer; the original should be retained by the Contractor.

D.2 BRANDING STRATEGY

The Offeror shall comply with the requirements of the USAID branding policies available at:

www.usaid.gov/branding and appropriately mark all deliverables and public communications with the USAID brand.

Note: USAID receives ―exclusive branding and marking‖ for the work conducted under all acquisition awards.

This means that the foreign assistance delivered is clearly credited to the American people.