Request for ESCO contract II.pdf

8/11/2019 Request for ESCO contract II.pdf

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REQUEST FOR PROPOSALS

THE PENNSYLVANIA STATE UNIVERSITY

GUARANTEED ENERGY SAVINGS CONTRACT

TABLE OF CONTENTSPage

PART I - GENERAL INFORMATION ................................................................................................ 2 - 6

PART II - INFORMATION REQUIRED ............................................................................................. 7

PART III - PROPOSED PROJECT SCHEDULE............................................................................... 8

PART IV - EVALUATION CRITERION.............................................................................................. 9

PART V - PROJECT TERMS AND CONDITIONS............................................................................ 10 - 13

ATTACHMENT A - ESCO's PRELIMINARY TECHNICAL PROPOSAL ............................ 14 - 16ATTACHMENT A-1 - SUBCONTRACTORS QUALIFICATIONS FORM............................... 17 - 18ATTACHMENT A-2 - PRELIMINARY TECHNICAL ENERGY AUDIT REPORT................... 19

ATTACHMENT B - ESCO's PRELIMINARY COST PROPOSAL....................................... 20 - 21ESCO's PRELIMINARY PROJECT CASH FLOW ANALYSIS

ATTACHMENT C - ENERGY AUDIT AGREEMENT .......................................................... 22

APPENDIX I - PREVAILING WAGE RATES .............................................................. 45

APPENDIX II - GUARANTEED ENERGY SAVINGS AGREEMENT .......................... 48


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The Pennsylvania State UniversitySTANDARD REQUEST FOR PROPOSALS

GUARANTEED ENERGY SAVING CONTRACTS

PART I. GENERAL INFORMATION

I-1. PURPOSE. This Request For Proposals (RFP) contains the information and requirements for the selected EnergyService Companies (ESCOs) to prepare and submit to THE PENNSYLVANIA STATE UNIVERSITY, a nonprofitcorporation created and existing under the laws of the Commonwealth of Pennsylvania, (hereinafter called theOwner),a Preliminary Technical and Cost Proposal for a guaranteed energy savings contract, in conformance withthe guaranteed energy savings contract requirements of Act 57 of 1998, 62 Pa. C.S. 3751-3757 (Act 57), for theUniversity Park (Project Site). This RFP, with any amendments, contains the only instructions governing theproposals and material to be included therein; a description of the service to be provided; general evaluationcriteria; and other proposal requirements.

I-2. POINT OF CONTACT AND RESTRICTION OF CONTACT: From the issue date of this RFP until a determinationis made regarding the final selection of the Project ESCO, all contacts with University personnel concerningthis RFP must be made through the sole point of contact.The sole point of contact for this RFP is

Laura Miller OFFICE: (814)865-4343ESCO Program Engineer FAX: (814)865.3737Physical Plant Building MOBILE: (814)777-3475University Park, PA 16802 EMAIL: [email protected]

I-3 PROJECT. Owner is interested in contracting for a full range of energy services and energy-related capitalimprovements ("energy conservation measures" or "ECMs"), financed through a guaranteed energy savings contract atno initial capital cost to Owner, for the Project Site(s). The ECMs may include but are not limited to: a preliminarytechnical scoping audit, investment grade energy audit; the design, acquisition, installation, modification, maintenanceand training in the operation of existing and new equipment, which will reduce energy consumption and related costsassociated with the heating, ventilation and air conditioning system, lighting systems, building envelope, the hot watersystems, water consumption, sewage costs and other energy using devices; as well as for savings, which would notreduce consumption per se but are aimed at cost savings, such as fuel switching, demand reductions, on-site

generation, utility bill auditing, utility rate changes, distribution upgrades, energy management system additions ormodifications and continuous commissioning programs, etc. ECMs may also include the training of facility staff withrespect to routine maintenance and operation of all improvements. ECMs must result in a guaranteed minimum energysavings with the ESCO payments linked to actual documented energy and cost reductions. Any stipulated energyand/or operational cost savings that may be attributed to this project will be rigorously reviewed and, ifagreed to, will be limited to those that can be thoroughly documented and verified by the ESCO andapproved by Owner.

Consistent with the provisions of Act 57, payments under any contract shall not exceed ten (10) years in duration and

each contract must comply with applicable state statutes, regulations, and procurement laws. The savings achievedby the ECMs must be sufficient to cover all project costs including annual maintenance and monitoring fees on anannual basis for the duration of the contract term. The contract must provide that the savings in any year areguaranteed, by the ESCO, to the extent necessary to make payments under the contract during that year.

I-4 DESCRIPTION OF THE PROCUREMENT PROCESS. It is anticipated that the process for the procurement of theseenergy services will proceed as follows:


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3.) ORAL INTERVIEW. Each selected ESCO will be required to participate in an oral interview. The purpose of thissession is to clarify specific aspects of the technical proposal and to answer questions posed by the evaluation teamabout the proposal. These oral interviews may be tape recorded. The oral interviews will be evaluated based uponthe responses given in the oral interview.

4.) SELECTION OF ESCO TO DEVELOP THE PROJECT. The Owner will select the ESCO which Owner determines,in its sole discretion, is best qualified to conduct an Investment Grade Technical Energy Audit of the project site(s)and propose a complete set of ECMs, including all project costs, the timetable for completing design, engineeringbid specifications, and construction work; a detailed description of services to be provided, specific financingarrangements and terms, and the projected energy and costsavings, as well as special conditions offered by theESCO.

5.) AUDIT AGREEMENT. If the Owner decides to proceed, the Owner will sign the Audit Agreement, which has beensigned by the selected ESCO and submitted with its proposal. If the Investment Grade Technical Energy Auditresults in a deviation greater than ten percent (10%) of the project costs contained in the Preliminary

Technical and Cost Proposal, Owner is under no obligation to pay the agreed-upon price for theInvestment Grade Technical Energy Audit and may initiate negotiations with the second ranked ESCO.

6.) GUARANTEED ENERGY SAVINGS CONTRACT. If Owner decides to proceed, Owner shall attempt tonegotiate a guaranteed energy savings contract, (the Contract), with the selected ESCO which performed theInvestment Grade Technical Energy Audit. If the Owner decides not to enter into a guaranteed energy savingscontract with the selected ESCO after the investment grade technical energy audit has been accepted, Owneragrees to pay the fee indicated for the completed audit report as set forth in Attachment B: Preliminary CostProposal. Otherwise, Owner shall not be liable for any additional payment of any amounts to the selected

ESCO until a contract is successfully negotiated, and executed by the ESCO and Owner.

Penn State Design Standards specific to the ESCO program are available at:http://www.opp.psu.edu/stnd/stnd.htm#design_standards

If an acceptable contract cannot be negotiated within 90 days from the date Owner makes its ESCOselection, negotiations with the next most qualified ESCO (as determined by Owner) may be initiated.

1-5. TYPE OF CONTRACT. If a guaranteed energy savings contract is entered into as a result of this RFP, the form ofcontract in Appendix II, attached hereto, will be used.

1-6 REJECTION OF PROPOSALS. Owner reserves the right to reject at any time, any and all proposals received, orto negotiate separately with any and all competing ESCOs.

1-7 INCURRING COSTS. The Owner is not liable for any cost or expenses incurred by ESCOs in the preparation oftheir written responses or for attendance at any conferences and meetings related to this RFP. Any cost orexpense incurred by ESCOs in conducting the preliminary technical scoping audit or for performing any analysisassociated with this RFP shall be borne solely by the ESCOs.

1-8 PRE-PROPOSAL CONFERENCE. To be determined.

1-9 AMENDMENT TO THE RFP. If it becomes necessary to revise any part of this RFP, an amendment will be issuedto all ESCOs who received the basic RFP.

1-10 RESPONSE DATE. To be considered, proposals must be delivered to the location designated and must bereceived by the [DESIGNATE TIME AND PLACE HERE ] Proposals delivered after that time will not be
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1-13 NEWS RELEASES. News releases and media contacts regarding this project can be made only by Owner, unless

Owner directs otherwise in specific instances.

1-14 PROPOSALS. To be considered, proposals must be a complete response to the RFP. Proposals are to bestraightforward, concise presentations without extraneous material, limited to 30 single-sided pages, excludingattachments. Font size may be no smaller than Arial 10 point. No other distribution is to be made by the ESCOsubmitting the proposal. Only an official authorized to bind the ESCO may sign the proposal. The proposal mustremain valid for no less than ninety (90) calendar days. The contents of the proposal of the selected ESCO willbecome contractual obligations if a contract is entered into.

1-15 PRELIMINARY COST DATA. The ESCOs Preliminary Cost Proposal and Cash Flow Analysis shall bebound and sealed and submitted in a separate sealed envelope. Failure to meet this requirement mayresult in rejection of the proposal. One (1) copy shall be submitted and clearly marked "Attachment B:

ESCOs Preliminary Cost Proposal" with the name of the submitting firm on the outside of the envelope.

1-16 SUBCONTRACT:Any change in subcontractors must be approved in writing by the Owner.

1-17 PAYMENT AND PERFORMANCE BOND. The ESCO shall be required to provide payment and performancebonds in the amount of 100% of the total contract amount.

1-18 PREVAILING WAGE RATES. The Contract entered into between the ESCO and the Owner is subject to theprovisions, duties, obligations, remedies, and penalties of the Pennsylvania Prevailing Wage Act, 43 P.S. Section165-1 et seq., which is incorporated herein by reference as if fully set forth herein. The general prevailingminimum wage rates as determined by the Secretary of Labor and Industry shall be paid for each craft orclassification of all workmen needed to perform this Contract during the term hereof for the locality in which theWork is to be performed.

1-19 STEEL PRODUCTS PROCUREMENT ACT.1.) In the performance of any Contract awarded pursuant to this Invitation to Bid, the ESCO, Subcontractors,materialmen, or suppliers shall use only steel products, rolled, formed, shaped, drawn, extruded, forged, cast,fabricated, or otherwise similarly, processed, or processed by a combination of two or more of such operations,from steel made in the United States by the open hearth, basic oxygen, electric furnace, Bessemer or other steel-

making process. Steel products include not only cast-iron products but also machinery and equipment listed inUnited States Department of Commence Standard Industrial Classifications 25 (furniture and fixtures), 35(machinery, except electrical) and 37 (transportation equipment) and made of, fabricated from, or containing steelcomponents. If a product contains both foreign and United States steel, it shall be determined to be a UnitedStates steel product only if at least 75 percent of the cost of the articles, materials, and supplies have been mined,produced, or manufactured, as the case may be, in the United States. Transportation equipment shall bedetermined to be a United States steel product only if it complies with Section 165 of Public Law 97-424 (96 Stat.2136).

2.) When unidentified steel products are supplied under a Contract, before any payment will be made, the ESCOmust provide documentation including, but not limited to, invoices, bills of lading, and mill certification that the steelwas melted and manufactured in the United States. If a steel product is identifiable from its face, the ESCO mustsubmit certification which satisfies the Owner that the ESCO has fully complied with this provision. The Ownershall not provide for or make any payments to any person who has not complied with the Act. Any such paymentsmade to any person by the Owner which should not have been made as a result of the Act shall be recoverabledirectly from the ESCO, Subcontractor, manufacturer, or supplier who did not comply with the Act.


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shall use only steel products, rolled, formed, shaped, drawn, extruded, forged, cast, fabricated, or otherwisesimilarly processed, or processed by a combination of two or more of such operations, from steel made in theUnited States by the open hearth, basic oxygen, electric furnace, Bessemer or other steel-making process. SteelProducts include not only case iron products but also machinery and equipment listed in the United StatesDepartment of Commerce Standard Industrial Classification 25 (furniture and fixture), 35 (machinery, exceptelectrical), and 37 (transportation equipment) and made of, fabricated from, or containing steel components. If a

product contains both foreign and United States steel, such products shall be determined to be a United StatesSteel product only if at least 75% of the cost of the articles, materials, and supplies have been mined, produced, ormanufactured, as the case may be, in the United States.

1-20. POST-CONSUMER RECYCLED CONTENT.

Any products which are provided to the Owner as a part of the performance of this project, must either meet theminimum percentage levels for total recycled content as specified under the Environmental Protection Agencysadopted procurement guidelines defined by the Resource and Recovery Act of 1976 (P.L. 94-580, 42 U.S.C.

Section 6901 et seq.) as amended, or by The Department of General Services policy guidelines, whichever reflectsthe higher level of post-consumer recycled content.

1-21 CONTRACTOR RESPONSIBILITY PROVISIONS.

a. PREQUALIFICATION. All contractors (even if acting in a subcontractor capacity) are required to beprequalified. For this project, the Owner will consider qualified contractors to be only those ESCOs qualified byDGS for the Commonwealth of Pennsylvanias Guaranteed Energy Savings Program. Please consult Ownerswebsite at on the Requirements for Prequalification.ESCOs must submit in writing the names and addresses of all subcontractors requiring prequalification beforeexecution of a contract. The following trades may, as determined by the Owner, require prequalification:

1. Construction Manager 11. MillWork2. General 12. Roofing3. Asbestos Abatement 13. Painting4. Earthwork 14. Elevators5. Paving 15. HVAC6. Landscaping 16. Fire Protection7. Concrete 17. Plumbing

8. PreCast 18. Building Mgt. Systems9. Masonry 19. Electrical

10. Structural Steel 20. Telecommunications21. Erectors

b. The ESCO must certify, for itself and all its subcontractors, that as of the date of its execution of its proposal, thatneither the ESCO, nor any subcontractors, nor any suppliers are under suspension or debarment by theCommonwealth or any governmental entity, instrumentality, or authority and, if the ESCO cannot so certify, thenit agrees to submit, along with its proposal, a written explanation of why such certification cannot be made.

c. The ESCO must also certify, in writing, that as of the date of its execution of its proposal, it has no tax liabilitiesor other Commonwealth obligations.

d. The ESCOs obligations pursuant to these provisions are ongoing from and after the effective date of thecontract through the termination date thereof. Accordingly, the ESCO shall have an obligation to inform theOwner if, at any time during the term of the Contract, it becomes delinquent in the payment of taxes, or other
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Office of Chief Counsel603 North Office BuildingHarrisburg, PA 17125Telephone No. (717) 783-6472 FAX No. (717) 787-9138

1-22 SITE VISITS. TheOwner will arrange inspection tours of the buildings to be audited. Site representatives will be

available to answer questions about the operation of facilities and any technical information supplemental to materialcontained in this RFP will be made available for review and inspection onsite.

To make arrangements, please contact:

Name: Laura MillerPhone: (814)865-4343Mobile: (814)777-3475


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PART II. INFORMATION REQUIRED FROM PROPOSERS

ESCOs must submit the following information. The proposal must completely respond to all requirements of the RFP.

Please note that the minimum font acceptable is Arial 10 point for the entire proposal, including attachments, appendices

and the technical audit.

In the Project Summary include a table that defines the ECM, Project Cost, Total Cost, Energy Cost Savings and SimplePayback. Total cost should include project cost, financing costs (if applicable), measurement and verification costs,operation and maintenance costs, Owner supplied costs, on-going training and monitoring costs. An example follows:

ECMProject

Cost

Total

Cost

AnnualEnergy

CostSavings

SimplePayback(years)

123

Project Summary

II - 1. Technical Proposals:

Attachment A: Preliminary Technical Proposal. Provide one (1) unbound original and three (3)electronic copies on CD in Adobe format, of complete responses to the information requested in Attachment

A to this RFP.

Attachment A-1: Subcontractor Qualifications Form. Complete the attached form for each identifiedsubcontractor who will be directly involved in this project.

Attachment A-2: Preliminary Technical Energy Audit Report. Include under separate cover, one (1)unbound original and three (3) electronic copies on CD in Adobe format,clearly labeled "Attachment A-2:Preliminary Technical Energy Audit Report" with the name of the submitting firm on the outside of the envelope.This audit is to be conducted by your firm on the project sites identified in Appendix I.

II - 2. Attachment B: ESCO's Preliminary Cost Proposal and ESCO's Preliminary Project Cash Flow Analysis: Theinformation requested in this section is required to determine the reasonableness of your quotation. one (1)unbound original and one (1) electronic copy on CD in Adobe format , labeled as "Attachment B: PreliminaryCost Proposal and Preliminary Project Cash Flow Analysis" must be bound and sealed and submitted separately

from the remainder of the proposal. ESCOs are required to use and follow the instructions and submit therequired information in the format found in Attachment B to this RFP.

II-3 Energy Audit Agreement. The Energy Audit Agreement (Attachment C to this RFP) must be completedand properly signed and returned with the ESCO proposal. Each ESCO must include the amount of auditfee in Article 3, Section F., of the Energy Audit Agreement.


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PART III. PROPOSED PROJECT SCHEDULE

Activity Date

Issue RFP (electronically) Week 1

Site Visit* (to be arranged) Weeks 1 - 6

Proposals Due Week 7

Proposals Reviewed, Evaluated and Ranked Weeks 7 -10

Oral Interviews Week 12 - 13

ESCO Recommended Week 14

Approval of Selected ESCO Week 15

Energy Audit Agreement Executed Week 19

Energy Audit Conducted Weeks 20 - 28

Energy Audit Review Weeks 28 - 34

Complete Guaranteed Energy ServicesContract Negotiations Weeks 34 - 36

Guaranteed Energy Services ContractPresented and Signed Week 36 - 38

Notice to Proceed Week 38

*Site visits can be arranged by contacting:

Laura MillerPhysical Plant BuildingThe Pennsylvania State University

University Park, PA 16802Office: 814.865.4343Mobile: 814.777.3475


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PART IV. EVALUATION CRITERIA

Responses will be evaluated based on the completeness and quality of the information provided in Attachment A, (ESCO'sPreliminary Technical Proposal), and Attachment B, (ESCO's Preliminary Cost Proposal), may also be evaluated by Projects asidentified in ESCOs responses to the Application for Qualifications (AFQ). Failure to provide any of the requested informationmay result in disqualification. ESCOs qualifications, previously provided by ESCOs, in response to the AFQ issued by the

Commonwealth may be reviewed and considered by Owner. The criteria listed below will be used in the evaluation of thePreliminary Technical and Cost Proposals, Client References and the responses of the no more than three ESCOs selected byOwner, during final selection interviews, as appropriate. The criteria have been weighted using the letters A, B & C asindicators: A=Most Significant; B=Significant; C=Negotiable.

IV-1. Experience

B Reliability of equipment performance on past projects.

A Documented energy savings of previous projects.

A Ability to plan andcomplete all phases of the project on schedule.

A Quality of Project History and Client Reference documentation.

IV-2. Project Management

A Qualifications and experience of the individuals assigned to this project and clear assignment of responsibility forvarious project tasks to specific individuals.

B Clarity, organization, and level of detail in written proposal.A Ability to effectively manage project construction.

B Quality of communication skills of the ESCO's representatives at the oral interview.

B Clarity and reasonableness of proposed milestones and timeline for project implementation.

B Comprehensiveness of monitoring, maintenance, measurement & verification services on past projects.

IV-3. Technical Approach

B Quality of proposed training for facility staff.

A Quality of project-specific Preliminary Technical Energy Audit Report including comprehensiveness of analysis andunderstanding of existing building systems and conditions.

B Comprehensiveness of the technical approach to past projects.

B Conceptual design creativity demonstrated during the oral interview.

A Quality of baseline energy calculations.

A Quality of proposed Project Commissioning Plan.

B Quality of proposed Maintenance Plan.

B Quality of proposed Measurement and Verification Plan.

IV-4. Financial Approach


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PART V. PROJECT TERMS AND CONDITIONS

These sections describe the minimum conditions the Owner will accept from the selected ESCO. Part V-1 defines the Scopeof Services, and Part V-2 defines Key Contractual Provisions.

V-1. SCOPE OF SERVICES--TECHNICAL REQUIREMENTS

A. All energy audits, feasibility studies, engineering, design, plans and specifications shall be prepared, reviewed andapproved under the direct supervision of Professional Engineers, and Registered Architects licensed in theCommonwealth of Pennsylvania.

B. The Owner reserves the right of final approval of any selected equipment or modifications proposed. Only priorreviewed and approved equipment and modifications will be permitted.

C. The ESCO will be required to work with current building management and maintenance personnel, to coordinate

construction and provide appropriate training in the operation of all retrofits. No equipment shall be installed thatwill require the hiring of additional personnel by the Owner.

D. ESCO must provide two (2) complete sets of mylar, reproducible "as built" and record drawings, and three (3) CDsin AutoCAD Version 14 or 2002, of all existing and modified conditions associated with the project. These shouldinclude architectural, mechanical, electrical, structural, and control drawings. Three (3) copies and three (3) CD in

Adobe format, of operating manuals shall be submitted by the ESCO to the Owner within 30 days of the completedinstallation.

E. The ESCO shall be responsible for the proper removal offsite of all packaging materials and all replaced ordemolished materials or equipment.

F. Asbestos-containing materials and lead based paint may be present in locations where the work is to be performed.ESCOs must follow the guidelines established at the Owners link, and removal shall be included in the cost of theContract:

Environmental Health and Safety (EHS) Asbestos Information

Environmental Health and Safety (EHS) Lead Paint Information

V-2 CONTRACTUAL PROVISIONS:

A. The contents of the RFP, as well as the ESCOs proposal shall become part of the final contract.

B. The Owner reserves the right of final approval over the scope of work and all end-use conditions. Only priorreviewed and approved equipment and modifications will be permitted by Owner.

C. The ESCO must carry the level of insurance required by the Owner for both the construction and operations

phases.

1.) CONTRACTOR'S LIABILITY INSURANCEThe ESCO shall purchase from and maintain in a company or companies lawfully authorized to do business in theCommonwealth of Pennsylvania such insurance as will protect the ESCO from Claims set forth below which mayarise out of or result from the ESCO's operations under the Contract and for which the ESCO may be legally liable,whether such operations be by the ESCO or by a Subcontractor or by anyone directly or indirectly employed by any
http://www.ehs.psu.edu/asbestos/asbestos_id.htmlhttp://www.ehs.psu.edu/lead.htmlhttp://www.ehs.psu.edu/lead.htmlhttp://www.ehs.psu.edu/asbestos/asbestos_id.html


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d. Claims for damages because of bodily injury, or property damage arising out of ownership, maintenance or useof a motor vehicle.

e. Claims involving contractual liability insurance applicable to the ESCO's indemnification obligations.

The insurance required above shall be written for not less than limits of liability specified in the Contract

Documents. Coverages, shall be maintained without interruption from date of commencement of the Work untildate of final payment and termination of any coverage required to be maintained after final payment.

Before commencing the Work, the ESCO and any Subcontractor shall purchase and maintain at its ownexpense until final completion and acceptance of the Work, the following minimum insurance:

f. Workers' Compensation for statutory obligations imposed by workers' compensation or occupational diseaselaws. Employers' Liability insurance shall be provided with a minimum limit of $100,000.

g. Comprehensive Automobile Liability insurance with the following minimum limits of liability:

Bodily Injury Liability and Property Damage Liability

$1,000,000 Combined Single Limit

h. Comprehensive General Liability including the Broad Form Endorsement or Commercial General LiabilityInsurance. Such policies shall include coverage for premises and operations, products and completedoperations and contractual liability for all operations required to complete the Work, including, if applicable,coverage for damage caused by explosion, collapse, or damage to underground utilities with the followingminimum limits of liability:

FOR CONTRACTS VALUED OVER $1,000,000

$5,000,000 per occurrence

FOR CONTRACTS VALUED UNDER $1,000,000

$2,000,000 per occurrence

All liability insurance shall remain in force for a period of two years after completion of the Work.

i. Special Hazards - If there is a possibility of special hazards existing in the Work contemplated, such hazardsshall be covered by endorsement to the policy or policies.

Certificates of Insurance acceptable to the Owner shall be filed with the Owner prior to commencement of theWork. These Certificates and the insurance policies required by this paragraph shall contain a provision thatcoverages afforded under the policies will not be cancelled or allowed to expire until at least 30 days' prior written

notice has been given to the Owner. If any of the foregoing insurance coverages are required to remain in forceafter final payment and are reasonably available, an additional certificate evidencing continuation of such coverageshall be submitted with the final Application for Payment. Information concerning reduction coverage shall befurnished by the ESCO with reasonable promptness in accordance with the ESCO's information and belief.

2.) OWNER'S LIABILITY INSURANCE


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shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by allpersons and entities who are beneficiaries of such insurance, until final payment has been made or until no personor entity other than the Owner has an insurable interest in the property required by this Paragraph 3 to be coveredwhichever is earlier. This insurance shall include interests of the Owner, the ESCO, Subcontractors and Sub-subcontractors in the Work.

a. Property insurance shall be on an all-risk policy form and shall insure against the perils of fire and extendedcoverage and physical loss or damage including, without duplication of coverage, vandalism, maliciousmischief, collapse, falsework, temporary buildings and debris removal including demolition occasioned byenforcement of any applicable legal requirements, and shall cover reasonable compensation for theProfessional's services and expenses required as a result of such insured loss. Coverage for other perils shallnot be required unless otherwise provided in the Contract Documents.

b. If the Owner does not intend to purchase such property insurance required by the Contract and with all of thecoverages in the amount described above, the Owner shall so inform the ESCO in writing prior to

commencement of the Work. The ESCO may then obtain insurance which will protect the interests of theESCO, Subcontractors and Sub-subcontractors in the Work, and by appropriate Change Order the cost thereofshall be charged to the Owner. If the ESCO is damaged by the failure or neglect of the Owner to purchase ormaintain insurance as described above, without so notifying the ESCO, then the Owner shall bear allreasonable costs properly attributable thereto.

c. If the property insurance requires minimum deductibles and such deductibles are identified in the ContractDocuments, the ESCO shall pay costs not covered because of such deductibles. If the Owner or insurerincreases the required minimum deductibles above the amounts so identified or if the Owner elects to purchasethis insurance with voluntary deductible amounts, the Owner shall be responsible for payment of the additionalcosts not covered because of such increased or voluntary deductibles. If deductibles are not identified in theContract Documents, the Owner shall pay costs not covered because of deductibles.

Boiler and Machinery Insurance

If not already insured under Owners existing property insurance, then the Owner shall purchase and maintain boilerand machinery insurance required by the Contract Documents or by law, which shall specifically cover such insuredobjects during installation and until final acceptance by the Owner; this insurance shall protect the interests of theOwner, ESCO, Subcontractors and Sub-subcontractors in the Work.

Loss of Use Insurance

The Owner, at the Owner's option, may purchase and maintain such insurance as will insure the Owner againstloss of use of the Owner's property due to fire or other hazards, however caused. The Owner waives all rights ofaction against the ESCO for loss of use of the Owner's property, including consequential losses due to fire or otherhazards however caused.

Waivers of Subrogation

The Owner and ESCO waive all rights against (1) each other and any of their Subcontractors, Sub-subcontractors,agents and employees, each of the other, and (2) the Professional, Professional's consultants, Separate Contractors,if any, and any of their Subcontractors, Sub-subcontractors, agents and employees, for damages caused by fire orother perils to the extent covered by property insurance obtained pursuant to this Paragraph 3 or other propertyinsurance applicable to the Work, except such rights as they have to proceeds of such insurance held by the Owner asfiduciary. The Owner or ESCO, as appropriate, shall require of the Professional, Professional's consultants, Separate


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ESCO, and by appropriate agreements, written where legally required for validity, shall require Subcontractors tomake payments to their Sub-subcontractors in similar manner.

Partial occupancy or use shall not commence until the insurance company or companies providing propertyinsurance have consented to such partial occupancy or use by endorsement or otherwise. The Owner and theESCO shall take reasonable steps to obtain consent of the insurance company or companies and shall, without

mutual written consent, take no action with respect to partial occupancy or use that would cause cancellation, lapseor reduction of insurance.

4.) PERFORMANCE AND PAYMENT BONDS

At the time of signing the Contract and before it becomes effective, the ESCO and its Surety, acceptable to theOwner, shall execute two bonds each in the amount of 100% of the contract price of the Work awarded to theESCO. The Bonds shall be written by a Surety authorized to do business in the Commonwealth of Pennsylvaniaand shall be delivered to the Owner prior to award of the Contract and within three (3) days of the Owner's request

thereof. The Attorney-in-Fact who signs the Bonds must be a resident of the Commonwealth of Pennsylvania andshall file with each Bond a certified and effectively dated copy of the Attorney-in-Fact's Power of Attorney.

One bond shall be a performance bond covering the faithful performance by the ESCO of all covenants andagreements on the part of the ESCO contained in this Contract.

The other bond shall be a labor and material payment bond protecting all parties that have performed labor orsupplied material on this Contract from suffering any loss due to the failure of the ESCO to pay any or allobligations incurred under this Contract.

The ESCO shall pay all premiums for all bonds.

Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment ofobligations arising under the Contract, the ESCO or Owner shall promptly furnish a copy of the bonds or shallpermit a copy to be made.

D. All preliminary studies, construction documents, special requirements, cost estimates, and all other data compiledby the ESCO in performance of the contract shall become the property of the Owner and may be used for anypurpose desired by the Owner except to use for the construction of an identical facility not covered by the contract.

The ESCO shall not be liable for any reuse of these documents by the Owner. All documents and drawings shallbe delivered to the Owner as needed or within thirty (30) days after construction is completed and accepted byOwner that the project is fully installedand operating.

HOWEVER, THE OWNER MAKES NO REPRESENTATION OR WARRANTY OF ANY NATURE WHATSOEVERTO THE ESCO CONCERNING SUCH DOCUMENTS. By the execution hereof, the ESCO acknowledges andrepresents that it has received, reviewed and carefully examined such documents, and found them to be complete,accurate, adequate, consistent, coordinated and sufficient for construction, and that the Owner concerning suchdocuments has made no such representation or warranties.

E. The ESCO must secure all necessary licenses and permits and comply with all federal and state laws with respectto this project. All work completed under this contract must be in compliance with all building codes andappropriate accreditation, certification and licensing standards.

F. The repayment obligation and term of the financing for this project must be arranged to coincide with theacceptance by the Owner that the project is fully installed and operating.


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ATTACHMENT AESCO's PRELIMINARY TECHNICAL PROPOSAL

Each respondent is required to fully answer all questions in each category listed below. Provide your responses on81/2 " x 11" sheets of paper and number and title each answer to the corresponding category. The minimum fontacceptable is Arial 10 point. All pages in your response to this attachment should benumbered sequentially.

Respondents must also include a Table of Contents, which indicates the section and page numbers corresponding tothe information included.

1. PROJECT MANAGEMENT

1.0 Project Summary (not to exceed 3 pages)

Summarize the scope of services (design, financial, operations, maintenance, training, etc.) offered by your firm for thisproject including the added value to the Owner of your firm's services. Include the ECM table as shown in Part II, in this

section.

1.1 Project Team Members

Describe the relevant experience, qualifications and educational background for each individual team member assigned to thisproject using the following format. Do not include individual resumes in lieu of this information.

Name of Project Team Member:

Current Job Title:Job responsibilities:Number of years with ESCO:Primary Office Location:

Employment HistoryCompany Name:Primary job responsibilities:Number of years with firm:

Educational BackgroundList all academic degrees, certifications, professionalaffiliations, relevant publications and technical training.

List all energy performance contracting projects thisindividual has been involved with during past 5 years.Include project location, type of facilities, yearimplemented and dollar value of installed project costs.

Describe the specific role and responsibilities thisindividual had for each listed project.

Provide a detailed description of the role andresponsibilities this individual will have for the durationof this project.


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1.2 Project Work Plan and Milestones

Describe your proposed management plan for accomplishing the work. Provide a project work plan to include all tasks andactivities along with a sample timeline of milestones necessary to implement all phases of the project.

1.3 Training Provisions

Describe your firms proposed approach to providing technical training for facility personnel. Indicate the proposed numberof personnel to be trained and the type and frequency of training to be provided for the duration of the contract. Indicatehow your firm will address any turnover of key facility personnel as it relates to project performance.

1.4 Project Financing

Describe your firm's preferred approach to providing or arranging financing for this project. Describe the structure of thefinancing arrangement including projected interest rate, financing term, repayment schedule, equipment ownership, security

interest required, the responsibilities/liabilities of each party, and any special terms and conditions that may be associatedwith the financing of this project. Describe how construction will be financed. Describe your approach to a University-financed project in part or in whole, including options for ESCO financing of equipment during the construction phase.

1.5 Annual Report

Submit a copy of your firm's most recent annual report.

1.6 PROJECT HISTORY and CLIENT REFERENCES

On separate sheets of 8-1/2" x 11" paper describe at least 10

completed

guaranteed energy savings contracting projects inrepayment by and currently under contract with your firm. Limit your response to those projects that have been manageddirectly by the specific branch, division, office or any individual in such branch, division or office who will be specificallyassigned to this project. Attach additional sheets as necessary. Please indicate those project references involving anyuniversity buildings. Number each heading as follows:

a. Project Name and Locationb. Project $ Amount (installed project costs)c. Source of Funds

d. Ownere. Designer: Name(s) of primary technical design personnelf. Construction Start and End Datesg. Contract Start and End Datesh. Projected Annual Energy Savings (Therms, kWh, KW, Gallons, Btus, Pounds of Steam)i. Achieved Annual Energy Savings (Therms, KWh, KW, Gallons, Btus, Pounds of Steam)

j. Method of Savings Measurement and Verificationk. ESCO Notes or Commentsl. Identify all ESCO personnel associated with this project and their specific role(s) and responsibility(s)

m. Please provide the accurate names and current telephone and fax numbers of the Client(s) owner(s)'representatives with whom you have done business on each of the projects listed in your summary.

Please ensure that all representatives are familiar with the referenced projects.


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2. SITE SPECIFIC

2.0 Technical Site Assessment

Based upon your preliminary technical energy audit and available information discuss the site conditions, status of buildingsystems, current operating procedures and potential cost-effective energy improvement opportunities. Describe any

equipment modifications, installations or replacements at the facilities that you propose to implement and those whichwarrant further study. Describe any operational changes you would recommend.

2.1 Energy Baseline Calculation Methodology

Describe the methods used to compute baseline energy use. Describe any computerized modeling programs used by yourfirm to establish baseline consumption. Describe the methods used to adjust the guaranteed level of savings from anymaterial changes that occur due to such factors as weather, occupancy, facility use changes etc.

2.2 Project Commissioning

Provide a proposed project-specific Commissioning Plan that includes training.

2.3 Procedure for Calculating Energy and Cost Savings

Please summarize procedures, formulas and methodologies including any special metering or equipment, your firm will useto measure and calculate energy savings for this project. Indicate any operational cost savings opportunities and how suchsavings are to be identified, documented and measured. Describe your firms proposed approach to treatment of savingsachieved during construction and how those savings will be documented and verified.

2.4 Equipment Maintenance Plan

Submit a proposed project-specific Maintenance Plan. Include a description of any major changes in operations ormaintenance for this project that your company anticipates. Include a description of the types of maintenance servicesprojected for this project. Address how you would approach the role of Owner personnel in performing maintenance on thenew and existing equipment. Discuss the relationship of maintenance services to the savings guarantee, any requiredduration of the maintenance agreement and what impact terminationof maintenance prior to the end of the contract termwould have on the savings guarantee.

2.5 Savings Measurement and Verification Plan

Provide a detailed project-specific Measurement and Verification Plan.


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ATTACHMENT A-1

INFORMATION REQUIRED FROM SUBCONTRACTORS

STATEMENT OF QUALIFICATIONS: The following information must be submitted for each of the identifiedsubcontractors who will be involved in this project.

1. Subcontractor Information

a. Firm Name __________________________________________________________________________

BusinessAddress ________________________________________________________________________

City ___________________________________ State _____________________

County ____________________________________ Zip Code ___________________

b. Names and Titles of Two Contact People

1) _______________________________________________ Phone (_________)______________________

2) _______________________________________________ Phone (_________)______________________

2. Type of Firm: / / Corporation / / Partnership / / Sole Ownership / / Joint Venture

3.

4.

5.

Federal Employer Identification Number: ________________

Year Firm was Established: ________

Name and Address of Parent Company, if applicable: ________________________________

________________________________

________________________________

6. Five Year Summary of Contract Values for Energy-Related Projects:

2002: $_____________ (to date)

2001: $_____________

2000: $_____________

1999: $_____________


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ATTACHMENT A-1

INFORMATION REQUIRED FROM SUBCONTRACTORS

7. Corporate background/historical data

a. How many years has your firm been involved in energy-related business? _____ Years

b. Certify that your company does not owe the Commonwealth any taxes.

c. Certify that your company is not currently under suspension or debarment by the Commonwealth, any otherstate, or the federal government.

8. Technical qualifications and personnel information:

. Attach the resumes of the principal individuals who will be directly involved in this project. Indicate theirspecific qualifications including educational background, supervisory responsibilities, number of years ofrelevant experience and the specific role they will play in this project.

9. Financial References:

a. Provide a company prospectus to include a Balance Sheet and Cash Flow statement not more than oneyear old.

NOTE:


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ATTACHMENT A-2

ESCO's PRELIMINARY TECHNICAL AUDIT REPORT

Include under separate cover, one (1) unbound copy and three (3) CD copies in Adobe format, clearly labeled"Attachment A-2: Preliminary Technical Energy Audit Report" with the name of the submitting firm on the outside of the

envelope. This audit is to be conducted by your firm on the project sites identified in Appendix I. The audit should bein a font of Arial 10 point or larger.

At a minimum, the following information is required:

Identification of preliminary ECMsIdentify emissions impact (Sox, Nox, CO, CO2, VOCs, and particulate matter)Technical data and assumptions used in this analysisMethods used to develop baseline consumptionDetailed energy and operational cost savings calculationsProjected unit energy savingsMethods for calculating and documenting operational cost savings


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ATTACHMENT BESCO's PRELIMINARY COST PROPOSAL

ESCO's PRELIMINARY PROJECT CASH FLOW ANALYSIS

The Preliminary Cost Proposal and Preliminary Project Cash Flow Analysis forms shall be submitted in a separate sealedenvelope and kept separate from the Preliminary Technical Proposal. One (1) unbound copy and one (1) electronic copy

on CD in Adobe format, shall be submitted and clearly marked "Attachment B: Preliminary Cost Proposal and PreliminaryProject Cash Flow" with the name of the submitting firm on the outside of the envelope

The Preliminary Cost Proposal and Preliminary Project Cash Flow Analysis forms must be submitted separatelyfrom all other required information.

PRELIMINARY COST PROPOSALTHE PENNSYLVANIA STATE UNIVERSITY

GUARANTEED ENERGY SAVING CONTRACT

THE PENNSYLVANIA STATE UNIVERSITY ESCO NAME: _______________________________

ESTIMATED VALUE OF HARD COSTS1: $_________________

Category of Service Fees Estimated Percentage (%)of Hard Costs

Dollar ($) Value of ServiceFees

Investment Grade Energy AuditDesign Engineering Fees

Construction ManagementSystem CommissioningFirst Year Training FeesPenn State Costs 5%Annual Service Fees including:Measurement and VerificationMaintenancePerformance MonitoringOn-going Training Services

Contingency CostsTotals

1The total value of Hard Costs is defined in accordance with standard AIA definitions which include:

Labor CostsSubcontractor CostsCosts of Materials and Equipment, Temporary Facilities and Related ItemsMiscellaneous Costs such as Permits, Bonds, Taxes, Insurance, etc.

NOTE: Percentages should include all mark-ups, overhead, and profit. Figures stated as a range (e.g. 2%-5%) willnot be accepted.

ESCOs proposed interest rate available at the time of submission:________

Name of financial institution:_______________________________


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ATTACHMENT B

ESCO's PRELIMINARY ANNUAL CASH FLOW ANALYSISTHE PENNSYLVANIA STATE UNIVERSITY

GUARANTEED ENERGY SAVING CONTRACT

Financed Project Costs: __________ Escalation Rate by Utility/FuelFinance Term: __________ Electric: 2.0%

Annual Interest Rate: __________ Natural Gas: 2.5%Construction Months: __________ Steam: 2.0%

Annual Payment __________ Water: 3.0%Principal __________ Fuel Oil: 2.5%Interest __________ Coal: 3.0%Escalation Rate for Annual Fees: __________ Operations: 2.0%

Yr.Electric

CostSavings

NaturalGas CostSavings

SteamCost

Savings

WaterCost

Savings

Other

(PleaseSpecify)

OperationalCost

Savings

Total CostSavings

MaintenanceMonitoring,

M&V, &Training Fees

Penn *State

OngoingFees

GuaranteedCost Savings

FinancingPayment

NetSavings

1

2

3

4

5

6

7

8

9

10

Total

* Owner will assign dollar value as a percentage of hard costs.

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