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Guide toEnergy Savings

Performance Contracting

Oregon Department of Energy625 Marion Street, NE

Saem, O! "#$%&'$#(2

5%$'$#)'(%(%&')%%'22&')%$5 *+o'free in Oregon

-uy 2%%$


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Acknowledgement

+.is document /as adapted from 0Guide to Energy Performance Contracting1

deveoped in -uy &"") under t.e direction of a/aii Department of 3usiness,Economic Deveopment 4 +ourism specia t.an7s to a/aii for t.eir /or7 indeveoping t.eir Guide


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PREFACE

+.is guide descri8es t.e process for deveoping energy savingsperformance contracts and provides documents used in t.e OregonEmpoyment Department pro9ect t.oug. t.e process and documents/ere deveoped in con9unction /it. t.e Oregon Department of

dministrative Services and t.e Department of -ustice and .ave gonet.roug. a re:uired ega revie/s, t.ese materias s.oud not 8e interpretedas ega advice reating to any specific soicitation or pro9ect Eac. pu8icagency s.oud consut its o/n ega advisors 8efore soiciting or enteringinto any energy savings performance contract

+.is entire document can 8e do/noaded from t.e Office of Energy /e8

site;

.ttp;n t.e rig.t coumn, cic7 on 0Guide to Energy Savings Performance

Contracting1

ppendi? = contains t.e documents used for t.e Empoyment 3uidingpro9ect +o .ep in t.e deveopment of your pro9ect, t.e areas t.at needc.anges .ave 8een .ig.ig.ted in yeo/ Some 8an7 forms aso .ave8een provided *ppendices 3, D, and E
http://www.energy.or.us/http://www.energy.or.us/


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TABLE OF CONTENTS

+3@EO=CON+EN+S

1. Introduction........................................................................................................ 1

1.1 About This Guide .................................................................................................. 1

1.2 What is Energy Savings Performance Contracting? ............................................. 1

1. !o" is Energy Savings Performance Contracting #ifferent? ............................... 2&$& Conventiona Contracting 21..2 Energy Savings Performance Contracting ............................................... 2

&( 3enefits of Energy Savings Performance Contracting $

&5 A.at Binds of E:uipment and Services Can 8e Purc.ased (&5& E:uipment (&52 Misceaneous Services (&5$ Operations and Maintenance Services (

&6 istory of Energy Savings Performance Contracting in Oregon 5

+.e Process 6

2. I Energ! S"#ing Per$orm"nce Contr"cting $or %ou& )

2& Simpified ssessment )

22 =aciity Evauation "

2$ Cream S7imming "

'. (etting St"rted &%

$& Organie a Pro9ect +eam &%

$2 Ain Management Support &&

$$ Gat.ering =aciity >nformation &2

). E*em+tion $rom Oregon L"w &$

,. Pro-ect Fin"ncing &5

5& Pro9ect =inancing for State gencies &5

52 Pro9ect =inancing for Ot.er Government gencies &5

G>DE +O PE!=O!MNCE CON+!C+>NG i


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5$ ddressing Pro9ect =inancing in t.e !=P &5

5( Oregon Department of Energy @oan Program &6

55 Oregon 3usiness Energy +a? Credit &6

56 tiity >ncentives &6

. Re/ueting Pro+o"l

6& Overvie/

62 Deveoping a !e:uest for Proposas >& Sc.edue of Events Genera !esuts !e:uired

622& 3uiding*s incuded in t.e pro9ect

6222 Farious services re:uired &)622$ +ec.noogies or end'uses incuded &)

62$ !e:uired Capa8iities &)62( Contractua +erms and Conditions &"625 Pro9ect Sc.edue &"626 Genera !e:uirements and >nformation &"62# Su8mission !e:uirements &"62) Mandatory Pre'Proposa Meeting and 3uiding Aa7'+.roug. &"62" Proposa Evauation 2%62&% Overvie/ of ttac.ments 2%

6$ >ssuing t.e !=P and dministering t.e Soicitation 2%

0. E#"lu"tion o$ Pro+o"l 2&

#& Overvie/ 2&

#2 +.e Evauation Committee 2&

#$ >nitia Proposa Screening 2&

#( !eference C.ec7s 22

#5 Evauation of Proposas 22#5& Evauation =actors 22#52 Proposa Scoring 22#5$ !e:uests for Carifications 2$#5( Determining Proposa !an7 2(

#6 >ntervie/ing Proposers 2(

G>DE +O PE!=O!MNCE CON+!C+>NG ii


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TABLE OF CONTENTS

## =ina !an7ing of Proposas 25

. Tent"ti#e or A++"rent Contr"ct Aw"rd 26

)& Contract /ard C.ec7ist 26

)2 Contract =ie 26

)$ Bic7'off Meeting 2#

. PREPARIN(ACONTRACT 2)

"& Definitions 2""2 Standard Contract !e:uirements 2""$ Scope of Aor7 2"

"$& P.ase & 2"

"$&& +ec.nica Energy udit, Part 2""$&2 Part 3, Pro9ect Deveopment Pan $%

"$2 P.ase >>, Design and Construction Contract $%"$2& ESCOs Services $&"$22 Compensation $&

13. 4e"uring Energ! S"#ing $2

&%& Esta8is.ing t.e Energy se 3aseine $2

&%2 Modifying t.e Energy se 3aseine $$

11. 4onitoring "nd 4"n"ging "n Energ! S"#ing Per$orm"nce Contr"ct $#

&&& P.ase &, Energy Savings Performance ContractsH +ec.nica Energyudit Part and Part 3 Pro9ect Deveopment Pan Meetings $#&&&& P.ase >, +ec.nica Energy udit, Part $#&&&2 P.ase >, Part 3, Pro9ect Deveopment Pan $"

&&2 P.ase >>, Design and Construction $"&&2& Construction Documents and Measure >nstaation $"&&22 Commissioning $"

&&$ Measurement and FerificationDE +O PE!=O!MNCE CON+!C+>NG iii


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TABLE OF CONTENTS

ppendi? = !e:uest for Proposas and ssociated Documents

G>DE +O PE!=O!MNCE CON+!C+>NG iv


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TABLE OF CONTENTS

IN5E6OFFI(7RESAN5TABLES

FI(7RES

=igure &'& Energy Savings Performance Contract Cost Savings

=igure &'2 Energy Savings Performance Contracting Process

=igure &%'& &2'Mont. Energy se 3aseine

=igure &%'2 Savings Cacuated 8y t.e Difference 8et/een an Energy se3aseine and a Su8se:uent Iear

TABLES

+a8e &'& P.ases of Energy Savings Performance Contracting

+a8e 2'& Energy Savings Performance Contracting =easi8iity

+a8e $'& !oes of Pro9ect +eam Mem8ers

+a8e #'& Scoring Matri?

+a8e "'& Contract Documents

+a8e &%'& dvantages and Disadvantages of ternate Energy se 3aseine

Cacuation Met.ods

+a8e &&'& Miestone Meetings

G>DE +O PE!=O!MNCE CON+!C+>NG v


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TABLE OF CONTENTS

(LOSSAR%OFTER4SAN5ABBRE8IATIONS

Commiioning9 Commissioning means a systematic process t.at ensures t.at8uiding systems perform interactivey according to t.e designintent and O/nerJs operationa needs

EE49 Energy efficiency measure

ESCO9 Energy services company private company providing energymanagement e:uipment and services incuding feasi8iity studies,design, instaation, maintenance, and financing

ESPC9 Energy savings performance contract n energy savingsperformance contract is an agreement 8et/een an energy servicescompany *ESCO and a 8uiding o/ner +.e ESCO provides anarray of services; conducts a faciity energy study, identifies cost'effective pro9ects, designs a aspects of t.e c.osen pro9ects, .iressu8contractors, manages t.e pro9ect instaation, and in somecases, finances t.e pro9ect +.e o/ner uses t.e energy costsavings to reim8urse t.e ESCO and to pay off t.e oan t.atfinanced t.e energy conservation pro9ects

k:;9 Bio/att .our

O5OE9 Oregon Department of Energy

OAR9 Oregon dministrative !ue

ORS9 Oregon !evised Statutes

Owner; !efers to any and a staff empoyed 8y or representing t.e agencyin c.arge of t.e faciity *faciity manager or administrator, operationsand maintenance staff, 8usiness manager, etc

Pro-ect 4"n"ger9 +.e person /it. primary responsi8iity to oversee t.e /or7 of t.eESCO and act as t.e iaison 8et/een t.e ESCO and t.e O/ner

RFP9 !e:uest for proposas /ritten document descri8ing t.e gencyscircumstances and t.e type of service*s desiredH setting fort. a

significant evauation factors and t.eir reative importance and, ifappropriate, priceH and soiciting competitive /ritten proposas

G>DE +O PE!=O!MNCE CON+!C+>NG vi


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INTRODUCTION

1. INTRO57CTION

11.) A


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INTRODUCTION

guaranteed savings +.erefore, its in t.e ESCOs 8est interest to ensure t.epro9ect is sound and it ac.ieves t.e guaranteed energy savings

1.' =ow i Energ! S"#ing Per$orm"nce Contr"cting 5i$$erent&

1.'.1 Con#ention"l Contr"cting

conventiona process to purc.ase energy'efficiency improvements often re:uirest.ree separate soicitations and contract a/ards =irst, an agency soicitsengineering services for an energy study fter revie/ing t.e competed study, t.efaciity seects t.e improvements to 8e impemented and soicits proposas forengineering design services Once t.e designer competes a pan andspecifications, t.e agency issues one or more invitations to 8id to seectcontractors /.o /i insta t.e improvements

1.'.2 Energ! S"#ing Per$orm"nce Contr"cting

Energy savings performance contracting repaces t.is cum8ersome coection ofsoicitations and contracts /it. a singe re:uest for proposas *!=P covering aaspects of t.e pro9ect and one set of contract documents /it. t.e seected ESCO+.e process 8egins /it. an evauation of a faciitys potentia for energy efficiencyimprovements 8y t.e faciity staff >f t.e potentia seems promising, t.e agencyprepares an !=P +.is !=P covers a engineering, e:uipment purc.asing,construction, and commissioning needed to compete t.e pro9ect +.e agencya/ards t.e contract to a singe contractor /.o is accounta8e for a services andguarantees a eve of savings to t.e faciity

Once seected, t.e ESCO performs a detaied study&of energy efficiency

opportunities at t.e faciity +.e O/ner revie/s t.is study and approves a fina istof energy efficiency improvements +.e ESCO t.en prepares pans andspecifications t.at t.e O/ner revie/s and approves fter receiving notice toproceed, t.e ESCO furnis.es, instas, and commissions t.e energy efficiencyimprovements Commissioning incudes training of operations and maintenancestaff, providing e:uipment manuas and documentation, and a /arrantyinformation A.en t.e pro9ect is compete, t.e energy savings measurement andverification process 8egins and t.e savings guarantee goes into effect +.eseactivities continue for t.e duration of t.e contract term

+.e O/ner monitors t.e day'to'day performance of t.e ESCO during t.e

construction p.ase in t.e same manner as any capita improvement pro9ect fterconstruction is competed and accepted, t.e O/ner revie/s e:uipment operation andmeasurement and verification reports to ensure pro9ect performance for standards of

1+.e cost of t.e energy study is incuded in t.e pro9ect financing o/ever, after t.e study is competed,t.e agency may c.oose to insta t.e upgrades on its o/n or not to proceed at a >f t.e faciity c.oosesnot to use t.e performance contractor to compete t.e pro9ect, t.e agency /i 8e o8igated to pay for t.epreparation of t.e energy study

G$%#E T& PE'(&')A*CE C&*T'ACT%*G 2


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INTRODUCTION

comfort and eve of energy savings are ac.ieved

1.) Bene$it o$ Energ! S"#ing Per$orm"nce Contr"cting

Energy savings performance contracting offers a num8er of important 8enefits =irst andforemost, it ao/s agencies to proceed /it. pro9ects t.at tig.t 8udgets mig.t ot.er/ise

prevent t t.e discretion of t.e O/ner, a or a portion of t.e pro9ect costs can 8efinanced, incuding up'front engineering, construction, and commissioning services,ao/ing pro9ects to proceed /it.out capita improvement or repair funds +.e agencyreceives ne/ and improved ig.ting, cooing, and ot.er e:uipment, t.e cost of /.ic. isoffset 8y reduced utiity 8is fter t.e e:uipment cost .as 8een paid off, t.e agencyo/ns t.e e:uipment and retains a of t.e savings from reduced utiity 8is Even if t.eoan payments and payments to t.e ESCO offset muc. of t.e energy savings in t.es.ort run, upgrading e:uipment ao/s a of t.e non'energy 8enefits, suc. as improvedcomfort and reia8iity, to 8e reaied immediatey

Figure 1>1

Energ! S"#ing Per$orm"nce Contr"ct Cot S"#ing

+eforePerformanceContract

#uringPerformanceContract

AfterPerformanceContract

$ti,ityCosts

P rform.ContractP yments

C stSa ings

Energy savings performance contracting streamines t.e purc.asing process for energyefficiency pro9ects, reducing t.e cost and time re:uired to insta pro9ects singecompany ta7es responsi8iity for designing, 8uiding, commissioning, and monitoring t.eimprovements +.e ESCO often empoys a team of consutants and su8contractors toaccompis. t.is 8ut t.e ESCO is sti accounta8e for t.e utimate success of t.e pro9ect+.is singe'source accounta8iity ma7es t.e pro9ect easier to manage t.an aconventiona construction pro9ect Streamining t.e procurement process in t.is /ayma7es it possi8e for agencies to impement more compre.ensive pro9ects, reduces t.etime and cost to manage pro9ects, and gives on'site faciity staff and users t.eopportunity for more input into t.e pro9ect design and 8etter contro of t.e fina product

s a resut, energy efficiency improvements ac:uired t.roug. energy savingsperformance contracts often /or7 8etter, ast onger, and garner stronger ong'termsupport from faciity administrators, maintenance staff, and 8uiding users t.an ot.erenergy efficiency pro9ects

Energy savings performance contracting, as its name impies, s.ifts muc. of t.e ris7associated /it. an energy efficiency pro9ect from t.e agency to t.e ESCO +.is is

G$%#E T& PE'(&')A*CE C&*T'ACT%*G


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INTRODUCTION

usuay accompis.ed 8y .aving t.e ESCO guarantee t.at savings /i e?ceedpayments >f energy cost savings are ess, t.e ESCO pays t.e difference to t.e agency3ecause t.e agreement transfers t.e ris7 of pro9ect performance to t.e ESCO, t.eESCO .as a strong incentive for .ig. :uaity design and construction, preventivemaintenance, and ongoing monitoring for t.e duration of t.e contract

11. :;"t ?ind o$ E/ui+ment "nd Ser#ice C"n n some cases, t.e costs for faciity staff to attend trainingprograms provided 8y e:uipment manufacturers can 8e incuded in t.e pro9ectcosts

11..' O+er"tion "nd 4"inten"nce Ser#ice

>n addition to e:uipment instaation, documentation, and O/ner training, t.eESCO may propose various repair and maintenance services Often ESCOspropose repairs to e?isting systems, suc. as re'instaation of damaged or missingcontros or repair of ea7s in c.ied /ater piping +.ey may aso offer to ta7eresponsi8iity for ong'term maintenance and repairs to a ne/ e:uipment instaedduring t.e term of t.e contract +.e contractor may aso offer to ta7e responsi8iityfor maintenance and even operation of e?isting e:uipment of t.ese servicesmay 8e incuded as part of t.e proposa, if re:uested 8y t.e O/ner

+.e Office of Energy recommends t.at t.e o/ner not enter into a ong'termmaintenance contract as a part of t.e energy savings performance contract Oneof t.e main 8enefits of energy savings performance contract is t.at t.e pro9ectpays for itsef in energy savings +.at may not 8e t.e case if a ong'termmaintenance agreement is added to t.e cost s part of t.e Measurement 4Ferification and Energy Savings Guarantee *M4F


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INTRODUCTION

years if t.e e:uipment is /or7ing as panned and t.e energy savings are 8eingac.ieved +.e M4Ff confident in t.e pro9ect, terminate t.econtract as soon as practica8e M4Ff t.e pro9ect meets design intent and meets t.e savings

pro9ections, c.ances are t.e contract /i 8e terminated 8efore t.e end of fiveyears

>n most cases, if t.e O/ner re:uires a ong'term maintenance contract, it s.oud8e done under a separate soicitation after t.e pro9ect is competed

11.0 =itor! o$ Energ! S"#ing Per$orm"nce Contr"cting in Oregon

Energy savings performance contracting .as 8een used t.roug.out t.e nited Statesfor more t.an 2% years >n t.e eary days, t.ese contracts /ere referred to as s.aredsavings contracts in /.ic. 8ot. t.e 8uiding o/ner and t.e ESCO s.ared in t.e doar

savings as a resut of e:uipment instaed +.ese eary contracts did not guarantee aeve of savings and ead to disagreements on actua savings accrued A.en t.econcept of guaranteed savings and a fat fee concept initiay got under /ay, t.econtract mar7up /as e?ceedingy .ig. Over time t.is fee .as dropped to as itte as oneor t/o percent, ma7ing energy savings performance contacting an attractive met.od toac.ieve energy efficiency /it. a guaranteed savings

+.e &""& Oregon @egisature enacted O!S (6"#52 to #56 t.at ao/s state agenciesto 0 enter into suc. contractua and ot.er arrangements as may 8e necessary orconvenient to design, deveop, operate and finance pro9ects on'site at state o/ned orstate rented faciities1 +.e statute ao/s t.e state agency to retain 5% percent of t.e

net savings of t.e pro9ect after any pro9ect de8t service >n order to retain suc. savings,t.e state agency .ad to specificay re:uest aut.ority 8efore entering into suc. contract+.e statute aso gave utiities serving a faciity t.e rig.t of first refusa to insta energyefficiency *or cogeneration pro9ects and t.e rig.t to matc. any ot.er 8ids on suc. apro9ect No pro9ects .ave 8een deveoped under t.is statute

3ecause of successes in ot.er states ODOE 8egan e?poring t.e concept of energysavings performance contracts in &""5 as a means to encourage energy efficiency pro9ectdeveopment and impementation

>n &""#, ODOE received a grant from t.e S Department of Energy to promote and

deveop ESPCs at federa agencies in Oregon nder t.is grant, ODOE /or7ed /it. t.eS 3ureau of >ndian ffairs *Department of >nterior and S DOE to deveop an ESPC atC.ema/a >ndian Sc.oo in Saem n energy savings performance contract /as enteredinto 8et/een and t.e pro9ect /as successfuy competed in Novem8er 2%%% +.is /as apiot pro9ect for t.e 3ureau of >ndian ffairs and t.ey are no/ pursuing ot.er ESPCpro9ects at t.eir faciities t.roug.out t.e country

G$%#E T& PE'(&')A*CE C&*T'ACT%*G


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INTRODUCTION

Energy savings performance contract pro9ects .ave 8een competed at t/o .ig.ereducation institutions +.ose pro9ects emp.asied t.e need for t.e deveopment of a cearprocess and documents t.at meet pu8ic sector ega re:uirements

>n &""", t.e Oregon Department of Energy and t.e Department of dministrativeServices 8egan discussions on deveoping a piot pro9ect using energy savings

performance contracting as a means to insta energy efficiency measures in a state'o/ned 8uiding Ait. t.e concurrence of t.e Empoyment Department, t.e Empoyment3uiding /as c.osen for t.e piot pro9ect !epresentatives from t.e Department of

dministrative Services, Empoyment Department, Office of Energy, Department of+ransportation, and t.e Department of -ustice formed a team to /or7 on t.e pro9ect+.e Office of Energy contracted /it. t.e Aas.ington Department of Genera

dministration to provide an e?pert on energy savings performance contracting /.oaso 8ecame a mem8er of t.e team

sing tempate documents deveoped 8y t.e Energy Services Coaition,2t.e team setup t.e process and refined t.e documents to ad.ere to Oregon a/ +.e Department of

-ustice assisted in deveoping t.e process and documents, providing ega advice andfina signoff +.e !=P for t.e Empoyment 3uiding pro9ect /as issued in -uy 2%%%, t.eESCO seected in Octo8er 2%%%, and t.e pro9ect competed in Decem8er 2%%&

11. T;e Proce

+a8e &'&, 8riefy outines t.e p.ases of an energy savings performance contract andgives t.e estimated time re:uired for eac. p.ase =igure &'2, e?pands t.e step process

T"1P;"e o$ Energ! S"#ing Per$orm"nce Contr"cting

P;"e 1 P;"e 2 P;"e ' P;"e ) P;"e , P;"e >dentifypro9ect

=ormpro9ectteam

O8tainstate a/e?emption

Draft and issue !=P

od pre'proposameeting and site visit

Evauate proposasand seect contractor

Negotiate contract

!evie/ andaccept energystudy

!evie/ andaccept Pro9ectDeveop Pan

>ssue Noticeto Proceed

>nsta EEMs

>nspect 4acceptEEMs

Monitorperformance

Pay ESCOfor M4F

Ma7e oanpayments

&$ mos &'2 mont. ('6 mont.s 6 mont.s )'&) mont.s 2'&5 years

!=P!e:uest for Proposas EEMEnergy Efficiency M4FMeasurement 4 Ferification

2

>n &""", ODOE 9oined t.e Energy Services Coaition *formery t.e Aestern !egiona Coaition a nationaorganiation of state energy offices, energy service companies, federa agencies, and ot.er organiationsinterested in ESPC +.e coaition deveoped tempate documents to aid governmenta agencies and privatecompanies in deveoping and entering into successfu energy savings performance contacts

G$%#E T& PE'(&')A*CE C&*T'ACT%*G /


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INTRODUCTION

Figure 1-2

Energy Savings Performance Contracting Process

G$%#E T& PE'(&')A*CE C&*T'ACT%*G 0

1. IDENTIFY PROJECT

END

ECMsEconomically

Viability

4. b. Proposal Meeting

Tour of Facility. Draft and Issue RFPFaciitiesQuestions and Clarification in writing

4.c. EvaluateProposalsInterviewsB&F offer

NoSelection

3. State law exemption

Determine financing

4.a. Draft and Issue RFP

4.e. NegotiateContract

5. ReviewEnergy Study

6.a. Notice to Proceed

6.c. Inspect and Accept ECMs

7.a. Monitor Performance

7.b. Owner Pays ESCO & Loan

SavingsGuarantee

NO

NoAgreement Select

Next ChoiceESCO

4.d. Select Contractor!"ar# 1st C$oice ESCO

AGREEMENT

NotAcceptable

RevisedEnergy Study

NotAcceptable

MeetsContractTerms

Faciity Pays ESCOEnergy Stu#y Fee

ESCO PaysO"ner

END

NotMet

6.b. Design/Install ECMs

ACCEPTANCE

6.d. Issue Certificate of Substantial Completion

2. Form Project Team


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IS ENER%& S!'IN%S PERFOR(!NCE CONTR!CTIN% FOR &OU)

12.ISENER(%SA8IN(SPERFOR4ANCECONTRACTIN(FOR%O7&

=aciity o/ners usuay consider energy savings performance contracting 8ecause t.ey.ave an immediate pro8em, 8ut ac7 t.e funds or e?pertise to sove it Often t.epro8em is simpy t.at utiity costs are rising faster t.an 8udgets Sometimes t.epro8em is t.at e?isting e:uipment is /orn out and needs to 8e repaced 8utrepacement funds are not avaia8e

3efore underta7ing an energy savings performance contract, t.e O/ner s.oud assesst.e potentia energy efficiency options feasi8iity study can range from simpe toe?tremey sop.isticated +.is section outines a simpe met.od 8ased on common ruesof t.um8 Section 22 8eo/ and ppendi? , =aciity Evauation, descri8e a moredetaied met.od

12.1 Sim+li$ied Aement

+o determine t.e feasi8iity of an energy savings performance contract, a genera rue oft.um8 is t.at a faciity must .ave energy'saving opportunities meeting t.e foo/ing t/oconditions;

+.e energy'saving opportunities must add up to a pro9ect investment of at eastL#5,%%%H and

+.e opportunities s.oud .ave a simpe pay8ac7 period of fifteen years or ess fore:uipment *Does not account for financing, ESCO fees, etc

>f an energy study .as aready identified a pro9ect meeting t.ese criteria, t.en no furt.er

evauation is necessary +a8e 2'& can 8e used to evauate feasi8iity 8ased on readiyavaia8e information and rues of t.um8 deveoped /it.in t.e energy savingsperformance contracting industry

T"1Energ! S"#ing Per$orm"nce Contr"cting Fe"if you ans/ered !eto any of t.ese :uestions, your faciity may not 8e a goodcandidate for energy savings performance contracting >n t.is case, severa options areavaia8e

G>DE +O PE!=O!MNCE CON+!C+>NG )


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IS ENER%& S!'IN%S PERFOR(!NCE CONTR!CTIN% FOR &OU)

>f you ans/ered !eto :uestion num8er & *energy costs are ess t.an L&%%,%%% peryear, consider com8ining severa 8uidings or faciities to ma7e a arger pro9ect >f youans/ered !eto :uestion num8ers 2, $, or (, consider contacting potentia proposersdirecty, descri8e your faciity, and as7 /.et.er t.ey /oud su8mit a proposa if an !=Pis issued Iou may aso /is. to contact t.e Oregon Department of Energy forassistance

12.2 F"cilit! E#"lu"tion

Energy savings performance contracts, i7e ot.er arge construction pro9ects, re:uire t.esupport and participation of many peope for successfu competion more detaiedevauation can .ep /in support for t.e pro9ect from maintenance staff, administrators,and 8uiding users >n addition, 7no/edge gained during t.e evauation can strengt.ent.e o/ners position in future discussions /it. ESCOs

Performing an evauation of e?isting conditions offers t.e foo/ing 8enefits;

+.e O/ner /i .ave a 8etter understanding of e?isting conditions and 8e 8etterprepared to negotiate t.e energy use 8aseineH

+.e O/ner /i 8e 8etter prepared to suggest possi8e energy'savingimprovements to proposersH and

+.e O/ner /i 8e 8etter prepared to evauate proposed efficiency measures,tec.nica approac.es, and costs

+.e Office of Energy does not recommend paying for a detaied energy study at t.istime >f you enter into an energy savings performance contract, an energy study is t.efirst scope of /or7 under t.e contract >f you are sti unsure a8out /.et.er your 8uidingis a good candidate for energy savings performance contracting, you may /ant tocontact potentia proposers directy, descri8e t.e pro9ect, and as7 /.et.er t.ey /oud8e i7ey to propose if an !=P is issued

12.' Cre"m Skimming

Sometimes promoters of energy efficiency pro9ects are interested ony in t.e fastestpay8ac7 measures +.ese provide immediate returns to t.e faciity 8ut 0s7im t.e cream1and prevent ot.er opportunities from ac.ieving energy savings =or e?ampe, if aproposa focuses ony on ig.ting *a measure t.at may .ave a s.ort pay8ac7 period,t.e opportunity to ac.ieve savings t.roug. com8ining ig.ting /it. onger pay8ac7 items/i 8e eiminated 3y 8unding severa types of measures toget.er, t.e measures /it. as.orter pay8ac7 are everaged to .ep pay for measures /it. a onger pay8ac7 +.is /iresut in a more compre.ensive pro9ect t.at upgrades more e:uipment and provides fora more comforta8e 8uiding

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%ETTIN% ST!RTED

'. (ETTIN(STARTE5

'.1 Org"ni@e " Pro-ect Te"m

Managing an energy savings performance contract re:uires t.e participation of e?pertsfrom severa departments, incuding faciities panning, procurement, 8udget andfinance, maintenance, and ega +o meet t.is need, it is recommended t.at a pro9ectteam 8e formed eary in t.e process +.e pro9ect team s.oud .ave diverse e?pertise,incuding;

=aciity operation and maintenance e?pertise to ensure t.at faciity operatinginterests and 7no/edge are representedH

+ec.nica e?pertise to evauate energy efficiency potentia, deveop a scope of/or7, evauate ESCO proposas, energy studies, and measurement andverification and guarantee pan *s.oud contract /it. private consuting firm or t.e

Office of EnergyH

Pro9ect management e?pertiseKprefera8y t.e pro9ect manager t.at /i overseet.e pro9ectH and

Bno/edge of 8udget and finance procedures to esta8is. a met.od to 8udgetand ma7e payments for t.e duration of t.e contract $

>n addition, procurement e?pertise and ega e?pertise s.oud 8e enisted to ensure t.att.e process foo/s appica8e procurement rues and to revie/ a contract terms and*possi8y assist in negotiations after a contractor .as 8een seected +.e procurement

and ega e?perts need not 8e forma mem8ers of t.e pro9ect team

+o organie a pro9ect team, first identify a team eader /.o /i .ave overaresponsi8iity for coordinating t.e team @ogica c.oices are t.e Director of

dministrative Services, 3usiness Manager, or =aciity Manager

+.e team eader s.oud recruit peope e?pert in eac. of t.e areas isted a8ove eary int.e deveopment of t.e pro9ect During t.e eary stages of t.e pro9ect, it may 8eappropriate to simpy provide team mem8ers /it. genera information a8out energysavings performance contracting and t.e pro9ect status oding an introductory 8riefingand providing copies of t.is Guide to a team mem8ers ma7es a good 8eginning +.e

purpose of t.is introductory meeting is to;

3One important issue to discuss and resove is .o/ to esta8is. a mec.anism for continuing to ma7e

utiity and pro9ect payments Gross utiity payments may decrease /it. an energy savings performancecontract and t.e savings need to 8e retained, from a 8udgeting standpoint, to meet o8igations under t.eenergy savings performance contract

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%ETTIN% ST!RTED

E?pain t.e concept of energy savings performance contracting to a pro9ectteam mem8ersH

3uid support for t.e pro9ect 8y descri8ing faciity needs t.at energy savingsperformance contracting /i meet and t.e 8enefits e?pected to resut from t.epro9ectH and

Descri8e t.e process and t.e intended sc.edue for eac. step so t.at t.e teammem8ers 7no/ /.at to e?pect

+.e pro9ect team mem8ers *or at east t.e ma9ority of t.e mem8ers s.oud aso serveon t.e evauation committee /.en t.e pro9ect reac.es t.e point of contractor seectionand t.roug.out t.e pro9ect as an oversig.t group +a8e $'& outines roes forrepresentatives of t.e different areas of e?pertise during eac. p.ase of t.e pro9ect

T"n addition to e?paining .o/ an energy savings performance contract /or7s, 8eprepared to ans/er t.e foo/ing :uestions to .ep /in support;

A.at faciity needs /i 8e met 8y an energy savings performance contractNeeds mig.t incude repacing /orn'out e:uipment, reducing energy costs, orimproving comfort

>s it i7ey t.at improvements /i 8e made /it.out an energy savingsperformance contract o/ /i t.e improvements 8e made and /.at funds /i8e used

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%ETTIN% ST!RTED

>f funds are avaia8e, coud t.ey funds 8e used for ot.er pro9ects

>t is aso critica to /in t.e support of faciity users as /e as managers Educatingfaciity users a8out pro9ect 8enefits ma7es t.em more /iing to cooperate during t.einstaation process and means fe/er .eadac.es for administrators and faciity

personne >t is aso important to 7eep users informed on t.e progress, potentiapro8ems, and sc.eduing t.roug.out t.e pro9ect

'.' ("t;ering F"cilit! In$orm"tion

>f you .avent aready gat.ered information a8out your faciity as part of your faciityevauation *see C.apter 2, t.is is t.e ne?t step ppendi? 3, +ec.nica =aciity Profie,is a form to coect information needed /.en preparing t.e !e:uest for Proposas =ormore information, see t.e +ec.nica =aciity Profie t.at /as competed for t.eEmpoyment 3uiding *contained in ppendi? =

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E*E(PTION FRO( ORE%ON +!,

). E6E4PTIONFRO4ORE(ONLA:

O!S 2#"%&5*& re:uires, /it. certain e?ceptions, t.at a pu8ic contracts(8e 8ased oncompetitive 8idding and, under O!S 2#"%2", a/arded to t.e o/est responsive andresponsi8e 8idder

>n energy savings performance contracts, t.e precise pans and specifications of t.eimprovements are not 7no/n /.en t.e soicitation is prepared +.e ESCO seectedassumes accounta8iity and responsi8iity for investigating e?isting conditions,competing a necessary designs, competing t.e construction, commissioning, trainingstaff to effectivey operate t.e systems, providing measurement and verification ofsavings t.roug.out t.e term of t.e contract, and guaranteeing t.e resuts nder t.esecircumstances, competitive seaed 8idding is not practica8e and competitive seaedproposas are preferred using t.ree primary criteria;

+.e scope and :uaity of t.e initia proposa to improve energy efficiency in t.e

faciity

+.e ESCOs overa approac. to energy savings performance contracting

+.e :uaifications of t.e ESCO 8ased on comparing t.e reative a8iities ofproposers to perform, incuding degree of tec.nica or professiona e?perience ore?pertise and financia 8ac7ground

nder certain conditions, t.e Director of t.e Department of dministrative Services*DS, as t.e states pu8ic contract revie/ aut.ority, can grant state agencies specifice?emptions from t.e re:uirement for competitive 8idding resuting in contract a/ard to

t.e o/est responsive and responsi8e 8idder Ot.er pu8ic agencies re:uest t.ee?emption from t.eir oca contract revie/ 8oard, ie, sc.oo 8oard, county commission,city counci, etc

O!S 2#"%&&*5 defines 0=indings1 and references specific information t.at s.oud 8eaddressed in granting an e?emption pu8ic .earing must 8e .ed 8efore t.esefindings are finay adopted, ao/ing t.e opportunity for a interested parties tocomment on draft findings

ppendi? C is t.e =indings of =act used in 2%%% for t.e Empoyment 3uiding energysavings performance contract +.is document can 8e modified for use in ot.er state,

sc.oo district, or oca government pro9ects

-

O!S 2#"%&&*6 defines pu8ic contract as any purc.ase, ease or sae 8y a pu8ic agency of personaproperty, pu8ic improvements or services ot.er t.an agreements t.at are for persona service

O!S 2#"%&&*# defines pu8ic agency or pu8ic contracting agency as any agency of t.e State of Oregonor any poitica su8division t.ereof aut.oried 8y a/ to enter into pu8ic contracts and any pu8ic 8odycreated 8y intergovernmenta agreement

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E*E(PTION FRO( ORE%ON +!,

O!S 2#" can 8e found, in its entirety, at;.ttp;


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PROECT FIN!NCIN%

,. PROECTFINANCIN(

3efore deveoping t.e !=P, t.e met.od of pro9ect financing must 8e determined >t isnecessary to identify in t.e !=P if t.e ESCO /i 8e responsi8e for financing t.e pro9ectcosts cross t.e country, energy savings performance contracts usuay incudefinancing for t.e pro9ect o/ever, in Oregon and some ot.er states t.ere areaternative met.ods of financing, usuay at a o/er interest rate t.an an ESCO /oudc.arge

,.1 Pro-ect Fin"ncing $or St"te Agencie

ny ac:uisition 8y t.e state or any state agency, of a pro9ect using a financingagreement /.ose principa portion e?ceeds L&%%,%%% must foo/ t.e proceduresesta8is.ed in O!S 2)$%)# to 2)$%"25+.ose procedures outine t.e need forapprova 8y DS, approva 8y t.e State +reasurer, and incusion in t.e agencys8iennia 8udget re:uest for approva 8y t.e egisature Due to t.ese imitations and.ig.er interest rates, t.e 8est met.od for pro9ect financing is usuay t.e ODOE @oanProgram *see section 5(

,.2 Pro-ect Fin"ncing $or Ot;er (o#ernment Agencie

Sc.oo districts, city and county governments, and specia districts do not face t.e samet.ird'party financing restrictions faced 8y state government o/ever, it may 8e in t.e8est interest of your agency to use t.e ODOE @oan Program +.e interest rates andfees of t.e @oan Program are o/er t.an /.at most ESCOs can offer One or t/opercentage points can ma7e a 8ig difference in t.e cost of your pro9ect over a oan termt.at may 8e ten years or more

,.' Addreing Pro-ect Fin"ncing in t;e RFP

Once you .ave determined t.e met.od of financing your agency /i use, you can t.enaddress financing in t.e !=P =or t.e Empoyment 3uiding, a com8ination ofCertificates of Participation *COP and ODOE @oan Program funds /ere used tofinance t.e pro9ect +.e DS .ad received COP aut.oriation in previous egisativesessions for t.e Empoyment 3uiding pro9ect o/ever, DS decided to e?pand t.escope of t.e pro9ect so t.ey received a oan from ODOE >n t.e !=P for t.is 8uiding,anguage /as deveoped t.at re:uired t.e proposers to address t.eir a8iity to providepro9ect financing, even t.oug. it /asnt going to 8e used in t.is pro9ect +.is .epeddemonstrate t.e financia soundness of t.e proposers

>f your agency /i re:uire financing 8y t.e ESCO, you need aternative anguage for t.e!=P documents and contract documents +.e Office of Energy suggests t.at you /or7/it. your financia and ega staff to deveop suc. anguage

5Refer to OAR 122-070 for more detailed information on rules implementing ORS 283.087 092.

G>DE +O PE!=O!MNCE CON+!C+>NG &5


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PROECT FIN!NCIN%

,.) Oregon 5e+"rtment o$ Energ! Lo"n Progr"m

>f you pan to appy for an Office of Energy oan, you can do/noad t.e oan appicationfrom t.e /e8 site;

.ttp;


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RE.UESTION% PROPOS!+S

. RE7ESTIN(PROPOSALS

.1 O#er#iew

Once approva .as 8een received to use t.e re:uest for proposas *!=P met.od andyou .ave determined your met.od of financing, t.e deveopment of t.e soicitationdocuments can 8egin +.e goa of t.e !=P is to receive t.ree or more responsiveproposas /it. enoug. information to seect one t.at is 8est meets t.e needs of t.eO/ner

ESCOs responding to t.e !=P /i 8e evauated on a site'specific approac. to t.eproposed pro9ect, genera approac. to energy savings performance contracting, specifice?perience, and financia 8ac7ground

.2 5e#elo+ing " Re/uet $or Pro+o"l

ppendi? = contains t.e !=P used in 2%%% to soicit energy savings performancecontract proposas for t.e Empoyment 3uiding +.is document can 8e used to preparean !=P for any pro9ect reas t.at need to 8e fied in or c.anged .ave 8een .ig.ig.tedfor your convenience *ppendi? = aso contains a documents identified in t.e !=P asattac.ments and e?.i8its to t.e !=P of t.e documents used in t.is guide8oo7 can8e do/noaded from t.e Office of Energy /e8 site >f you prefer, t.e Office of Energycan copy t.e documents to dis7 and mai it to you

3eo/ is an overvie/ of t.e m"-orre:uired eements in t.e !=P;

.2.1 Sc;edule o$ E#ent

+.is s.oud incude a t.e important dates associated /it. t.e !=P, suc. assc.edues for t.e site visit, proposa due dates, announcement of a/ard, etc

.2.2 (ener"l Reult Re/uired

>ts important for t.e o/ner to articuate t.e services 8eing re:uested and t.egenera resuts re:uired

.2.2.1 BuildingD included in t;e +ro-ect

Ceary identify t.e faciities *8uidings, /ater /es, and se/er pump

stations, etc t.at /i 8e part of t.e pro9ect >f t.ere are 8uidings or 8uidingareas t.at /i 8e e?cuded due to specia operating re:uirements, securityissues, or ot.er reasons, 8e sure to identify t.ose 8uidings or areas*Compete ppendi? 3, +ec.nica =aciity Profie, for eac. faciity to 8eincuded

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.2.2.2 8"riou er#ice re/uired

+ypicay, an energy savings performance contract cas for acompre.ensive pac7age of services, incuding a tec.nica energy study ofefficiency potentiaH design, procurement, instaation of efficiencyimprovementsH commissioning of t.e pro9ectH measurement and verification

of energy savingsH and energy savings guarantee

s in any contract for services, 8e as detaied and specific as possi8e =ore?ampe, t.e mode !=P provides a detaied ist of items to 8e addressed int.e energy study report prepared 8y t.e ESCO *ppendi? =, +ec.nicaEnergy udit, Part >t is aso important to 7eep t.e focus on resuts, rat.ert.an on met.ods Since ESCOs guarantee t.e resuts of t.eir /or7, t.eygeneray insist on 8eing ao/ed to determine t.eir o/n met.ods +.eirtrac7 record is a 7ey factor in t.e seection

.2.2.' Tec;nologie or end>ue included

+.e o/ner may /ant to incude or e?cude certain tec.noogies or end'usesSpecific tec.noogies or end'uses are usuay re:uested 8ecause e?istinge:uipment is o8soete or at t.e end of its usefu ife =or e?ampe, t.eO/ner may /ant to repace an o8soete e?isting c.ier to improve reia8iityand efficiency and eiminate t.e need for C=C refrigerants

+.e O/ner may /ant to e?cude certain tec.noogies or end'uses 8ecauseefficiency measures .ave recenty 8een impemented, 8ecause a reia8eenergy use 8aseine cannot 8e esta8is.ed, or 8ecause an e?isting servicecontract /oud interfere /it. t.e /or7 of an ESCO compre.ensive

pro9ect, treating a energy'using e:uipment, /i ao/ t.e greatest overacapita investment and energy savings, 8ecause fast pay8ac7 items can 8eused to su8sidie so/er pay8ac7 items

>f energy efficiency measures are aready competed or panned for oneend'use, suc. as space cooing, an energy savings performance contractmay sti 8e pursued for ot.er areas, suc. as ig.ting and contros +.efaciity s.oud indicate any improvements it specificay /ants to impementunder t.e energy savings performance contract as /e as anyimprovements it /i not consider o/ever, an o/ner can usuay get t.e8est resuts /.en giving ESCOs a free .and in deveoping proposas in

response t.e !=P

.2.' Re/uired C"+"ncude information t.at outines re:uirements ESCOs must address in t.eirresponses +.is can incude specific tec.noogy e?perience and end usee?perience t.e ESCOs must possess

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.2.) Contr"ctu"l Term "nd Condition

+.e !=P must incude a contractua terms and conditions t.at /i appy to anycontract utimatey a/arded +.ese /i incude re:uirements reating to t.eperformance of engineering and construction services, insurance, payment ofprevaiing /ages, etc +o address t.ese issues, attac. t.e 0State of Oregon

Standard Genera Conditions for Pu8ic >mprovement Contracts1 and0Suppementa Genera Conditions1 t.at may appy to t.e pro9ect *part of ppendi?= not.er contractua item is t.e preferred term *ie duration of t.e contract andany provisions for eary termination =or more information, see section " of t.isguide reating to contractua issues in energy savings performance contracting

.2., Pro-ect Sc;edule

+.e pro9ect sc.edue can 8e an attac.ment to t.e !=P >t s.oud incude areevant dates from reease of t.e !=P to deveopment and signing of a contractp.ases *See ppendi? =, Proposed Pro9ect Sc.edue

.2. (ener"l Re/uirement "nd In$orm"tion

+.is section s.oud incude scope of t.e !=P, re:uired num8er of copies,su8mission deadines and contact information for in:uiries >t must aso outinesgenera proposa a/sPro+o"l 4eeting "nd Building :"lk>T;roug;

ESCOs t.at intend to su8mit a proposa must ta7e part in a pre'proposameetingDE +O PE!=O!MNCE CON+!C+>NG &"


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:uestions regarding t.e !=P, proposa procedures, and administrative matters andto carify tec.nica matters

+.is gives t.e proposers t.e option to satisfy t.emseves as to any oca or ot.erconditions t.at may offset t.e cost of t.e pro9ect >t aso /i .ep t.em prepare t.eSite Specific pproac. section in t.e ESCO !esponse !e:uirements +o ma7e t.e

meeting as productive as possi8e, t.e O/ner s.oud re:uest :uestions in /riting8efore t.e date of t.e meeting and 8uiding /a7't.roug. >n addition, ainformation presented at t.e meeting must 8e reduced to /riting and sent to aproposers attending t.e meeting


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E'!+U!TION OF PROPOS!+S

0. E8AL7ATIONOFPROPOSALS

0.1 O#er#iew

+.e goa of t.e evauation process is to identify t.e proposa t.at offers t.e greatest8enefits to t.e O/ner Oregon dministrative !ues *O! &25'%2% and &$#'%$% covert.e use of competitive seaed proposas incuding proposa evauation +.ese rueseave many detais of t.e evauation process up to t.e discretion of t.e procurementofficer +.e process descri8ed in t.is c.apter is intended to address t.e uni:uecircumstances of an energy savings performance contracting soicitation as /e ascompy /it. a t.e re:uirements of t.e O! in effect at t.e date of t.is pu8ication

0.2 T;e E#"lu"tion Committee

!ues re:uire t.at an evauation committee 8e set up to evauate proposas =or energysavings performance contracts, proposa evauation re:uires 7no/edge and e?pertisein diverse areas, incuding energy'efficient design, finance, and faciity management

>t is recommended t.at t.e evauation committee 8e made up of a or a ma9ority of t.emem8ers of t.e Pro9ect +eam since a of t.e same e?pertise is re:uired >f t.e O/nerc.ooses not to use t.e Pro9ect +eam, it is important to incude one or more mem8ersrepresenting eac. of t.e foo/ing areas;

=aciity management

Energy efficiency *private contractor or Office of Energy

Procurement

=aciity operations and maintenance

=aciity pro9ect management

Effective evauation aso re:uires first'.and 7no/edge of t.e faciitys needs andoperations =aciity maintenance and panning staff s.oud a/ays 8e incuded asevauators +.ese peope 8ring essentia 7no/edge of on'site conditions +.ey /i aso/or7 /it. t.e seected ESCO during t.e impementation of t.e pro9ect >ncuding t.em int.e seection process strengt.ens t.eir commitment to t.e success of t.e pro9ect >naddition, it mig.t 8e /ise to incude a faciity occupant t.at represents t.e interests of aot.er faciity occupants

0.' Initi"l Pro+o"l Screening

3efore t.e evauation committee receives copies of t.e proposas, it is usefu for t.eprocurement officer or ot.er designated person to screen t.e proposas +.e purpose isto identify any proposas t.at are ceary non'responsive as to content or form >naddition, t.e screening s.oud identify /.et.er t.e proposers are responsi8e and meett.e minimum :uaifications stated in t.e !=P +.is step ensures t.e evauationcommittee does not /aste time evauating non'responsive proposas

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0.) Re$erence C;eck

standard ist of :uestions s.oud 8e deveoped for c.ec7ing on past pro9ectsdeveoped and impemented 8y t.e responsive ESCOs se :uestions 8ased on t.eitems identified under Paragrap. 2, Energy Savings Performance Contracting pproac.in t.e Evauation Criteria One or t/o mem8ers of t.e evauation committee s.oud 8e

designated to ca t.e references of one or more of t.e pro9ects for eac. ESCO sing astandard form for reference c.ec7s ao/s for easy comparison of responses onESCOs See ppendi? D for an e?ampe

+.e resuts of t.e reference c.ec7s s.oud t.en 8e distri8uted to eac. mem8er of t.eevauation committee

0., E#"lu"tion o$ Pro+o"l

0.,.1 E#"lu"tion F"ctor

Specific evauation criteria must 8e set out in t.e re:uest for proposas !efer toEvauation Criteria contained in ppendi? = O! gives e?ampes of evauationfactors t.at can 8e used, 8ut does not mandate any particuar factors Evauationfactors not specified in t.e re:uest for proposas may not 8e considered

Cost O! &25'2%'%$2% states 0Price /i 8e considered, 8ut /i not necessariygovern seection of t.e Contractor*s1 Evauating cost for an energy savingsperformance contract is compicated 8ecause t.e precise scope of t.eimprovements is not 7no/n and so a fi?ed price cannot 8e provided >n t.eEmpoyment 3uiding process t.e ony actua cost evauated /as t.at of t.etec.nica audit and t.e ma?imum point a/ard /as sma More important is t.e

overa financia approac. as deveoped in t.e tempate document

0.,.2 Pro+o"l Scoring

O!s re:uire t.at a numeric rating system 8e used to score proposas >n t.eevauation criteria used for t.e Empoyment 3uiding, eac. area of evauation .as8een given a ma?imum numeric vaue score s.eet /as deveoped to faciitatet.e evauation process 8y eac. team mem8er *see ppendi? E

Evauation committee mem8ers often .ave :uestions a8out .o/ to score certainevauation factors >n particuar, evauators may as7 a8out appropriate 8enc.mar7s

against /.ic. to compare proposas =or e?ampe, if an evauator is trying to scoret.e genera :uaifications of a proposer, to /.at s.oud it 8e compared in order todetermine /.et.er it is 0cear and compete1 incuding a reaistic miestonesc.edue

+.e most usefu comparison is among t.e competing proposas ny responsiveand responsi8e proposer is presumed a8e to compete t.e pro9ect successfuy+.e goa of t.e evauation is to find t.e most advantageous proposa among t.ose

G>DE +O PE!=O!MNCE CON+!C+>NG 22


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su8mitted So t.e most appropriate 8enc.mar7 for comparison is t.e ot.erproposas t.emseves

>n t.e case mentioned a8ove, /.en scoring t.e proposersJ genera :uaifications,t.e evauator s.oud revie/ eac. of t.e proposas to determine .o/ /e t.eyans/ered t.e specific items isted for consideration in t.e !=P +.e evauator

s.oud as7; >s t.e e?pertise ceary identified for staff assigned to t.e pro9ect

>s responsi8iity for eac. pro9ect tas7 ceary assigned to a specific individua

Does t.e avaia8iity of staff resources seem sufficient for t.e proposed pro9ect

Eac. proposa s.oud 8e 9udged against eac. of t.e specific criteria isted in t.e!=P

Considering t.ese :uestions, t.e evauator s.oud identify, in .is or .er 9udgement,t.e score for eac. proposa in t.at particuar category +.e ma?imum point a/ardis identified for eac. category of evauation criteria >n t.e score s.eet provided, ama?imum of 25 points can 8e a/arded for genera :uaifications +.e evauators.oud assign a score for eac. proposa, eg Proposa R& is a/arded 2% points, R2a/arded &5 points, /.ie R$ is a/arded 5 points +.e fu range *from ero to 25does not .ave to 8e used Evauators s.oud ma7e an effort to identify meaningfudifferences 8et/een t.e proposas and assign scores across t.e /idestreasona8e range

>f an independent 8asis for comparison of t.e proposas e?ists, evauators s.ouduse it as appropriate =or e?ampe, if a previousy competed energy study of t.efaciity provides an estimate of potentia savings and construction costs, proposerssu8mittas may 8e compared to t.e study findings >f an evauator cannot find any8asis to score a certain attri8ute, discussion /it. ot.er mem8ers of t.e evauationcommittee may 8e .epfu so, t.e reference c.ec7s can prove very vaua8e

0.,.' Re/uet $or Cl"ri$ic"tion

Proposer'suppied information may 8e incompete or uncear O!s ao/ anagency to see7 information from a proposer ony to carify t.e proposa >nformationre:uests s.oud conform to t.e foo/ing guideines;

Suc. carification s.a not vary, contradict or suppement t.e proposa +.eagency s.a not see7 carification of non'responsive proposas Proposermust su8mit /ritten and signed carifications and suc. carifications 8ecomepart of t.e proposa

+.e procurement officer or ot.er designated person /.o .as t.eresponsi8iity to communicate /it. t.e proposer s.oud coordinatecarification re:uests from t.e evauation committee

G>DE +O PE!=O!MNCE CON+!C+>NG 2$


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proposers s.oud 8e given an e:ua amount of time to respond to acarification re:uest

Carification re:uests are most i7ey to 8e needed to esta8is. t.at a proposermeets minimum :uaifications or to ans/er :uestions raised 8y evauationcommittee mem8ers Once proposas .ave 8een distri8uted to individua

evauators, a deadine s.oud 8e set for evauators to su8mit carification re:ueststo t.e procurement officer +.ese :uestions s.oud 8e screened for dupicatesOnce a fina set of :uestions is prepared, t.ey s.oud a 8e sent at one time +en8usiness days is an appropriate response time to re:uire for t.ese informationre:uests s soon as proposer carification responses are received t.eprocurement officer or designated staff s.oud distri8ute copies to a evauators

0.,.) 5etermining Pro+o"l R"nk

fter scoring a responsive proposas, t.e tota point a/ard from eac. evauator isput into a matri? for determination of t.e .ig.est scoring proposas

+a8e #'& s.o/s a matri? t.at identifies tota points a/arded 8y eac. evauatorScores are added to determine tota point a/ard for eac. proposa and to give anovera ran7 8ased on t.ose scores +.is met.od may 8e used for t.e initiadetermination of t.e priority ist as /e as in a fina evauation for a/ard

T"ntervie/s are optiona 8ut are .ig.yrecommended

t.oug. a proposers t.at su8mitted accepta8e proposas mig.t 8e intervie/ed, it isrecommended t.at intervie/s 8e conducted /it. t.e top ran7ed proposers ony Ioumay /ant to imit t.e intervie/s to t.e t.ree or four proposers /.o su8mitted t.e.ig.est'ran7ed proposas >n t.e !=P for t.e Empoyment 3uiding, provisions /eremade to intervie/ t.e t.ree top'ran7ed ESCOs >n t.e ta8e a8ove, Proposers &, $, and5 /oud 8e invited for an intervie/

G>DE +O PE!=O!MNCE CON+!C+>NG 2(


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>t is important t.at t.e primary peope identified in t.e ESCOs proposas participate int.e intervie/ =or e?ampe, t.e ESCOs manager for t.is pro9ect, t.e engineersresponsi8e for energy anaysis, pro9ect design and engineering, and t.e constructionmanager are critica to t.e success of t.e pro9ect >ts important for t.e evauation teamto .ave interaction /it. t.ese 7ey individuas /.o /i 8e on'site for muc. of t.e pro9ectduration E?pertise and s7is, or ac7 t.ereof, t.at come to ig.t during t.e intervie/s

may totay c.ange t.e ran7ing of t.e ESCO in t.e fina evauation

>ntervie/s need to 8e conducted in a manner t.at is fair and e:ua to a top'ran7edproposers +.erefore, prior to t.e intervie/s, deveop a ist of :uestions t.at /i 8eaddressed in t.e intervie/s +.ese :uestions s.oud 8e designed to carify proposasand s.oud not 8e outside t.e scope of t.e origina evauation criteria +ransmit t.isdocument to a ESCOs t.at /i 8e intervie/ed +.e ESCOs must provide /rittenresponses at t.e intervie/

0.0 Fin"l R"nking o$ Pro+o"l

pon competion of t.e intervie/s of t.e top ran7ed ESCOs, t.e proposas /i 8e re'evauated using t.e same evauation criteria +.e information o8tained in t.e intervie/ss.oud 8e ade:uate to .ep determine t.e top'ran7ed ESCO



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TENT!TI'E OR !PP!RENT CONTR!CT !,!RD

. TENTATI8EORAPPARENTCONTRACTA:AR5

fter t.e evauation committee determines t.e top'ran7ed proposer, t.e O/ner ma7es atentative or apparent a/ard +.e terms 0tentative1 or 0apparent1 are used 8ecause t.ea/ard is sti su89ect to negotiations 8et/een t.e O/ner and t.e ESCO +.e O/ner andt.e top'ran7ed ESCO /i enter into contract negotiations intended to esta8is. mutuayaccepta8e contract terms /it.in $% days after O/ners announcement of t.e apparenta/ard Negotiations may 8e formay terminated if t.ey fai to resut in a contract /it.int.is period of time =ina a/ard of t.e contract /i 8e contingent upon successfunegotiation of a fina contract

>n t.e event t.at t.e top'ran7ed ESCO and O/ner are una8e to deveop a mutuayaccepta8e contract /it.in t.e $%'day period, O/ner may cance t.e soicitation orO/ner may t.en 8egin negotiations /it. t.e second'ran7ed ESCO, and, if necessary,t.e t.ird'ran7ed ESCO >f negotiations /it. t.e second' and t.ird'ran7ed ESCOs do notresut in a contract /it.in t.e specified period of time, O/ner may terminate t.esoicitation

.1 Contr"ct Aw"rd C;ecklit

Su8mittas fter /ard, 3efore Notice to Proceed /it. P.ase >>, Design andConstruction Contract Performance 8ond as re:uired 8yO! &$#'%$%'%&(%, Performance

Security*NO+E; +.is item is not re:uired at a/ard 8ecause t.e amounts ofcoverage cannot 8e determined unti t.e fina ist of Energy EfficiencyMeasures *EEMs is 7no/n

Ot.er insurance as re:uired in t.e State of Oregon Standard GeneraConditions for Pu8ic >mprovement Contracts

.2 Contr"ct File

+.e contract fie s.a contain an e?ecuted contract /it. t.e record of t.e actions usedto deveop and administer t.e contract, incuding a statement of 9ustification for t.econtractor seection Suc. record s.a incude;

copy of t.e soicitation and =ina =indings of =act for t.e E?emption *seesection 5H

ist of prospective contractors notified of t.e soicitationH Met.od used to advertise or notify prospective contractorsH

copy of eac. proposa t.at resuted in a/ard of a contractH

Met.od of evauating proposas, resuts of t.e evauation, and 8asis of seectionH

!ecord of negotiation of t.e statement of /or7 and resutsH

information descri8ing .o/ t.e ESCO /as seected, incuding t.e 8asis fora/arding t.e contractH and



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TENT!TI'E OR !PP!RENT CONTR!CT !,!RD

!esuting contract, if a/arded

.' ?ick>o$$ 4eeting

+.e etter or ot.er notice of apparent contract a/ard s.oud propose a date for a 7ic7'offmeeting to discuss t.e foo/ing issues;

Pan for energy study

Site access and administrative procedures

!efer to C.apter " for additiona information

G>DE +O PE!=O!MNCE CON+!C+>NG 2#


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PREPARIN( A CONTRACT

. PREPARIN(T=ECONTRACT5OC74ENTS

Energy savings performance contracts usuay affect capita e:uipment essentia to t.eO/ners mission and can easiy invove tota investments in miions of doars +.econtract esta8is.es a ong'term reations.ip 8et/een t.e O/ner and ESCO, andagencies s.oud deveop terms to address potentia issues /it. great care +.e utimategoa of t.e contracting process is to reac. an agreement t.at is e:uita8e to 8ot.parties, protects t.e interests of t.e O/ner, and is so cear t.at any t.ird parties readingt.e contract /i interpret it t.e same /ay

+.e Energy Savings Performance Contract incudes severa e?.i8its and sc.eduesmost of /.ic. are contained in ppendi? = +a8e "'& 8eo/ identifies a documents inorder of e?ecution and t.eir associated sc.edues Iou may use t.e Energy SavingsPerformance Contract and a associated documents as modes for your pro9ect

NOTE:Review all contract documents carefully to ensure inclusion of all yourrequirements. Each public agency should consult its own legal advisors beforeentering into any portion of the Energy Savings Performance Contract.

Ta/e 0-1

Contr"ct 5ocument

Re/uire E*ecution%eNo 5ocument Title

%e Energ! S"#ing Per$orm"nce Contr"ctNo E*;i

Oregon Standard Genera Conditions Sc.edue C'2 State of Oregon Standard Genera ConditionsSc;edule to


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+.e foo/ing 7ey issues need to 8e considered in deveoping an energy savingsperformance contract

.1 5e$inition

Definitions are used in most contracts, 8ut is especiay important in t.is type of

contract Some of t.e terminoogy may 8e distinct to t.e energy fied and, in particuar,to t.e energy savings performance contracting fied >n addition, you can identifystandards of comfort for your faciity and ot.er definitions t.at may pertain to youragency or faciity

.2 St"nd"rd Contr"ct Re/uirement

E?cept for t.e Scope of Aor7 addressed 8eo/, t.e 8aance of t.e Energy SavingsPerformance Contract is standard contract anguage used for persona servicescontracts and /i not 8e discussed .ere

.' Sco+e o$ :ork

>n an energy savings performance contract, t.e ESCO /i perform services in severadifferent areas E?ecution of t.e Energy Savings Performance Contract 8egins t.e firstof t.ree p.ases *see +a8e "'& a8ove Eac. p.ase of t.e contract is independent, .asits o/n scope of /or7, time sc.edue, distinct contractua re:uirements, andcompensation, a of /.ic. is discussed 8eo/;

.'.1 P;"e 1

.'.1.1 Tec;nic"l Energ! Audit P"rt A

+.e O/ner and t.e ESCO e?ecute t.e Energy Savings PerformanceContract, E?.i8it 3; +ec.nica Energy udit Part +.e audit contractidentifies t.e commencement date and re:uired competion date of t.eaudit +.e contract aso covers compensation *fi?ed fee to t.e ESCO,incuding fees paya8e upon eary termination of t.e contract6

+.e contract scope of /or7 descri8es in great detai t.e parameters t.atmust 8e covered in t.e audit >t aso addresses t.e O/ners roe in assistingt.e ESCO

fter Part is competed and accepted 8y t.e O/ner, t.e O/ner andf t.e O/ner decides to terminate t.e contract during t.e audit or after audit competion, t.e O/ner isia8e for payment of services performed >f t.e ESCO decides, at any time during t.e audit, t.atestimated savings are not ade:uate to /arrant a pro9ect, t.e ESCO may terminate t.e contract at no costto t.e O/ner

G>DE +O PE!=O!MNCE CON+!C+>NG 2"


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.'.1.2 P"rt B Pro-ect 5e#elo+ment Pl"n

>f t.e O/ner accepts t.e udit, Part , O/ner and ESCO t.en e?ecute Part3, Pro9ect Deveopment Pan +.e contract identifies t.e commencementdate and re:uired competion date of t.e pan +.e contract aso coverscompensation *fi?ed fee to t.e ESCO, incuding fees paya8e upon eary

termination of t.e contract

ESCO Scope of Aor7 +.e scope of /or7 under Part 3 incudes designdeveopment documents, fina documents covering e:uipment seection,fina energy use 8aseine and met.ods to ad9ust energy use 8aseine, costsfor t.e a p.ases of t.e designt /i aso incude a draft startup and commissioning pan and ESCOs training responsi8iities and aassociated costs >n addition, t.e ESCO deveops t.e measurement andverification#and energy savings guarantee documents t.at go into effectafter pro9ect competion and O/ner acceptance

O/ner !esponsi8iities Generay, t.e efficiency improvements instaed 8yt.e ESCO depend on certain actions 8y t.e faciity in order to ac.ievesavings +.e O/ner must ma7e sure t.at t.e contract descri8es itso8igations very ceary +.is ensures t.at t.e O/ner understands itscommitment and prevents t.e ESCO from unreasona8y caiming t.atsavings /ere not ac.ieved due to omissions 8y t.e O/ner O/nerresponsi8iities may incude operating or maintaining e?isting e:uipment in a/ay t.at .eps t.e ESCOs improvements ac.ieve savings =or e?ampe, ift.e ESCO proposes energy management contros for an e?isting airconditioning system, t.e ESCO may as7 t.e O/ner to maintain t.e systemto an agreed standard

.'.2 P;"e II 5eign "nd Contruction Contr"ct

>f t.e O/ner accepts t.e Pro9ect Deveopment Pan and a associated documentsgenerated under P.ase &, O/ner and ESCO e?ecute t.e Design and ConstructionContract to perform t.e /or7 identified in t.e Pan Since a arge portion of t.iscontract is standard contract anguage used for designDE +O PE!=O!MNCE CON+!C+>NG $%
http://www.ipmvp.org/download.htmlhttp://www.ipmvp.org/download.html


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(E!SURIN% ENER%& S!'IN%S

13. 4EAS7RIN(ENER(%SA8IN(S

13.1 Et"


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on t.at years actua operating and /eat.er conditions One of t.e ma9or disadvantagesof t.is met.od is t.at 8ecause of t.e opportunity *and incentive for t.e ESCO toc.ange t.e mode in its favor, t.e faciity staff must 8ecome e:uay 7no/edgea8ea8out t.e computer mode and its sensitivity to different data inputs nnuay re'computing t.e energy use 8aseine creates a reguar opportunity for ma9or disputes toarise

Figure 13>1A 12>4ont; Energ! 7e B"eline

Figure 13>2S"#ing C"lcul"ted

Between "n Energ! 7e B"eline "nd " Su


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common aternative approac. to overcome t.ese disadvantages is to use end'use ore:uipment'eve metering to esta8is. an energy use 8aseine =or e?ampe, savingsfrom ig.ting upgrades can 8e accuratey determined 8y measuring t.e connected oad*in /atts or 7io/atts of t.e e?isting ig.ting and t.e ne/, upgraded ig.ting and t.eoperating .ours of t.e ig.ting after t.e upgrade +.e cacuation of energy use 8aseineis t.en simpy t.e pre'upgrade 7io/atts mutipied 8y t.e .ours of use after t.e

upgrade +.is is s.o/n in t.e foo/ing e:uation;

Energ! ue ;ourD H kilow"tt+re * ;our o$ ue

+.e energy use after t.e retrofit *post'retrofit is t.e ne/ 7io/atts mutipied 8y t.e.ours of use +.e e:uation for t.e energy use of t.e ne/ ig.ting system is;

Pot>retro$it energ! ue kilow"tt>;ourD H kilow"tt+ot * ;our o$ ue

Since t.e energy savings is t.e post'retrofit energy use su8tracted from t.e energy use8aseine, t.e e:uation for t.e energy savings can 8e simpified to;

Energ! "#ing H kilow"tt+re > kilow"tt+otD * ;our o$ ue

>n ot.er /ords, t.e energy savings is t.e difference 8et/een post'retrofit and 08aseine1ig.ting /attage, mutipied 8y .ours of use of t.e ig.t fi?tures after t.e retrofit >f energyuse decines after t.e ig.ting upgrade, cacuated energy savings /i aso decine

>n practice, of course, cacuation of energy use 8aseines 8ased on e:uipment meteringmay 8e more compe? Ony for simpe ig.ting fi?ture repacements is it t.is simpe +.e8aseine cacuation for ot.er devices, suc. as air conditioning c.iers, fan motors, orc.ied /ater pumps, is fundamentay t.e same as in t.is e?ampe >n t.e case of

cooing e:uipment, ot.er varia8es, suc. as /eat.er and indoor temperature, may asoneed to 8e accounted for Nevert.eess, an energy use 8aseine can sti 8e deveoped8ased on measurement of t.e e:uipment demand under various conditions, andappropriate measurement of operating .ours under simiar conditions >n most casesinvoving air conditioning systems, an understanding of t.e engineering principes 8asicto refrigeration and fuid dynamics is necessary to fuy evauate t.e appropriateness ofan energy use 8aseine cacuation 8ased on e:uipment metering

Eac. of t.ese aternate approac.es .as advantages and disadvantages Esta8is.ingan energy use 8aseine using 8iing data is o/ cost 8ecause t.e metering and datacoection are aready 8eing performed 3iing data refects a t.e c.anges in energy

use at a faciity, so if many different improvements are impemented in a compre.ensivepro9ect, a singe measurement evauates t.e impact of a of t.em toget.er, incuding aof t.e possi8e interactions 8et/een t.e improvements >f t.ere are significant c.angesin energy use t.at are unreated to t.e efficiency improvements, t.en t.is a'incusivefeature is aso a disadvantage

E:uipment metering .as t.e potentia advantage of o8serving ony t.e c.ange in energyuse accompis.ed 8y t.e efficiency improvement +.is is usuay true for ig.ting and

G>DE +O PE!=O!MNCE CON+!C+>NG $(


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motor efficiency upgrades o/ever, for cooing improvements, ot.er infuences, suc.as /eat.er and t.ermostat set points, aso affect t.e energy use and must 8e ad9ustedfor in t.e energy use 8aseine cacuation 3ecause metering must 8e speciay instaed,read, and cai8rated for t.e duration of t.e contract, it is more e?pensive t.an anaysisof utiity 8iing data >nteractive effects 8et/een improvements *eg ig.tingimprovements reduce t.e amount of cooing re:uired may 8e impossi8e to measure

ESCOs /i often propose t.at an estimate of interactive savings 8e added to t.eamount measured, 8ut t.is can resut in dou8e'counting

T"1Ad#"nt"ge "nd 5i"d#"nt"ge o$ Altern"te

Energ! 7e B"eline C"lcul"tion 4et;od

Met.od dvantages Disadvantagestiity 3iing istory @o/ cost

Data aready avaia8e

>ndependent data

!epresents effects of aEEMs

ccounts for interactiveeffects

Effects of /eat.er,occupancy, ot.er c.angesmay mas7 savings

May 8e unreia8e unesssavings are argecompared to norma 8ivariations

E:uipment Metering >soates effect of EEM

Fery accurate for ig.tingmeasures

!esuts are morepredicta8e *ie o/er ris7

ig.er cost

Misses interactive effects

+.e seection of t.e appropriate met.od to cacuate t.e energy use 8aseine depends

partiay on /.at energy efficiency measures are finay adopted Generay, t.eimprovements to 8e adopted are not 7no/n at t.e time of t.e soicitation >nstead, t.efirst tas7 of t.e ESCO is an energy study to identify and propose t.ese improvements

s part of t.e +ec.nica Energy udit, Part 3


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3ecause conditions c.ange reguary in most faciities, ony certain c.anges s.oudtrigger an energy use 8aseine modification C.anges in 8uiding e:uipment or operating.ours t.at are i7ey to .ave itte or no impact on energy use s.oud 8e ignored as faras t.e 8aseine is concerned standard s.oud 8e esta8is.ed in t.e contract to cearydefine /.at c.anges /i 8e considered significant s part of t.e +ec.nica Energy

udit, Part 3


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(ONITORIN% !ND (!N!%IN% !N ENER%& S!'IN%S PERFOR(!NCE CONTR!CT

11. 4onitoring "nd 4"n"ging "n Energ! S"#ingPer$orm"nce Contr"ct

C.apter $, rgani!e a Pro"ect #eam, descri8es t.e need for a muti'discipinaryapproac. *invoving faciities management and panning, procurement, 8udget, and

ega during pro9ect deveopment and contractor seection fter t.e contract a/ard, t.eO/ners designated pro9ect manager is primariy responsi8e for t.e day'to'dayoversig.t of t.e ESCO activities

fter contract a/ard, t.e pro9ect proceeds in t.ree p.ases; & t.e energy study andpro9ect deveopment pan, 2 designn many cases, meetings everyot.er /ee7 /i 8e prefera8e +.e purpose of t.ese meetings is for reguar updatesand discussion of t.e e?isting conditions and energy efficiency measures on /.ic.t.e ESCO is focusing +.e pro9ect manager can use t.ese meetings to ensure t.e

G>DE +O PE!=O!MNCE CON+!C+>NG $#


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ESCO is 8asing t.e anaysis on reaistic assumptions and is evauating t.eimprovements t.at are important to t.e O/ner

T"14iletone 4eeting

Phase I, Energy Savings Performance Contact >nitia Pro9ect Meeting Discuss measures O/ner /ants evauated, Discuss security, site c.ec7'in and c.ec7 out !evie/ energy audit re:uirements

Technical Energy Audit, Part A

3i'/ee7y meetings to discuss e?isting conditions, energy measures,potentia pro8ems, etc

Present energy audit drafts

Discuss modifications to energy audit

Present fina +ec.nica Energy udit

Project evelo!ment Plan, Part "

3i'/ee7y meetings to discuss progress, potentia pro8ems, etc

Present pan and design document drafts

Discuss modifications to pan and design drafts

Present fina Pro9ect Deveopment Pan

Phase II, esign and Construction

>nitia Pro9ect Meeting !evie/ contract re:uirements

Present sc.edue for t.e performance of ESCO services and interim

construction documentsConstruction ocuments and #easure Installation

Aee7y meetings to; Discuss pro9ect status

Present interim construction documents

Commissioning

>n'progress testing


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Outstanding issues

11.1.2 P;"e I P"rt B Pro-ect 5e#elo+ment Pl"n

Competion of design deveopment documents is part of t.e Pro9ect DeveopmentPan >n addition, t.is p.ase incudes identification of e:uipment to 8e instaed,cacuation of energy savings guarantee, compensation to ESCO, energy use8aseine, and met.odoogies to ad9ust t.e energy use 8aseine +.is is a critica

9uncture in t.e process and t.e ac7 of reguar and cear communications can ma7eor 8rea7 pro9ect Meetings s.oud 8e .ed every ot.er /ee7

11.2 P;"e II 5eign "nd Contruction

+.e design and construction p.ase of t.e pro9ect re:uires t.e most coordination andinteraction 8et/een t.e ESCO and O/ner +.is p.ase 8egins /it. O/ner approva andacceptance of t.e +ec.nica Energy udit, Part 3, Pro9ect Deveopment Pan +.e modecontract re:uires t.e ESCO to deveop, for t.e O/ners approva, a sc.edue for t.e

performance of ESCOs services and su8mission of in'progress construction documentsas needed

11.2.1 Contruction 5ocument "nd 4e"ure Int"ll"tion

During t.is p.ase, /ee7y pro9ect meetings s.oud 8e .ed for t.e ESCO to ma7estatus reports >ssues reated to sc.edues, construction documents, ande:uipment, etc, need to 8e reguary updated in t.e /ee7y meetings

Management of t.e design and construction p.ase of t.e performance contract isessentiay t.e same as t.e management of a arge design> /it. documentation of t.e designintent and continues t.roug. construction, O/ner acceptance, and training offaciity staff >t e?tends t.roug. P.ase >>> and t.e /arranty period /it. actua anddocumented verification of t.e proper performance of eac. system and eac. pieceof e:uipment

Meeting on commissioning issues can 8e .ed in con9unction /it. reguarysc.edued construction meetings >ts important to discuss any e:uipment,systems, or design pro8ems during t.ese meetings =or e?ampe, its notuncommon for t.e commissioning agent to discover code vioations or instaationof incorrect e:uipment during construction >ts important to communicate t.oseitems to t.e O/ner and ensure corrections are made

G>DE +O PE!=O!MNCE CON+!C+>NG $"


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11.' 4e"urement "nd 8eri$ic"tionEnerg! S"#ing (u"r"ntee

>n t.e +ec.nica Energy udit, Part 3, Pro9ect Deveopment Pan, t.e contractordocumented t.e annua met.od of determining energy savings and compiance /it.standards of comfort t.at /i occur t.roug.out t.e contract term +.is met.od s.oud 8ereferred to and c.ec7ed against a sc.edue of first year measurement activities t.at t.e

contractor su8mits for approva at t.e commissioning meeting +.is sc.edue s.oudincude a 9oint annua inspection to verify t.at a contractor'instaed e:uipment is 8eingoperated and maintained as designed +.e annua meeting s.oud revie/ t.ecacuation of energy savings for t.e previous year, incuding any materia c.anges ormodifications of t.e energy use 8aseine t eac. annua meeting t.e sc.edue ofmeasurement activities for t.e foo/ing year s.oud 8e revie/ed and approved

+.ese annua meetings are not a su8stitute for ongoing monitoring of maintenanceactivities or standards of comfort or reguar auditing of energy'savings estimatesincuded in contractor'su8mitted invoices +.ey suppement t.ese ongoing activities andprovide an opportunity for a compre.ensive revie/ of t.e performance of t.e pro9ect on

a faciity'/ide 8asis 3ecause t.ey are not in response to an immediate pro8em, t.emeetings ma7e it easier to o8serve trends and ong'term faciity c.anges +.ey asoserve as an annua opportunity for faciity staff to as7 :uestions and offer suggestions tot.e contractor regarding .o/ to optimie system performance

One of t.e 8enefits of energy savings performance contracting is t.at t.e ESCO .as astrong financia interest in ensuring t.at maintenance is propery performed Poormaintenance can reduce savings or cause standards of comfort to deteriorate 8eo/contract re:uirements 3ot. of t.ese resuts are potentiay costy to t.e ESCO sc.edue for reguar maintenance activities s.oud 8e esta8is.ed and monitored andcomfort compaints s.oud 8e used as a /arning t.at coser attention may 8e needed

G>DE +O PE!=O!MNCE CON+!C+>NG (%


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A++endi* A

Energ! S"#ing Per$orm"nce Contr"ct

FACILIT%E8AL7ATION


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A++endi* A F"cilit! E#"lu"tion

F"cilit! E#"lu"tion

Energy savings performance contracts can 8e used to finance a /ide variety of pro9ectsand services o/ever, not a pro9ects or faciities .ave t.e rig.t com8ination of needsand opportunities Operationa or tec.nica 8arriers may ma7e a performance contract

difficut to impement

Sta8iity of use is very important to t.e economics of performance contracts >f past useis .ig.y varia8e, deveoping a 8aseine is more difficut and savings may 8e .ard tomeasure >f future use is uncertain, t.e pro9ected savings of t.e energy efficiencymeasures may 8e too unreia8e to :uaify for financing =or e?ampe, t.e possi8iity of apartia or compete faciity cosure 8efore t.e e?pected end of t.e contract /i ma7epro9ect financing difficut

+/o simpe rues of t.um8 may 8e used to evauate /.et.er a faciity .as ade:uatepotentia to attract proposas for a performance contract

Pro9ects /it. a tota cost of ess t.an L#5,%%% may not 8e feasi8e as a performancecontract, 8ecause t.e administrative and ot.er fi?ed costs invoved in financingcannot 8e recovered in a reasona8e period of time

+.e simpe pay8ac7 of t.e pro9ect s.oud 8e &5 years or ess +.e simpe pay8ac7 ist.e pro9ects construction cost divided 8y its first year savings

sing t.is evauation /i .ep you to identify potentia o8staces and opportunities!emem8er to consut /it. ot.er personne, particuary /it. respect to pans for futurec.anges >ncuding representatives of t.e foo/ing functions may 8e usefu;

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+.e faciity is uni7ey to cose or reduce its sie or operating .ours su8stantiay int.e ne?t ten years

+.e faciity is in good repair and .aardous materias suc. as as8estos are not i7eyto 8e distur8ed 8y efficiency improvements

3uidings do not need to .ave a t.ese c.aracteristics in order to 8e accepta8ecandidates o/ever, if a faciity does not .ave at east four of t.ese c.aracteristics itmay not 8e a good candidate for an energy savings performance contract

S!tem Condition

Ne?t, its important to consider t.e conditions of t.e energy'using systems in your8uiding

@ig.ting .as not 8een upgraded /it.in t.e ast ten years /it. efficient 8aasts andamps

eating, ventiating, and air conditioning *FC systems .ave not 8een upgraded/it.in at east &5 years

FC contros are o8soete or in poor /or7ing condition

3udget is imited for deferred maintenance issues and upgrades

>f t.ese issues accuratey descri8e t.e energy'using systems in your 8uiding, energysavings performance contracting may 8e t.e 8est /ay to impement 8uidingimprovements

Pre#iou Energ! Studie

Determine if energy studies .ave 8een competed in your 8uiding in recent years >f so,revie/ t.e studies for energy savings opportunities *not yet impemented /it. aconstruction cost of L#5,%%% or more and an overa simpe pay8ac7 of &5 years or ess

Energ! 7e "nd Cot Indice

>f t.e 8uiding .as not .ad a previous energy study *or .ad one severa years earier andt.e information is out of date, you can determine t.e energy use and cost indices foryour 8uiding Iou can t.en compare your 8uiding to ot.er compara8e 8uidings todetermine t.e energy efficiency *or inefficiency of your 8uiding

Compete +a8e & 8y fiing in t.e annua energy use 8y type for your 8uiding, t.enmutipying t.ose amounts 8y t.e conversion factors to get t.e annua 3tus so fi int.e annua cost 8y energy use type

sing t.e totas from +a8e &, fi in Coumn E in t.e +a8e 2 +.en fi in t.e gross8uiding s:uare footage in Coumn = Divide Coumn E 8y Coumn = to get t.e energyuse and cost indices for your 8uiding

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T"


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T"


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A++endi* B

Energ! S"#ing Per$orm"nce Contr"ct

TEC=NICALFACILIT%PROFILE


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A++endi* B Tec;nic"l F"cilit! Pro$ile

TEC=NICAL FACILIT% PROFILE

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+.e information in t.is tec.nica faciity profie is intended to provide t.e ESCO /it. information

a8out t.e genera condition of t.e =aciity ESCO is responsi8e for verifying t.e accuracy, asnecessary >f more t.an one 8uiding is to 8e incuded in t.e pro9ect, fi out form for eac.8uiding

1. (ener"l F"cilit! 5"t"

Name of 8uiding TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

ddress of 8uiding TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Primary use of 8uiding TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

+ota s:uare footage of conditioned space TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Num8er of foors TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Iear constructed TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT 3uiding operator name 4 teep.one TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

3uiding manager name 4 teep.one TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Ot.er Contact *identify TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

2. P"t Energ! Im+ro#ement E$$ort

Description of ma9or energy'reated c.anges made during t.e past ten yearsTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

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>dentification of previous auditsTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

'. Recent C;"nge in Building 7eTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

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). Future Pl"n

Description of ma9or c.anges panned to occur during t.e ne?t five years t.at coudsignificanty affect annua energy use

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,. O+er"ting In$orm"tion

Description of typica .ours of operation for t.e faciity, incuding /ee7daydentification of genera summer and /inter temperature set points and any speciatemperature, .umidity or ventiation re:uirements

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. Building En#elo+e 5ecri+tion

Description of t.e predominant /a and roof constructionTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Description of t.e type and condition of e?isting /indo/sTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

0. Energ!>7ing S!tem 5ecri+tion

eating System; 3rief description of t.e type*s of .eating system*s serving your8uiding*s *ie termina re.eat, muti'one, varia8e air voume, etc >ncude t.e type offue used to operate t.e system *eectricity, natura gas, propane, etc

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Cooing System; Description of t.e type*s of cooing system*s serving t.e faciity*c.ier, rooftops, etc >ncude t.e type of fue used to operate t.e system

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Contros System; Description of system*s to contro space temperatures, .eating andcooing e:uipment, and ig.ting and description of t.e system capa8iity */.at iscontroed, type *pneumatic compressed air system, direct digita contro system,condition, ist t.e manufacturer, and year instaed

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Description of t.e >nterior @ig.ting SystemTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Description of t.e E?terior @ig.ting System

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Aater eating System; Description of t.e domestic /ater .eating system >ndicate if it ispart of t.e space .eating system

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