Presentation on theme: "Placing UESC Task Orders Under a GSA Areawide Contract"— Presentation transcript:
1Placing UESC Task Orders Under a GSA Areawide Contract Federal Energy Management ProgramPlacing UESC Task Orders Under a GSA Areawide ContractModerator will introduce course, course materials, course instructors, and course objectives prior to turning the presentation over to instructors.Julia Kelley, Oak Ridge National LaboratoryFor the JBSA Sustainable Energy WorkshopAugust 23, 2012
2DOE’s Federal Energy Management Program MissionFEMP provides services, tools, and expertise to Federal agencies to help them achieve their legislated and executive-ordered energy, greenhouse gas and water goals.These are delivered through project services, technical services, and program services.
3Agenda UESC Brief Background GSA Areawide Brief Explanation Key Contract Actions Step-by-StepResources for Additional HelpMarcia, There is littleVisual appeal in thisPresentation. Can you makethis attractive and then use your usualTopic transition slides where she repeats this agenda?
402v1 BasicsWhat are UESCs? Contracts that allow utilities to provide their Federal customer agencies with comprehensive energy and water efficiency improvements and demand-reduction services.UtilityFronts the capital costs, if neededAssesses the opportunitiesAssures equipment performance and standards of serviceAgencyFirst, a functional definition of utility energy service contracts: UESCs are a contracting vehicle that allows agencies to procure energy savings and facility improvements without up-front capital costs or special appropriations from Congress.Typically begins with project scope derived from existing energy auditMany projects defined by overlaying planned improvements/needs on earlier audit to arrive at a comprehensive projectThe utility, which has a franchised territory, develops, designs, and implements improvements at the project site and borrows the money (if needed) to pay for it. The agency pays the utility over the term of the contract out of the energy and energy-related savings resulting from the project.Utilities typically obtain capital for the construction from third party financiers as they are able to obtain lower interest rates. Utilities’ allowed rates of return are set by the commission and are usually higher than those they can obtain from private finance companies.Pays utility over term of contract from cost savings achievedA UESC is a Partnership
5UESCs Are Utility Incentives – They Vary by Utility 02v1 BasicsUESCs Are Utility Incentives – They Vary by UtilityTECHNICALFINANCIALAuditsPerformanceAssuranceRebates/IncentivesFeasibilityStudiesTrainingProjectFinancingEngineering &DesignO&M ServicesIn our interactions with utilities that offer UESC, it has become apparent that while the offerings vary from utility to utility, the incentives basically fall into two categories – technical and financial. Also, instead of looking to the utility’s website to determine what’s available, contact the utility to find out what they offer or are willing to offer. Remember, these programs can be customized the needs of the site.42 USC 8256 (EPAct 1992) authorizes the use of utility incentivesConstruction &InstallationProjectManagement
610 USC 2913 Energy Savings Contracts and Utilities Title 10: Armed Forces; Chapter 173; Subchapter 1;Section 546 (c) Utility Incentive ProgramsEncourages participation in gas or electric utility programs for the management of energy demand or for energy conservationAccept financial incentives, goods and services generally available from the utilityDirect negotiation with energy savings contractors selected competitively and approved by the utilityRepay with funds available for the purchase of utility servicesAllows direct negotiation with ESCO competitively selected and approved by the utilityDOD AgenciesAvailable docs: sample solicitation to help utilities select ESCOAvailable docs: ESCO/utility agreement
7Presidential Memo – Dec. 2, 2011 Section 1 – Implement and Prioritize Energy Conservation MeasuresAgencies shall fully implement projects with a pay back of 10 years or lessThe Federal Government will enter into a minimum of $2 billion in performance-based contracts in Federal building energy efficiency within 24 months (December 31, 2013)Agencies are encouraged to use a installation wide/portfolio approach that combines long and short term projects to maximize efficiency and ROIPerformance –based contract: A contract that identifies expected deliverables, performance measures, or outcomes, and makes payment contingent on their successful achievement…Performance-based contracts, which include ESPCs, can be performed by an qualified contractor, including utilities.
8Presidential MemoUESC contracts will count toward memo provided contracts have performance requirements including:Performance assurance or guaranteesM&V of savings through commissioning or retro-commissioningRequiring competition or an alternatives analysisThis is consistent with FEMP’s “Best Practices”
10FAR Part 41: Acquisition of Utility Services Defines “Utility Services”Establishes GSA’s Authority to prescribe policies and procedure for the acquisition of utility services for federal agenciesGSA may delegate authority to specific agencies to purchase utility services (DOE and DOD)GSA may issue an Areawide Contracts (AWC) for utility services within the franchised utility territoryAreawide Contracts also allow agencies to order Energy Management ServicesTo Locate: From any internet search engine, search for ‘General Services Administration Energy Center of Expertise’, scroll down to ‘Utility Areawide Contracts’GSA Directive: ADM F Eligibility to Use GSA Sources of Supplies and Services
11GSA Areawide Contracts (AWC) Electric Distribution Utility ServiceFAR Part 41ElectricTransmissionNatural GasTransportationSteamElectricityNatural GasWaterElectric Distribution
12Acquiring Energy Management Services under an AWC Utility Energy Management Service42 USC 825610 USC 2913Demand-SideManagementComprehensive Projectsw/ Financing OptionAuditRebates/IncentivesA UESC is an agreement for Energy Management Services. A Utility Energy Management Service is the furnishing of energy management services or demand-side management for the purpose of load management. Utility Energy Management Service is the furnishing of energy management services or demand-side management for the purpose of load management. 42 USC 8256 authorizes the use of utility incentives.
13Using Areawide Contracts GSAUtilityAreawide ContractAgencyMaster Agreement(optional)Task OrderMost common process (and assumption for this workshop):GSA signs AWC with franchised utilityAgencies Can place Task Orders (TOs) for Energy Management Services directly under an AreawideAgencies may sign a “Master Agreement” with a serving utility for “Energy Management Services” (to cover multiple future projects)“If an AWC exists with a utility, you need an extraordinary reason to use some other procurement mechanism.”Separate contract” means a utility services contract (other than a GSA areawide contract, an Authorization under an areawide contract, or an interagency agreement), to cover the acquisition of utility services.
14GSA Energy Conservation Measure (ECM) Criteria The ECMs must reduce energy or water consumption or demand;The ECMs must be directly related to energy or water use or demand reduction;The majority of the work must be for 1. or 2.; and,The ECMs must be an improvement to real property (land, buildings and anything attached and integrated, not personal property)
15Potential ECMs Boiler and chiller plants Renewable energy 02v1 BasicsPotential ECMsBoiler and chiller plantsEnergy management control systemsBuilding envelopeHVACChilled/hot water and steam distributionLightingElectric motors/drivesRefrigerationDistributed generationRenewable energyEnergy/utility distributionWater and sewerElectrical peak shaving/load shiftingRate adjustmentsEnergy-related process improvementsCommissioningAdvanced meteringAppliance/plug load reductionsAs you can see, the list of allowed measures is broad and comprehensive. This allows agencies to use the vehicle to implement projects that will address their site needs and help them accomplish their goals.
17Legal OpinionGSA. Exception from the Competition-in-Contracting Act’s Full and Open Competition – Section 152’s plain language contains an express authorization for an agency to participate in DSM contracts … This language appears to provide express authority for an agency to directly approach a utility concerning DSM services, … without the use of full and open competition
18Energy-Efficient Product Procurement FAR Subpart 23.2 requires agencies to buy ENERGY STAR and FEMP-designated products. It also requires agencies to include the clause at in solicitations and contracts when energy-consuming products listed in the ENERGY STAR Program or FEMP will be delivered, acquired by the contractor for use in performing services at a Federally-controlled facility, furnished by the contractor for use by the Government, or specified in the design of a building or work, or incorporated during its construction, renovation, or maintenance.FAR , Energy Efficiency in Energy-Consuming Products must be included in all relevant contracts and solicitations (see above)FEMP Energy-Efficient Product Procurement web site:Energy Star qualified products web site:
20Key Contract Actions Step-by-Step 02v1 BasicsKey Contract Actions Step-by-StepAcquisition Planning & Utility selectionPreliminary Assessment – Feasibility StudyAgency RFP for Utility ProposalUtility ProposalTask Order AwardFinal Design, Installation & Project AcceptancePost-Acceptance and Performance AssuranceHere in a nutshell are the milestones for a UESC. Utility partner selection is key when there is more than one eligible serving utility. Of note here as well is Performance Assurance. UESCs must include Performance Assurance if the project is to count toward the White House $2 billion performance contract challenge.
21Elements of Acquisition Planning Initial project scope – to guide utility’s Preliminary Assessment/Feasibility StudyFacilities, buildings, needs, priorities, special considerationsAssign staff and resourcesBuild project acquisition teamProject definition documentTeam charterFinancial discussionInternal agency agreement to payFund with financing and/or appropriationsThe acquisition plan helps to set the stage for getting a project that meets your needs, includes the right team members and brings the right amount of funding to the table through appropriations and/or financing. The project costs, site conditions and risks will all be considered in the plan.Typically begins with project scope derived from existing energy auditMany projects defined by overlaying planned improvements/needs on earlier audit to arrive at a comprehensive project
22Elements of Acquisition Planning, continued Letter of Interest to all utilities serving the siteTo determine interest, capabilities, and available incentivesEvaluation of responses to Letter and selection of utility partner for projectUsing a process of “fair consideration” if more than one utility is eligible and interestedJustification for Other than Full and Open Competition (J&A)Start drafting your JOFOC as you send your letters of interest to the eligible serving utilities. If the Ordering Agency opts to place a Master Agreement, the process of developing it should be commenced as well. Remember FEMP’s template has up to 95% of the necessary language (terms & conditions). Need to finalize before you begin to obligate government funds
23Key Contract Actions Step-by-Step 02v1 BasicsKey Contract Actions Step-by-StepAcquisition Planning & Utility selectionPreliminary Assessment – Feasibility StudyAgency RFP for Utility ProposalUtility ProposalTask Order AwardFinal Design, Installation & Project AcceptancePost-Acceptance and Performance AssuranceHere in a nutshell are the milestones for a UESC. Utility partner selection is key when there is more than one eligible serving utility. Of note here as well is Performance Assurance. UESCs must include Performance Assurance if the project is to count toward the White House $2 billion performance contract challenge.
24Future use of facilities Needs of facility occupantsCondition of equipmentUtility and related O&M budgetsSpecific buildings and facilitiesDesired or required ECM’sDevelop preliminary project scope and share requirements & priorities with Utility partnerUsed by Utility to guide PA/FSGather utility data for all energy uses and master plans. Additionally, pull off the shelf any existing energy assessments and share all of this with the utility. Be sure to include low cost/no cost measures and ECMs that will address aging, inefficient equipment and listen to what the utility’s suggestions.The team will gather information that it will use to(1) determine facility needs and priorities, and(2) guide the utility’s Preliminary Assessment/Feasibility Study
25Scope Considerations ECMs Must reduce or manage energy and/or water use or reduce demandImplementation must result in cost savingsBuildings/sites/facilitiesNo limitation on size of project or number of buildingsUtility must be providing utilities to facilityMay be sites leased by the government, if government pays utility bills and lease does not exceed term of UESC TODon’t forget strategies to lower energy demand. Lowering energy demand can result in significant cost savings and helps the utility delay or avoid building new generating plants. ThA “fuel-neutral approach” ensures the utility will provide the best options for the site regardless of fuel source.
26Preliminary Assessment Go/No-Go Feasibility Study Go/No-GoRFP for Proposal for Final Design and InstallationUtility submits ProposalReview of Proposal Go/No-GoTask Order Award for Final Design and Installation
27Key Contract Actions Step-by-Step 02v1 BasicsKey Contract Actions Step-by-StepAcquisition Planning & Utility selectionPreliminary Assessment – Feasibility StudyAgency RFP for Utility ProposalUtility ProposalTask Order AwardFinal Design, Installation & Project AcceptancePost-Acceptance and Performance AssuranceHere in a nutshell are the milestones for a UESC. Utility partner selection is key when there is more than one eligible serving utility. Of note here as well is Performance Assurance. UESCs must include Performance Assurance if the project is to count toward the White House $2 billion performance contract challenge.
28Final Design and Installation (FD&I) Final Design & InstallationFD&I Kickoff MeetingDesign Submittals & ApprovalECM InstallationCx and Performance TestingECM and Total Project AcceptanceGovernment Oversight is critical during Installation and Performance Testing
29Key Contract Actions Step-by-Step 02v1 BasicsKey Contract Actions Step-by-StepAcquisition Planning & Utility selectionPreliminary Assessment – Feasibility StudyAgency RFP for Utility ProposalUtility ProposalTask Order AwardFinal Design, Installation & Project AcceptancePost-Acceptance and Performance AssuranceHere in a nutshell are the milestones for a UESC. Utility partner selection is key when there is more than one eligible serving utility. Of note here as well is Performance Assurance. UESCs must include Performance Assurance if the project is to count toward the White House $2 billion performance contract challenge.
30Period Post-Acceptance and Performance Assurance Invoicing & Payments Operations & MaintenancePerformance AssuranceSavings VerificationNext Project Under DevelopmentO&M may or ma not be part of UESC contract. But UESC needs to provide guidnace and training for O&m of equipment. O&M not often provided in UESCs, but O&M guides and training are.
31The minimal performance assurance plan recommended by the Federal Energy Management Program for alternatively financed UESC energy conservation measures is:Establish baseline pre-installationStart-up performance verification (based on measured date) prior to acceptancePerformance verification at the end of the warranty period (based on measured data)Operations and maintenance training (required in the more common instance where the agency continues to operate and maintain installed equipment)Provision of continuing training throughout the contact period as specified in the contract as determined by the needs of the facilityPeriodic inspections and verification of appropriate O&M performancePerformance discrepancy resolutionFinanced projects must have a Performance Assurance Plan including commissioning and retro-commissioning to be counted toward $2 billion goal
32Both the utility and the Agency are responsible for submitting Task Orders to GSA FEMP Data Collection efforts are lead by Evan Fuka at Energetics (202) orData collection is done on a voluntary basis by all federal agencies and their serving utilitiesAgency participation in data collection is vital to FEMP understanding current trends in investment and gauging UESC successSample Collection Template:AgencyFacilityBuilding (s)UtilityContract TypeContract TermTask Order/ Delivery OrderAward DateCompletion DateECMs Implemented In Project (See Key)Project DescriptionProject Capital Cost ($)Percent Total Cost 3rd Party FinancedRebate Amount ($)Rebate SourceEstimated Annual Cost Savings ($)Estimated Total Energy SavingsEstimated Annual kWh SavedEstimated Annual KW SavedEstimated Annual Natural Gas savings (please specify cubic feet, therms or MMBtu)Estimated Annual water savings (in kgal)
34GSA GuidanceIn your Internet search engine, enter “GSA Energy Center of Expertise Library”, click on that linkScroll down to “Utility Areawide Contracts and find:Utility Areawide Users ManualProcuring Energy Management Services with the Utility Areawide contractGSA Areawide Pubic Utility Contract ListingSample GSA Utility Areawide Contract
35FEMP UESC Website Enabling Documents book Types of contracts Laws and regulationsGetting the Best ValueTechnology resourcesCase StudiesTraining OpportunitiesIntroductory DVD
36Federal Utility Partnership Working Group (FUPWG) Establishes partnerships and facilitates communications among Federal agencies and utilities Develops strategies to streamline sound projects Open meeting October 16-17, 2012 in Mobile, AL
37Direct Support Guide agency teams through the UESC process Assist development of contract documents and provide document templatesTechnical review of audits, feasibility studies, and proposalsIn-depth technical supportBuild partnerships and facilitate relationships
38Additional Training Opportunities Monthly “Introduction to UESC” webinarsNext webinar: September 20Visit for information and registrationWatch FEMP web site for future classroom workshops, on-demand webinars, and customized agency workshopsFEMP On-Demand Training – Utility Energy Service Contracts and Energy Project Incentive Funds
39Contacts and Questions David McAndrewFederal Energy Management ProgramJulia KelleyOak Ridge National Laboratory