Request For ESCO Contract PDF

Request For Qualifications (RFQ) For Energy Performance Contracting Services
Request For
Qualifications (RFQ)
for
Energy Performance
Contracting Services
Sample Letter of Invitation to respond to RFQ
Sample RFQ for Energy Performance Contracting Services
! Services Desired
! Procurement Process
! Attachment A: Sample Project Schedule
! Attachment B: Evaluation Criteria
! Attachment C: Terms and Conditions
! Attachment D: ESCO Response
! Attachment E: Guidelines for Developing a Facility Profile
! Attachment F: Technical Energy Analysis & Project Development
Agreement
! Attachment G: Measurement & Verification Requirements &
Recommendations
These are sample documents only and do not attempt to identify or address all
circumstances or conditions you may encounter or desire. Consult with your legal
counsel and procurement staff to adapt this document to meet your needs.
Request For Qualifications (RFQ) For Energy Performance Contracting Services 1 of 46
SAMPLE
ADVERTISEMENT FOR PROPOSALS
Notice is hereby given that ________________________________________ shall receive proposals
from qualified Energy Services Companies (ESCOs) to provide energy conservation equipment and
services under an Energy Services Performance Contract until 3:00 pm, Wednesday, April 1, 1998,
at 500 Jefferson Street, Jackson, Mississippi. Proposals will be in accordance with Section 31-7-14
of the Mississippi Code and the Request for Qualifications.
A detailed Request for Qualifications may be obtained from the Project Manager:
_______________________________________________
Name
_______________________________________________
Organization
_______________________________________________
Address
_______________________________________________
Phone
All correspondence should be directed to:
_______________________________________________
Name
_______________________________________________
Title (President, Superintendent, Administrator, etc. )
_______________________________________________
Organization
_______________________________________________
Address
_______________________________________________
Phone
Publish: __________________ and _________________
SAMPLE
LETTER OF INVITATION TO RESPOND TO RFQ
Date:__________________
Dear Energy Service Company,
<Customer>is inviting the submission of qualifications from Energy Service Companies (ESCOs) to provide a full range
of services and related capital improvements in order to reduce the consumption and related costs of energy and water use.
Projects will be financed through a performance-based contract with a guarantee of savings under which <Customer>incurs
no initial capital costs. These services may include a technical energy analysis to assess energy, water and operations and
maintenance savings opportunities, as well as the design, acquisition, installation, modification, maintenance and training
in the operation of existing and new energy-efficient equipment.
The attached RFQ describes the services requested, terms and conditions, the proposed project schedule and the energy-
using systems and maintenance issues in the facilities.
Responses must be prepared as described in Attachment D: ESCO Response. Responses must be received by <Customer>
on <Date>by <Time>at <Physical Address for overnight delivery or hand delivery>or sent to <mailing address>.
For further information, please contact:
<Provide contact person information below:>
<Name>
<Title>
<Address>
<Phone>
<Fax>
<e-mail>
Sincerely,
<Name>
<Title>
<SAMPLE>
REQUEST FOR QUALIFICATIONS
Issued by
<Customer Name >
For Energy Performance Contracting Services
INTRODUCTION
<Customer - include complete name, and Board name is applicable>(hereinafter referred to as Customer)
seeks specific qualifications from interested Energy Services Companies (ESCOs) that are capable of providing
comprehensive energy and water management as well as related capital improvement services for selected
facilities owned or managed by Customer. A description of these facilities is provided in an attachment to this
RFQ. Additional buildings and facilities, are listed, may be included in the future under the same contract."
<Note to Customer. Chances are that you may want to expand the scope of the performance contract in the
future. To allow this RFQ and the subsequent performance contract to serve an expanded scope of work,
list all potential facilities and projects. >
GENERAL RESULTS DESIRED
Customer seeks a broad range of services and capital improvements in order to reduce the consumption and
related costs of energy and water use in the facilities addressed in an Attachment of this RFQ (Facility Profile).
These services and capital improvements will be provided and financed through a performance-based contract
with a guarantee of savings under which the Customer: a) incurs no initial capital costs (with option for Customer
to provide initial capital if desired), b) achieves significant long-term savings, c) achieves a guarantee for energy
savings, water savings and operations and maintenance (O&M) savings (O&M savings includes materials and
labor savings and will only be applicable at the option of Customer), d) obtains consistent levels of occupant
comfort and building functionality, and e) captures ancillary benefits that may accrue as a direct result of such
energy-related services and capital improvements, such as environmental protection, hazardous materials
disposal, etc. <Note to Customer. Besides energy and water savings, decide other revenue streams can be
used to offset financing costs: a) material savings (reduced future equipment replacements), b) maintenance
cost savings (eliminated service contracts, avoided maintenance costs that are routine and well-documented
maintenance costs); c) labor savings (reduced labor to replace equipment); and d) initial capital outlay
(buy-down project or leverage existing capital funds). Clearly state in this section whether the optional cost
categories can be considered. Also determine I f (a positive cash flow is needed. >
Customer seeks to maximize energy savings and related improvements. Within the framework of available
financing, therefore, ESCOs are encouraged to advocate the installation and implementation of improvements
providing the greatest possible energy, water and O&M savings. Essential services and improvements sought
are those that will reduce energy and water consumption in Customer's facilities, upgrade capital energy-related
equipment, improve building operations and maintenance, save costs through fuel switching or improved demand
management, and aid in meeting environmental management responsibilities.
Improvements must result in a guaranteed minimum energy savings with the ESCO payments linked to
actual measured reductions in energy cost or consumption. No contract shall exceed ( ) years in duration
and is subject to annual appropriations. The energy savings achieved by the installed energy efficiency measures
(EEMs) need to be sufficient to cover all project costs including annual maintenance and monitoring fees for the
duration of the contract term. At a minimum, the energy savings guarantee should be structured to correspond
to the annual financing costs associated with the project. The contract is subject to approval and review by the
Mississippi Department of Economic and Community Development - ENERGY DIVISION.
REQUIRED SYSTEMS AND SERVICES CAPABILITIES
An interested ESCO must have the demonstrated technical and managerial capability to address a broad range
of building energy and water systems, provide a comprehensive set of energy and water services, and capture the
value of any directly related ancillary benefits.
Energy systems include, but are not limited to, heating, ventilating and air conditioning (HVAC) equipment,
energy management and control systems, lighting systems, domestic hot water systems, the building envelope
and other energy using systems such as laundry, kitchen, pool, and renewable energy systems. <Delete items that
do not exist in thefacilities, from previous sentence.>
Water systems include, but are not limited to, devices which reduce water consumption and sewage services, such
as, automatic controls, low-flow sink aerators, showers, and toilets, cooling, tower modifications, and irrigation
system controls or modifications.
Energy and water services include, but are not limited to, a technical energy and water analysis; the design,
acquisition, installation, modification and commissioning of new and/or existing energy systems. Additional
services include continuing operations and maintenance for all improvements and/or training of Customer's staff
on routine maintenance and operation of systems as well as training of occupants. Monitoring and verification
services include appropriate measurement and reporting of the performance and savings from improvements.
Ancillary benefits may include, but are not limited to, hazardous materials disposal or recycling, improved
occupant comfort or building functionality, improved indoor air quality, and any unique benefits that may be
provided by regular technology upgrades or advanced proprietary technology.
OVERVIEW OF TERMS AND CONDITIONS
Contract Term. No contract shall exceed <I nsert number of years>years in duration and is subject to annual
appropriations. The duration of the contract will be mutually determined between the ESCO and the Customer
based on financial factors so that a zero or positive net cash flow is realized by the Customer.
Guarantee. Improvements and services must result in guaranteed minimum annual energy, water and O&M
savings option, as well as guaranteed minimum levels of occupant comfort and operations and maintenance
and/or any ancillary services. A guarantee is required to equal the calculated savings attributable to all energy
saving measures for each year during the contract period. The combined savings achieved by the installed
projects must be sufficient to cover all project costs including debt service and contractor fees maintenance,
monitoring and other services, for the duration of the contract term. At a minimum, the savings guarantee
should be structured to correspond to the annual financing costs associated with the project. Payments must
be linked to actual measured post-retrofit improvements as compared to building performance before the
installation of any energy systems and service improvements. Payments for capital improvements and continuing
services shall be structured as constant, level payments to be made by Customer through the term of the
agreement. The guaranteed savings must be achieved each year. Annual cost savings derived from such
improvements beyond the guaranteed minimum savings will be held by Customer, and will not be allocated to
shortfalls in other years.
Financial Review. Detailed financial projections of project benefits are dependent upon the scope of technical
retrofits finally selected and installed. It is premature to place a major emphasis on projected financial benefits
prior to the completion of a detailed engineering study and negotiation of the project structure. During contract
negotiations, the ESCO shall disclose cost markups which will be applied during the subsequent technical energy
analysis and energy performance contract. Open book pricing during the construction stage will be required, such
that pricing information or bids on individual products and services will be available for review by Customer.
Respondents are encouraged to carefully review the evaluation criteria in the RFQ under Financial Approach and
to respond as fully as possible.
O&M Savings. Any O&M cost savings related to maintenance and operation of the facilities will be rigorously
reviewed and, if agreed to, will be limited to those that can be thoroughly documented and approved by Customer.
Deposit to Board or Contract of Insurance. The ESCO must deposit with the Board of <I nsert name of
Board>an amount of money equal to all payments to be made by the board during the first year of the contract
or a contract of insurance guaranteeing payment to such board of the amount, if any, by which such payments
exceed such actual savings of energy costs for the first year. The ESCO will forfeit the amount by which actual
savings fall short of guaranteed savings. Any amount not forfeited will be returned to the ESCO upon contract
termination.
Technical Energy Analysis. The technical energy analysis must include estimates of savings for each measure.
Also, the cost estimate for each measure must include an estimate of all costs including design, engineering,
installation, maintenance, repairs and debt services.
PROCUREMENT PROCESS
The evaluation and selection of an ESCO, and the negotiation and procurement of services will proceed as
follows:
Site Visits. Prior to the submission of proposals and upon request, Customer will arrange a walk-through
inspection tour of the buildings described in the Attachment to this RFQ. Knowledgeable representatives will
be available to answer questions about the operation of the facilities. All ESCOs are encouraged to carefully
review the facility profile information contained in the Attachment and to visit the facility in order to enhance
their understanding of existing building conditions and opportunities. To make arrangements for a walk-through
inspection tour, please contact the following person by <Date>: <Note to Customer. I t is important to decide
whether to conduct tours individually or in a group. >
<Contact Person for Site Visit>
<Phone>
<Fax>
<E-mail>
Submission of Written Proposals. ESCOs that wish to participate must submit responses as directed in the
Attachment D: ESCO Response. All submissions become the property of Customer and will not be returned
to the ESCO. All costs associated with submission preparation will be borne by the submitting ESCO.
Responses must be prepared as described in the attachment.
Proposal Review and Selection of Finalists. Customer will establish a Project Evaluation Team to review and
evaluate the written responses to this RFQ in accordance with the evaluation criteria identified in an Attachment
to this RFQ. Customer will contact at least two prior clients of each ESCO to inquire about the performance of
the firm and its work in situations similar to those faced by Customer.
Customer reserves the right to reject any or all submissions and to waive informalities and minor irregularities
in submissions received and to accept any submissions if deemed in the best interest of Customer to do so.
Customer will select no more than three (3) ESCOs for further competition.
ESCO Interviews and Ranking. Each of the selected ESCOs will participate in a detailed oral interview to
answer questions from the Project Evaluation Team and more fully discuss how its approach to this project
satisfies the evaluation criteria set forth in this RFQ. All persons with major responsibility for the project's
technical design, management and contract negotiation should be present at the interview. Each oral interview
may be tape-recorded. A more complete description of the interview process and format will be sent to each of
the selected ESCO. Based on results from both the written responses to the RFQ and the oral interviews, the
Project Evaluation Team will rank the ESCOs such that contract negotiations will proceed with the top-ranked
ESCO.
Preliminary Contract Negotiations. The top-ranked ESCO will be required to disclose a description of the
intended pricing methodology in addition to general cost markup information. Markups, inclusive of all fees, for
all cost categories will be required, such as markups for direct labor and direct materials as well as markups on
both labor and materials related to profit overhead, subcontractors and contingencies. Cost categories can be
specified by the ESCO. Customer will honor the confidentiality of all information that is marked "confidential"
by the ESCO. These markups will be used in any subsequent technical energy analysis cost projections and in
any final performance contract. Customer has the right to reject the top-ranked ESCO if costs are not determined
reasonable. In that event, Customer has the right to begin negotiations with the second-ranked ESCO.
Development of Technical Energy Analysis and Project Development Agreement. Customer intends to
negotiate a contract for the technical energy analysis as described in the Attachment to this RFQ. If an acceptable
technical energy analysis and project development agreement cannot be reached within 30 days from the date of
ESCO selection, negotiations with the next-ranked ESCO may be initiated.
Development of Energy Performance Contract. Following successful completion of the technical energy
analysis, Customer intends to negotiate a performance contract to implement the projects. Customer has the
option to decline any or all performance contract agreements. This agreement is also known as an Energy
Services Agreement.
This procurement and contracting process ensures that Customer gets the maximum value for its dollar by
requiring open book pricing, full disclosure of mark-ups, and the use of stated markups in the subsequent pricing
structure. The inclusion of these requirements prevents an ESCO from withholding critical information necessary
for Customer to negotiate fair and reasonable prices in the performance contract.
DESCRIPTION OF THE PROCUREMENT PROCESS
It is anticipated that the process for the procurement of these energy services will proceed in three stages.
1) SUBMISSION OF WRITTEN QUALIFICATIONS: through its designated
representatives will review and evaluate the written responses to this Request for Qualifications (RFQ)
in accordance with the evaluation criteria identified in Attachment A. will select no more than
three qualified ESCOs to proceed to the competitive oral interview stage of the procurement process.
2) ORAL INTERVIEW: Each of the three qualified firms will participate in a detailed oral interview to
more fully discuss how their approach to this project satisfies the evaluation criteria set forth in
Attachment B. ESCOs will be required to answer questions posed by the Project Evaluation Team. It
will be the sole responsibility of the Project Evaluation Team to make the final selection of a Project
Contractor based upon the evaluation of written responses to the RFQ, and the oral responses received
during the interview process. A more complete description of the interview format and logistical
arrangements will be mailed to the three finalists.
3) SELECTION OF ESCO TO DEVELOP CONTRACT: Based on the opinion of the Project Evaluation
Team, will select the best qualified ESCO to conduct a complete Energy Analysis
of the facility and propose contract terms concerning a complete set of proposed energy improvements,
the timetable for completing engineering and construction work, a detailed description of services to be
provided, specific financing arrangements and terms, and an estimate of energy savings, as well as
special conditions offered by the company. intends to negotiate a final contract for these
services, which includes a minimum savings guarantee. If an acceptable contract cannot be reached
within 90 days from the date of ESCO selection, negotiations with the second-ranked ESCO may be
initiated.
We recognize that detailed financial projections of project benefits are dependent upon the scope of
technical retrofits finally selected and installed. It is premature to place a major emphasis on projected
financial benefits prior to the completion of a detailed engineering study and negotiation of the project
structure. Respondents are encouraged to carefully review the evaluation criteria in the RFQ under
Financial Approach and to respond as fully as possible.
SITE VISITS
will arrange walk-through inspection tours of their buildings upon request, prior to the
submission of qualifications. Site representatives will be available to answer questions about the operation of
the buildings. All ESCOs are encouraged to carefully evaluate the building profile data contained in the technical
appendix and to visit the facility in order to enhance their understanding of existing building conditions and
retrofit opportunities.
To make arrangements to tour , please contact:
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
SUBMITTAL FORMAT
Companies who wish to be considered by _________________________________ must submit an original and
__________ copies of Attachment D & E (the ESCO Profile Form and ESCO Qualifications & Approach to
Project) to __________________________________ . All submissions become the property of
_________________________ and will not be returned to the ESCO. The three highest ranked firms will be
notified by phone to schedule their appearance at the oral interview.
__________________________________________ reserves the right to reject any or all proposals and to
waive informalities and minor irregularities in submissions received and to accept any submissions if deemed in
the best interest of __________________________________________ to do so. All costs associated with
submission preparation will be borne by the submitting company.
TO AID ORGANIZATIONS IN THEIR RESPONSE TO THIS REQUEST, THE FOLLOWING ITEMS ARE
ATTACHED:
OVERVIEW OF ATTACHMENTS
To aid companies in their response to this request the following items are attached:
Attachment A: Proposed Project Schedule
Attachment B: Evaluation Criteria
Attachment C: Contract Terms and Conditions
Attachment D: ESCO Response
Attachment E: Technical Facility Profile
Attachment F: Technical Energy Analysis and Project Development Agreement
Attachment G: Measurement & Verification Requirements & Recommendations
RFQ - Attachment A: Proposed Project Schedule 9 of 46
A T T A C H M E N T A A T T A C H M E N T A
PROPOSED PROJECT SCHEDULE
The following schedule is the proposed schedule, and may change during the project.
<Note to Customer. I nsert actual dates in the schedule. Adjust as necessary.>
ACTIVITY DATE
Issue RFQ Week 1
Site Visit (to be arranged) Week 1-5
Proposals Due Week 6
Proposal Review and Selection of Finalists Week 6-7
ESCO Interviews and Ranking Week 7-8
(includes Board approval of ESCO if required)
Preliminary Contract Negotiations Week 9-10
Development of Technical Energy Analysis Contract Week 11
(includes negotiation and signing)
Technical Energy Analysis, Project Analysis Week 11-22
Development of Performance Contract Week 23-30
(includes negotiation, Board approval if required, submission
to MDECD-Energy Division and signing)
RFQ - Attachment B: Evaluation Criteria 10 of 46
A T T A C H M E N T B A T T A C H M E N T B
EVALUATION CRITERIA
The criteria listed below will be used in the evaluation of written submissions of ESCO proposals, interviews with
previous ESCO clients, and the responses of ESCOs during oral interviews, as appropriate. These criteria will
be applied and interpreted solely at the discretion of Customer. Proposals should include all necessary
information that is pertinent to these evaluation criteria. Additional information required for proper assessment
of proposals may be requested from the ESCO at the discretion of Customer.
The Evaluation Team recognizes it is premature to place a major emphasis on projected financial benefits prior
to the completion of a detailed engineering study and negotiation of the project structure. Therefore, Customer
will place the most emphasis on qualifications and will place less emphasis on the cost of conducting the technical
analysis or on initial estimated savings.
The criteria are not ranked in order of importance.
1. Project Management (Scoring weight: 25%)
<Note to Customer. Determine desired weight -- 25% is recommended>
a. Responsiveness to Goals. Responsiveness to the specific goals identified in the RFQ and
attachments.
b. Comprehensiveness of Services. Comprehensiveness of management, maintenance, and
monitoring services offered.
c. Benefits of Services. Specific benefits to Customer of proposed services.
d. Project Management Interface. Ability to interface ESCO's project management with
Customer's project management.
e. Coordination of Construction. Demonstrated ability to coordinate project construction with
Customer is project team, local utilities, subcontractors, equipment suppliers, facility personnel
and occupants. ESCO will give a high priority to the occupant hours of operation and
preference of duration of interruption, if any.
f. Construction Management. Ability to effectively manage construction, repairs, regular
service and emergencies.
g. Training Provisions. Quality of provisions for training Customer's facility staff and occupants.
h. Assignment of Responsibility. Clear assignment of responsibility for various project tasks to
specific individuals.
i. Implementation Project Schedule. Ability to complete all phases of the project on schedule,
with minimal disruption to Customer's mission and facilities.
j. Communication Skills. Quality of communication skills of the ESCO's representatives at the
oral interview.
2. Technical Approach (Scoring Weight: 40%)
<Note to Customer. Determine weight -- 40% is recommended>
a. Understanding of Conditions. Understanding of the existing building conditions, systems,
operations and schedules.
b. Technical Qualifications. Qualifications and relevant experience of the technical design staff.
c. Technical Approach. Comprehensiveness and clarity of the technical approach to this project
based on improvements likely to be included. Quality of conceptual design presented in oral
interview.
d. Responsiveness of Strategies. Approach to adapting control strategies, equipment, and
maintenance practices in response to changes in utility rates, technology, and building conditions
in order to enhance project performance.
e. Experience of Key Personnel. Number of past projects completed by the person(s)
responsible for this project's technical design that include technical measures proposed for this
project.
f. Quality of Technical Energy Analysis. Quality of a sample technical energy analysis for a
similar type of facility completed by the person(s) responsible for project technical design.
g. Baseline Calculation Methodologies. Reasonableness of the typical baseline energy and water
use calculation methodology.
h. Approach to Maintenance Contracts. Approach to maintenance contracts, including required
length and relationship to performance guarantee.
i. Extent of Customer Involvement. Willingness to allow Customer's staff to perform
installation or maintenance on equipment.
j. Past Project Performance. Documented energy savings of previous projects managed by the
ESCO.
k. Reference Checks. Reliability of equipment performance of ESCO's past performance
contracting projects, based on reference checks.
3. Financial Approach (Scoring Weight: 15%)
<Note to Customer. Determine scoring weight -- 15% is recommended>
a. Financial Soundness. Financial soundness and stability of the ESCO. Completeness and
strength (financial viability) of most recent annual financial statements.
b. Performance Guarantee. Terms of the guarantee of the project's financial performance.
c. Financing Capability. Demonstrated ability to provide or arrange project financing.
d. Insurance Capability. Provide documentation that your firm can comply with the minimum
insurance requirements for this project.
e. Proposed Financing Arrangement. Sample financing arrangement proposed for this project.
f. Cost Savings Calculations. Quality and clarity of the intended financial savings calculations.
g. Invoice Clarity. Clarity of the sample project invoice.
h. Open Book Pricing Approach. Approach and experience in providing open book pricing.
Note: Pricing methodology and cost markups will be evaluated during ESCO selection (see "Procurement Process" of this RFQ).
4. Legal Approach (Scoring Weight: 10%)
<Note to Customer: Determine scoring weight - 10% is recommended>
a. Contract Quality. Quality of sample legal agreement.
b. Adjustments to Baseline. Contractual provisions to accommodate changes in building energy
use regarding occupancy, operating schedule, weather, etc., including adjustments to the energy
use baseline.
c. Contract Flexibility. Flexibility of contract to accommodate needs of Customer.
d. Early Termination Provisions. The quality of provisions for early termination of the contract
at the initiative of either party.
5. Technical Energy Analysis Cost (Scoring Weight: 10%)
<Note to Customer. Determine scoring weight - 10% is recommended>
Cost of the technical energy analysis.
RFQ - Attachment C: Contract Terms and Conditions 13 of 46
A T T A C H M E N T C A T T A C H M E N T C
CONTRACT TERMS AND CONDITIONS
The minimum conditions Customer will accept from the selected ESCO are described below. This section defines
the scope of services related to the technical requirements that will be included in any final contract. It also
defines the key contractual provisions.
1. Scope Of Services (Technical Requirements)
The Scope of Services must be included in any performance contract Customer enters into, and must
include the following items at a minimum:
a. Technical Energy Analysis. The ESCO's proposed contract terms must include the
performance and presentation of results from a detailed technical energy analysis of acceptable
quality to Customer. The proposed analysis terms and conditions are specified in an
Attachment to this RFQ. The minimum annual energy, water and O&M cost savings and
financing period will be negotiated. If Customer decides not to enter into a contract after the
analysis has been accepted, Customer agrees to pay the cost of the analysis as stated in the
submitted proposal, provided that the proposed contract terms offered by the ESCO meet all the
conditions set forth in this RFQ. The technical analysis must include estimates of savings for
each measure. Also, the cost estimate for each measure must include an estimate of all costs
including design, engineering, installation, maintenance, repairs and debt services.
b. Standards of Comfort. Specific standards of comfort, safety and functionality will not be
degraded from the existing condition and/or shall meet minimum established industry standards.
The ESCO will be responsible for maintaining the levels of comfort for each building as
specified in the RFQ or in any final agreement. Persistent failure to maintain the defined climate
and lighting conditions will constitute a default.
c. Professional Engineer Involvement. A registered professional engineer must, at a minimum,
review and approve design work done under this contract. The engineer may be an employee
of the ESCO and may be registered in a state other than the state in which the work is
accomplished.
d. Guaranteed Savings. Customer requires a minimum annual guaranteed level of combined
savings and improved performance approach to the project. If the project does not generate the
guaranteed level of savings in any given year, the ESCO will be responsible for reimbursing
Customer the amount of the short fall necessary to pay for annual project financing and all
related contract obligations. Excess savings will not be used to reimburse the ESCO for any
payments made due to shortfalls in other years.
e. Construction Management. The ESCO will be required to work with current building
management and maintenance personnel in order to coordinate construction and provide
appropriate training in operations and maintenance of all installed improvements. No
equipment or other improvements will be installed that would require Customer to hire
additional personnel unless contract negotiations produce an explicit exemption for a specific
installation. Maintenance responsibilities shall be proposed in detail in the contract.
f. Equipment Standardization. All equipment installed that is comparable to similar equipment
at other sites operated by Customer shall be of the same manufacturer for standardization of
equipment agency wide, unless excepted by Customer.
g. Maintenance Manuals. At least three (3) maintenance manuals for each site will be provided
for all equipment replacements and/or upgrades at each location. Manuals are subject to
approval of Customer.
h. As-Built Drawings. Where applicable, ESCO must provide mylar, reproducible "as built" and
record drawings (or such electronic equivalents as may be agreed to with Customer) of all
existing and modified conditions associated with the project, conforming to typical engineering
standards. These should include architectural, mechanical, electrical, structural, and control
drawings and operating manuals within 30 days of completion of installation.
i. Follow-up Monitoring and Maintenance Services. Following the installation and
implementation of improvements, the ESCO will be responsible for maintaining and monitoring
the measures to ensure optimal performance; however, Customer has the option to decline these
services or negotiate for a reduced term of services.
j. Customer Activities. Customer reserves the right to make energy and water improvements to
the work sites and to monitor the performance of the installations independently of the ESCO.
Additionally, Customer may wish to integrate other identified capital needs with ESCO projects,
which may or may not contain energy and water saving opportunities.
2. Contractual Provisions
Key elements that must be provided for in any performance contract that Customer enters into will, at
a minimum, include the following:
a. Proposal Submissions. The contents of the ESCO's submissions in response to this solicitation
will become part of any final agreement between Customer and the contractor.
b. Meeting Project Schedule. The ESCO must provide a final schedule of project milestones
including equipment-servicing and preventive maintenance provisions that will become part of
any final contract. ESCO is responsible for meeting schedule deadlines. In the event any
milestone or service provision is not met as scheduled without prior approval from Customer,
Customer reserves the right to consider it a default and withdraw from all contractual
obligations without penalty.
c. Customer Inspection. Customer must have the right to inspect, test and approve the work
conducted in the facilities during construction and operation. Customer shall have the right and
access to the account books, records, and other compilations of data that pertain to the
performance of the provisions and requirements of this agreement. If the contract negotiations
call for cost-plus or open book pricing, then the accounting books of the ESCO must be
accessible by Customer. Records shall be kept on a generally recognized accounting basis, and
calculations will be kept on file in legible form and retained for three years after close-out.
Customer retains the right to have its representative visit the site during the analysis and
implementation phases of the project, and to attend relevant on-site or off-site meetings of the
ESCO and/or its subcontractors.
d. Final Approval of Customer. Customer retains final approval over the scope of work and all
end-use conditions. Customer may delay the initiation of savings payments until approved.
e. Property of Drawings, Reports and Materials. All drawings, reports and materials prepared
by the ESCO specifically in performance of this contract shall become the property of Customer
and will be delivered to Customer as needed or upon completion of construction.
f. Compliance. All work completed under this contract must be in compliance with all applicable
federal, state and local laws, rules and regulations such as building codes and appropriate
accreditation, certification and licensing standards. Work must be in accordance with sound
engineering and safety practices and in compliance with all Customer regulations relative to the
premises. The ESCO and its subcontractors will be responsible for obtaining any and all
required governmental permits, consents and authorizations, and for payment of any and all
state and city required taxes and fees which result from is contract.
g. Handling of Hazardous Materials. All work completed under this contract must be in
compliance with all applicable federal, state and local laws, rules and regulations regarding
waste disposal and treatment/disposal of any hazardous materials that could result from this
project. Work must also be in accordance with sound engineering and safety practices, and in
compliance with all reasonable Customer rules relative to the premises. In the event the ESCO
encounters any such materials, the ESCO shall immediately notify the project manager and stop
work pending further direction from the project manager. The State may, in its sole discretion,
suspend work on the project pending removal of such materials or terminate this Agreement.
h. Methodology to Adjust for Changes. The contract must contain a mutually acceptable clause
whereby unanticipated changes in facility use, occupancy, schedule and/or utility rates can be
accommodated in a fair manner agreeable to both parties. The ESCO's proposed method for
adjusting the energy use baseline should be identified in the RFQ response and listed in a
schedule to the contract.
i. Hiring and Wage Requirements. The ESCO will comply with all requirements for the
payment of prevailing wages, and for minority and women-owned business enterprises.
j. Subcontractor Approval. Customer retains the right to approve any ESCO selected
subcontractor prior to its commencement of work on this project. Names and qualifications
must be submitted at least two weeks in advance.
k. Bonding Requirements. The ESCO will provide to Customer assurance of completion in the
form of separate performance and labor and material payment bonds, each in the sum of 100
percent of all subcontracts. If necessary, ESCO bonding requirements should also be specified
including the types of bonds required, the amount of each bond and the specific milestones that
trigger bonding requirements and bond release.
l. ESCO Insurance. Prior to the commencement of work, the ESCO must provide evidence of
insurance for both the construction and operations phases of the project. (If possible, this should
be specified as to type and dollar amount required. The respondents may be asked to provide
this information in a schedule attached to the proposal.)
m. Guaranteed Cost Savings. Improvements and services must result in guaranteed minimum
annual energy, water and O&M savings option, as well as guaranteed minimum levels of
occupant comfort and operations and maintenance and/or any ancillary services. A guarantee
is required to equal the calculated savings attributable to all energy saving measures for each
year during the contract period, per Mississippi Revised Statute 31-7-14. The combined
savings achieved by the installed projects must be sufficient to cover all project costs including
debt service and contractor fees maintenance, monitoring and other services, for the duration of
the contract term. At a minimum, the savings guarantee should be structured to correspond to
the annual financing costs associated with the project. Payments must be linked to actual
measured post-retrofit improvements as compared to building performance before the
installation of any energy systems and service improvements. Payments for capital
improvements and continuing services shall be structured as constant, level payments to be
made by Customer through the term of the guaranteed savings must be achieved each year.
Annual cost savings derived from such improvements beyond the guaranteed minimum savings
will be held by Customer, and will not be allocated to shortfalls in other years.
n. Applicability of O&M savings. Any O&M cost savings related to maintenance and operation
of the facilities will be rigorously reviewed and, if agreed to, will be limited to those that can be
thoroughly documented and approved by Customer.
o. Open Book Pricing. Open book pricing will be required, such that the ESCO will fully
disclose all costs.
p. Disclosure of Cost Markups. The pricing methodology and individual cost markups disclosed
during preliminary contract negotiations will be required to be applied in costs presented in any
subsequent technical analysis or performance contract.
q. Annual Reconciliation. Annual savings will be verified at a specified time each year in order
to determine if the ESCO's guarantee needs to be exercised.
r. Contract Term. No contract shall exceed <I nsert number of years>years in duration and is
subject to annual appropriations.
s. Contract Expiration and Renegotiation. At the time of contract expiration, Customer will
have the option either to renegotiate the contract or terminate it without penalty.
t. Prepayment Non-Penalty. The contract must permit Customer to prepay the contractor, in part
or in whole, without penalty.
u. Expanded Contract (Master Contract) Capability. To reduce transaction costs, Customer
seeks to select an ESCO that can provide continuing services under this RFQ and subsequent
energy performance contract. This arrangement is intended to allow Customer to expand energy
services to other buildings and facilities as listed in the Attachment to this RFQ and clearly
marked as possible future projects or facilities to be addressed at the option of Customer.
<Note: State all possible facilities and projects in the RFQ so that the subsequent contract
can be amended to expand the scope if desired. Clearly state those facilities that will be
addressed now and those that could be addressed later.>The ESCO must present both the
terms of a Master Contract and the process for negotiating services that can be provided for
individual buildings and facilities under this agreement.
v. Contract Renegotiation. Customer reserves the right to renegotiate the awarded contract if
warranted, due to changes in the regulatory or utility climates or in Customer's use of energy
and/or the desire to add sites not included in the initial contract.
w. Post-Contract Preventive Maintenance Schedule. Upon completion of the contract, the
ESCO shall provide to Customer a single comprehensive schedule of necessary preventive
maintenance for all installations for the five (5) years following contract close-out.
x. Disputes Resolution. The contract should contain a disputes resolution clause specifying
arbitration or other methods to seek outside guidance short of legal proceedings. The American
Arbitration Association is often specified, with arbitrators selected from the Association of
Energy Engineers.
y. Deposit to Board or Contract of Insurance. The ESCO must deposit with the Board of
<Insert name of Board>an amount of money equal to all payments to be made by the board
during the first year of the contract or a contract of insurance guaranteeing payment to such
board of the amount, if any, by which such payments exceed such actual savings of energy costs
for the first year. The ESCO will forfeit the amount by which actual savings fall short of
guaranteed savings. Any amount not forfeited will be returned to the ESCO upon contract
termination.
z. Assignment Approval. Customer will have the right of approval for assignment of the
performance contract to a different ESCO.
aa. Non-Appropriations Clause. Payments will be subject to annual appropriation.
RFQ - Attachment D: ESCO Response 18 of 46
A T T A C H M E N T D A T T A C H M E N T D
ESCO RESPONSE
This attachment provides information about the required response from the ESCO. The first section provides
details about submitting the proposal, including what must be sent, the number of copies and the time and date
of the deadline. The next two sections: ESCO PROFILE and ESCO QUALIFICATIONS AND APPROACH
TO PROJECT provide forms that must be filled in and submitted by the ESCO as part of the ESCO response.
PROPOSAL SUBMITTAL INFORMATION
General Information:
Refer to "Procurement Process" in the body of the RFQ for more detailed information on proposals.
Failure to complete any question in whole or in part, or any deliberate attempt by the proposer to mislead
Customer, may be used as grounds to find the proposing ESCO ineligible.
All submissions become the property of Customer and will not be returned to the ESCO.
All costs associated with submission preparation will be borne by the submitting ESCO.
Please use double-sided copying where possible to reduce paper use.
Submit The Following:
a. Attachment D: "ESCO Profile" and "ESCO Qualifications and Approach to Project"
Quantity: <Number (___); One for each review committee member>, including original.
b. Sample Technical Energy Analysis
Quantity: one (1) copy <request more if desired>
c. Cover Sheet to accompany each of the above submittal, as given below.
To: <Customer>, Attention: <Contact Person>
RE: Response to RFQ - Energy Performance Contracting Services
Date: ______________________
From: _____________________
Firm Name: _______________________________________
Address: _________________________________________
General Phone Number: ______________________________
Contact Person
Name: _______________________________________
Title: ________________________________________
Phone: _______________________________________
Fax: _________________________________________
e-mail Address (if applicable): _____________________
Submit To:
<Customer>, Attention: <Contact Person>
Address for over night or hand-delivery:
<Physical Address for overnight delivery service or hand delivery>
Mailing address:
<Mailing address>
Due Date:
Submittal must be received at the above address on or before <Date>by <Time>.
For further information, please contact:
<Name of contact person>
<Address>
<Phone>
<Fax>
<E-mail>
ESCO PROFILE
NOTES:
C ESCO may request an electronic copy of this form for easier preparation.
C ESCO must address all questions. If not applicable, enter "N/A. ".
1. General Firm Information
FIRMS NAME:
MAILING ADDRESS:
PHYSICAL ADDRESS:
CITY: STATE: ZIP:
COUNTY:
PHONE:
FAX:
E-MAIL:
WEBSITE:
Names, Titles and Phone Number of two principal contact persons:
NAME TITLE PHONE
Submittal is for: [ ] Parent Company [ ] Division
[ ] Subsidiary [ ] Branch Office
List any Division or Branch Offices that will participate materially in the development of the proposal, in its
evaluation process, and/or in the conduct of any services provided.
Name of Office:________________________________________________________________
Address:_____________________________________________________________________
Name and Address of Parent Company (if applicable)
Name:______________________________________________________________________
Address:____________________________________________________________________
Former Name(s) of Firm (if applicable)
Name:______________________________________________________________
Address:_____________________________________________________________
2. Date Prepared:_______________________________________________________
3. Type of Firm: [ ] Corporation [ ] Partnership
[ ] Sole Ownership [ ] Joint Venture
4. Federal Employer Identification Number:___________________________________
5. Year Firm was Established:________________________________________________
6. Please indicate if your firm is a recognized Minority Business Enterprise.
[ ] Yes [ ] No
If yes, please indicate the appropriate category.
[ ] American Indian [ ] Female-Owned
[ ] Spanish Surname [ ] Black
[ ] Asian-American [ ] Other
7. Five year summary of contract values for energy related services (insert Index Number).
Year Index No.
Index No. Range of Contract Values
1 Less than $100,000
2 $100,000 - $250,000
3 $250,000 - $500,000
4 $500,000 - $1 Million
5 $1 Million - $2 Million
8 $10 Million or Greater
19
19
19
19
19
Estimate of total value for all energy-related contracts that are currently in force: $_________________
(total value) as of _____________________ date.
8. Corporate background/historical data
a. How many years has your firm been in business under its present business name?
Years__________
b. Indicate all other names by which your organization has been known and the length of time
known by each name.
____________________________________________________________________________
____________________________________________________________________________
c. How many years has your firm been involved in energy-related business?
Years_____
d. Please identify all states in which your firm is legally qualified to do business.
___________________________________________________________________
9. PERSONNEL INFORMATION
a. Please attach the resumes of the principal individuals who will be directly responsible for this
project. Please indicate the specific qualifications of each individual and the role they will play
for the duration of the contract. Clearly identify who will have the primary responsibility for
the technical analysis and design of the project.
b. Please give the number of years of design and construction experience for each of the above
individuals and describe all supervisory responsibilities; please provide a list of all projects each
individual has been associated with during the last five (5) years, including type of project and
$ size.
c. Please identify your firm's legal counsel for this project. Give the name and address of the
primary individual responsible for contract negotiation.
10. FINANCIAL REFERENCES
a. Please attach your firm's most recent annual report.
b. Please attach the most recent year-ending Statement of Financial Conditions, including balance
sheet and income statement, dated within twelve months of filing this ESCO Profile Form.
c. Please provide the name, address, and the telephone number of firm(s) that prepared Financial
Statements.
11. PROJECT HISTORY
On separate sheets of 8-1/2" x 11" paper please briefly describe five (5) energy performance contracts
or related projects which your firm has managed. Please put an asterisk by those project references
involving buildings similar to the building(s) described in the technical appendices. Number each
heading as follows:
a. Project
b. Location
c. Project $ Amount (installed project costs)
d. Source of Funds
e. Type of Contract (i.e., shared-savings, lease purchase, guaranteed savings)
f. Owner
g. Designer: Name(s) of primary technical design personnel
h. Start and End Dates
I. Projected Annual Energy Savings (Therms, KWH, KW, Gallons)
j. Achieved Annual Energy Savings (Therms, KWH, KW, Gallons)
k. ESCO Notes or Comments
l. Please provide the names and telephone numbers of the owner(s)' representatives with whom
you have done business on each of the projects listed in your summary.
NOTE: All questionsmust beaddressed bytheESCO in order for thisqualification form to beproperly completed. Failureof thecontractor to answer
any question, or comply with any directivecontained in this form may beused as grounds to find them ineligible. If a question or directivedoes not
pertain to your organization in any way, pleaseindicatethat fact with thesymbol N/A. For additional spaceattach 8-1/2" x 11" sheets and indicate
referencenumber (i.e., 12a, 12b, etc.) to correspond with each question.
12. AUTHORIZATION
a. Dated at this day of 19 .
Name of Organization:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
By_________________________________________________________________
Title _______________________________________________________________
13. ATTACHMENTS
List all attachments created to address additional information. List by number and heading in
this ESCO Profile. If a computer-generated form is used, detail descriptions can be included in
the appropriate section rather than prepared as an attachment.
Item# Heading Name
Attachment for # ___________ _________________________________
Attachment for # ___________ _________________________________
Attachment for # ___________ _________________________________
14. NOTARY STATEMENT
a. Mr./Ms.________________________________________ being duly sworn deposes and says
that he/she is the______________________________of ______________________, ESCO,
and that answers to the foregoing questions and all statements therein contained are true and
correct.
b. Subscribed and sworn before me this _______ day of___________ 19_________.
Notary Public _______________________________________________________
My Commission Expires ______________________________ 19_____________.
ESCO QUALIFICATIONS AND APPROACH TO PROJECT
Please provide answers to each category listed below. Provide your responses on 8-1/2" x II" sheets of paper and
number and title each answer to the corresponding category. All pages in your response to this attachment should
be numbered sequentially.
1. GENERAL QUALIFICATIONS
a. Project History. Briefly describe all energy performance contracts or related projects which
your firm has managed within the last three (3) years. (Do not include projects/contracts
managed by team members or subcontractors.) Identify those project references involving
buildings similar to the building(s) describe in the technical appendices.
NOTE: If this response is submitted by a branch office or division of a parent company, please
provide project histories for those that have been managed directly by the specific branch or
division. Projects that have been managed by individuals who will be specifically assigned to
this project should also be included and identified.
Include the following information on each project:
1) Project Identification. Name the project owner, state the type of project (generic
building type such as hospital, school, etc.), provide the location (city, state).
2) Project Dates. Project Actual Construction Start and End Dates.
3) Project Size. Number of buildings and total square footage.
4) Project Dollar Amount. Provide the total contract amount and the total project
capital expenditure amount.
5) Source of Funds. State the source of funds used for the project and your firm's
role, if any, in securing those funds.
6) Contract Terms. State the type of Contract (shared-savings, lease purchase,
guaranteed savings), the duration of the contract terms, and the financing
arrangement.
7) Technical Design Personnel. Include name(s) of primary technical design
personnel.
8) Project Schedule. Indicate if the project was completed on schedule. If not, please
explain.
9) List of Improvements. List the retrofits and operational improvements related to
energy, water and O&M cost savings.
10) Projected Annual Savings. State the projected annual energy, water and O&M
savings (Therms, kWh, kW, Gallons, etc.). (See sample form below.)
11) Guaranteed Savings. State the amount of the guarantee (see sample form below).
Also describe how the guarantee functioned and if your firm was required to pay
funds to meet the guarantee.
12) Actual Annual Savings. State the actual annual energy, water and O&M savings
(Therms, kWh, kW, Gallons). Also describe if savings were measured or stipulated.
(See sample form below.)
13) Summarize savings results in a format similar to that shown here:
Project Name: ____________________________________________
Projected Annual
Energy Savings
Guaranteed Energy Actual Energy Savings
KWh KWh Year 1 Year 2 Year 3 Year 4 Year 5
Therms Therms
KW KW
Gal Gal
14) Comments. Comment on any special features, services, conditions, etc.
15) References. Provide the names and telephone numbers of the owner(s)
representatives that can supply references.
b. Personnel Information. Provide the following information as it relates to your approach to the
proposed project.
1) Full-Time Personnel. Indicate the number of full-time personnel employed by your
firm and the percent available to work on this project. (Can be answered as part of item
"b" below.)
2) Qualifications and Experience. Identify who will have the primary responsibility for
each task and phase of the project including technical analysis, engineering, design,
construction management, construction, training and post-contract monitoring. For
each of the individuals listed, indicate the following: name, title, intended role and
responsibilities for the duration of the contract, educational background, specific
qualifications related to role and responsibilities, past relevant experience, number of
years of relevant experience, supervisory responsibilities (if relevant to role), list of
projects individual was associated with during the last five (5) years including type of
project and project cost, resume.
3) Areas of Expertise. List all areas of expertise related to potential energy and water
improvements in facilities. Include specialized areas of expertise in areas that might
be relevant to the project (swimming pools, laboratories, renewable energy system
application or rehabilitation, daylight design, etc.) Also describe the professional and
skilled trades that your firm customarily performs with employees.
4) Contract Negotiations Personnel and Legal Counsel. Give the name and address
of the person who will have primary responsibility for contract negotiations. Also
identify your firm's legal counsel for this project.
5) Subcontractors. Describe the nature of work generally conducted by subcontractors
and discuss your flexibility in hiring subcontractors recommended by Customer or in
selecting local subcontractors in Customer's geographic area.
2. GENERAL APPROACH
a. Project Summary (not to exceed 5 pages). Summarize the scope of. services (auditing, design,
construction, monitoring, operations, maintenance, training, financing, etc.) that would be
offered for this project. Include a brief description of your firm's approach to management and
the specific benefits your firm can offer Customer. Propose a preliminary project schedule.
b. Training Provisions. Describe your firm's capabilities in providing technical training for
Customer's facility personnel and experience on past projects. Describe your firm's involvement
in developing training manuals for facility staff.
c. Engineering Design. Describe your firm's approach to the technical design of this project.
d. Monitoring and Verification. Describe the methodology proposed for ongoing monitoring
and savings verification of each recommended project's performance, including the frequency
of such efforts. Note if an industry standard such as the International Monitoring and
Verification Protocol is used and describe the preferred method.
e. Cost of Analysis. Estimate the total cost of the technical analysis to Customer. This will be
the reimbursable cost if no performance contract is negotiated, providing the analysis meets the
requirements described in the Attachment to this RFQ.
f. Baseline Calculation Methodology. Describe in detail the methodology your firm normally
uses to compute baseline of energy and water use as well as performance.
g. Adjustment to Baseline Methodology. Describe the method(s) used to adjust the energy,
water and O&M baseline due to such factors as weather and facility use changes. Describe
factors that would necessitate adjustment. Please refer to the Technical Facility Profile of
Attachment F which describes that some buildings will have substantial changes in use, and
address these issues in particular.
h. Savings Calculations. List all procedures, formulas and methodologies including special
metering or equipment your firm will use to calculate energy, water and O&M savings. Include
assumptions made in the calculations.
I. Dollar Savings Calculations. Describe the procedure to assign dollar values to the O&M and
energy and water savings.
j. ESCO Fee Calculation. Describe your methods for calculating your firm's fees as a function
of the projects total combined savings. Describe the specific services for which your firm will
be paid over the contract term. Describe the method by which your firm will be paid for those
services and how often payment will be made.
k. Maintenance Contract Flexibility. Describe the types of services included in the maintenance
contract. Comment on whether Customer's maintenance staff can perform some of these duties
if desired, and describe any impact on the guarantee. (These duties could include programming
and maintaining the control system, installing lighting retrofits, maintaining HVAC equipment,
etc.). Describe the required length of the maintenance contract and the relationship with the
guarantee in the event that Customer chooses to terminate the maintenance contract prior to the
end of the performance contract.
l. Cost Savings Guarantee Calculations. Describe your firm's procedures and schedule for
measuring financial performance of projects. Describe how the guarantee provisions work in
the event that project results vary from projections. Also describe how excess savings will be
documented for Customer's benefit.
m. Open Book Pricing. Describe your firm's approach and experience in providing open-book
pricing.
n. Billing and Invoices. Describe your standard billing procedures and attach a sample invoice.
o. Provision of Financing. Briefly describe the types of financing arrangements provided by your
firm for past performance contracting projects. Include a brief description of the source of funds
and the potential dollar amounts currently available to your firm to finance these types of
projects. Indicate what representative interest rates may be available, financing terms and other
variable economic factors associated with each method. Please comment on how you would
work with Customer to utilize tax-exempt financing or other methods to keep financing costs
at a minimum.
p. Provision of Insurance. Describe level and types of all insurance policies applicable to the
project.
q. Environmental Liability. State your firm's position with respect to the acceptance of liability
for any hazardous materials encountered during the course of the project. If the firm is willing
to accept any level of environmental liability, state the level and provide a cost analysis.
r. Provision of Warranties. State the nature and terms of all warranties that will apply to the
project.
s. Equipment Ownership and Service Responsibility. Describe the status of equipment
ownership and service responsibility at contract expiration.
t. Sample Technical Energy Analysis and Project Development Agreement. Describe any
modifications you recommend or require regarding the Technical Energy Analysis and Project
Development agreement in this RFQ.
u. Sample Contract Agreement. Briefly explain how your Master Contract Agreement and
Performance Contract Agreements for specific facility improvements work. Attach a sample
of both types of contracts offered by your firm. However, note that State agencies are required
to use a state-issued contract.
v. Sample Technical Energy Analysis. Briefly describe your approach to auditing a facility.
Submit a sample technical analysis conducted by your firm for a similar project (as directed in
the Proposal Submittal information). This analysis must include detailed energy and economic
calculations.
3. SITE SPECIFIC APPROACH
a. Technical Site Analysis. Based on your preliminary assessment of the information provided,
describe any equipment modifications, installations or replacements at the facility that your firm
would consider installing as a part of this project. Address energy, water and O&M
opportunities. Also describe any special features, renewable technologies, or advanced
technologies that might be applicable. Describe your approach to achieve standardization of
equipment in the facilities to be addressed. Describe any special features or services associated
with your proposed improvements that would add value to Customer.
b. Operations and Maintenance. Describe any major changes in operations or maintenance of
Customer's facilities that your firm foresees based on the information provided. Briefly describe
the maintenance responsibilities of your firm and Customer. Describe how your firm would
provide appropriate training in operations and maintenance of installed improvements.
c. Standards of Comfort. Describe standards of comfort and functionality that will be used for
light levels, space temperatures, ventilation rates, etc. in the intended facilities. Also describe
how those standards will be maintained throughout the contract term.
d. Construction Management. Describe how your firm would work with current building
management and maintenance personnel in order to coordinate construction and avoid conflicts
with the building's operation and use. Describe your flexibility and/or any limitations regarding
possible Customer activities such as: Customer's management of additional energy and water
projects, Customer's monitoring of installation and performance of ESCO projects, Customer's
integration of other identified capital needs with ESCO projects which may or may not contain
energy and water saving opportunities.
e. Project Financing. Describe your firm's preferred approach to providing or arranging
financing for the proposed project. Describe the mechanics of the financing arrangement
including projected interest rate, financing terms with formulas used to determine periodic
payments, equipment ownership, responsibilities/liabilities of each party, security interest
required and any special terms and conditions that may be associated with the financing of this
project.
RFQ - Attachment E: Technical Facility Profile 30 of 46
A T T A C H M E N T E A T T A C H M E N T E
TECHNICAL FACILITY PROFILE
Note to Customer: The energy service companies (ESCOs) will need a description of the facilities that are
candidates for energy efficiency improvements in order to evaluate the opportunity to implement a
successful energy performance contract. While it will not be practical to provide every technical detail a
certain minimum level of information must be contained in the RFQ. ESCOs should also be prepared to
respond to more specific questions from the ESCOs about the buildings. Please provide the following for
each building under your ownership (where you pay all utility bills).
The information in this technical facility profile is provided to inform the ESCO about the condition of the
Customer's facilities. The information was prepared with diligence by the Customer. The ESCO is responsible
for verifying the accuracy, as necessary.
1. GENERAL FACILITY DATA
C Name of building
C Address of building
C Primary use of building
C Total square footage of conditioned space. (If the total areas which are heated and cooled differ in size,
please describe their respective sizes.)
C Number of floors.
C Year constructed
C Year of any major modifications.
C Building operator name & telephone
C Building engineer name & telephone
C Building manager name & telephone
2. PAST ENERGY IMPROVEMENT EFFORTS
C Describe any major energy-related changes made during the past ten years.
C State if any previous analyses were conducted.
3. FUTURE PLANS
C Briefly describe any major changes to building operation or structure during the last four years which
significantly affected annual building energy use. What was done? What were the effects on energy use?
C Describe any major change planned to occur during the next five years that could significantly affect
annual energy use. What change? Anticipated effects?
4. OPERATING INFORMATION
C Describe the typical hours of operation for your facility, including weekday/weekend and seasonal
changes.
C Describe the janitorial hours and describe habits regarding turning off lights and other equipment.
C State the general summer and winter temperature set points and any special temperature, humidity or
ventilation requirements.
5. BUILDING ENVELOPE DESCRIPTION
C Briefly describe the predominant wall and roof construction.
C Describe the type and condition of existing windows.
6. ENERGY-USING SYSTEMS DESCRIPTION
C Heating System: Briefly describe the type(s) of heating system(s) serving your building(s), (i.e. terminal
reheat, multi-zone, variable air volume, etc.) Include the type of fuel used to operate the system
(electricity, natural gas, propane, etc.). Describe the manufacturer, age, type and condition of heating
systems.
C Cooling System: Briefly describe the type of cooling system serving your building (chiller, roof-tops,
etc.). What type of fuel is used to operate the system? Describe the manufacturer, age, type and
condition of heating systems.
C Controls System: If you have a controls system to control space temperatures and heating and cooling
equipment please describe its capability (what is controlled), type (pneumatic compressed air system,
direct digital control system), condition, list the manufacturer, and year installed.
C Lighting System, Interior: Estimate the percentage of total area lighted by fluorescent ballasts and bulbs,
and incandescent bulbs. If the hours of operation for the lighting systems differ from the hours of
operation of the facility listed above, please describe.
C Lighting System, Exterior: Describe the type of exterior lighting systems (only include systems if your
facility pays for their operation).
C Water Heating System: Describe your domestic water heating system. Is it part of the space heating
system?
C Laundry Systems: Briefly describe any laundry operation on the premises, including fuel type of washers
and dryers, quantity of units, frequency of use.
C Kitchen/Food Preparation Systems: Briefly describe any kitchen operation on the premises including
frequency of use.
C Laboratory/Medical Equipment: Briefly describe any major labs or medical equipment.
C Solar/Renewable Technologies: Please describe any existing solar systems, their condition and age.
C Describe any other energy consuming equipment or facilities that contribute significantly to your annual
energy consumption (e.g. incinerator, pool, etc.).
7. WATER-USING SYSTEMS
C Briefly describe any water use including showers, laundry use, irrigation, cooling tower use, etc.
8. ENERGY AND WATER CONSUMPTION DATA
C Identify the present utility companies that provide electricity, gas, water, etc.
C Is natural gas or propane used? If propane, is natural gas available in the area?
C Provide monthly consumption and cost information for electricity, gas, water, etc. for the past three-year
period.
C Attach copies of utility rate schedules that apply to the facilities, or include a sample utility bill for
electricity, gas, etc. for each facility or meter for both winter and summer. If under contract for natural
gas, provide the fuel purchase agreement and a monthly price history, if available.
9. MAINTENANCE DATA
C Describe the general maintenance practices and schedule for the building and its energy-related systems.
C Include information sufficient to quantify all continuing maintenance costs, including staff and labor
hours, materials and supplies, etc.
C Describe any known maintenance problems and/or needs associated with deferred maintenance.
10. IMPROVEMENT OPPORTUNITIES
C Briefly describe any comfort problems.
C Describe maintenance problems related to energy-using systems in your buildings, including ability of
existing maintenance staff or contractors to address problems.
C Describe maintenance problems related to water systems in your buildings. Include water quality
problems.
C Identify any major equipment scheduled for replacement during the next five years.
C Briefly list any major energy conservation options identified by a previous analysis of your building.
C Describe any building improvements that you would like to investigate during this project.
11. ADDITIONAL SITE DATA AVAILABLE FROM CUSTOMER UPON REQUEST
C Additional utility bill information.
C More detailed information on major mechanical equipment and control systems.
C Copies of any previous technical analysis or recommendations of energy conservation options in your
building.
C Detailed documentation relating to your energy management system.
RFQ - Attachment F: Sample Technical Energy Analysis & Project Development Agreement 33 of 46
A T T A C H M E N T F A T T A C H M E N T F
Sample Technical Energy Analysis and Project Development Agreement
This Technical Energy Analysis & Project Development Agreement (the "Agreement") is made and entered into
as of <Date>, between <Energy Service Company Name> (ESCO), having its principal offices at <ESCO
Address>, and <Customer> include complete name and Board name if applicable> (Customer).
<Note to customer: Coordinate and cross-reference this document with the RFQ and Attachments.>
WITNESSETH
WHEREAS, ESCO is a company with experience and technical and management capabilities to provide for , the
discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of Energy
Efficiency Measures at facilities similar in size, function and system type to Customer's facilities; and
WHEREAS, ESCO has submitted a response to Customer's Request for Qualifications ("RFQ") pertaining to
the discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of
Energy Efficiency Measures at Customer's facilities; and
WHEREAS, Customer has selected, ESCO to provide the services described herein; and WHEREAS, Customer
desires to enter into an agreement to have ESCO perform a Technical Energy Analysis to determine the feasibility
of entering into an Energy Performance Contract to provide for the installation and implementation of Energy
Efficiency Measures at Customer's facilities.
WHEREAS, if Energy Efficiency Measures are determined to be feasible, and if the amount of savings can be
reasonably sufficient to cover all costs associated with an energy performance contracting project, the parties
intend to negotiate an energy performance contract under which the ESCO will design, procure, install,
implement, maintain and monitor such Energy Efficiency Measures.
THEREFORE, the parties agree as follows:
I. Technical Energy Analysis
ESCO agrees to perform a Technical Energy Analysis in accordance with the Scope of Work described below.
The Technical Energy Analysis must meet, but is not limited to the guidelines set by the Mississippi Department
of Economic and Community Development, Energy Division. A copy of the guidelines is attached. ESCO agrees
to complete the Technical Energy Analysis and present to Customer a final report within <Number of Days>
calendar days from the execution of this Agreement.
Customer agrees to assist the ESCO in performing the Technical Energy Analysis in accordance with the Scope
of Work described below. Customer agrees to work diligently to provide full and accurate information.
ESCO agrees to work diligently to assess validity of information provided and to confirm or correct the
information as needed.
ESCO agrees to offer in the Technical Energy Analysis a proposal of Energy Performance Contract terms and
conditions, based on a recommended package of Energy Efficiency Measures selected by the ESCO. The
proposal will include details as specified in the Scope of Work below.
II. Compensation To ESCO
Except as provided for below, within <Number of Days> days after ESCO's submission of the final
Technical Analysis report, Customer shall compensate ESCO for performance of the Analysis by payment to
ESCO of $ <Analysis Cost Amount>:
a. Customer shall have no up-front payment obligations under this Agreement, but acknowledges that the
fee indicated above shall be incorporated into ESCO's project costs, in the event ESCO and Customer
execute an Energy Performance Contract within <Number of Days> days, or such longer period as the
parties may mutually agree, after submission of the final Technical Energy Analysis report and Project
Development Agreement by ESCO to Customer.
b. Customer shall have no payment obligations under this Agreement in the event that ESCO's final
Technical Energy Analysis report does not indicate an annual energy cost avoidance of at least 15 percent
for Energy Efficiency Measures which can be financed over a maximum <financing term in years> year
period. <Note to Customer. 15% is generally considered conservative and achievable, depending on
cost effectiveness of opportunities.>
c. Should the ESCO determine any time during the Technical Energy Analysis that the savings above
cannot be attained, the Technical Energy Analysis will be terminated. In this event this Agreement shall
be canceled and Customer shall have no obligation to pay the amount specified.
III. Scope of Work
The Technical Energy Analysis and Project Development Agreement shall be performed as described below:
CUSTOMER WILL:
A. Furnish to the ESCO upon its request: accurate and complete data concerning energy usage and
operational expenditures for the premises, for the most recent three years from the effective date of this
Agreement as follows. Customer agrees to work diligently to provide full and accurate information, and
will also allow ESCO reasonable access to facility staff to ensure understanding of existing, systems and
opportunities.
1) Utility company invoices
2) Occupancy and usage information
3) Description of all energy-consuming or energy-saving equipment used on the premises
4) Description of energy management procedures utilized on the premises
5) Description of any energy-related improvements made or currently being implemented
6) Description of any changes in the structure of the facility or energy-using or water-using
equipment
7) Description of future plans regarding building modifications or equipment modifications and
replacements.
8) Drawings, as available (may include mechanical, plumbing, electrical, building automation and
temperature controls, structural, architectural, modifications and remodels)
9) Original construction submittals and factory data (specifications, pump curves, etc.), as
available
10) Operating engineer logs, maintenance work orders, etc., as available
11) Prior energy Analyses or studies, if any
ESCO WILL:
B. Perform an inspection survey to:
1) Interview the facility manager, maintenance staff or others regarding facility operation,
maintenance problems, comfort levels, equipment reliability, etc.
2) Identify the occupancy and use schedules for the facility and specific equipment. Identify and
characterize comfort or maintenance problems.
3) Inspect major energy-using equipment, including:
a) Lighting (indoor and outdoor)
b) Heating and heat distribution systems
c) Automatic temperature control systems and equipment
d) Air distribution systems and equipment
e) Outdoor ventilation systems and equipment
f) Exhaust systems and equipment
g) Hot water systems
h) Electric motors, transmission and drive systems, special systems (kitchen/dining
equipment, swimming pools, laundry equipment, etc.)
I) Renewable energy systems
k) Other energy using systems
1) Water consuming systems (restroom fixtures, water fountains, irrigation systems, etc.)
4) Perform "late-night" surveys outside of normal business hours or on weekends to confirm
building system and occupancy schedules, if deemed necessary.
5) Consider the following for each system:
a) Energy use, loads, proper sizing, efficiencies and hours of operation
b) Current operating condition
c) Remaining useful life
d) Feasibility of system replacement
e) Hazardous materials and other environmental concerns
f) Customer's future plans for equipment replacement or building renovations
g) Facility operation and maintenance procedures that could be affected
6) ESCO agrees to work diligently to assess validity of information provided and to confirm or
correct the information as needed.
C. Establish base year consumption and reconcile with end use consumption estimates.
1) Examine utility bills for the past 36 months and establish base year consumption for electricity,
gas, steam, water, etc. in terms of energy units (kWh, kW, CCF, Therms, gallons, or other units
used in bills) and in terms of dollars. Describe the process used to determine the base year
(averaging, selecting most representative contiguous 12 months, etc.). Consult with facility
personnel to account for any anomalous billings that could skew the base year representation.
2) Estimate loading, usage and/or hours of operation for all major end uses representing over five
percent of total facility consumption including, but not limited to:
C Lighting C HVAC motors (fans and pumps)
C Heating C Plug loads
C Cooling C Kitchen equipment Other/miscellaneous
Where loading or usage are highly uncertain (including variable loads such as cooling), ESCO
will use its best judgment or take direction from the Customer to use spot measurements or
short-term monitoring.
3) Reconcile annual end-use estimated consumption with the annual base year consumption to
within five percent for electricity (kWh), fuels and water. Also reconcile electric peak demand
(kW) for each end use within five percent. The miscellaneous category can be no greater than
five percent. This reconciliation will place reasonable limits on potential savings.
D. Determine cost and savings factors allowed by Customer
1) Customer will provide ESCO with sufficient guidance to develop savings estimates.
2) Savings estimates may include:
a) Energy savings
b) Customer material/commodity savings, including scheduled replacement of parts
c) Outside labor cost savings, including maintenance contracts
<Note to Customer: Move disallowed items to next section.>
3) Savings estimates will not include:
a) Customer in-house labor costs
b) Customer deferred maintenance cost
c) Offset of future customer capital cost
<Note to Customer: Move allowable items to previous section.>
4) The following items may be negotiated:
a) Escalation rates for natural gas, electricity, water, material/commodity cost savings,
and allowable labor savings
b) Interest rates (municipal tax-exempt rates)
<Note to Customer. State the type of rates that are available to you.>
5) The following items may not be negotiated:
<Note to Customer: Insert non-negotiable items.>
6) In the Technical Energy Analysis and subsequent Energy Performance Contract, ESCO will use
all markups and pre-disclosed and negotiated costs that were approved prior to this Agreement,
as listed below:
<Note to Customer: I nclude description and negotiated markup/cost.>
Cost category % of capital cost Fixed Cost
$
$
$
$
<Note to Customer: I dentify how fixed and % costs were determined and how they will be applied.>
E. Develop a preliminary analysis of potential Energy Efficiency Measures (EEMs):
1) Identify EEMs which appear in the judgement of the ESCO to be likely to be cost effective and
therefore warrant detailed analysis
2) For each EEM, prepare a preliminary estimate of energy cost savings including description of
analysis methodology, supporting calculations and assumptions used to estimate savings.
3) The Customer's rejection of calculations of savings, or potential savings allowed, shall be at the
risk of the ESCO.
F. Meet with Customer to present preliminary results including assessment of energy use, savings
potential, retrofit opportunities, and potential for developing an energy performance contract. Describe
how the projected project economics meet the customer's terms for completing the Analysis report.
G. Analyze each Energy Efficiency Measure (EEM)
1) Consider technologies in a comprehensive approach including, but not limited to: lighting
systems, heating/ventilating/air conditioning equipment and distribution systems, controls
systems, building envelope, motors, kitchen equipment, pools, renewable energy systems or
other special equipment.
2) For each EEM:
a) Use costs provided prior to contract negotiations in all cost estimates.
b) Follow the methodology of ASHRAE or other nationally-recognized authority and be
based on the engineering principle(s) identified in the description of the retrofit option.
c) Use best judgement regarding the employment of instrumentation and recording
durations so as to achieve an accurate and faithful characterization of, energy use.
d) Develop a preliminary measurement and verification plan for each EEM
3) Prepare a detailed report as described below
H. Prepare a draft "Final Technical Energy Analysis" which shall include:
1) Overview
a) Contact information
b) Summary table of recommended EEMS, with each EEM's design and construction cost,
annual maintenance costs, the first year cost avoidance (in dollars and energy units),
and simple payback
c) Summary of annual energy use and costs of existing or base year condition
d) Calculation of annual percentage savings expected if all recommended EEMs were
implemented
e) Description of the existing facility, mechanical and electrical systems
f) Summary description of Energy Efficiency Measures, including estimated costs and
savings for each as detailed above
g) Discussion of measures considered but not investigated in detail
h) Conclusions and recommendations
2) Full description of each EEM including:
a) Written description
(1) Existing conditions
(2) Recommendations. Include discussion of facility operations and maintenance
procedures that will be affected by EEM installation/implementation
b) Base year energy use
(1) Summary of all utility bills
(2) Base year consumption and description of how established
(3) End use reconciliation with base year (include discussion of any unusual
findings)
c) Savings calculations
(1) Base year energy use and cost
(2) Post-retrofit energy use and cost
(3) Savings estimates including analysis methodology, supporting calculations and
assumptions used.
(4) Savings estimates must be limited to savings allowed by the Customer as
described above.
(5) Percent cost-avoidance projected
(6) Description and calculations for any proposed rate changes
(7) Explanation of how savings duplication or interaction between retrofit options
is avoided.
(8) Operation and maintenance savings, including detailed calculations and
description
(9) If computer simulation is used, include a short description and state key input
data. If requested by Customer, access will be provided to the program and all
assumptions and inputs used, and/or printouts shall be provided of all input
files and important output files and included in the Technical Energy Analysis
with documentation that explains how the final savings figures are derived
from the simulation program output printouts
(10) lf manual calculations are employed, formulas, assumptions and key data shall
be stated.
d) Cost estimate -- detailed scope of the construction work needed, suitable for cost
estimating
(1) Engineering/design costs
(2) Contractor/vendor estimates for labor, materials, equipment; include special
provisions, overtime, etc., as needed to accomplish the work with minimum
disruption to the operations of the facilities.
(3) Permit costs
(4) Construction management fees
(5) Performance/payment bond costs
(6) Commissioning costs
(7) Other costs/fees
(8) Company overhead/profit
(9) Environmental costs or benefits (disposal, avoided emissions, handling of
hazardous materials, etc.)
(10) Note that all markups and costs disclosed and negotiated prior to contract
negotiations shall be used in the cost estimates.
e) Other
(1) Preliminary commissioning plan
(2) Preliminary measurement and verification plan, explaining how each EEM is
to be measured and verified (stipulated by agreement, utility bill analysis, end-
use measurement and calculation, etc.)
(3) Discussion of impacts that facility would incur after contract ends. Consider
operation and maintenance impacts, staffing impacts, budget impacts, etc.
f) Complete appendices including data used to prepare analyses and description of how
data were collected.
I. Meet with Customer to:
1) Review the EEM options proposed in the Analysis, and assemble a package of options which
is compatible with Customer's investment and infrastructure improvement goals; and
2) Preview the proposed Project Cost and list of Services to be Provided to determine which further
services Customer may want ESCO to provide.
J. Revise Analysis as directed by Customer.
K. Prepare a proposed "Project Cost" and a list of "Services to be Provided", in anticipation of
ESCO and, Customer entering into an Energy Performance Contract to design, install, and monitor the
EEMs proposed in the Technical Analysis. Project Cost is the total amount Customer will pay for the
Project. The Project Cost will include costs for ESCO's services which may include but are not limited
to:
1) Engineering, designing, packaging, procuring, installing,
2) Financing
3) Maintenance fees
4) Monitoring fees
5) Training fees
6) Legal services
7) Overhead and profit margins
Include a List of Services related to each cost.
L. Prepare a preliminary analysis of energy performance contract terms to include:
1) List of EEMs included in recommended package
2) Interest rate used in the analysis
3) Expected contract term (in number of years)
4) Analysis of annual cashflow for Customer during the contract term
5) Explanation of how savings will be calculated and adjusted due to weather (such as heating or
cooling degree days), occupancy changes or other factors.
4. Termination
ESCO may terminate this Agreement as described in 2a above. Customer may terminate this Agreement upon
ESCO's failure to fulfill the terms of the Agreement. Termination shall be effective 30 days from receipt of
written notice if conditions of default are not first corrected.
5. Energy Performance Contract
The Parties intend to negotiate an Energy Performance Contract under which the ESCO will design, install and
implement Energy Efficiency Measures which the Parties have agreed to and provide certain maintenance and
monitoring services. However, nothing in this Agreement should be construed as an obligation on any of the
Parties to execute such an agreement. The terms and provisions of such an Energy Performance Contract will
be set forth in a separate agreement.
IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto subscribe their names to, this
agreement on the date first written above.
ESCO CUSTOMER
_________________________________ _________________________________
_________________________________ _________________________________
RFQ - Attachment G: Measurement and Verification Requirements and Recommendations 41 of 46
A T T A C H M E N T G
MEASUREMENT AND VERIFICATION REQUIREMENTS AND
RECOMMENDATIONS (M&V)
MDECD-ED recognizes that Measurement and Verification of savings are central to determining the satisfactory
performance of Energy Performance Contracts. Separation of the measurement from the effects of the
measurement on those performing it being a long respected scientific prerequisite, MDECD-ED recommends
Third Party M&V or Third Party M&V review on projects valued at more than $500,000 or with savings
estimated at more than $100,000 per year. MDECD-ED recognizes that the choice of M&V provider is primarily
an administrative decision and that the circumstances and capabilities of the parties involved are widely varied.
The M&V Plan, its implementation, and the Periodic Energy Project Savings Report may be provided by the
Organization, the ESCO, a Third Party Contractor or some combination of these determined by contract
agreement. The requirements set forth in this document apply regardless of the provider.
The M&V Plan must be submitted along with the Technical Energy Analysis, periodic Energy Project
Savings Report, and the Energy Performance Contract for MDECD-ED review and approval.
The periodic Energy Project Savings Report must be submitted to MDECD-ED within sixty (60) days of the end
of the period to which it applies. The Periodic Energy Project Savings Report will be reviewed based on the
following criteria.
a. Are the savings greater than or equal to those estimated or guaranteed in the Technical Energy Analysis
and the contract ? (If the estimated and guaranteed savings are not the same, both numbers must be
shown throughout the documents.)
b. Does the report contain the required elements ?
c. Does the Report present the data elements, calculations and results as set forth in the M&V Plan?
d. Do the parties (i.e. Organization, ESCO, Third Party Contractor) have any disputes or concerns
regarding the report ?
If the answers to the above questions are satisfactory to MDECD-ED, the report will be filed for future reference.
If the answers are not satisfactory, closer review of the project will commence and remedies will be assigned to
the party determined to be responsible for the discrepancy.
Energy Project Savings Report
a. Name and qualifications of the M&V firm and individual technical analyst providing the report.
b. Period the report covers.
c. What was measured.
d. What time interval(s) was(were) used for the measurements.
e. Locations of facilities and measurement equipment.
f. What instruments were used for measurement and the method of installation.
g. How the instruments were calibrated and the date of last calibration.
h. What baseline and post-retrofit analysis was performed on the data collected.
I. All calculations and results of the savings analysis.
j. Table that relates measured data to each EEM or O&M measure.
k. Table that relates measured savings to estimated savings.
l. Table relating M&V Plan components to actual measurements, instruments and data.
m. Any other elements defined in the M&V Plan.
n. Explanation of any variance from the M&V Plan.
o. Sign-off sheet showing all parties have reviewed the report and any disputes.
p. Electronic and hard copy format are required for the report and data.
M&V Plans: Purpose and Minimum Content
Any Energy Performance Contract submitted must first and foremost provide substantial proof that the EEMs
in fact perform as stated in the project proposal, and provide savings greater than or equal to those estimated. It
is the overriding purpose of the Measurement and Verification Plan to provide a plan for achieving that proof.
M&V plans should contain, at a minimum, the following information:
a. Name and qualifications of the M&V firm and individual technical analyst that will perform the M&V.
b. What will be measured.
c. What time interval(s) will be used for the measurements.
d. What the total cost of the M&V plan will be over the term of the contract.
e. What instruments will be used for measurement and method of installation.
f. How such instruments will be calibrated and the frequency of calibration.
g. What baseline and post-retrofit analysis will be performed on the data that are collected.
h. An example calculation of the savings analysis including format. Table that shows M&V approach to
measure each EEM or O&M measure.
I. A sample quarterly report including examples of all required documents and showing all data elements,
calculations and representative results.
j. Be approved by a professional engineer with current Mississippi license.
Qualifications and Responsibilities of the M&V Analyst
The Measurement and Verification Plan and the project reports produced using the data derived from it are the
core evidence regarding the guaranteed performance of contracts. The M&V Plan becomes part of the Energy
Performance Contract and is reviewed along with the Energy Analysis by MDECD-ED.
The Analyst who develops the Measurement and Verification Plan must meet the following criteria:
a. Have a working knowledge of energy-using systems typical of those found in institutional and commercial
buildings, have a working knowledge of energy efficient retrofits utilizing state of the art technologies, and
have a specific understanding of the subject building's operation and maintenance procedures;
b. Be experienced in conducting energy monitoring and identifying and measuring elements of energy
consumption in institutional or commercial buildings and in preparing comprehensive savings reports on
the findings;
c. Be involved in on-site work to gather project data; direct or perform all aspects of the data collection, data
selection, data analysis, cost estimation; and provide final M&V recommendations for the project;
It is the responsibility of the analyst to expedite the preparation of the report and to respond in a timely
manner to any comments, questions or necessary revisions resulting from the technical review.
GENERAL M&V APPROACHES
Specific M&V measures must be carefully analyzed to determine whether they are appropriate for a particular
EEM. Each must provide data which correlates with variables used to calculate the savings estimates made in the
Energy Analysis. It is often helpful to consider some general M&V approaches when assembling a projects
M&V plan. The following options are recognized as possible M&V approaches. When presenting an M&V plan,
the M&V plan should specify which Option(s) (A,B,C,D) is/are being used for each EEM. The specifics of how
each approach is to be implemented must also be presented.

Option A: End-Use Retrofits - Measured Capacity, Stipulated Consumption Approach
Option A, the first approach to M&V presented in this protocol, is intended for retrofits where end use capacity,
demand or power level can be measured or stipulated with manufacturer's measurements, and energy consumption
or operating hours are known in advance, stipulated or agreed upon by both parties. Option A usually involves
a one-time measurement of the instantaneous baseline energy use, and a one-time measurement of the
instantaneous post-installation energy use. In certain circumstances, representative measurements can be made
in place of in-situ measurements where multiples of identical units are being installed. Periodic equipment
inspections may also be warranted. Estimated or stipulated energy consumption is calculated by multiplying the
measured end use capacity (i.e., the KW, BTU/HR or KW/HR) by the stipulated hours of operation for each
characteristic mode of operation (i.e., weekday/weekend hourly profiles).
Option B: End-Use Retrofits - Measured Capacity, Measured Consumption Approach
Option B is intended for retrofits where the end use capacity, demand or power level can be measured baseline,
and the energy consumption of the equipment or sub-system can be measured post-installation over time. Option
B can involve a continuous measurement of energy use both before and after the retrofit for the specific
equipment or energy end use affected by the retrofit or measurements for a limited period of time necessary to
determine retrofit savings. Periodic inspections of the equipment may also be warranted. Energy consumption
is calculated by developing statistically representative models of the energy end use capacity (i.e., the KW or
BTU/HR) and consumption (i.e., the KWH or BTU).

Option C: Whole -Facility or Main Meter Measurement Approach
Option C encompasses whole-facility or main-meter verification procedures that provide retrofit performance
verification for those projects where whole-facility baseline and post-installation data is available to measure
savings. Option C usually involves a continuous measurement of whole-facility baseline energy use and electric
demand, and a continuous measurement of the whole-facility energy use and demand post-installation. Periodic
inspections of the equipment may also be warranted. Energy consumption under Option C is calculated by
developing statistically representative models of whole-facility energy consumption (i.e., KWH, BTU or KW),
or electric demand (i.e., KW).
Option D: Calibrated Simulation Approach
Option D is intended for energy conservation retrofits where calibrated simulations of the baseline energy use
and/or calibrated simulations of the post-installation energy consumption are used to measure savings from the
energy conservation retrofit. Option D can involve measurements of energy use both before and after the retrofit
for specific equipment or energy end use as needed to calibrate the simulation program. Periodic inspections of
the equipment may also be warranted. Energy consumption is calculated by developing calibrated hourly
simulation models of the whole-building energy use, or equipment sub-systems in the baseline mode and in the
post-installation mode and comparing the simulated annual differences for either an average weather year or for
weather and operational conditions that correspond to the specific year during either the baseline or
post-installation period.
O&M SAVINGS GUIDELINES
The installation of energy efficiency measures often results in cost savings to budget items other than utility
purchases. These guidelines describe methods to measure the non-utility savings which result from the installation
and operation of energy efficiency measures. Non-utility savings which result from work other than energy
efficiency measures are not recognized as savings which can be used to offset the customer's contractual
obligations.
Operational and maintenance savings can occur in many forms. It is probably beyond the ability of anyone to list
all of the ways in which O&M savings can occur. However, most of the common occurrences of these savings
are:
C Reductions in internal labor costs
C Reductions in outside labor costs
C Reductions in scheduled maintenance
C Reductions in unscheduled repairs
C Reductions in consumed tools
C Reductions in repair parts and materials
C Reductions in inventory
C Reductions in contracted services
There is an important distinction to recognize between energy and O&M savings. This distinction is that O&M
savings frequently require that the customer take a new action or refrain from acting as in a previous manner. For
example, a lighting retrofit may reduce the number of burned out lamps to be replaced in a given year. However,
to realize savings, the customer must refrain from purchasing the same quantity of lamps as in prior years. Also,
this would reduce the amount of labor expended on lamp replacement. Again, however, savings will only be
realized if the customer takes action to remove or reassign the personnel or if planned hirings can be reduced or
deferred. The reason this is important is that an energy services provider cannot guarantee that the customer will
take these actions, and therefore cannot guarantee that savings will be realized. The customer must look to
themselves to provide assurances that such savings will take place and then evaluate the risks appropriately.
A fairly simple two-part test can be applied to determine if O&M savings can be used to offset the costs of a
project. First, can the actual annual savings be verified? If the answer is yes, the second part is if the O&M
savings do not occur, will the ESCO (contractor) reimburse the customer for the savings shortfall? If the answer
to both questions is yes, then it is appropriate to use these savings to justify the project. If the answer to either
question is no, then the savings are not appropriate for projects.
Another important consideration is that possible increases in O&M not be ignored if O&M is being used to
evaluate project feasibility. For example, some energy efficiency measures may require additional training,
manpower, new tools, new inventory, etc. Be sure to factor these items into the evaluation as well as O&M
savings. Also, be sure that projected O&M savings are not derived from neglecting to perform needed
maintenance. This would be a false economy.

How to Measure Operational & Maintenance Savings

Option A - Calculated Projections
Option A is meant to serve as a contractual substitute for measuring post-installation savings. Option A
stipulates baseline and sometimes, post-installation quantities multiplied by a stipulated savings per unit
to calculate annual O&M savings.

Example: A lighting retrofit which reduces lamps from 3 per fixture to 2, and reduces ballasts from 2 per
fixture to 1. The quantity of fixtures in the baseline would be established. If the post-retrofit fixture quantity
changes, then this quantity would need to be re-established. Annual material and labor savings factors per
fixture would be stipulated in the contract. These factors would be multiplied by the quantity of fixtures,
plus any net increase or decrease in fixture quantity. The result would be the annual O&M savings.

Applying the guarantee test: 1) Can the actual annual savings be verified? No, since the actual material and
labor baseline costs have not been established, nor are the post-retrofit actual material and labor costs
tracked, the savings cannot be verified. This M&V method would not be appropriate in this instance.

Option B - Task Measurement
Option B is intended to be used when actual measurement of O&M savings is required, but there is no
accounting process in place whereby savings can be established. Option B establishes a baseline of actual
expenditures and/or time consumed for operational and maintenance costs pertaining to equipment or
systems affected by the EEM(s). For the post- installation period, actual expenditures and/or time consumed
for O&M of the affected equipment or systems would be tracked. This could be accomplished with time
cards, purchase orders, invoices, etc. The annual O&M savings would be the difference between the
baseline costs and the post-retrofit costs. The M&V plan must describe a method to insure that O&M costs
are actually reduced and are not merely moved to another location. For example, if repair invoices from a
particular vendor are tracked, insure that savings are not imputed simply because the vendor changed.

Example: A chiller retrofit that eliminates $500 in annual refrigerant replacement. The baseline record
would consist of invoices for refrigerant purchases and outside service labor. Post-retrofit expenditures for
refrigerant and service labor would be tracked. The annual O&M savings would be the difference between
the baseline costs and the post-retrofit costs. The M&V plan would have to include a method to link the pre
and post-retrofit costs to the replaced chiller.

Applying the guarantee test: 1) Can the actual annual savings be verified? Yes, since the actual material and
labor baseline costs have been established, and the post- retrofit actual material and labor costs are tracked,
the savings can be verified. 2) Will the ESCO (contractor) reimburse the customer for any savings shortfall?
If the contract clearly confirms this, the answer is yes. If the contract does not state this or is unclear, then
the answer is probably no. This M&V method would be appropriate if the contract provides for savings
reimbursement.

Option C - Budget Comparison
Option C is intended to be used when actual measurement of O&M savings is required, and affected O&M
costs can be traced to an existing budget line item or account number. Option C establishes a baseline of
those budget line items or account numbers affected by the proposed EEM's. For the post-installation
period, actual expenditures on the affected line items or account numbers are tracked. The annual O&M
savings would be the difference between the baseline costs and the post-retrofit costs. The M&V plan must
describe a method to insure that O&M costs are actually reduced and are not merely moved to another
location. For example, moving repair costs from a tracked line item to a non-tracked line item would not be
valid O&M savings.

Example: A chiller retrofit that eliminates $500 in annual refrigerant replacement. The baseline record
would consist of those budget line items or account numbers which include costs for refrigerant purchases
and outside service labor. Post-retrofit expenditures for the same line item or account number would be
tracked. The annual O&M savings would be the difference between the baseline costs and the post-retrofit
costs.

Applying the guarantee test: 1) Can the actual annual savings be verified? Yes, since the actual material and
labor baseline costs have been established, and the post- retrofit actual material and labor costs are tracked,
the savings can be verified. 2) Will the ESCO (contractor) reimburse the customer for any savings shortfall?
If the contract clearly confirms this, the answer is yes. If the contract does not state this or is unclear then
the answer is probably no. This M&V method would be appropriate if the contract provides for savings
reimbursement.

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