District Energy Systems Advisory Services

Trade Agreement: WTO-AGP/NAFTA/AIT/Canada-Peru
FTA/Canada-Colombia FTA
Tendering Procedures: Generally only one firm has been invited
to bid
Attachment: None
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address: 
Ever-Green Energy, LLC
345 St. Peter Street
1350 Landmark Towers
Saint Paul Minnesota
United States
55102
Nature of Requirements: 
Questions and Answers

This is to answer questions pertaining to the Advance Contract
Award Notice (ACAN), as detailed below.

Q1. In dollar terms, what is the approximate size of the
contract?  

A1: The estimated value of the contract could be between
$100,000 and $400,000 for the three phases of the project
depending on the specific needs required for ESAP.

Q2. In terms of content, will this contract define (excluding
detailed engineering and construction) all work needed to get
the plants, and the buildings they serve, to an optimal energy
consumption?

A2: It is expected that the ESAP initiative will be implemented
under a Public-Private Partnership business arrangement whereby
the selected private partner would be responsible for designing,
building, financing, operating and maintaining (DBFOM model) the
various plants and distribution systems. Accordingly, it is not
the intent of this contract to define the work needed for the
plants and distribution systems since this will be under the
responsibility of the private partner. The retained Contractor
under this contract will be required to review the proposals
received from private sector companies to assess the feasibility
and offer expert advise on the proposed technical solutions,
schedules, cost estimates, rate structures, financial models,
operational models and maintenance models.

With regards to the buildings being served, it is anticipated
that they will remain under the responsibility of PWGSC. It is
anticipated that the conversion work to make these buildings
compatible with the new hot water technology will not be
executed by the selected private partner but by PWGSC under a
traditional delivery method. The planning and delivery of the
buildings transformation will be executed by PWGSC using
existing and future procurement tools.

Finally, although achieving an optimal energy consumption for
the plants and buildings would be desirable, it is not the only
project objective. The main objective of the ESAP project is to
acquire energy services, for both heating and cooling, at a
price that is compatible with the market rate for these
services. It will be up to the private partner to propose a
solution, including energy efficiency, alternative energy
supplies and other features, that are compatible with this
objective.  Furthermore, it is required that the contractor
provide specific advice to the ESAP team as required rather than
taking responsibility for design or coordination.

Q3. The statement of capabilities seems to be narrowing the
field to anyone being able to match the favored supplier's bio.
Will you consider companies that clearly demonstrate experience
and proven capabilities to succeed on achieving your goals?

A3: The requirement for the Contractor outlined in the ACAN has
been tailored to meet the unique needs of this large project. It
is expected that the ESAP initiative will be implemented under a
Public-Private Partnership (P3) business arrangement whereby the
selected private partner would be responsible for designing,
building, financing, operating and maintaining (DBFOM model) the
various plants and distribution systems. The P3 contract is
expected to be approximately 5 years for design and construction
followed by 30 years of operation and maintenance. Under this
scenario the PWGSC project team will require experience and
expertise not only in technology options, design as well as
construction, but also in operation and maintenance of the
plants which represent the majority of the cost of the project.
The ESAP project team will also require experience and expertise
in developing a business model and structuring rates and
contracts with a variety of clients including PWGSC, other
government departments and agencies and private sector entities.
It will also require experience and expertise in steam to hot
water technology conversion and experience in implementing this
change in a variety of buildings including heritage buildings
with old but potentially re-usable mechanical equipment. The
ESAP project team also requires experience in implementing a
conversion project in a densely occupied downtown core.

_________________________________________________________________
_____________

This ACAN's closing date is extended to May 25th, 2012 at 2:00
pm EST. 

_________________________________________________________________
_____________

               ADVANCE CONTRACT AWARD NOTICE (ACAN)

District Energy Systems Business, Procurement and Technical
Advisory Services

Public Works and Government Services Canada (PWGSC) has a
requirement for business, technical, engagement and marketing
advice for the Energy Services Acquisition Program (ESAP).

The purpose of this Advance Contract Award Notice (ACAN) is to
signal the government's intention to award a contract for this
service to Ever-Green Energy located at 345 St. Peter Street,
St. Paul, Minnesota. PWGSC has determined that Ever-Green Energy
is the only source capable of successfully performing the work
as they possess all the minimum essential requirements relating
to this project as listed below.

Before awarding a contract, however, the government would like
to provide other suppliers with the opportunity to demonstrate
that they are capable of satisfying the requirements set out in
this Notice, by submitting a statement of capabilities during
the fifteen (15) calendar day posting period.

Suppliers who consider themselves fully qualified and available
to meet the specified requirements may submit a statement of
capabilities in writing to the Contracting Authority identified
in this Notice on or before the closing date of this Notice. The
statement of capabilities must clearly demonstrate how the
supplier meets the advertised requirements.

If no other supplier submits, on or before the closing date, a
statement of capabilities meeting the requirements set out in
the ACAN, a contract will be awarded to the pre-qualified
supplier.

Background

Public Works and Government Services Canada (PWGSC) owns and
operates seven Central Heating and Cooling Plants (CHCP) that
provide heating and/or cooling for more than 100 buildings in
the National Capital Area (NCA) which make up over 2 million
rentable square meters of office space. Some of these plants
were built almost a century ago. This infrastructure is reaching
the end of its life cycle and major investments will be required
to modernize it, improve its energy efficiency, use more
sustainable energy sources and reduce its environmental
footprint. Under ESAP, it is proposed to progressively convert
buildings connected to the district heating system from steam to
hot water operation, to convert all or most of the steam
distribution systems to hot water operation, to consolidate the
district energy systems and reduce the number of plants in
operation, to explore alternative sources of energy and to
explore the potential for expansion.

The business of providing energy has changed significantly since
these plants were built. Consistent with PWGSC Real Property
Branch's (RPB) Corporate Real Estate Model (CREM) and the
associated National Service Management Strategy (NSMS), the ESAP
initiative seeks to move from operating energy assets and
delivering services towards service management therefore
becoming an "informed buyer". PWGSC's strategy is to seek a
solution that is cleaner, greener, and more cost-effective
through an innovative business arrangement. The selected
technology and P3 (Public-Private Partnership) business
arrangement will draw on the expertise of leaders in the field
of district energy to obtain maximum value from existing assets,
predictable capitalization and operating costs, best value when
establishing generation and distribution capabilities, and
ultimately best value for the Canadian taxpayer. At this time,
the preferred method for implementing EASP will be a P3
agreement, whereby a private partner is engaged to operate,
maintain and invest in the conversion of existing infrastructure
to modernize the system while contributing to the government's
sustainability and greenhouse gas reduction objectives. This
contract will assist in establishing the parameters of the
solicitation that will establish the eventual P3 agreement.  

PWGSC requires advisory services to assist in the planning of
all aspects of ESAP. It will benefit from the advice and
expertise of a utility in the business that has had first-hand
experience in system transformation (steam to hot water),
various business models, customer contracts and relations as
well as modern hot water piping design, construction and
operation.

Requirement

The Contractor must provide Advisory Services to PWGSC on the
following activities and subjects:

1.	Modifying existing buildings to operate on low temperature
water;
2.	Developing strategic and implementation plans for the
modification of steam distribution 		to low temperature hot
water;
3.	Operational challenges with energy supply technologies; 
4.	Development of rate structures and contracts for customers
under a P3agreement; and
5.	Innovative operating strategies and technologies.

The Contractor must also perform the following activities:

1.	Advise on and review solicitation and contract documents for
the P3 process;
2.	Evaluate proposals at the Request for Qualification and
Request for Proposals stages of 		the P3 Process;
3.	Review implementation plans and scheduling for the
transformation; and 
4.	Be present at workshops with local mechanical contractors for
building conversions.









Minimum Essential Requirements

Any interested supplier must demonstrate by way of a statement
of capabilities that it meets all of the following experience
requirements: 

·	Must have completed a system transformation from high pressure
steam to hot water technology, in an urban centre that serves
large heritage buildings, in at least 50 buildings;
·	Must operate a modern district energy system with diverse
sources of energy such as biomass thermal boilers, biomass fired
CHP (combined heat and power or cogeneration), solar thermal
energy, industrial waste heat etc.;
·	Must offer both integrated consulting and advisory services on
district energy and operates a district energy system; and
·	Must have had experience with public, private and hybrid
subsidiary district energy business models.
	
Period of Contract

This Contract will be divided into three phases. Phase 1 is
anticipated to extend to December 2012, Phase 2 to December 2013
and Phase 3 until December 2016 or until the ESAP solution has
been implemented. 

Justification for the Pre-Selected Supplier

Ever-Green Energy is the only organization that Canada is aware
of that has completed a project similar in scope to ESAP.
Ever-Green Energy is therefore the only organization able to
provide ESAP advice based on their own experience. 

Ever-Green Energy has a variety of proprietary information that
is commercially confidential. These include business cases for
the conversion of individual buildings and the resulting rate
structures for the provision of energy services. 

Ever-Green Energy also has expertise in advising clients on
building conversion and upgrading. Ever-Green Energy frequently
advises other utilities, and has established a sector within its
company dedicated to technology transfer.  Accordingly, they
have developed information and technology transfer skills that
enhance their ability to provide the support required by PWGSC.  

To support their clients in building conversion and upgrading,
Ever-Green Energy has established cost recovery procedures
through direct billing or modifications to client rate
structures. This provides not only technical and cost
information but examples of a client focused business model that
could be used by PWGSC for ESAP in the development of the P3
agreement. Also proprietary are the large number of construction
drawings for their system design and conversion, including
boiler upgrades and conversions, piping solutions for
incorporating new sources of energy (e.g. Customer based solar
thermal collectors and industrial waste heat).  

Ever-Green Energy also has both technical and business details
of the procurement, handling and use of biomass from urban and
other regional sources.

PWGSC requires access to the above information for use in
developing our systems technical options, details on business
arrangements for energy supply or customer consultation as well
as customer contract development and rate structure design.  

Constraint

This contract with Ever-Green Energy will preclude them from the
submission of bids for any other aspects of work required for
ESAP in the future and will include the following clause:

Prohibition to Bid on Future Related Requirement

The Contractor, during and after the period of performance of
the Contract agrees that it and its parent, subsidiaries or
other affiliates, and its subcontractors must not bid on the
future solicitation to contract the services of any of the
Contractor's resources and must not participate as an agent,
subcontractor or consultant in the preparation of any other
Bidder's tender or proposal for such requirement.

Policy Information

This requirement is consistent with the following:

Government Contracts Regulations (ref.: Article 6.d), which
states that only one person or firm, is capable of performing
the work;

Agreement on International Trade (AIT) (ref.: Article 506.12.b):
 where there is an absence of competition for technical reasons
and the goods or services can be supplied only by a particular
supplier and no alternative or substitute exists;

North American Free Trade Agreement (NAFTA) (ref,: Article
1016.2b) - where, for works of art, or for reasons connected
with the protection of patents, copyrights or other exclusive
rights, or proprietary information or where there is an absence
of competition for technical reasons, the goods or services can
be supplied only by a particular supplier and no reasonable
alternative or substitute exists; and 

World Trade Organization- Agreement on Government Procurement
(WTO-AGP) (ref.: XV.1a) protection of exclusive rights, such as
patents or copyrights, or in the absence of competition for
technical reasons, the products or services can be supplied only
by a particular supplier and no reasonable alternative or
substitute exists.
 



Inquiries and statements of capabilities are to be directed to
the Contracting Authority:

Anne Dickens
Intern Officer
Professional Services Procurement Directorate
Services and Technology Acquisition Management Sector
Public Works and Government Services Canada
Place du Portage, Phase III
11 Laurier Street, 10C1
Gatineau, Quebec   K1A 0S5 
Telephone: 819-956-1100
Fax: 819-956-2675
E-mail: anne.dickens@tpsgc-pwgsc.gc.ca
Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate
with one firm only as identified above. Should you have any
questions concerning this requirement, contact the contracting
officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and
agencies to post a notice, for no less than fifteen (15)
calendar days, indicating to the supplier community that it
intends to award a good, service or construction contract to a
pre-identified contractor. If no other supplier submits, on or
before the closing date, a Statement of Capabilities that meets
the requirements set out in the ACAN, the contracting authority
may then proceed with the award.  However, should a Statement of
Capabilities be found to meet the requirements set out in the
ACAN, then the contracting authority will proceed to a full
tendering process.

Suppliers who consider themselves fully qualified and available
to provide the services/goods described herein, may submit a
statement of capabilities in writing to the contact person
identified in this Notice on or before the closing date of this
Notice. The statement of capabilities must clearly demonstrate
how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the
closing date of the ACAN must appear on the outside of the
envelope in block letters or, in the case of a facsimile
transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any
procurement.

Documents may be submitted in either official language of Canada.