Georgia Environmental Facilities Authority

ARRA - American Recovery & Reinvestment

Act of 2009

Presenters

David Godfrey, GEFA Sandra Neuse, USG Greg Adams, USG Danny Elijah, GSFIC Nathan Jones, GSFIC Rey Palma, GSFIC Andrew Ladd, GEFA P.J. Newcomb, GEFA

Procedural Notes

Please silence all mobile phones and devices Presentation will run approximately 90 minutes Questions will be fielded at the end of the

presentation There will be a microphone for the audience to ask

their questions The presentation will be posted on the web Please remember to leave your business card or

sign in at the reception table

Points To Cover

Broad Overview USG Track GSFIC Track Reporting Requirements Measurement & Verification

Broad Overview

State Energy Program (SEP) Formula Grants to all states: $3.1 billion

SEP Award to Georgia: $82.5 million with $65 million allocated to State Retrofit Program

Project Completion Date: March 31, 2012

State Energy Program (SEP) Goals

Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government.

Reduce reliance on imported energy. Improve the reliability of electricity and fuel

supply and the delivery of energy services. Reduce the impacts of energy production

and use on the environment.

SEP Priority

The State will to the extent practicable prioritize the grants toward funding energy efficiency and renewable energy programs, including— 

The expansion of existing energy efficiency programs approved by the State or the appropriate regulatory authority, including energy efficiency retrofits of buildings and industrial facilities, that are funded by the State or through rates under the oversight of the applicable regulatory authority, to the extent applicable

SEP Prohibitions

for construction, such as construction of mass transit systems and exclusive bus lanes, or for the construction or repair of buildings or structures;

to purchase land, a building or structure or any interest therein;

to subsidize fares for public transportation; to subsidize utility rate demonstrations or State tax credits

for energy conservation or renewable energy measures; or to conduct or purchase equipment to conduct research,

development or demonstration of energy efficiency or renewable energy techniques and technologies not commercially available.

Project Development and Selection

Agency solicitation: June 15 –July 15, 2009 334 energy conservation measures (ECMs)

submitted; $266 million requested; $23 million in estimated savings

135 ECMs approved; $65 million investment budget; $15 million in estimated annual cost avoidance savings

Project Allocation by $ and %

Federal Requirements for all Projects

Reporting, tracking and segregation of incurred costs; Reporting on job creation and preservation; Publication of information on the Internet; Access to records by Inspectors General and the Government

Accountability Office; Prohibition on use of funds for gambling establishments, aquariums, zoos,

golf courses or swimming pools; Ensuring that iron, steel and manufactured goods are produced in the

United States; Ensuring wage rates are comparable to those prevailing on projects of a

similar character; Protecting whistleblowers and requiring prompt referral of evidence of a

false claim to an appropriate inspector general; and Certification and Registration.

Where we are in the process

Projects have been selected GEFA has obtained all of the funding GEFA and GSFIC signed an IAA GEFA and USG signed an IAA GSFIC will provide support to state agencies’

approved for ARRA funding USG Facilities Office will admin USG funded

projects

Points To Cover

Broad Overview

USG Track GSFIC Track Reporting Requirements Measurement & Verification

USG Track

Overview of USG energy plan and how Overview of USG energy plan and how ARRA complements that planARRA complements that plan

• ContextContext• Goals & ObjectivesGoals & Objectives• Past Activities and SuccessesPast Activities and Successes• Current Implementation ActivitiesCurrent Implementation Activities

History & Context w/in Regents' Strategic Plan

Support of Strategic Goal Six, Operating Efficiently

Led by UGA President Adams

Goals and Objectives

Promote and support energy efficiency efforts system-wide

Achieve 'best in class' energy usage levels

Meet the Governor's Energy Challenge

Activities & Successes to Date

Development of system-wide Sustainable Energy Management Plan (SEMP) (April 07)

Energy audits and training Collection and analysis of FY07 baseline

energy use and cost data Participated in development of Georgia

Peach standards for new construction/renovation

Current Implementation Activities

Updating energy use and cost data to include FY08 and FY09

Revising and updating SEMPAdministering ARRA/SEP program

USG ARRA Overview

USG Delegated Authority

• USG holds contracts via constitutional authority• Board delegates to Vice Chancellor for Facilities • VC delegates to campuses according to ability to

manage the contracts (existing system)• USG manages all contracts not delegated to

campus• Procurement and construction processes are the

same regardless of system office or campus

USG Delegated Authority

http://www.usg.edu/ref/contracts/levels_del_auth.phtml

What is Procured?

Design Professional Services (DP)Construction/Public Works Materials Only

Procurement of DP Services

Design Professional Selection Methods– Expanded– Basic– Abbreviated– Campus

Expanded Method

IF:– SCL > $5,000,000 and/or– Fee > $300,000

THEN:– Advertised on DOAS Bid Registry– 3 to 5 respondents are short-listed by a panel from

System Office and the Campus(es)– Short list candidates attend interviews– Panel makes final selection

Basic Method

IF:– $1,000,000 < SCL< $5,000,000 and– Fee < $300,000

THEN:– Campus & USG develop list of candidates, or– Project is advertised at discretion of VC as above– Candidates attend interviews– Panel makes final selection

Abbreviated Method

IF:– SCL < $1,000,000– Fee < $40,000

THEN:– Campus & USG office develop list of candidates– Campus makes recommendation to VC– VC directly appoints design professional

Campus Selection Method

If professional fees are anticipated to be within the delegated authority of the campus, the campus may select the Design Professional without the involvement of the Board of Regents Facilities Office, but should follow BOR procedures.

What is Procured?

Design Professional Services (DP)Construction/Public Works Materials Only

Procurement of Construction/ Public Works

Found in Chapter 8 of the USG Building Projects Procedures Manual at:

http://www.usg.edu/ref/capital/bppmanual/chapter8/

Public Works Contracts

USG is still in the process of developing the actual contracts that will be used for both DP and Public Works

The contract that you sign will be in the bid documents for you to review before you bid

USG: Bond Requirements

5% bid bond Performance bond and a payment bond

required for projects > $50,000 Performance bond shall guarantee the full

performance of the Contract

USG Insurance Requirements

Commercial general liability ins $1M/occurrence, $2M/project

Commercial umbrella – Contract < $5,000,000

$ 2,000,000 per Occurrence$ 4,000,000 aggregate

– Contract > $5,000,000$2,000,000 per occurrence10,000,000 aggregate

Federal ARRA Requirements

ARRA requirements are common to both GSFIC and USG contracts and will be detailed later in the presentation:– Reporting requirements– Davis Bacon – Buy American

USG Project Oversight

Outside campus delegated authority USG bids the work, holds the contract, and works with

campus personnel to perform project Pre-bid conferences Award and pre-construction conference Periodic construction inspections Approve pay requests Ensure required reporting Ensure compliance with contract documents Approve pay requests Project close-out Verify measurement and verification

USG Project Oversight

Within campus delegated authority Campus performs functions above USG

– Performs spot audit functions– Insures reporting– Insures measurement and verification

What is Procured?

Design Professional Services (DP) Construction/Public Works Materials Only

Materials Only

Materials-only are not public works Campuses desiring to self-perform must

comply with ARRA requirements Purchases must comply with Department of

Administrative Services process and procedure http://doas.ga.gov/StateLocal/SPD/Pages/Home.aspx

Georgia Procurement Manual http://doas.ga.gov/StateLocal/SPD/Docs_SPD_General/GeorgiaProcurementManual.pdf

Bundling Projects

Bundling projects for economies of scale is being considered

Possible JOCs, RFQs, RFPs for:– Lighting– Controls– M&V– Commissioning– Metering

Points To Cover

Broad Overview USG Track

GSFIC Track Reporting Requirements Measurement & Verification

GSFIC Track

GSFIC – Georgia State Financing and Investment Commission – Construction Division– Providing procurement and project management

services– Agent for GEFA – Georgia Environmental

Facilities Authority – in the procurement and project management of ARRA/USDOE funded projects.

GEFA/GSFIC - Energy Grants Contracting Program

GS

FIC

Pro

cess

Pro

ject

M

anag

emen

tP

ost

Con

stru

ctio

nG

rant

Pro

cess

(1)GEFA Application

Process

(2)Selection

Notification

(3)Measurement and

Verification Process

Confirmation

(5)GSFIC Notification

that SOW is Approved

(7)Agency Request to Advertise Project

Form

(8) GSFIC Review, Comment and Finalization of

Solicitation

(9)Final

Solicitation Document Prepared

(6)Agency Plans

and Specs Finalized

(10)Advertising & Bid Period/ Pre-bid mtg

(11)Bid Opening

and Selection

(12)Contract Award

(13)Pre-Construction

Conference

(14)Notice to Proceed

(15)Mobilization &

Scheduling

(16)Construction

Period

(18)Material

Completion

(19)Final Completion

(20)Warranty Period / Measurement &

Verification

(21)Auditing Period

3-5 yearsEnd

(4)Agency Prepares SOW for GSFIC

Review

(17)Punchlist

Bold blueindicates general reporting period

for Awardee/Vendor

Scope Development

Consult with agencies receiving ARRA awards and assist with development of ECM scope of work.

Assess potential for consolidating similar ECMs among different Awardees for procurement and construction.

Design and Review group will review agencies ECM scope of work prior to solicitation.

Design and Review Group will work in conjunction with GEFA to assist agencies in developing an M&V Plan for each ECM prior to solicitation.

GSFIC Procurement Process

Design professionals/vendors/service providers will be procured according to established GSFIC procedures.

Agencies will be consulted for suggested professionals.

Typically all solicitations will be competitive

GSFIC Procurement Process

All open solicitations will be posted to the Georgia Procurement Registry (GPR).

Bid Package will include the process for bid, selection, award and contracting

The corresponding contract will be attached to the bid package

GSFIC Procurement Process

The bid period will generally be 30 consecutive calendar days unless otherwise allowed

A pre-bid conference may be held depending on complexity

Changes will be managed by addenda

ARRA Requirements for all Projects

Buy American DUNS CCR Copeland Act Davis Bacon Subcontracts

Neutrality-Open Competition

IG/DOE Audits Field Audits Reporting

Requirements

Buy American Provisions(Section 1605 - ARRA)

Recipients may not use any funds obligated under this award for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States unless the Agency waives the application of this provision.

Buy American Provisions (Exceptions)

ARRA provisions shall not apply when:– applying 1605 would be inconsistent with the

public interest;– iron, steel, and the relevant manufactured goods

are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

– inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

Dun & Bradstreet

A Dun and Bradstreet Data Universal Numbering System (DUNS) Number (www.dnb.com) is one of the requirements for registration in the Central Contractor Registration.

If applicable, the Contractor agrees to separately identify to each subcontractor and document at the time of award of contract or approval of application and at the time of disbursement of funds, the Federal award number, CFDA number, and amount of ARRA funds.

Central Contractor Registration

Contractor must maintain current registrations in the Central Contractor Registration (www.ccr.gov) at all times during which they have active federal awards funded with ARRA funds.

Copeland “Anti-Kickback” Act

Prohibits federal contractors or subcontractors engaged in building construction or repair from inducing an employee to give up any part of the compensation to which he or she is entitled under his or her employment contract and requires such contractors and subcontractors to submit weekly statements of compliance.

Copeland “Anti-Kickback” Act(Wage Reporting)

For contracts in excess of $2,000. Each covered contractor and subcontractor must provide the federal agency contracting officer with a weekly statement of wages paid to each of its laborers and mechanics during the preceding weekly payroll period.

Each payroll submitted shall be accompanied by a “Statement of Compliance.”

Form WH-347 "Payroll (For Contractors Optional Use)"(http://www.dol.gov/whd/forms/wh347instr.htm) or on any form with identical wording.

This must be submitted within seven days after the regular pay date for the pay period.

Davis-Bacon Wage Act

Contractor and all subcontractors shall pay all mechanics and laborers employed directly upon the site of the work, the full amounts accrued at time of payment, computed at wage rates not less than those stated in the advertised specifications.

The scale of wages to be paid shall be posted by the Contractor in a prominent and easily accessible place at the site of the work.

In the event it is found that any laborer or mechanic employed by the Contractor/subcontractor is being paid a rate of wages less than the rate of wages required, the Owner may terminate his right to proceed with the work and the Contractor and his sureties shall be liable for any excess costs occasioned thereby.

Subcontracting

Contractors will separately identify each subcontractor and document at the time of sub award and at the time of disbursement of funds, the Federal award number, Catalog of Federal Domestic Assistance (CFDA) number, and amount of ARRA Funds.

Subcontracting

GSFIC will require vendors to include on their Schedule of Expenditures of Federal Awards (SEFA) information to specifically identify ARRA funding.

GEFA will properly monitor subcontractor expenditure of ARRA funds.

GEFA is accountable to the Federal Offices of Inspector General and the Government Accountability Office

ARRA Requirements

Neutrality – Transparency Act eliminates any bias towards pre-existing relationships. – All contracts/sub-contracts must be competitively

bid.

IG/DOE/Field Audits – Vendors must be prepared for audits under these contracts

Construction Services

GSFIC will schedule and host the pre-construction conference

ARRA compliance issues will be discussed

Form of payment will be discussedSub-Contractor use will be discussed

Construction Services

There will be on-site inspections specifically to provide construction status and financial reports, as needed during the duration of energy improvement projects.

GSFIC will process contractor invoices for payment by GEFA.

GEFA will make payment to vendors.

Construction Services

Inspections to provide final certification of project installation and completion will be conducted.

A post-construction walk-through to determine project compliance will also be completed.

GSFIC will receive and process warranty claims per existing procedure.

Points To Cover

Broad Overview USG Track GSFIC Track

Reporting Requirements Measurement & Verification

Reporting Requirements

2 Reporting Avenues Required Quarterly

U.S. Office of Management & Budget: 1512Due between the 1st & 5th day after each quarter

U.S. Department of Energy: Attachment 2Due between the 1st & 15th day after each quarter

Both will be done online from a web browser

Reporting Data

Office of Management and Budget – 1512– Jobs Created & Retained– Total # and $ Amount of payments made

less than $25,000– In some cases, sub-recipient top 5 Officers

Names and Compensation

1512 Reporting Requirements

Changeable Fields

1512 Reporting Interface

1512 Reporting Information

For a demo video, slides, & a PDF

in regard to 1512 Reporting go to:

http://www.gefa.org/index.aspx?page=491

DOE Reporting Requirements

Reporting DataDOE – Attachment 2

– Phase of the Project & % Complete– # of Buildings Retrofitted-to-Date– Square Footage Retrofitted-to-Date– Jobs Created & Retained– Management Analysis– Energy Savings (only after M&V)

DOE Reporting Interface

DOE Reporting Interface

Reporting Requirements

Definition of Jobs Created or Retained

The estimate of the number of jobs required by the Recovery Act should be expressed as full-time equivalents (FTE), which is calculated as total hours worked in jobs created or retained divided by the number of hours in a full-time schedule, as defined by the recipient.

Points To Cover

Broad Overview USG Track GSFIC Track Reporting Requirements

Measurement & Verification

Measurement and Verification

Each project or energy conservation measure awarded will need to include approved form of measurement and verification of energy savings

Agencies/Institutions will decide whether to procure or self-perform M&V

International Performance Measurement and Verification Protocol (IPMVP) 2007

Energy Savings = (Baseline Energy Use) – (Post-Retrofit Energy Use) + /– (Adjustments)

Baseline Energy Use = (Baseline System Performance) x (Baseline Operating Hours)

Post-Retrofit Energy Use = (Post-Retrofit System Performance) x (Post-Retrofit Operating Hours)

Measurement and Verification

Performance = efficiency or rate of energy use of system/equipment

Operating Hours = the total time that a system/piece of equipment runs

Measurement and Verification

Measurement and Verification

Simple Lighting Example:

Retrofit 100 T-12 fixtures (3 lamp 40W) with 28W T-8 lamps and electronic ballasts; assume 3000 hrs/yr

Baseline Energy Use = (Baseline System Performance) x (Baseline Operating Hours)

= (140 W x100 fixtures) x (3000 hrs/yr)

= 42,000 kWh/year

Measurement and Verification

Post-Retrofit Energy Use = (Post-Retrofit System Performance) x (Post-Retrofit Operating Hours)

= (72 W x 100 fixtures) x (3000 hrs/yr)

= 21,600 kWh/year

Energy Savings = (Baseline Energy Use) – (Post-Retrofit Energy Use) + /– (Adjustments)

= (42,000 kWh/yr) – (21,600 kWh/yr)

= 20,400 kWh/year

Measurement and Verification

Option A—Retrofit Isolation with Key Parameter Measurement

Option B—Retrofit Isolation with All Parameter Measurement

Option C – Whole Bldg Utility Data Analysis Option D—Calibrated Computer Simulation

Measurement and Verification

Recommendations:– ECMs with projected annual savings < $10,000/yr can use

engineering calculations instead of an official IPMVP method.

– Lighting projects typically Option A, perhaps B– Medium and large controls (excl. metering) & mechanical

projects within a single building or central plant: Option B (where practicable)

– Metering, Commissioning, Building Envelope, and Multi-building Controls projects: Option C (10% rule)

– Other?

Measurement and Verification

What may be put out for bid Full M&V services for ECM

– Recommended method/Option– Request for developing an M&V Plan, including

a schedule– Energy Savings Report– M&V Costs

Measurement and Verification

Measurement and Verification (M&V) Plan

1. A description of the ECM and its intended result

2. Intended M&V option to be used

3. How baseline data will be determined

a) Parameters to be measured (also, when and for how long),

b) Parameters to be stipulated (agreed to, held constant)

c) How & why the baseline may be adjusted (weather, occupancy, etc.)

4. Measurement methods and equipment to be used

5. Schedule for all M&V activities (Baseline, Construction, Post-retrofit, Report)

6. Who will conduct the M&V activities (self-perform – all or some?)

7. Commitment to providing Energy Savings Report - methods, assumptions, calculations, and results of the M&V

8. Costs of M&V operations and equipment

Measurement and Verification

Measurement and Verification (M&V) Resources

1. International Performance Measurement and Verification Protocol (IPMVP) http://www.evo-world.org/index.php

2. Federal Energy Management Program: http://www1.eere.energy.gov/femp/financing/superespcs_mvresources.html

3. EPC Watch: http://energyperformancecontracting.org/m-and-v.html

4. GEFA: a. Recommended M&V list

b. M&V Plan Template & Sample

Measurement and Verification

Timeline

Sign IAASign IAA Nov 24Nov 24 GSFIC Contract templates finalGSFIC Contract templates final Early DecEarly Dec Begin contracting the WorkBegin contracting the Work Mid JanMid Jan All work to be completedAll work to be completed NLTNLT 3/31, 3/31,

20122012

Questions?

ARRA Contact Information

USG Project Management– Greg Adams: greg.adams@usg.edu – Wayne Schweitzer: wayne.schweitzer@usg.edu

GSFIC Project Management – Danny Elijah: daniel.elijah@gsfic.ga.gov– Nathan Jones: nathan.jones@gsfic.ga.gov

GSFIC Procurement– Rey Palma: rey.palma@gsfic.ga.gov – Jim Hyde: jim.hyde@gsfic.ga.gov

GEFA Reporting– Andrew Ladd: aladd@gefa.ga.gov

GEFA Measurement & Verification– P.J. Newcomb: pjnewcomb@gefa.ga.gov