REQUEST FOR PROPOSALS
NET-METERING SOLAR FACILITY & ASSOCIATED SERVICES
Investment Grade Audit & AEPC Project Proposal
Section 1 – SELECTION PROCESS
General Background & Purpose
This Request for Proposals (RFP) seeks Energy Service Companies (ESCOs) to develop and complete an Investment Grade Audit (IGA) and Energy Performance Contract (EPC) contract proposal for Prescott School District, hereinafter referred to as “Owner”. The Owner has executed a Memorandum of Understanding with the Arkansas Department of Environmental Quality – Arkansas Energy Office (AEO)’s Arkansas Energy Performance Contracting (AEPC) Program and will follow the program’s rules and guidelines.
As this project is being conducted through the AEPC program, Owner will only consider proposals from AEO’s pre-qualified list of ESCOs, which may be found at:
https://www.adeq.state.ar.us/energy/incentives/performance.aspx
Lead Contact Information & Inquiries
For inquiries regarding this RFP, please contact:
- Robert Poole
- Superintendent
- (870)-887-3016
- rpoole@prescottschool.net
Communication with other officials of the Owner, the Selection Committee, or others associated with the project with regard to this RFP is prohibited.
Inquiries must be submitted in writing or electronically to the Owner’s lead contact by September 25, 2019. Inquiries received prior to this deadline will be answered and distributed via the AEO to all ESCOs who have stated a written interest in responding to the RFP.
Timeline
Please find the anticipated timeline for the Owner’s AEPC project following.
| Issue Request for Proposals for EPC | October 8, 2019 |
| Deadline for Questions | October 15, 2019 |
| Anticipated Response to Questions | October 21, 2019 |
| Proposals Due | October 25, 2019 |
| Select ESCO | By November 6, 2019 |
Scope of Work
The Owner is soliciting proposals from pre-qualified ESCOs through the AEPC Program to develop a net-metering facility. This facility will ideally produce solar energy purchased by the Owner in the form of a third-party ownership agreement (such as a solar services agreement or a lease) as authorized by Act 464 of 2019. Such an arrangement will allow the Owner, as a tax-exempt entity, to realize tax benefits heretofore unavailable. If an ESCO believes that an alternative procurement model such as outright ownership is preferable, detailed justification and analysis for such an approach should be provided.
ESCOs should demonstrate expertise in the development, financing, operation, and maintenance of the net-metering facility. Further, though the Owner has provided suggested sites for the construction of the net-metering facility (provided in Attachment B), the Owner will consider alternative sites that result in a net cost benefit to the project.
The Owner will consider purchase options for the net-metering facility after seven years at Fair Market Value (FMV), and maintains the right to purchase the facility at FMV at any time thereafter for the life of the solar services agreement.
This RFP will result in the selection of an ESCO for the development and operation of a net-metering facility which includes: financing, construction, ownership and the provision of operation and maintenance services for the duration of the agreement.
Relevant utility data may be found as Attachment A. After conducting a preliminary review of available utility data, annual consumption is estimated to be roughly 1.6 million kilowatt hours per year while expenses incurred are estimated to be $206,000, making for a blended rate of 12.88 cents per kilowatt hour. Site information for the sites being considered in the project scope may be found as Attachment B.
Submittal Instructions
Proposals are due by the date specified in the Timeline by 5 PM. Proposals may be submitted electronically, mailed, or delivered. Proposals must be addressed to Owner’s lead contact at the following address:
- ATTN: Robert Poole
- Prescott School District
- 762 Martin St
Prescott, AR 71857
Evaluation and Selection
The Owner will appoint a Selection Committee to review the proposals by the submitted deadline. The evaluation process will objectively grade the responses on their merit. Proposals will be reviewed to confirm the accuracy of the material presented in the response.
The AEO will provide the Owner’s Selection Committee with technical assistance during the evaluation process but will not and cannot participate as a member of the Selection Team.
The Owner, at their choosing, may interview up to three pre-qualified ESCOs after reviewing RFP responses. ESCOs will be notified by AEO to coordinate follow-up interviews if the owner has opted to interview candidates for further clarification.
Once a selection has been made, AEO will notify all respondents and Owner and selected ESCO will negotiate an IGA Contract through the AEPC Program with the intent to execute.
Owner reserves the right to reject any and all submissions and to waive any informality if deemed in the best interest of Owner to do so, as this solicitation does not commit Owner to award a contract.
Section 2 – SELECTION CRITERIA
Qualifications & Team Experience
Provide information that emphasizes your ESCO’s qualifications and expertise relating to the ECMs identified in the Scope of Work. Describe experience of the team members being proposed for this project. Specifically, provide the following:
- Qualifications and experience of ESCO’s personnel who will be involved on project. Identify primary responsibilities for each team member, as well as any additional resources ESCO expects to be able to provide to the project, such as navigating regulatory and utility approvals.
- Documented solar projects and/or EPCs completed in Arkansas or surrounding states.
- At least three (3) client references.
Project Personnel
Identify each individual(s) who will have primary responsibility for the following tasks: technical analyses, engineering design, construction management, construction, training, post-construction.
Project Design
It is expected that communication and coordination during the design and development phase of the IGA will be required to obtain Owner approvals for ECM specifications. Discuss your ESCO’s approach to design and incorporating Owner input into the IGA proposal specific to the ECMs identified in the Scope of Work.
Product Selection & Bidding
Discuss your firm’s product bidding and selection procedures. If your ESCO intends to self-perform any ECMs or work on this project with preferred subcontractors, explain how this will deliver benefits to the Owner. How does your firm balance cost, performance, and transparency during the bidding process?
Project Management & Construction
Discuss your firm’s project management &construction approach, including:
- Work plan development and coordination of Owner work requirements
- Methods of procedures, submittals and approvals
- Safety practices and procedures
- Systems Commissioning Process
Measurement & Verification
Measurement & Verification is unique in third-party solar agreements, as performance is intrinsically tied to an annual rate or lease payment. Describe your ESCO’s approach to M&V with regard to the potential Scope of Work proposed by the Owner. Specifically:
- What would be a reasonable M&V term for this proposed project scope? How often are reports delivered and discussed with the Owner? Owner would recommend a year of IPMVP Option B for a solar project. Does this seem reasonable?
- What are your typical safety factors for the proposed project?
- What does your ESCO consider a reasonable percentage cost for M&V relative to the overall project?
Owner Engagement
Discuss your ESCO’s approach to cultivating a positive long-term relationship with the Owner through such activities as:
- Training
- If the Owner could own the installed solar system at some point in the future, how does your firm intend to train staff to meet maintenance responsibilities such as inverter replacement to ensure continued performance?
- Staff Engagement
- Behavior Modification
- Provision of Record Documents post-Construction
EPC Financing
Describe your ESCO’s experience assisting clients through the financing of guaranteed energy savings projects in Arkansas. Further, please answer the following questions:
- What, if any, existing relationships does your ESCO have with financiers well-versed in solar contracts?
- What vehicle would your ESCO deem most appropriate for this project?
Financial Data
Given your ESCO’s knowledge of the owner’s facilities and energy usage and experience with both solar installations and the Arkansas market, please answer the following:
- Please provide a description of your firm’s past experience delivering turnkey solar installations and/or fixed price/kWh Solar Service Agreements (SSAs)
- If your firm has executed SSAs in the past, how were annual utility escalators and buyout options considered?
- How would your frim use its past experience delivering turnkey solar installations and/or fixed price/kWh Solar Service Agreements (SSAs) to deliver best-value to the Owner for a project scope of the size stated above?
General Conditions
To be considered, proposals must be received by 5:00 PM on October 21, 2019 as set forth in this solicitation. An incomplete submission will not be considered. All proposals must be received prior to the stated due date. It is the sole responsibility of the ESCO to ensure that the bid is received by the Owner on or before the stated due date. The Owner will in no way be responsible for any delays caused by any reason. ESCOs must read and complete every aspect of the solicitation if they intend for their response to be considered.
It shall be clearly understood that any costs incurred by the ESCO in responding to this request are at the ESCO's own risk and expense as a cost of doing business, and that Owner is not liable for reimbursement to the ESCO for any expense so incurred, regardless of whether or not the submission is accepted.
Any information provided herein is intended to assist the ESCO in the preparation of submissions necessary to properly respond to this RFP. The RFP is designed to provide pre-qualified ESCOs with sufficient information to provide a response but is not intended to limit content or to exclude any relevant or essential data.
Respondents are required to be thoroughly familiar with the requirements herein and applicable state statutes before submitting their statement of qualification to Owner for consideration.
The submission must contain the signature of a duly authorized officer or agent of
ESCO’s firm empowered with the right to bind and negotiate on behalf of ESCO for the work and terms proposed.
ATTACHMENT A – UTILITY INFORMATION
Twelve months of district electricity data is available for view and download at:
https://www.dropbox.com/sh/xz9lnnev4n6ajys/AADW-4wIPcL8Ag8sJvJ96fb_a?dl=0
ATTACHMENT B: SOLAR SITE INFORMATION
The preferred site for the photovoltaic array is McRae Middle School, located at 100 E 5th St, Prescott, AR 71857. A map link is below:
https://www.google.com/maps/@33.8034077,-93.3720213,393m/data=!3m1!1e3