Phoenix Convention Center Phoenix, Arizona A Review of the Current DOE IDIQ Track 5: Project Financing Session 3: ESPC Large and Small: The Basics of ESPC Wayne Latham Energy Efficiency and Renewable Energy August 11, 2015

Energy Exchange : Federal Sustainability for the Next Decade  Current ESPCs  The ESPC Goal  ESPC Project Assistance  The Notice - NOO  Selection Process  Preliminary Assessment  The Investment Grade Audit  The Proposal and Proposal Review for Task Orders  Measurement & Verification  Energy Conservation Measures  Additional Information 2 Overview of Energy Saving Performance Contracts - ESPC

Energy Exchange : Federal Sustainability for the Next Decade Awarded in 2008 Sixteen Contractors – AKA – ESCOs Listed at: Available for use by all Federal Agencies Supports the Presidential Performance Contracting Challenge (PPCC) To learn about training and project assistance see: 3 The Current DOE Contract

Energy Exchange : Federal Sustainability for the Next Decade These contracts are intended to promote the use of renewable energy technologies, acquire energy and water conservation services, reduce energy and water consumption and/or associated utility costs, and may reduce energy and water-related operations and maintenance costs. The contractor shall be responsible for providing all labor, material, and capital to install energy and water conservation projects, renewable energy projects and provide operations and maintenance as specified in each Task Order. The cost of an energy savings performance contract must be covered by the energy, water, and related cost savings incurred at the Federal facility. The Task Order project cost savings must be verified and documented annually. 4 The ESPC Goal

Energy Exchange : Federal Sustainability for the Next Decade Federal project executives (FPEs) help agencies launch energy savings performance contract (ESPC) projects. FPEs support agencies by helping with acquisition planning tasks Tom Hattery – Northeast Region Doug Culbreth – Southeast Region Scott Wolf – Western Region A DOE-approved project facilitator (PF) is required for the utilization of this master IDIQ contract. A PF must be selected prior to the agency issuing a notice of anticipated requirements. The PF requirement shall not be waived by the agency. DOE Contracting Wayne Latham – Contracting Officer David Halla – Contracting Officer The FEMP website 5 ESPC Project Assistance

Energy Exchange : Federal Sustainability for the Next Decade The Notice – The NOO The NOO is the vehicle by which to explore all the technologies/opportunities permitted in the contract. The Agency is required to issue a Notice - Notice of Opportunity to all 16 contract holders that includes, but is not limited to: –Agency’s desire to pursue an ESPC project, –Concise Statement of Objectives, –General description of Agency mission, –Summary info about facility energy usage, –Request for Contractor Expressions of Interest in pursuing project, and for those interested, solicit: Qualifications for conducting IGA Any other preliminary information the Agency might request in order to make a meaningful selection –Significant evaluation factors (relative importance), and –Reasonable response period (30 days/depends) 6

Energy Exchange : Federal Sustainability for the Next Decade – Selection Based on Qualifications – Selection Based on Preliminary Assessments – Unsolicited Proposals 7 The Selection Process

Energy Exchange : Federal Sustainability for the Next Decade The contractor shall submit a Preliminary Assessment (PA) to the Government, which sets out the merits, technical feasibility, level of projected energy savings, economics, and price of the project. The ESCO shall ensure a Project Facilitator has been selected by the Government prior to submitting the PA.  At a minimum, the contractor shall include its technical and price assessments, in a format in accordance with agency requirements.  It is recommended that the PA be approximately 20 pages, except in instances where the ESCO, or agency guidance, requires more pages to adequately address each of the requirements. The contractor shall submit completed Schedule TO-1 (PA), TO-2, TO-3, and TO-4, as well as documentation to support the entries on the form. The technical and price assessments shall be in accordance with the following requirements: Project Overview Executive Summary Technical Assessment ECM description, ECM Performance Measurement, Management Approach 8 Preliminary Assessment

Energy Exchange : Federal Sustainability for the Next Decade Following issuance by the agency of the NOI, the selected contractor shall conduct an Investment Grade Audit (IGA) of facilities and energy systems at the project site to substantiate the contractor’s ability to achieve the estimated total cost savings submitted The IGA shall identify the relevant existing conditions of applicable agency facilities For each ECM identified, the contractor shall provide a detailed analysis documenting the proposed annual energy or water savings performance of the ECM after installation, startup and testing. The contractor shall document the results of the IGA. 9 The Investment Grade Audit

Energy Exchange : Federal Sustainability for the Next Decade The contractor shall submit a Proposal, consisting of technical and price components, as well as an individual small business subcontracting plan for each task order. Particular emphasis should be placed on assessment of renewable energy opportunities. Based on the results of the IGA, the contractor shall submit completed Schedules TO-1 (final), TO-2, TO-3, TO-4 and TO-5, with supporting documentation. Proposals will be reviewed in accordance with the instructions set forth in the Task Order RFP. The agency will not be responsible for any costs incurred, such as proposal preparation costs or the costs incurred in conducting the IGA, unless a Task Order is awarded or authorized by the agency CO. The Proposal format requirements are: -Project Overview -Volume I - Technical Proposal -Volume II - Price Proposal -Individual Small Business Subcontracting Plan 10 The Proposal and Proposal Review for Task Orders

Energy Exchange : Federal Sustainability for the Next Decade  The contractor shall prepare and submit a general M&V approach with its Preliminary Assessment (PA), identifying the M&V options and methods to determine a site-specific pre-installation baseline and post-installation ECM performance for each proposed ECM.  The contractor shall prepare and submit a site-specific M&V plan with its final proposal, per the requirements of the master IDIQ contract. This site-specific M&V plan shall include a schedule indicating M&V activities and post-award M&V reporting milestones for each ECM.  The contractor shall prepare and submit an annual M&V report to the agency including data and calculations that demonstrate that continued ECM performance achieves the guaranteed annual energy, water, and related cost savings as required. 11 Measurement & Verification

Energy Exchange : Federal Sustainability for the Next Decade These contracts and subsequent task orders require the contractor to possess the capability to implement ECMs that reduce energy and water consumption or costs, increase renewable energy use and may reduce energy and water-related O&M costs. ECMs include measures to increase energy efficiency of energy-consuming systems and to reduce water consumption. ECMs also include measures that improve the efficiency of energy production systems that generate electrical and/or thermal energy. Particular emphasis should be placed on assessment of renewable energy opportunities. 12 Energy Conservation Measures – ECM

Energy Exchange : Federal Sustainability for the Next Decade The FEMP home page is your source on energy and sustainability: 13 Additional information

Energy Exchange : Federal Sustainability for the Next Decade 14 Questions?