Title
Energy Efficiency Services Job Order Contract - 4108JOC157 (Ordinance S-43807)
Description
Request to authorize the City Manager, or his designee, to enter into separate agreements with Ameresco, Inc. (Tempe, Ariz.), McKinstry Essention, LLC (Phoenix), Noresco, LLC of Delaware (Phoenix), Trane U.S. Inc. (Tempe, Ariz.), and Honeywell Building Solutions SES Corporation (Phoenix) to provide Energy Efficiency Job Order Contracting (JOC) services, and to execute contract options as necessary. Further request authorization for the City Controller to disburse all funds related to this item.
Additionally, request to authorize the City Manager, or his designee, to take all action deemed necessary or appropriate to execute all utilities-related design and construction agreements, licenses, permits, and requests for utility services relating to the development, design, and construction of the project and to include disbursement of funds. Such utility services include, but are not limited to: electrical, water, sewer, natural gas, telecommunications, cable television, railroads, and other modes of transportation. This authorization excludes any transaction involving an interest in real property.
Report
Summary
The JOC contractors will be used on an as-needed basis to upgrade city facilities with energy efficient systems to achieve a targeted energy reduction of 20 percent by 2020. The City is seeking comprehensive turn-key energy efficiency solutions to achieve energy reduction numbers that are sustainable throughout the operating life of the facilities. The scope of work includes: survey the applicable sites and facilities; conduct investment grade audits and identify energy saving solutions that maximize the economic benefit to the City; provide project recommendation and evaluate cost-saving potential; construction, implementation, commissioning and financing phase, and a guaranteed monitoring phase will occur after construction.
Procurement Results
Ameresco, Inc., McKinstry Essention, LLC, Noresco, LLC of Delaware, Trane U.S. Inc., and Honeywell Building Solutions SES Corporation were chosen for this project using a qualifications-based selection process according to Section 34-604 of the Arizona Revised Statutes (A.R.S.). Pursuant to A.R.S. Title 34, the City is not to release the scoring of proposers until a contract has been awarded. Twelve firms submitted proposals. The top seven rankings follow:
Ameresco, Inc.: Ranked #1
McKinstry Essention, LLC: Ranked #2
Noresco, LLC of Delaware: Ranked #3
Trane U.S. Inc.: Ranked #4
Honeywell Building Solutions SES Corporation: Ranked #5
Schneider Electric Systems USA, Inc.: Ranked #6
Siemens Corporation: Ranked #7
Contract Term
Each JOC will be for three years with an option to renew for an additional two years. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties, and work may extend past the termination of the contract. No additional contract work scope changes may be executed after the end of the contract term.
Financial Impact
The total cost of all projects completed under these five JOC contracts will not exceed $30 million. Each individual energy project will identify the source of funds based on the findings of an energy audit. The Budget and Research Department will review and approve project funding availability prior to issuance of any job order agreement.
The initial contract capacity of each JOC will be $20 million with an option to renew for an additional $10 million, for a total contract value of $30 million, including all amendments. Authorization is requested to execute job order agreements performed under these JOC contracts for up to $2 million each in construction costs. In no event will any job order agreement exceed this limit without Council approval to increase the limit. Contract payments may be made up to contract limits for all rendered contract services, which may extend past the contract termination.
Small Business Outreach
A Small Business Enterprise goal of six percent was established for these contracts.
Concurrence/Previous Council Action
The Sustainability, Housing, Efficiency and Neighborhoods (SHEN) Subcommittee recommended City Council approval of a procurement strategy to secure the services of Qualified Solar Energy and Energy Efficiency Contractors on City-owned sites and buildings on October 26, 2016, by a vote of 4-0. This item addresses Energy Efficiency Contractors; procurement for Solar Energy Contractors will occur later this year.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Office of Sustainability, the City Manager's Office, and the City Engineer.