PHILADELPHIA ENERGY AUTHORITY

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1 PHILADELPHIA ENERGY AUTHORITY REQUEST FOR QUALIFICATIONS for A Heating, Cooling and Power Supplier for the Public Safety Services Campus 2015 Issued by: Philadelphia Energy Authority

2 Philadelphia Energy Authority Request For Qualifications

3 Table of Contents Section 1 Section 2 Section 3 Section 4 Introduction 1.1 Project Overview City Defined Terms... 2 Project Description 2.1 Central Utility Plant (Facility) Project Objectives Scope of Services Office of Economic Opportunity ( OEO ) Available Information... 7 Procurement Process 3.1 City Contact and Related Agency Procurement Objectives Procurement Phases Evaluation Committee Communications and Prohibited Contacts Miscellaneous Public Disclosure and Confidential Information Costs City Rights Submittal Requirements 4.1 General Instructions Submission Deadline Required Content

4 Philadelphia Energy Authority Request For Qualifications Table of Contents (continued) Attachment A Existing Site layout Attachment B Sample Economic Opportunity Plan

5 Section 1 OVERVIEW 1.1 Project Overview The Philadelphia Energy Authority ( PEA ) in partnership with the City of Philadelphia ( City ) invites interested parties to respond to this Request for Qualifications ( RFQ ) for a utility supplier to provide heating, cooling, electricity and emergency back-up power ( Required Utilities ) for the Public Safety Services Campus ( PSSC ) located at 4601 Market Street, Philadelphia. The Required Utilities must be provided by an on-site central utility plant, designed, built, financed, owned, maintained and operated by the utility supplier, through an off-take purchase agreement or an energy savings performance contract. This RFQ is the first step in the PEA s process of obtaining proposals from qualified utility suppliers for the Required Utilities. Through this RFQ, the PEA will identify the most qualified respondents to this RFQ, who will be invited to participate in a subsequent Request for Proposals process. PEA will only consider proposals from prospective utility suppliers that are selected pursuant to this RFQ. 1.2 Public Safety Services Campus located at 4601 Market Street The PSSC project is currently in the design phase of the rehabilitation project at 4601 Market Street. We anticipate that the construction phase of the project will commence in Early The PSSC project is being designed into a LEED Silver (or better facility) and it is anticipated that the Facility will be part of the overall project LEED goals. The design of the PSSC project is to renovate the existing complex of buildings assembled on the site of the former Provident Mutual Life Insurance Company at 4601 Market Street in West Philadelphia into a state-of-the-art campus of buildings. The project will be an adaptive reuse of existing Administration Building for the co-location of 1) Police Headquarters; 2) The Medical Examiner s Office and Morgue; and the Department of Public Health Laboratories. The Departments listed above are currently located in facilities that are no longer serviceable for their evolving needs. The existing campus has a six story Administration building that is approximately 325,000 SF and was built in The multi-tenant complex will be approximately 365,000 square feet when complete. The project site is approximately 15 acres and offers a significant amount of flexibility and versatility. The City recently completed the Philadelphia Juvenile Justice Services Center ( PJJSC ) on the same parcel as the PSSC project. The PJJSC is 162,000 SF youth detention facility that has 24/7 operations as well as significant administrative spaces on a 5 acre campus. The City may be willing to consider providing certain utility services to the PJJSC as part of this project.

6 1.3 Defined Terms The following capitalized terms used in this RFQ have the following meanings: City means The City of Philadelphia. COP means collectively the City and PEA. COP Contact means the person designated in Section 3.1. Evaluation Committee means the committee established by the COP to evaluate the Responses submitted in response to this RFQ. Facility means the central utility plant located at the PSSC. OEO means the Office of Economic Opportunity. PEA means the Philadelphia Energy Authority. PJJSC means the Philadelphia Juvenile Justice Services Center. Project means a Service Agreement with the PEA under which the successful Proposer will permit, design, construct, finance, operate and maintain the Facility. Proposer means a party that submits a proposal in response to the Request for Proposals issued by the City in the second phase of the selection process. PSSC means the Public Safety Services Campus located at 4601 Market Street, Philadelphia, Pennsylvania. Required Utilities means the heating, cooling, electricity and back-up power for the PSSC as specified in the Service Agreement. Response means a statement of qualifications submitted in a timely manner in response to this RFQ. Respondent means the party that submits the Response. RFP or Request for Proposals means the request for proposals intended to be issued by the City for this Project to the qualified Respondents. RFQ means this Request For Qualifications issued by the City, including any addenda. Service Agreement means either a power purchase agreement or energy savings performance contract between the Utility Supplier and the PEA to provide the Required Utilities. The PEA will also enter into a service agreement with the City, as the owner and occupant of the PSSC.

7 Site Lease means a lease providing for the long-term occupation of the land where the Facility will be constructed and necessary access for the utility supplier to the land. Team Member means each firm included in the Response (including firms that are partners, members of the Respondent, or shareholders in the Respondent). Utility Supplier means the successful Proposer and provider of the Required Utilities (End Section 1)

8 2.1 On-Site Central Utility Plant Section 2 PROJECT DESCRIPTION The Facility will provide all heating, cooling, electric and back-up power requirements of PSSC. The COP strongly encourages the Utility Supplier to utilize Combined Heat and Power ( CHP ) to the maximum extent feasible in order to reduce the City s annual utility costs, to enhance the site flexibility of back-up emergency power generation, and to reduce the City s overall environmental impact. The Service Agreement will require the Utility Supplier to construct, own, operate, and maintain all CHP equipment, boilers, chillers and generators, to be installed within a building constructed by the Utility Supplier at the site identified on the drawings found in Appendix A, for the purpose of providing heating, cooling, electricity and back-up electricity to be sold to the City through the PEA on a long-term basis. There may be some flexibility in the exact location of the Facility. The CHP system components should be designed to balance heat and electrical power needs so as to optimize the primary operation missions of PSSC. The City has conducted a preliminary engineering analysis and is in the process of completing a feasibility study for the Facility and the CHP system. At this time it is anticipated that the PSSC will have a peak electricity demand of 3500 to 4500 kw, peak cooling demand of 1500 tons, peak heating demand of 12,000 MBH (for a hot water system) and peak backup generation (with N+1 redundancy) of 2000 kw. The City will provide a copy of the feasibility study in the RFP and is currently working to refine facility projections (including the base loads and diversity of electric, cooling and heating demands) and will provide more detailed requirements in the RFP. The CHP system should be designed to operate in accordance with manufacturer s protocols, equipment warranties and prudent utility practices. Electrical power generated by the Facility will be used on the City (i.e., customer) side of the PECO Energy Company ( PECO ) master meters for the site. PECO will continue to provide electricity to the site. The CHP system connection and interface with the PECO electrical service must comply with all PECO and PJM requirements for a synchronous protected connection, as applicable. The Facility enclosure should be designed to control noise associated with the Required Utilities and all equipment operation, and should be designed to allow the equipment to be exhibited in an educational and aesthetic manner. 2.2 Project Objectives The Mayor of Philadelphia, Michael Nutter, has established five goals for the City that are important goals for the overall development of the PSSC: Philadelphia becomes one of the safest cities in America The education and health of Philadelphians improve Philadelphia is a place of choice

9 Philadelphia becomes the greenest and most sustainable city in America Philadelphia government works efficiently and effectively with integrity and responsiveness In this Project procurement, the COP is committed to supporting wise investments today that will yield significant energy and cost savings in future years. The objectives for this project include the following: Reduce the overall costs of the Required Utilities to the City by contracting with an experienced Utility Supplier for the complete provision of all required facilities and work; Improve coordination, reliability and operating efficiency by having the same entity that has built the Facility operate and maintain it Enhance the energy efficiency of the project through the use of CHP and efficient equipment; Enhance disaster preparedness by becoming less dependent on the grid through a microgrid system driven by CHP and conventional backup power generators: Enhance the public perception of the City s efforts to pursue sustainable and progressive technologies. Provide a showcase CHP and microgrid project for Philadelphia. 2.3 Scope of Services The Utility Supplier will provide all development, engineering, design, permitting, labor, materials, construction, installation, operation, maintenance, and insurance to achieve a fully operational and functional Facility at no capital cost to the City. The Proposer will sell, and the PEA on behalf of the City will buy, the Required Utilities at prices negotiated during the selection process. The Utility Supplier will retain ownership of the Facility throughout the duration of the Service Agreement, and the agreement will include a buyout option at the end of the term. It is anticipated that the Facility will be completed and operational in the spring of Office of Economic Opportunity OEO The Project resulting from this RFQ/RFP will require an Economic Opportunity Plan which will provide significant opportunities for the participation of minority-owned, woman-owned and disabled person-owned businesses. The City s Office of Economic Opportunity will review and must approve the Economic Opportunity Plan.

10 Section 3 PROCUREMENT PROCESS 3.1 COP Contact and Related Agency The only person who may be contacted regarding this RFQ or other aspects of this procurement process ( COP Contact ) is: Adam Agalloco, Energy Manager (215) The participation of PEA in this project is authorized by the City s Home Rule Charter Authorities have assisted the City for more than 30 years in arranging for long-term contracts for equipment and services Questions Relating to this RFQ All questions concerning this RFQ must be submitted in writing via to the COP Contact at no later than February 17 th, The City will provide written responses to the submitted questions no later than February 23 rd, These responses will be posted on the PEA and project websites in the same location as the original RFP details notice. Oral responses by any City employee or agent of the City are not binding and shall not in any way be considered as a commitment by the City. When preparing questions, bear in mind that a much larger set of requirements, details and data on the project will be provided during the RFP phase. 3.2 Procurement Phases RFQ Phase This first phase of the procurement process started with the PEA s issuance of this RFQ and will conclude with the City s designation of the qualified firms that will be invited to submit proposals in the next phase. Following submission of qualifications, the City may ask respondents to present their firm s capabilities and answer questions in person or over the phone as part of an interview RFP Phase The second phase of the procurement process will begin with the PEA s issuance of a RFP to the firms designated as qualified in the RFQ phase. The RFP is expected to be issued in March 2015, and approximately 30 days will be allowed for proposal preparation. The RFP phase will conclude with the COP evaluation of the proposals Negotiations Phase Upon completion of the RFP phase, contract negotiations may be initiated. As determined in the sole discretion of the COP, such negotiations may be conducted with all or more than one Proposer simultaneously or with the topranked Proposer initially on the detailed terms and conditions for the Service Agreement.

11 3.2.4 Service Agreement Approval The Service Agreement must be approved by the PEA s Board of Directors. Prior to that approval, the service agreement between the City and PEA must be approved by the Philadelphia City Council and the PEA Board of Directors. 3.3 Demonstration of Qualifications Each Respondent must demonstrate that it is willing and able to enter into a Service Agreement to provide the Required Utilities; the experience and financial capability to develop, own, maintain and operate the Facility. The Respondent should clarify where their related experiences were part of a partnership with another firm. The Response must include the following: (1). A demonstration of Respondent s experience in successfully providing utility supply to customers through a Service Agreement. (2). A demonstration of Respondent s technical expertise and experience with the development, engineering, design, permitting, labor, materials, construction, installation, operation, maintenance, of central utility plant including: Development Experience Describe relevant experience delivering similar projects to customers, including institution and governmental entities. Permitting Experience Describe relevant experience with permitting and regulatory compliance, and discuss similarities that such experience bears to the permitting and regulatory issues anticipated for this Project. Design Experience Describe relevant design experience, demonstrate specific experience with the proposed technology, and indicate experience with project delivery. Construction Experience Describe relevant construction experience and experience with project delivery. O&M Technology Experience Describe relevant experience with operation and maintenance of the proposed technology and experience with project delivery. (3.) A demonstration of Respondent s financial capacity to deliver the project, including: Ability to provide all development, engineering, design, permitting, labor, materials, construction, installation, operation, maintenance, and insurance to achieve a fully operational and functional Facility at no capital cost to the City. Ability to retain ownership of the Facility and provide maintenance and operations throughout the term of the Service Agreement. Ability to take advantage of all applicable incentives such as performance based incentives, rebates, tax incentives, governmental and non-governmental cost offsetting programs, RECs, and any other environmental attributes available to

12 reduce the installation and operational costs of the Facility, and the charges to the PEA through the Service Agreement. (4). Any other information demonstrating that Respondent would be a responsible and effective developer, owner and operator of the Facility. 3.4 Evaluation Committee Responses will be evaluated in accordance with the criteria set forth in Section 3.3, as well as any other factors considered relevant to each Respondent s ability to deliver the Project. A committee of COP representatives, including representatives of the COP s consultants (the Evaluation Committee ), will evaluate Responses to enable the COP to determine whether each Respondent is qualified and, therefore, eligible to continue to participate in the selection process. 3.5 Available Information As part of the request for proposal ( RFP ) phase of this procurement, the COP will make a wide variety of information about the site available to qualified Respondents, including building site characteristics, thermal heating and cooling loads, electricity demand and estimated consumption, back-up power requirements. The City also intends to provide access to site to enable Proposers the full opportunity to assess existing conditions. 3.6 Communications and Prohibited Contacts All communications with the COP Contact regarding the RFQ or any other aspect of the procurement process shall be in writing. All communication shall be exclusively directed to the City Contact, unless otherwise directed in writing by such COP Contact. Other than with the written consent of the COP Contact, any person that is employed by or is otherwise associated or affiliated with a Respondent, or any of their affiliated companies, is prohibited from contacting any employee or official of the COP or any attorney or consultant of the COP, on any matter having to do with this procurement. No oral communication or statement by the COP Contact or other representative of the COP may in any way modify this RFQ or any other aspect of the procurement process. This includes communications and statements that may be made over the telephone or during pre-submittal conferences, interviews, or other meetings attended by the City. This RFQ or other aspect of the procurement process may be modified only through the issuance by the PEA of a written addendum. All communications regarding this RFQ may be shared by the COP with all firms receiving this RFQ Miscellaneous Additional conditions that apply to this RFQ as well as to the balance of the procurement process include the following: Public Disclosure and Confidential Information All Responses and other information submitted in response to this RFQ are subject to the public disclosure requirements of applicable law, including the Pennsylvania Right to Know Act. To the extent permitted by applicable law, the

13 COP will use its best efforts to keep from public access the specific information that is identified by the Respondent as confidential. If a Respondent claims an exception to pubic disclosure requirements and desires that the COP keep certain information from public disclosure, then the Response must include a notice as the front page in each volume as follows: Confidential Information Notice The information on pages of this Response, identified by a bold vertical line along the right hand margin, contains information that is excluded from public disclosure under applicable law. Respondent requests that such marked information be utilized by the City only for evaluation of this Response, but Respondent understands that the City is bound by applicable law and that such information may be disclosed in accordance with such law. The legal basis for the claim for protection of the marked information from public disclosure is set forth as follows: [Respondent to provide basis] Notwithstanding any such notice, however, the COP may disclose such marked information to individuals participating in the review or evaluation of Responses, including members of the Evaluation Committee, other COP employees, and advisors, attorneys, and consultants Costs Any and all costs incurred by any Respondent, or other party in connection with this RFQ or other aspect of the procurement process shall be at such party s expense and risk. COP accepts no liability and will not be responsible under any circumstance for any cost or expense incurred to respond to this RFQ or otherwise participate in the procurement process COP Rights COP and the PEA reserves the right to modify this selection process, which may be exercised in its sole discretion at any time during the procurement process: (a) (b) (c) (d) (e) (f) (g) (h) (i) to cancel this RFQ or the procurement process, with or without the substitution of another pre-qualification or procurement process; to waive any informality, defect, non-responsiveness, or deviation in a Response, a proposal, or other submission, that is not material; to require one or more Respondents to supplement or clarify its Response or to provide additional information after the submission of Responses; to take any action affecting the RFQ, RFP or the procurement process that would be in the best interests of the COP; to conduct investigations and make inquiries concerning any aspect of any Response; to reject any or all Responses; to reject a Respondent or firm that has been delinquent or unfaithful in the performance of any contract with or obligation to the COP, is financially or technically incapable, or is otherwise not responsible; to supplement or amend this RFQ; and/or to make judgments about the contents of any Response with respect to the requirements and criteria set forth in this RFQ.

14 (End Section 3) Section 4 SUBMITTAL REQUIREMENTS 4.1 General Instructions An electronic copy of the complete Response must be submitted no later than the date and time set forth in Section 4.2 ( Submission Deadline ). Any Response received after the Submission Deadline will not be considered. 4.2 Submission Deadline Responses must be received no later than 4:00 P.M. on Wednesday, March 4 th Responses should be delivered electronically ed to and be no larger than 10MB to ensure delivery. 4.3 Required Content Required Content of Responses. Responses shall comply with the following format and the requirements set forth in this Section. Respondents are encouraged to be concise and to respond as directly as possible to the requirements set forth in this RFQ. To be invited to participate in the second phase of this procurement, the Respondent is required to demonstrate that it has experience and capabilities sufficient to meet the qualifications. The requirements set forth in this Section 4.3 represent the minimum content required for each section and, unless expressly stated otherwise, are not intended to limit substantive content. It is Respondent s responsibility to include information in the Response that meets the minimum content requirements and any additional information that further demonstrates relevant experience and capabilities. 1. Company Profile. Provide a narrative description of the Respondent, which must include the following: Respondent s business identification information, including name, business address, telephone number and website address; A primary contact for the Respondent, including name, job title, address, telephone and fax numbers, and address; and A description of Respondent s business background and any other information about Respondent s business organization that Respondent deems pertinent to the RFQ. 2. Technical Expertise. Provide evidence demonstrating the relevant experience, qualifications, and capability of Respondent to develop the Facility in accordance with Section 3.3.

15 3. Experience. Provide evidence demonstrating the relevant experience, operational qualifications, and capability of Respondent to develop, own, operate and maintain the Facility and manage a Service Agreement in accordance with Section 3.3 (1) and (2). 4. Financial Information. Provide evidence demonstrating Respondent s ability to own, operate and maintain the Facility in accordance with Section 3.3 (3).

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