Title
Performance Contracting RFP: ESCO Selection
History
In November 2014, the Village sought proposals from qualified Energy Services Company (ESCO) to conduct an investment grade audit of Village facilities and to implement an Energy Performance Contract. The Village is initially interested in contracting for a full range of energy-related capital improvements at the Village’s Sportsplex and Cultural Center facilities. Attached are the RFP document, ESCO selection process and timeline, and a scoring tool.
In the RFP document, the following criteria were included:
a. The ESCO is required to provide comprehensive infrastructure and energy-related capital improvement services. All facilities owned, managed or operated by the Village at any time during the term of the performance contract shall be considered.
b. The ESCO must have the demonstrated technical and managerial capabilities to provide a comprehensive set of energy and water services including, but not limited to design, acquisition, installation, training and commissioning of new and/or existing energy systems, as well as, project monitoring and savings measurement and verification.
c. Monitoring and verification services shall include appropriate measurement and timely reporting of the performance of and savings from the project. ESCO must have the technical capability to address a broad range of systems including, mechanical systems, (HVAC) systems, lighting systems, building envelope systems, specialty systems, water and sewage systems etc.
d. The project must result in a guaranteed minimum annual energy, water, and operations and maintenance (O&M) savings, as well as defined levels of occupant comfort, maintenance, monitoring, training or other services. The guarantee is required to cover the cost of this service. This may or may not be financed.
e. Additional services may include operation and maintenance for all improvements and/or training of Village staff on routine maintenance and operation of the installed systems.
The evaluation team consisted of staff as well as Trustee Dodge who participated in the review and evaluation team.
1. This step in the process is the selection of an ESCO partner to conduct an audit. The Village Board will review individual projects on their own merits for approval as they are brought forward.
2. The advantages of pursuing performance contracting are: 1) The potential to have zero capital outlay; 2) Better lifecycle accountability do to performance guarantees 3) Ongoing maintenance assurance from performance guarantees. Also, by installing energy efficient systems, the ESCO will eliminate the erosion of savings and a dedicated project manager will oversee the packaged projects as opposed to staff managing the projects partially in-house.
Based on the committee discussion and the scoring tool, CTS Group received the top recommendation for the following strengths:ESCO Profile, general qualifications, general approach, and references. Staff therefore suggests the Village of Orland Park authorize CTS Group to conduct an Investment Grade Audit of Village facilities and enter into negotiations with CTS Group.
Financial Impact
CTS Group will not charge the Village a fee for the Investment Grade Audit.
Recommended Action/Motion
I move to approve authorizing the CTS Group to conduct an Investment Grade Audit of Village facilities;
And
Move to approve entering into negotiations with the CTS Group.