223 South Winnebago Street ▪ Rockford, IL 61102 ▪ (815) 987-3830 ▪ Fax (815) 987-3853
REQUEST FOR PROPOSAL (RFP) #06-0123-EPC
ENERGY PERFORMANCE CONTRACTNG PROJECT
Issued by: Rockford Housing Authority
Rockford Housing Authority (hereinafter referred to as RHA) is seeking specific proposals from interested
Energy Services Companies (ESCOs) which are capable of providing comprehensive energy management
and energy-related capital improvement services at the buildings described in Attachment A of this RFP.
Questions regarding this RFP should be directed to Sherri Tracy, Director of Development, at (815)
961-3188 or email: email@example.com.
RHA is interested in contracting for a full range of energy services and energy-related capital improvements
(hereinafter referred to as project) designed to reduce energy and water use and related costs at its
facility(s). These services and improvements are to be delivered on a performance contracting basis which
may allow the RHA to: a) incur no initial capital cost, b) achieve significant long term savings which are
measured and verified, c) obtain an annual savings guarantee which will be equal to or greater than the total
annual project costs, d) obtain consistent levels of occupant comfort and system functionality, e) capture
environmental benefits such as hazardous material disposal , and f) finance the project through an
installment payment or a lease purchase arrangement over an extended contract term.
RHA seeks to maximize energy savings and related improvements within the framework of the allowable
twenty (20) year contract term and available financing, therefore, ESCOs are encouraged to structure a
project which provides the greatest possible energy, water, and operation and maintenance (O&M) savings
and the most beneficial project scope for the RHA. RHA is interested in essential services and
improvements that will reduce facility energy and water consumption, upgrade energy-related capital
equipment, improve building operations and maintenance, save costs through fuel switching, improved
demand management, and alternative utility tariffs or alternative commodity purchases, and aid in meeting
RHA’s environmental management responsibilities.
For project savings and cash flow demonstration purposes, the allowable rates of escalation and tax-
exempt interest rate to be used in the proposal are detailed in Part IV, B-10 of this RFP.
Any stipulated energy and/or operational cost savings that may be attributed to this project will be
rigorously reviewed and, if agreed to, will be limited to those that can be thoroughly documented
and verified by the ESCO and approved by RHA.
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, an investment grade audit, design, acquisition,
installation, training and commissioning of new and/or existing energy systems as well as project monitoring
and savings measurement and verification. Additional services may include operation and maintenance for
all improvements and/or training of RHA’s staff on routine maintenance and operation of systems.
Monitoring and verification services shall include appropriate measurement and timely monthly reporting of
the performance and savings from project.
OVERVIEW OF TERMS AND CONDITIONS
Contract Term. No contract shall exceed 20 years in duration and may be subject to annual appropriations.
The duration of the contract will be mutually determined between the ESCO and the RHA based on
authorizing legislation, final project scope and financial factors.
Guarantee. The project must result in a guaranteed minimum annual energy, water and O&M savings
guarantee, as well as defined levels of occupant comfort; maintenance, monitoring, training or other
services. The goal of this project is to achieve savings sufficient to cover all project costs including lease or
installment payments and fees for maintenance; monitoring; training and other services, on an annual basis,
for the duration of the contract term.
Financial Review. Detailed financial projections of project benefits are dependent upon the scope of
technical measures finally selected and installed. It is premature to place a major emphasis on projected
financial benefits prior to the completion of the investment grade energy audit and negotiation of the project
The evaluation and selection of an ESCO, and the negotiation and procurement of services will proceed as
Site Visits. Prior to the submission of proposals and upon request, RHA will arrange a walk-through
inspection tour of the buildings described in this RFP. Knowledgeable representatives will be available to
answer questions about the operation of the facilities. All ESCOs are encouraged to carefully review the
facility profile information contained in Attachment A of this RFP and to visit the facility in order to enhance
their understanding of existing building conditions and opportunities. To make arrangements for a walk-
through inspection tour, please contact the following person by October 6, 2006:
Name: Chuck Doyle Phone Number: (815) 509-8770
E-mail: firstname.lastname@example.org Fax:(815) 987-3241
Submission of Written Proposals. ESCO’s interested in providing the services requested, must respond
in writing by the date listed in Part IV, Instructions to Proposers. All submissions become the property of
RHA and will not be returned to the ESCO. All costs associated with submission preparation will be borne
by the submitting ESCO.
Proposal Review and Selection of Finalists. RHA will establish a Project Evaluation Team to review and
evaluate the ESCOs written responses to this RFP in accordance with the evaluation criteria identified in
Part II of this document. The Project Evaluation Team will check client references which will also be
evaluated. RHA intends to select no more than three (3) ESCOs as finalists.
RHA reserves the right to reject any or all submissions and to waive informalities and minor irregularities in
submissions received and to accept any submissions if deemed in the best interest of RHA to do so.
ESCO Interviews and Ranking. Each of the finalist ESCOs will participate in a detailed oral interview to
answer questions from the Project Evaluation Team and more fully discuss how its approach to this project
satisfies the evaluation criteria. All persons with major responsibility for the project’s technical design,
management and contract negotiation should be present at the interview, however, no more than four (4)
people may attend on behalf of an ESCO. Each oral interview may be recorded. A more complete
description of the interview process and format will be sent to each of the finalist ESCOs. Based on results
from the written responses to the RFP, client reference responses and the oral interviews, the Project
Evaluation Team will rank the finalist ESCOs. Contract negotiations will proceed with the top-ranked ESCO.
Development of Energy Audit Agreement. RHA intends to negotiate a contract for the investment grade
audit. If an acceptable technical energy audit agreement cannot be negotiated within 30 days from the date
of ESCO selection, negotiations with the next-ranked ESCO may be initiated.
Development of Energy Services Agreement. After completion and acceptance of the investment grade
audit, RHA intends to negotiate an Energy Services Agreement (ESA). If an acceptable ESA cannot be
negotiated within 30 days from the date of acceptance of the detailed energy audit, negotiations with the
next-ranked ESCO may be initiated.
To aid ESCOs in their response to this RFP, the following items are attached:
PART I: PROPOSED PROJECT SCHEDULE
PART II: EVALUATION CRITERIA
PART III: CONTRACT TERMS AND CONDITIONS
PART IV: INSTRUCTIONS TO PROPOSERS
PART IV-A ESCO PROFILE & QUALIFICATIONS FORM
PART IV-B ESCO’S PROPOSED APPROACH TO PROJECT
PART IV-C SUPPORTING TECHNICAL DOCUMENTS
ATTACHMENT A: TECHNICAL FACILITY PROFILE
ATTACHMENT B: SAMPLE ENERGY AUDIT AGREEMENT
ATTACHMENT C: MANDATORY CLAUSES
ATTACHMENT D: REQUIRED CERTIFICATIONS AND FORMS
PROPOSED PROJECT SCHEDULE
The following is the proposed project schedule and may be adjusted as necessary during the procurement of
Issue RFP Sept. 1, 2006
Site Visit (to be arranged) * Sept. 1 – Oct. 6, 2006
Proposals Due Oct. 17, 2006
Proposal Review and Selection of Finalist Nov. 17, 2006
ESCO Interviews and Ranking Dec. 15, 2006
Negotiation of Energy Audit Contract Jan. 12, 2007
RHA Board of Commissioners Approval of Energy Audit Contract Jan. 25, 2007
Contract Signing and ESCO Notice to Proceed with Audit Feb. 1, 2007
Technical Audit, Project Analysis May 1, 2007
Audit Review and Negotiation of Energy Service Agreement (ESA) June 15, 2007
RHA Board of Commissioners Approval of ESA June 28, 2007
Contract Signing and ESCO Notice to Proceed with ESA July 9, 2007
• Site visits may be arranged by contacting: Chuck Doyle at (815) 509-8770
Evaluation of Proposals: Responses will be evaluated based on the quality and completeness of the
information provided. Failure to provide any of the requested information may result in disqualification. The
criteria listed below will be used in the evaluation of the written proposals. Additionally, client references and
responses of the fianlist ESCOs during oral interviews, will be utilized as well to determine the highest
ranked offeror. The criteria have been weighted with an asterisk denoting the most significant for the written
* Qualifications and experience of ESCO's personnel with guaranteed energy savings contracts.
* Experience with and understanding of HUD energy performance contracting regulations.
* Reliability of equipment performance on past projects.
* Quality and completeness of past project documentation.
Project Management (20 pts)
* Clear assignment of responsibility for various project tasks to specific individuals.
* Ability to effectively manage project construction and complete the project on schedule.
Quality of approach to operations and maintenance.
Quality of monitoring, maintenance, and measurement and verification services on past projects.
Clarity, organization and level of detail in written proposal.
Quality of communication skills of the ESCO’s representatives at the oral interview.
Technical Approach (20 pts)
* Quality of technical approach, including methods of analysis and an understanding of existing
building systems and conditions.
* Quality of approach to project commissioning.
* Quality of the sample investment grade technical energy audit.
* Quality of baseline energy calculations.
Quality of proposed training for facility staff.
Quality of approach to savings measurement and verification.
Quality of sample design documentation.
* Financial soundness and stability of the ESCO.
Demonstrated ability to provide or arrange project financing.
Reasonableness of audit costs.
Reasonableness of Preliminary Cash Flow Analysis.
Attractiveness of ESCO’s Guarantee.
Section 3 (10 pts)
* Status as a Section 3 Business Concern (See Attachment C: Section 3 for definitions)
Section 3 Strategies
CONTRACT TERMS AND CONDITIONS
The minimum contract terms and conditions RHA will accept from the selected ESCO include:
1. Technical Requirements
Investment Grade Energy Audit. The selected ESCO must perform and present the results from a detailed
investment grade energy audit of acceptable quality to RHA. The proposed audit terms and conditions are
specified in the Proposed Energy Audit Agreement located in Attachment B. If RHA decides not to enter into
a contract after the audit has been accepted, RHA agrees to pay the cost of the audit as stated in the audit
agreement, provided that the proposed contract terms offered by the ESCO meet all the conditions set forth
in the audit agreement and this RFP.
Standards of Comfort and Service. The ESCO will be responsible for maintaining the levels of comfort
and service for each building as specified in the ESA.
Professional Engineer Involvement. (For large projects) A registered professional engineer must, at a
minimum, review and approve design work done under this contract.
Guaranteed Savings. RHA requires a minimum annual guaranteed level of savings approach to the
project. If the project does not generate the guaranteed level of savings in any given year, the ESCO will be
responsible for reimbursing RHA the amount of any shortfall. Excess savings will not be used to reimburse
the ESCO for any payments made due to shortfalls in other years.
Construction Management. The ESCO will be required to work with current building management and
maintenance personnel in order to coordinate construction and provide appropriate training in operations
and maintenance of all installed improvements. No equipment or other improvements will be installed that
would require RHA to hire additional personnel unless contract negotiations produce an explicit exemption
for a specific installation. Maintenance responsibilities shall be detailed in the ESA.
O & M Manuals. At least four (4) operation and maintenance manuals for each site will be provided for all
equipment replacements and/or upgrades. Manuals are subject to approval of RHA.
As-Built Drawings. Where applicable, ESCO must provide mylar, reproducible "as built" and record
drawings (or such electronic equivalents as may be agreed to with RHA) of all existing and modified
conditions associated with the project, conforming to typical engineering standards. These should include
architectural, mechanical, electrical, structural, and control drawings and operating manuals within 30 days of
completed project installation.
Follow-up Maintenance, Monitoring and Training Services. The ESCO will be responsible for
maintaining and monitoring the measures to ensure optimal performance as well as for ongoing training,
however, RHA has the option to negotiate the scope of service needed.
RHA Energy Improvement Projects. RHA reserves the right to make energy and water improvements to
the facility and to negotiate adjustments to the savings measurement and verification methodology to
account for such improvements.
2. Minimum Contract Provisions
Proposal Submissions. The contents of the ESCO’s RFP submission will become part of any final
agreement between RHA and the ESCO.
Project Schedule. The ESCO must provide a final schedule of project milestones including construction,
equipment-service and preventive maintenance provisions that will become part of any final contract. In the
event any milestone or service provision is not met as scheduled, without prior approval from RHA, RHA
reserves the right to consider it a default and withdraw from all contractual obligations without penalty.
RHA Inspection. RHA retains the right to have its representative visit the site during the audit and
implementation phases of the project, and to attend relevant on-site or off-site meetings of the ESCO and/or
its subcontractors. RHA will have the right to inspect, test and approve the materials and work conducted in
the facilities during construction and operation. RHA shall have the right and access to the account books,
records, and other compilations of data that pertain to the performance of the provisions and requirements of
the agreement. Records shall be kept on file in legible form and retained for a minimum of three years after
Final Approval of RHA. RHA retains final approval over the scope of work and all end-use conditions.
Ownership of Drawings, Reports and Materials. All drawings, reports and materials prepared by the
ESCO specifically in performance of this contract shall become the property of RHA and will be delivered to
RHA as needed, requested or upon completion of construction.
Compliance. All work completed under this contract must be in compliance with all applicable federal, state
and local laws, rules and regulations including all building codes and appropriate accreditation, certification
and licensing standards. Work must be in accordance with sound engineering and safety practices, be
installed in a workmanlike manner and be in compliance with all RHA regulations relative to the premises.
The ESCO and its subcontractors will be responsible for obtaining any and all required governmental
permits, consents and authorizations, and for payment of any and all state and city required taxes and fees
which result from this contract.
Handling of Hazardous Materials. All work completed under this contract must be in compliance with all
applicable federal, state and local laws, rules and regulations regarding waste disposal and
treatment/disposal of any hazardous materials that could result from this project. Work must also be in
accordance with sound engineering and safety practices, and in compliance with all RHA rules relative to the
Methodology to Adjust for Material Changes. The contract must contain a mutually acceptable clause
whereby unanticipated changes in facility use, occupancy, schedule and/or utility rates can be
accommodated in a fair manner agreeable to both parties.
Hiring and Wage Requirements. The ESCO will comply with all requirements for the payment of prevailing
wages and minority and women-owned business enterprises as well as Section 3. See Attachment C:
Mandatory Clauses for specifics.
Subcontractor Approval. RHA retains the right to approve any ESCO selected subcontractor prior to its
commencement of work on this project. Names, qualifications, federal ID numbers and insurance certificates
of proposed subcontractors must be submitted at least three (3) weeks in advance of subcontractor
scheduled start date.
Price Disclosure. The ESCO may be required to fully disclose all costs and fees associated with this
project including audit, design, engineering, equipment, installation, financing, commissioning, monitoring,
overhead, profit, etc. Quotes for pricing on projected project costs must be valid for ninety (90) days from
the date of submission of the proposal by the ESCO.
Bonding Requirements. For all construction contracts exceeding $100,000, the ESCO must sumbit:
1) A performance bond for 100% of the contract price;
2) A payment bond for 100% of the contract price.
Insurance Requirements. Prior to the commencement of any work, the ESCO must provide evidence of
insurance for the audit, construction and operations phases of the project. Provide current certificate of
insurance, naming Rockford Housing Authority as additional insured, with minimum coverage as listed
a) General Liability – No less than $ 1,000,000.00 each occurrence
b) Workers Compensation
c) Automobile – No less than $ 500,000.00 single limit
Required additional coverage if checked
d) __ Product Liability
e) __ Professional Liability
Annual Reconciliation. Project savings will be verified and reconciled on an annual basis. ESCO will
provide timely monthly savings reports to RHA, unless otherwise agreed to by the parties.
Contract Term. No contract shall exceed twenty (20) years in duration and may be subject to annual
Dispute Resolution. The contract will contain an Alternative Dispute Resolution provision.
INSTRUCTIONS TO PROPOSERS
Failure to complete any question in whole or in part, or any deliberate attempt by the proposer to
mislead RHA, may be used as grounds to find the proposing ESCO ineligible.
PROPOSAL SUBMITTAL INFORMATION
ESCOs who wish to have proposals considered by RHA must submit six (6) copies of the following:
• Part IV-A (ESCO Profile Form)
• Part IV-B (ESCO Proposal and Approach to Project)
• Part IV-C (Supporting Technical Documents)
• HUD 5369-C Certifications and Representations of Offerors Non-Construction Contract
• Non-Collusive Affidavit
• Certificate of Corporate Principal
by October 17, 2006 @ 2:00pm to the following address:
Sherri Tracy, Director of Development
Rockford Housing Authority
223 S. Winnebago Street
Rockford, IL 61102
At least one electronic version of all previously mentioned documents shall accompany the
submittal to the RHA and one copy each should be sent to:
John Marley David Birr
Illinois DCEO 329 D Woodview Road
620 East Adams Street Barrington, IL 60010
Springfield, IL 62701
Or, if possible, by email:
ESCO PROFILE AND QUALIFICATIONS FORM
Each ESCO is required to fully answer all questions in each category listed below. Provide responses
on 8 ½ " x 11" sheets of paper and number and title each answer to the corresponding category. Font
size should be no smaller than 10 point. All pages in your response should be numbered sequentially.
ESCOs must also include a table of contents which indicates the section and page numbers
corresponding to the information included.
All questions must be addressed by the ESCO in order for this application form to be
properly completed. Failure to answer any question, or comply with any directive contained
in this form may be used by RHA as grounds to find the ESCO ineligible. If a question or
directive does not pertain to your firm in any way, please indicate with the symbol N/A.
A-1 Firm Name________________________________________________________
County _____________________________ Zip Code _____________________
A-2 Names and Titles of Two Contact People
A-3 Submittal is for:
ρ Parent Company (List any Division or Branch Offices to be involved in this project)
ρ Division (attach separate list if more than one is to be included)
ρ Branch Office
Name of Entity:___________________________________
A-4 Type of Firm:
ρ Sole Ownership
ρ Joint Venture
A-5 Federal Employer Identification Number
A-6 Year Firm was Established
A-7 Name and Address of Parent Company: (if applicable)
A-8 Minority Business Information (If applicable to your agency’s policies or requirements)
Recognized MWBE. Is your firm a recognized Minority or Woman-owned Business
Category. If yes, please indicate the appropriate category.
___ American Indian ___ Spanish Surname
___ Asian-American ___ Woman-Owned
___ African-American ___ Other
Certifying Agencies. If yes, indicate which jurisdictions or certifying agencies recognize
your firm’s MWBE status.
Accommodation. If no, please summarize how you will accommodate MWBE preferences.
Section 3 Business Concern. Does your firm qualify as a Section 3 Business Concern? If
no, please indicate how you will comply with the RHA Section 3 Plan as listed in Attachment
C: Mandatory Clauses
A-9 Five Year Summary of Contract Values for Energy Performance Contracting Projects where
your firm was the prime contractor with a first party written savings guarantee to the RHA: (Note: If
you are a branch office of a larger firm indicate only those contract values associated with that
2005: $_____________ (to date)
A-10 Corporate Background/Historical Data
How many years has your firm been in business under its present business name?
Please identify all states in which your firm is legally qualified to do business.
Indicate all other names by which your organization has been known and the length of time known by
How many years has your firm been involved in energy-related business? Years
Certify that your company does not owe the state of Illinois any taxes.
Certify that your company is not currently under suspension or debarment by the state of Illinois, any
other state, or the federal government.
Identify your firm's legal counsel for this project. Give the name and address of the primary individual
responsible for contract negotiation.
Indicate your firm’s current annual gross revenue.
A-11 Technical Qualifications And Personnel Information
Indicate the number of all guaranteed energy savings contracting projects currently under contract with your firm.
Limit your response to ONLY those projects that have been managed directly by the specific branch, division,
office, or any individual in such branch, division or office who will be specifically assigned to this project.
Indicate the installed project cost value, and identify all projects currently in repayment. Attach additional
sheets as necessary.
Using the format provided below, briefly describe the relevant experience, qualifications and educational
background for ONLY those PRIMARY team members (no more than 10 individuals) who will directly be
working on this project. Do not include individual resumes.
Name of Project Team Member:
Current Job Title:
Number of years with ESCO:
Primary Office Location:
Primary job responsibilities:
Number of years with firm:
List all academic degrees,
certifications, professional affiliations,
relevant publications and technical
List all energy performance
contracting projects this individual
has been involved with during past 5
years. Include project location, type
of facilities, year implemented and
dollar value of installed project costs.
Describe the specific role and
responsibilities this individual had for
each listed project.
Provide a detailed description of the
role and responsibilities this individual
will have for the duration of this
Describe any other relevant technical
Indicate the total years of relevant
energy-related experience for this
A-12 Financial References
Provide a copy of your firm’s most recent annual report. Provide a Balance Sheet and Cash Flow
statement not more than fifteen (15) months old.
Please provide the name, address, and the telephone number of the firm(s) that prepared the
Please enclose banking references including financial institution, address, contact person, telephone
number, and specific information on your firm’s credit that may be used to fund construction for large-
Enclose bonding references including company name, address, contact person, telephone number
and information on your firm’s maximum bonding capability.
A-13 Energy Performance Contracting Project History And Client References
Using the form on the following page, list at least five (5) energy performance contracting projects in
repayment by and currently under contract with your firm. Limit your response to ONLY those
projects that have been managed directly by the specific branch, division, office or any
individual in such branch, division or office who will be specifically assigned to this project.
Projects with installed costs of less than $750,000.00 or single technology (e.g. lighting only,
controls only, etc.) will not be considered. Attach additional sheets as necessary. Please put an
asterisk by those project references involving projects with measures and buildings similar to those
proposed for this project.
PROJECT HISTORY AND CLIENT REFERENCE FORM
All information requested is required.
Project Name and Location
Number of Buildings
Total square footage
Project Dollar Amount (installed project costs)
Source of Project Financing
Primary ECMs Installed
ESCO Services Provided
Construction Start & End Dates
Contract Start & End Dates
Dollar Value and Type of Annual Operational Cost
Savings (if applicable) (e.g., outside maintenance
contracts, material savings, etc.)
Method(s) of Savings Measurement and
Provide CURRENT and ACCURATE telephone and
FAX numbers of the owner(s)’ representatives with
whom your firm did business on this project. You
should ensure that all representatives are familiar
with this project.
Describe the specific roles and responsibilities of
ESCO personnel associated with the identified
project, limiting your response to only those
personnel who will be directly involved in RHA’s
ESCO Notes or Comments
ANNUAL ENERGY SAVINGS DATA FORM
Complete the following information for each of the projects listed.
Name of Project: Name of ESCO:
Projected Guaranteed Achieved
Year 1 Year 2 Year 3 Year 4 Year 5
Information for each of the headings listed above MUST be completed using the above format. DO NOT provide savings data in terms of BTU’s or
dollars. Data should be given in the form of fuel units which appear in the utility bills. Additional forms should be reproduced as needed.
PART IV-B ESCO’s PROPOSED APPROACH TO PROJECT
B-1 Project Summary (Not to exceed 2 pages; Minimum font size of 11)
Summarize the scope of services (design, financial, operations, maintenance, training, etc.) offered
by your firm for this project including the added value of your firm's services.
B-2 Training Provisions
Describe your firm’s proposed approach to providing technical training for facility personnel.
Indicate the proposed number of personnel to be trained and the type and frequency of training to
be provided for the duration of the contract. Indicate how your firm will address any turnover of key
facility personnel as it relates to project performance.
B-3 Project Financing
Describe your firm's preferred approach to providing or arranging financing for this project.
Describe the structure of the financing arrangement including projected interest rate, financing
term, repayment schedule, equipment ownership, security interest required, the
responsibilities/liabilities of each party, and any special terms and conditions that may be
associated with the financing of this project. Describe how construction will be financed.
B-4 Cost of Investment Grade Energy Audit
Indicate the total cost of the investment grade energy audit to RHA if no contract is negotiated.
Please see Attachment B- Proposed Investment Grade Energy Audit Agreement for specific technical
terms and conditions.
B-5 Preliminary Technical Approach
Based on your preliminary assessment of the project sites and information provided, please
describe any equipment modifications, installations or replacements at the facilities that your
company would consider installing as a part of this project. Please discuss site conditions, status
of building systems and needs of the RHA.
B-6 Energy Baseline Calculation Methodology
Describe the methods you expect to use to compute baseline energy use for this project. Describe
any computerized modeling programs used by your firm to establish baseline consumption.
Describe factors that would necessitate a baseline adjustment. Describe the methods you will use
to adjust the guaranteed level of savings from any material changes that occur due to such factors
as weather, occupancy, facility use changes, etc.
B-7 Procedure for Calculating Energy and Cost Savings
Please summarize procedures, formulas and methodologies including any special metering or
equipment, your firm will use to measure and calculate energy savings for this project. Indicate
how your firm identifies, documents and measures operational cost savings opportunities.
Describe your firm’s proposed approach to the treatment of savings achieved during construction
and how those savings will be documented and verified. See Part IV, B-10 of this RFP for the
escalation rates to be used for the purposes of preparing the preliminary cash flow analysis.
B-8 Construction Management
Describe how your firm would work with current building management and maintenance personnel
in order to coordinate construction and avoid conflicts with the building’s operation and use.
B-9 Approach to Equipment Maintenance
Describe any major changes in operations or maintenance for this project that your company
anticipates. Include a description of the types of maintenance services that may be proposed for
this project. Address how you would approach the role of RHA’s personnel in performing
maintenance on the new and existing and equipment. Discuss the relationship of maintenance
services to the savings guarantee, any required duration of the maintenance agreement, and what
impact termination of maintenance prior to the end of the contract term would have on the savings
B-10 ESCO's PRELIMINARY CASH FLOW ANALYSIS
ENERGY PERFORMANCE CONTRACTING PROJECT
Rockford Housing Authority
Financed Project Costs: Escalation Rate by Savings Category
Finance Term: Electric: 5%
Annual Interest Rate: 4.5 % Natural Gas 5%
Construction Months Steam NA
Annual Payment Water: 5%
Operations & Maintenance costs: NA
Other (specify): NA
Escalation Rate for Annual Fees*: 3%
Year Electric Natural Gas Steam Cost Water Cost Other (Please Operational Total Utility Maintenance, Financing Net Savings
Cost Cost Savings Savings Savings Specify) Cost Cost Savings Monitoring, Payment
Savings Savings M&V, and
PART IV-C SUPPORTING TECHNICAL DOCUMENTS
The following documents must be also be submitted in accordance with the instructions
specified at the beginning of Part IV of this RFP.
Sample Investment Grade Audit
Sample Commissioning Plan
Sample Measurement & Verification Plan
Sample Maintenance Plan
Sample Savings Report to RHA
Sample Design Documentation
TECHNICAL FACILITY PROFILE
SAMPLE ENERGY AUDIT AGREEMENT
MANDATORY CLAUSES: SECTION 3
CONFLICT OF INTEREST
DAVIS BACON PREVAILING WAGE RATE
(For Construction Only - To be included with Energy Service
REQUIRED CERTIFICATIONS AND FORMS:
HUD 5369-C INSTRUCTIONS TO OFFERORS NON-CONSTRUCTION
HUD 5369-C CERTIFICATIONS AND REPRESENTATIONS OF
CERTIFICATE OF CORPORATE PRINCIPAL
HUD 5370-C GENERAL CONTRACT CONDITIONS NON-
HUD 5370 GENERAL CONTRACT CONDITIONS (For Construction
ENERGY AUDIT AGREEMENT
THIS AGREEMENT, made as of ______________________, by and between ,a
corporation organized under the laws of the State of , authorized to conduct business in the
State of with its principal place of business at ; and the
Rockford Housing Authority, a municipal non-profit body corporation organized under the laws of the State of
Illinois (“RHA”), with its principal place of business at 223 S. Winnebago Street, Rockford, IL 61102, owner of
apartment complex or complexes (individually "Facility" or collectively "Facilities") identified in Appendix A.
WHEREAS, RHA desires to participate in a utility savings program as permitted pursuant to those regulations
providing incentives for energy conservation, which appear in Parts 965 and 990 of title 24 of the CODE OF
FEDERAL REGULATIONS, as amended, by the United States Department of Housing and Urban Development
WHEREAS, pursuant to that program, RHA issued a Request for Proposals (RFP) for an Energy Performance
Contractor on INSERT DATE, designed to procure services from a qualified Energy Services Company (ESCO)
to undertake the program; and
WHEREAS, (CONTRACTOR) submitted a written proposal dated INSERT DATE and otherwise participated in a
competitive procurement process and via that process was selected by the RHA on INSERT DATE; and
FURTHER, that both parties agree that a utility savings program can only be accomplished by first performing an
Energy Audit to determine the potential for utility savings, the approximate cost of the conservation measures
necessary to achieve these savings, and a cash flow projection indicating the overall financial and programmatic
effects of the utility savings program;
NOW, therefore the parties agree as follows:
(1) ENERGY AUDIT. It is hereby agreed that (CONTRACTOR) will conduct an Energy Audit of the
Facilities consisting of engineering analyses and reports. The analyses will validate utility-related billing and
operating data and site and equipment conditions. The analyses will also include estimates of the installation
costs and utility cost savings related to a proposed utility conservation plan.
(2) SCOPE OF ENERGY AUDIT. The scope of the Energy Audit of the Facilities will be as follows:
(a) (CONTRACTOR) will provide a team consisting primarily of the project and engineering staff
identified in its Proposal submission to examine the existing building envelope, mechanical, electrical, lighting,
plumbing and control systems within the Facilities, in order to determine the potential for energy and water-
related improvements and associated consumption and cost savings. (CONTRACTOR) will supplement its field
examination by using RHA-provided building and equipment records as described in Section (3), below. Site
examination by (CONTRACTOR) will begin within 30 days of receipt of the utility consumption and cost data
(CONTRACTOR) will inspect 10% of all dwelling units and all Administrative, Maintenance, and Community
Buildings that are eligible for inclusion under 24 CFR 990. (CONTRACTOR) will compile and deliver to RHA a
description of the existing electrical, plumbing, HVAC and other energy and water consuming systems, as well as
building shell systems. The on-site inspection will include a review of the following existing equipment and
control conditions as required to determine the potential for energy and water conservation measures at each
Facility listed in Appendix A:
• Heating, heat distribution systems, venting, associated piping, and insulation
• Cooling and cooling distribution systems and related equipment
• Cogeneration systems
• Energy management control systems and thermostatic controls
• Ventilation systems, exhaust systems, and related equipment
• Domestic hot and cold water systems
• Electric motors, transmission and drive systems
• Interior and exterior lighting and appliances
• Building envelope, including windows and doors and air leakage sites.
(CONTRACTOR) will provide in its audit report descriptions for each Facility including the following
• For heating and cooling systems, (CONTRACTOR) will provide equipment types (e.g., space heater,
window AC), description of distribution systems, locations, approximate age, condition, equipment size
and available nameplate information;
• For window systems, (CONTRACTOR) will provide window types and condition, and will analyze U-
value and shading factors as appropriate;
• For envelope systems, such as walls, ceilings, and floors, (CONTRACTOR) will provide information as
available on assembly components and note the presence of any air leakage, moisture, wet or dry rot,
mold, and mildew;
• For lighting, (CONTRACTOR) will provide fixture/lamp/ballast types, counts, wattages, voltage/current,
• For plumbing systems, (CONTRACTOR) will provide information on the existing fixture types and water
heating systems; and
• For utility delivery, (CONTRACTOR) will provide tables listing utility type, payment type, and current
(b) (CONTRACTOR) will assess historic utility records, which will be provided by RHA and/or its utility
providers (provided RHA provides consent to (CONTRACTOR) to access such providers):
For the “Authority-paid” utilities, (CONTRACTOR) will analyze not less than three (3) years of RHA-provided
historic monthly meter and account information, matching the proposed frozen base period for Authority-paid
meters; will indicate whether a sample of meters or all meters were included; will approximate monthly master-
metered usage by major end use; and will normalize weather-sensitive data for degree days as needed to create a
workable “Baseline” of utility usage. For water, (CONTRACTOR) shall, at minimum, evaluate and report usage
in terms of gallons/resident/day. (CONTRACTOR) will provide an analysis of utility consumption patterns,
trends, and benchmarks for all end-uses. Data will be presented for each utility by site and in summary. Baseline
will be shown as a consumption amount and a dollar amount. The rate used to determine the dollar amount will
be explicitly shown in the calculations.
For the “tenant-paid” utilities, if applicable, (CONTRACTOR) will analyze RHA-provided utility data, to the
extent available, to determine whether utility usage assigned in the current tenant allowances is consistent with
sample tenant use, for incorporation within the calculated savings against the current allowance.
The report shall also outline any assumptions used to establish the baseline, which may be needed to account
for occupancy, leaks or other anomalies in usage data. (CONTRACTOR) shall make adjustments to the baseline
for materially significant changes in equipment or building use; buildings out of service for maintenance or
modernization or whose bills were paid by an entity other than the housing authority for any time period during
the baseline period; buildings that were demolished or will be and are not included in the project; temporary
relocation of residents; low, missing, under-reported or inaccurate data due to:
Estimated reads beyond 1 every other month
Items not operating up to code, e.g. under-lamped areas or insufficient ventilation
Any other missing data that occurred during the base period.
The report shall indicate what occupancy levels were, in summary and by site, during the baseline period and
what adjustments, if any, were made to the baseline.
(c) (CONTRACTOR) will conduct interviews with RHA's maintenance and management staff, residents, as
well as local utility company personnel in an effort to acquire information on the operating characteristics of the
existing equipment and systems, RHA's goals for systems improvements, and approximate future utility service
provision and rate schedules.
(d) (CONTRACTOR) will perform a utility rate analysis for verified pre- and estimated post-retrofit usage
to identify impacts of conservation on delivered costs to RHA. This analysis will look at impacts on both
marginal and “HUD blended” rates and at impacts of demand savings, as well as step or ratchet rates and other
varying rate structures. Such impacts shall be outlined in the Audit Report.
(e) (CONTRACTOR) will determine the feasibility of and develop recommendations for, a long-term,
utility-saving program including the following comprehensive energy services for RHA Facilities:
(i) The design, selection and installation of energy and water efficient equipment and
systems. At a minimum the ECMs listed in Section D (Technical Data) of the RFP must be analyzed
(ii) Maintenance and service obligations for the newly-installed systems and equipment for
the term of any (CONTRACTOR)-proposed long-term program or contract. (CONTRACTOR) shall specify and
describe impacts on RHA operations and maintenance procedures that will be affected by the
installation/implementation of the proposed ECMs;
(iii) The maintenance or improvement of current levels of comfort and service conditions;
(iv) The arranging of project financing, including, but not limited to: approximate current
total utility use and cost; approximate capital costs to install utility-saving equipment and systems; approximate
annualized program costs, including debt service and any service fees; gross projected utility consumption and
cost savings; approximate utility demand-side management (DSM) funding available for work at the Facilities;
and projected utility cost savings net of program costs. If applicable, the savings analyses will include the impact
on the current tenant utility allowances provided by RHA.
(v) Recommendation of ECMs will be based on projected consumption and dollar savings
and estimated project costs, among other factors. Projected savings shall be presented in columnar
format that outlines pre-project consumption, projected post-project consumption and the resulting
consumption savings. Savings shall be shown in summary and by project. Dollar values shall be assigned
using both the HUD average rate and the utilities’ marginal rates so the Housing Authority can see the
impacts on both of those cash flows.
(vi) Estimated savings for master-metered accounts will be identified separately than
tenant-paid allowance savings in the Energy Audit Report and on the project cashflow.
(vii) Cost projections shall be itemized by measure and are presented by site and in summary
for all the sites in the project; Cost per unit shall be indicated, as well as total number of units to be
installed. Hard costs and total costs shall be shown for each ECM, by site and in summary form.
Assumptions for installation are specified and described, e.g. if a toilet project assumes 10% flanges will
need to be replaced, that is shown in the audit. Any additional O&M costs are specified and described by
site and in summary.
(viii) For a potential twenty-year term option, (CONTRACTOR) will provide life cycle
cost analysis for measures to be included in this option.
(ix) (CONTRACTOR) shall outline what utility allowance levels become after the measures
impacting resident-paid meters are installed. The difference between the aggregation of all the utility
allowances impacted by the project, pre- and post-project, shall match with the savings projections for
measures impacting resident-paid meters.
(3) ENERGY AND WATER USAGE RECORDS AND RELATED DATA. RHA will furnish (or cause its
utility suppliers to furnish) to (CONTRACTOR), upon its request, all available records and data concerning utility
usage for the Facilities including the following data for the most current 36-month fiscal period: utility records,
occupancy information; descriptions and any changes in the structure of the Facilities or their heating, domestic
water, plumbing, cooling, lighting or other systems or utility requirements; building plans, where available;
descriptions of all major utility consuming or utility saving equipment used in the Facilities; and description of
utility services available. RHA will also provide copies of any relevant RHA modernization schedules for related
capital improvements, utility allowance calculations, financial statements and other records necessary for
(CONTRACTOR) to complete the Audit.
(4) ENERGY SERVICES AGREEMENT. RHA and (CONTRACTOR) will use the audit to consider an
Energy Services Agreement (ESA) under which (CONTRACTOR) would design, install, arrange financing and
provide certain annual services such as monitoring, equipment inspections, and resident education throughout the
contract term. Any ESA, if considered by the RHA, will be by a separate written instrument. Nothing in this
agreement will obligate the parties to enter into such an ESA. The ESA will also include a guarantee of savings,
in such form and with such risk protections as are mutually agreed, resulting from the installation of said
equipment which, at minimum, will allow RHA to cover debt and annual program costs incurred by the
installation of said equipment.
(5) SUB-CONSULTANTS. (CONTRACTOR) will engage the services of sub-consultants as Audit
personnel from the following company(ies):
RHA reserves the right to reject any sub-contracted personnel assigned to the project. (CONTRACTOR) will
make good faith efforts to replace, as necessary, such rejected sub-consultants in a timely manner with a candidate
acceptable to RHA.
(6) DISPUTES AND ARBITRATION. If at any time there occurs a controversy or dispute regarding rights,
duties and obligations of the parties hereto concerning any provision set forth in this Agreement, such controversy
or dispute will be determined conclusively by arbitration as follows: Any dispute, controversy or claim arising
out of, in connection with, or relating to this Agreement, including any breach or alleged breach hereof, will, upon
the written demand of any party, be settled by arbitration in accordance with the Construction Industry Arbitration
Rules of the American Arbitration Association. Costs and expenses of such arbitration (with the exception of cost
of legal counsel representing, and witnesses called by, a party, which will be borne by such a party) will be borne
equally by the parties. Judgment upon the award rendered by the Arbitrators may be entered in any court having
(7) NOTICES. Any notice required or permitted hereunder will be deemed sufficient if given in writing and
delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or delivered
to a nationally recognized express mail service, charge prepaid, receipt obtained, to the address shown below or to
such other persons of addresses as are specified by similar notice.
If to (CONTRACTOR): If to RHA:
INSERT ADDRESS INSERT ADDRESS
(8) SEVERABILITY. In the event that any clause or provision of this Agreement or any part thereof will be
declared invalid, void, or unenforceable by any court having jurisdiction, such invalidity will not affect the
validity or enforceability of the remaining portions of this Agreement, unless the result would be manifestly
inequitable or unconscionable.
(9) DELIVERABLES AND PAYMENT. (CONTRACTOR) will prepare an Energy Audit Report which will
identify (without specifications and drawings) the existing site conditions related to utility use; the results of the
historic utility records analyses; measured data and inventories; costs, savings, and paybacks for retrofits
identified in Section (2) - SCOPE; and recommendations for utility-related improvements to the Facilities. Such
Report will also describe the services that (CONTRACTOR) will provide under an Energy Services Agreement,
and a project cashflow analysis. (CONTRACTOR) will submit the Report within ninety days (90) of receipt of all
data from the RHA as described in Section (3). RHA will have thirty (30) days to review and comment on the
Report, and (CONTRACTOR) will have thirty (30) days to respond to such comments.
RHA will pay to (CONTRACTOR), within thirty (30) days of receipt of such amended Report, the firm fixed
price of INSERT COST for completion of the Energy Audit Report including the sites in Appendix A, unless the
option described below is accepted by the RHA.
At the option of RHA and consistent with the proposal submission of (CONTRACTOR), the entire Energy Audit fee
may be delayed until the closing of the Energy Services Agreement, and paid directly from proceeds available from
the project financing if an Energy Services Agreement can be negotiated within one hundred twenty (120) days of
submission of the Final Report, subject to notification by RHA to (CONTRACTOR) that this option is being
selected. Should RHA determine with (CONTRACTOR) that an Energy Services Agreement will not be executed
within one hundred twenty (120) days of submission of the Final Report, the final payment shall be due and payable
Any work performed at the request of RHA mutually agreed to be beyond the scope of the Energy Audit Report, as
detailed in Section (2), above, will be performed under written change order and will be charged on a time and
expense basis at the rates indicated in Appendix B, attached hereto and made a part hereof.
(a) (CONTRACTOR) shall maintain, throughout the term of this Agreement, insurance for this project as
itemized in this paragraph, and shall name the RHA as an additional insured for Commercial General Liability
insurance coverage as follows: 1) Commercial General Liability in the amount of One Million Dollars
($1,000,000) in compliance with the statutes of the State of Illinois and with an A-rated company. Such coverage
will indemnify the RHA against all claims and demands for injury or death of persons or damage to property
which may be claimed to have occurred upon, or as a result of, the negligence of (CONTRACTOR) and/or its
subcontractors’ employees, agents, licensees, or invitees, in the performance of this Agreement; 2) Worker’s
Compensation Insurance in the statutory amount; 3) Automobile Insurance on all owned, non-owned, and hired
vehicles used in connection with the project with a combined single limit for bodily injury and property damage
of not less than five hundred thousand dollars ($500,000) per occurrence; and 4) for professional design and
engineering services under this Agreement, Professional Liability Insurance in the amount of One Million Dollars
($1,000,000) with an A-rated company recognized in the State of Illinois.
(b) Such insurance shall remain in full force and effect over the period of this Agreement. Thirty (30) days
notice shall be provided to RHA by (CONTRACTOR) should any adverse changes in insurance coverage be
(11) TERMINATION. The following will constitute a termination of this Agreement:
(a) The obligation to provide further services under this Agreement may be terminated:
(i). For cause,
1. By either party upon 30 days written notice in the event of substantial failure by the other party to
perform in accordance with the Agreement’s terms through no fault of the terminating party.
2. By (CONTRACTOR):
(A) Upon seven days written notice if (CONTRACTOR) believes that (CONTRACTOR) is being requested
by RHA to furnish or perform services contrary to (CONTRACTOR)’s responsibilities as a qualified professional
services firm; or
(B) Upon seven days written notice if (CONTRACTOR)’s services for the Project are delayed or suspended
for more than 90 days for reasons beyond (CONTRACTOR)’s control.
(C) (CONTRACTOR) shall have no liability to RHA on account of such termination.
(D) If (CONTRACTOR) should conclude, as a result of the engineering analysis, that entering into the ESA
would not result in sufficient utility savings to RHA to financially structure the project so that the installation
costs plus other project costs can be paid from said savings, (CONTRACTOR) may so notify RHA and
(CONTRACTOR) may recommend to RHA termination of the Audit. RHA will review all pertinent data and
(CONTRACTOR) analyses and will notify (CONTRACTOR) within thirty (30) days of (CONTRACTOR)’s
notification of its desire to terminate, whether (CONTRACTOR) may so terminate or must complete the utility
audit. Upon request, (CONTRACTOR) will provide RHA with any computerized results, notes or others analyses
already in written form as a result of (CONTRACTOR)’s Energy Audit.
Notwithstanding the above provisions, if, upon (CONTRACTOR) personnel becoming aware of information on
the Facilities which substantially deviates from the operating and utility consumption information provided by
RHA on such Facilities (specifically: utility bills, square footage, type of structure, type of HVAC equipment,
method of heating, cooling, providing domestic water/sewer service, and lighting), and the information does not
allow for a reasonable projection of utility savings to be made, then, provided that RHA is not responsible for
inaccuracies in the actual utility bills, (CONTRACTOR) will submit written notice to RHA of the erroneous
information prior to undertaking any actual field Audit work other than meter verification. RHA will have fifteen
(15) business days to review and correct the information. If, in the event that with the corrected data,
(CONTRACTOR) cannot produce a reasonable projection of utility savings and/or sufficient savings to cover
costs, RHA will then pay (CONTRACTOR) for its time incurred on the basis of percent complete utilizing the
total fixed price outlined in Section 9, above. Reimbursables including out of pocket expenses for the following
items: travel, reproductions, photographic developing, and printing shall also be included as a part of the
3. Notwithstanding the foregoing, this Agreement will not terminate as a result of a substantial failure under
paragraph (11).(a).(i).1 if the party receiving such notice begins, within seven days of receipt of such notice, to
correct its failure and proceeds diligently to cure such failure within no more than 30 days of receipt of notice;
provided, however, that if and to the extent such substantial failure cannot be reasonably cured within such 30 day
period, and if such party has diligently attempted to cure the same and thereafter continues diligently to cure the
same, then the cure period provided for herein shall extend up to, but in no case more than, 60 days after the date
of receipt of the notice.
(ii). For convenience, by RHA effective upon the receipt of notice by (CONTRACTOR). In the event of
termination for convenience, RHA will then pay (CONTRACTOR) for its time incurred on the basis of
documented hours and associated reasonable expenses.
(b) The terminating party under paragraphs (11).(a).(i) or (11).(a).(ii) may set the effective date of
termination at a time up to 30 days later than otherwise provided to allow (CONTRACTOR) to demobilize
personnel and equipment from the Project site, to complete tasks whose value would otherwise be lost, to prepare
notes as to the status of completed and uncompleted tasks, and to assemble Project materials in orderly files.
12) HAZARDOUS MATERIALS. The RHA recognizes that (CONTRACTOR) shall have no responsibility under
this Agreement relating to (a) asbestos, materials containing asbestos, or the existence, use, detection, removal,
containment or treatment thereof, (b), polychlorinated biphenyl (PCB), (c) lead-based paint, (d) oil, or (e)
pollutants, hazardous wastes, hazardous materials, contaminants, or the dispersal, discharge, leakage, use,
detection, removal, containment or treatment thereof. The materials and activities listed in the foregoing sentence
are referred to herein as "Excluded Materials and Activities." The RHA agrees that if the work performed by
(CONTRACTOR) under this Agreement involves any Excluded Materials or Activities, the RHA will bear the
sole risk and responsibility thereof. Any services required by the presence of Excluded Materials or requiring
Excluded Activities are not a part of (CONTRACTOR)’s services under this Agreement. In furtherance of the
foregoing, the RHA agrees to release, indemnify, defend and hold harmless (CONTRACTOR), its consultants and
their officers, agents, and employees (collectively, "the Releasees") of and from all costs, claims, damages, and
liability arising out of or relating to Excluded Materials and Activities, acts or omissions of the Releasees, the
RHA or third parties relating thereto, or injury caused thereby excepting only such costs, claims, damages, or
liability as are solely the result of any willful misconduct of any of the Releasees.
13) LIMITATIONS. (a) The services of (CONTRACTOR) under this Agreement are limited to furnishing
cost-effective energy savings recommendations. In addition, (CONTRACTOR) will provide, as appropriate,
implementation guidelines for energy savings recommendations, which may include designs, drawings and/or
specifications. However, because (CONTRACTOR) is not being engaged under this Agreement to perform
services in connection with the implementation of its recommendations, (CONTRACTOR) will have no control
over such implementation by the RHA or any third party. Accordingly, (CONTRACTOR) specifically and
expressly disclaims all responsibility for the use of such documents by the RHA or any third party. RHA hereby
agrees to indemnify and hold harmless (CONTRACTOR) for any liability, loss, cost, expense, or damage which
may result from the use of the documents provided by (CONTRACTOR) hereunder in the implementation of the
energy savings recommendations made by (CONTRACTOR) without its continued involvement.
(b) (CONTRACTOR) will be available to provide engineering services to RHA in connection with the
implementation of any or all of the energy savings recommendations made by (CONTRACTOR). Such services
shall be in addition to the services provided by (CONTRACTOR) hereunder, and the scope, terms and conditions
of such services shall be subject to a future agreement or amendment hereto between the parties.
(c) (CONTRACTOR)’s evaluations of energy costs, costs of implementation of energy savings recommendations,
energy savings, and calculations and analyses derived from those evaluations represent (CONTRACTOR)’s best
judgment as an experienced and qualified professional using sound engineering and accounting practices. It is
recognized, however, that neither the RHA nor (CONTRACTOR) has control over the cost of energy, labor,
materials or equipment, or contractors' methods of determining their prices, or over competitive bidding, market
or negotiating conditions. Accordingly, (CONTRACTOR) cannot and does not represent or guaranty that actual
energy costs, implementation costs, or energy savings, if any, will not vary from the estimates and evaluations
prepared by (CONTRACTOR) and submitted to the RHA.
(d) To the fullest extent permitted by law, the total liability, in the aggregate, of (CONTRACTOR) and
(CONTRACTOR)’s officers, directors, employees, agents, and independent professional associates and
consultants, and any of them, to the RHA and any one claiming by, through or under the RHA, for any and all
injuries, claims, losses, expenses, or damages whatsoever arising out of or in any way related to
(CONTRACTOR)’s services or this Agreement, from any cause or causes whatsoever, including but not limited
to, the negligence, errors, omissions, strict liability, breach of contract, breach of warranty of (CONTRACTOR) or
(CONTRACTOR)’s officers, directors, employees, agents or independent professional associates or consultants,
or any of them, shall not exceed the total compensation received by (CONTRACTOR) under this Agreement.
Further, (CONTRACTOR) shall not be liable to RHA for losses, damages or claims (1) which are discovered by
RHA more than one year after the completion of the portion of the services which is involved, or (2) as to which
RHA fails to give notice to (CONTRACTOR) within a reasonable time, not to exceed 90 calendar days from the
discovery thereof. The provisions of this clause shall survive termination or cancellation of this Agreement and
the completion of services performed hereunder.
(14) GOVERNING LAW. This Agreement will be governed by the laws of the State of Illinois, and any
action hereunder will be brought in said state.
(15) PARTIES BOUND. This Agreement will be binding upon and inure to the benefit of the parties hereto
and their respective heirs, executors, administrators, legal representatives, successors, and assigns.
(16) CONTRACT COMPOSITION. The following documents are hereby incorporated by reference and
constitute this Agreement: "RHA Request for Proposals" dated DATE, and "Proposal” dated DATE, and related
submissions, including any amendments and/or written responses to questions for a best and final offer or during
the interview phase. In the event that the content of a provision of any document shall differ from that found in
another, the contracts documents shall have the following order of precedence:
1. Energy Audit Agreement;
2. Oral interview materials & submissions
3. Proposal and Response to RHA dated INSERT DATE;
4. RHA Request for Proposal
(17) PRIOR AGREEMENT SUPERSEDED. This Agreement constitutes the sole and only Agreement of the
Parties hereto and supersedes any prior understandings or written or oral agreements between the parties
respecting within subject matter.
(18) ASSIGNMENT. This Agreement may not be assigned, delegated, or otherwise transferred without the
prior written approval of RHA and (CONTRACTOR), which approval shall not be unreasonably withheld,
conditioned or delayed, except that this Agreement may be assigned by (CONTRACTOR), in whole, but not in
part, without such consent to one of its Affiliates. In no event shall any transfer or assignment of the Agreement
relieve the transferring or assigning Party liability hereunder.
ROCKFORD HOUSING (CONTRACTOR)
By: ___________________________ By: _______________________
Executive Director TITLE
Schedule of Hourly Rates and Reimbursable Expenses
(Applies in the Event of Termination or Change Order)
Rates as of INSERT DATE
Vice Presidents $
Sr. Project Manager $
Professional Engineer $
Energy Engineer $
Project Financial Analyst $
Administrative Assistant $
CONFLICT OF INTEREST
DAVIS BACON PREVAILING WAGE RATE
(For Construction Only - To be included with Energy Service
RHA SECTION 3 PROGRAM
IMPORTANT – ALL BIDDERS MUST COMPLY
SECTION 3 PURPOSE
Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C.
1701u) (Section 3) requires the RHA to ensure that employment and other economic and
business opportunities generated by the Department of Housing and Urban Development
(HUD) financial assistance, to the greatest extent feasible, are directed to public housing
residents and other low-income persons, particularly recipients of government housing
assistance, and business concerns that provide economic opportunities to low- and very-
low income persons.
RESIDENT HIRING REQUIREMENTS
The RHA has adopted the following threshold for resident hiring that is to be used on all
construction contracts, service contracts and professional service contracts that contain a
labor component unless the Contractor qualifies as a Section 3 Business Concern as
identified under the “Definitions” section of this document. It is expected that an
appropriate number of residents with particular qualifications or a willingness to begin
unskilled labor will be able to participate in RHA contracted labor efforts. A prime contractor
may satisfy RHA’s resident hiring requirements through its own work force, its
subcontractors or any combination thereof.
TOTAL CONTRACT RESIDENT AS A % OF TOTAL
AMOUNT FOR CONSTRUCTION OR LABOR DOLLARS
$25,000 or more 5% of the labor dollars
It is expected that an appropriate number of RHA public housing residents and
neighborhood residents with particular qualifications or willingness to begin unskilled labor
will be able to participate in contracted labor efforts. A prime contractor, through its
subcontractor(s), may satisfy RHA’s resident hiring requirement set forth above.
11. Subcontract or joint venture with a resident owned business. The business must be
51% or more owned by RHA public housing residents, or subcontract/joint venture with
a business that employs full-time, 30% or more RHA residents, or low and very-income
individuals within the City of Rockford or other qualified low income persons in the
United States, or
32. Direct hiring of RHA’s public housing residents and/or low and very low-income
neighborhood residents based on the Resident Hiring Scale, or
3. Contractor incurs the cost of providing skilled training for residents in an amount
commensurate with 5% of the total contract amount, or
4. Contractor makes a contribution to RHA’s Education Fund to provide assistance
to residents to obtain training. The level of contribution would be commensurate
with 5% of the total contract amount.
Preference for Contracting with Section 3 Business Concerns
The RHA, in compliance with Section 3 regulations, will require contractors and
subcontractors (including professional service contractors) to direct their efforts towards
contracts to Section 3 business concerns in the following order of priority:
1• Category 1: Business concerns that are 51% or more owned by residents of the
housing development for which the work is performed, or whose full-time, permanent
workforce includes 30% of these persons as employees.
3• Category 2: Business concerns that are 51% or more owned by residents of the
Authority’s public housing development(s) other than the housing development where
the work is to be performed; or whose full-time permanent workforce includes 30% of
these persons as employees.
4• Category 3: HUD Youthbuild programs being carried out in the city of Rockford in
which Section 3 covered assistance is expended.
6• Category 4: Business concerns that are 51% or more owned by a Section 3
resident(s), or whose permanent, full-time workforce includes no less than 30% Section
3 residents (category 4 business); or that subcontract in excess of 25% of the total
amount of subcontracts to Section 3 business concerns.
Contractors and subcontractors are expected to extend to the greatest extent feasible,
efforts to achieve the numerical goals established by the RHA.
Contractor’s Requirements in Employing Section 3 participants:
Under the RHA’s Section 3 Program, contractors and subcontractors are required to:
1• Provide employment opportunities to Section 3 residents/participants in the priority order
1a) Category 1 – Section 3 Resident
Residents of the housing development or developments for which the
contract shall be expended.
0 b) Category 2 – Section 3 Resident
Residents of other housing developments managed by the Rockford Housing
3c) Category 3 – Section 3 Resident
Participants in HUD Youthbuild program being carried out in the project
d) Category 4 – Section 3 Resident
Residents of Section 8 of the Rockford Housing Authority as well as all other
residents residing in the City of Rockford who meet the income guidelines for
Section 3 preference (refer to Section 3 Income Limits available from the
RHA Section 3 Coordinator).
4• After the award of contracts, the contractor must, prior to beginning work, inform the
Section 3 Coordinator of the following:
6• names of the Section 3 business concerns to be utilized,
7• estimates of the number of employees to be utilized for contract,
9• projected number of available positions, to include job descriptions and wage
rates (construction wages consistent with Davis Bacon),
11• efforts that will be utilized to seek Section 3 participants.
Low-income person – families (including single persons) whose incomes do not exceed
80 per centum of the median income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that the Secretary may establish income
ceilings higher or lower than 80 per centum of the median for the area on the basis of the
Secretary’s findings that such variations are necessary because of prevailing levels of
construction costs or unusually high or low-income families.
Section 3 Business Concern – a business concern,
1) That’s 51 percent or more owned by Section 3 resident: or
22) Whose permanent, full-time employees include persons, at least 30 percent of
whom are currently Section 3 residents, or within three years of the date of first
employment with the business concern were Section 3 residents; or
43) That provides evidence of a commitment to subcontract in excess of 25
percent of the dollar award of all subcontractors to be awarded to business
concerns that meet the qualifications set forth in paragraphs 1 or 2 above.
Section 3 Clause
All Section 3 covered contracts shall included the following clause (referred to as the Section 3
A. The work to be performed under this contract is subject to the requirements of Section 3 of
the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3).
The purpose of Section 3 is to ensure that employment and other economic opportunities
generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the
greatest extent feasible, be directed to low- and very low-income persons, particularly
persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135,
which implement Section 3. As evidenced by their execution of this contract, the parties to
this contract certify that they are under no contractual or other impediment that would prevent
them from complying with the part 135 regulations.
C. The contractor agrees to send to each labor organization or representative or workers with
which the contractor has a collective bargaining agreement or other understanding, if any, a
notice advising the labor organization or workers’ representative of the contractor’s
commitments under this Section 3 clause, and will post copies of the notice in conspicuous
places at the work site where both employees and applicants for training and employment
positions can see the notice. The notice shall describe the Section 3 preference, shall set
forth minimum number and job titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every subcontract subject to
compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as
provided in an applicable provision of the subcontract or in this Section 3 clause, upon a
finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The
contractor will not subcontract with any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in violation of the regulations in 24 CFR
E. The contractor will certify that any vacant employment positions, including training
positions, that are filled (1) after the contractor is selected but before the contract is executed,
and (2) with persons other than those to whom the regulations of 24 CFR part 135 require
employment opportunities to be directed, were not filled to circumvent the contractor’s
obligations under 24 CFR part 135.
F. Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions,
termination of this contract for default, and debarment or suspension from future HUD
G. With respect to work performed in connection with Section 3 covered Indian housing
assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b)
requires that to the greatest extent feasible (i) preference and opportunities for training and
employment shall be given to Indians, and (ii) preference in the award of contracts and
subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 to the maximum extent
feasible, but not in derogation of compliance with section 7(b).
CONFLICT OF INTEREST STATEMENT
No employee, officer, or agent of the ROCKFORD HOUSING AUTHORITY shall participate in
the selection, or in the award or administration of a contract if a conflict of interest, real or
apparent, would be involved. Such a conflict would arise when a financial or other interest in a
firm selected for award is held by:
a. The employee, officer, or agent involved in the making of the award;
b. Any member of his or her immediate family;
c. His or her partner; or
d. An organization which employs, or is about to employ, any of the above.
Furthermore, no member or delegate to the Congress or Resident Commissioner of the United
States of America shall be admitted to any share or part of this contract or to any benefit to
Minority Business Enterprise (MBE), Women-Owned Business Enterprise
(WBE), and Disabled Business Enterprise (DBE) Program Goals
ASSISTANCE TO SMALL AND OTHER BUSINESSES
A. REQUIRED EFFORTS
1.Consistent with Presidential Executive Order 11625, 12138, and 12432, and Section 3
of the HUD Act of 1968, the RHA shall make efforts to ensure that small and minority-
owned businesses, women's business enterprises, labor surplus area businesses, and
individuals or firms located in or owned in substantial part by persons residing in the
of a RHA project are used when possible. Such efforts shall include, but shall not be
a. Including such firms, when qualified, on solicitation mailing lists;
b. Encouraging their participation through direct solicitation of bids or
proposals whenever they are potential sources;
c. Dividing total requirements, when economically feasible, into smaller tasks or
quantities to permit maximum participation by such firms;
d. Establishing delivery schedules, where the requirement permits, which
encourage participation by such firms;
e. Using the services and assistance of the Small Business Administration, and
the Minority Business Development Agency of the Department of Commerce;
f. Including in contracts a clause requiring contractors, to the greatest extent
feasible, to provide opportunities for training and employment generated
from the expenditure of section 3 covered to section 3 residents in the order
of priority prescribed in 24 CFR 135.34(a), and to award section 3 covered
subcontracts to section 3 business concerns in the order of priority
prescribed in 24 CFR135.36 (a). g requiring prime contractors, when
subcontracting is anticipated, to take the positive steps listed in A.l.a.
2. Goals may be established by the RHA periodically for participation by small
businesses, minority-owned businesses, women's business enterprises, labor
surplus area businesses, and business concerns which are located in, or owned
in substantial part by persons residing in the area of the project, in the RHA's
prime contracts and subcontracting opportunities.
1. A small business is defined as a business which is: independently owned;
2. A minority-owned business is defined as a business which is at least 51%
owned by one or more minority group members; or, in the case of a publicly-
owned business, one in which at least 51% of its voting stock is owned by one
or more minority group members, and whose management and daily business
operations are controlled by one or more such individuals. Minority group
members include, but are not limited to Black Americans, Hispanic Americans,
Native Americans, Asian Pacific Americans, Asian Indian Americans, and
Hasidic Jewish Americans.
3. A women's business enterprise is defined as a business that's at least 51%
owned by a woman or women who are U.S. citizens and who also control or
operate the business.
4. A labor surplus area business is defined as a business which, together with its
immediate subcontractors, will incur more than 50% of the cost of performing
the contract in an area of concentrated unemployment or underemployment, as
defined by the U. S. Department of Labor in 20 CFR 654, Subpart A, and in lists
of labor surplus areas published by the Employment and Training
5. A Section 3 Business concern is defined as; (a.) That is 51% or more owned by
Section 3 Residents; or (b.) Whose permanent, full-time employees include
person, at least 30% of whom are currently Section 3 Residents, or within three
years of the date of first employment with the business concern were Section 3
Residents; or (c.) That provides evidence of a commitment to subcontract in
excess of 25% of the dollar award of all subcontracts to be awarded to business
concerns that meet the qualifications set forth in paragraphs (a) or (b) in this
definition of "Section 3 business concern."
REQUIRED CERTIFICATIONS AND FORMS
HUD 5369-B INSTRUCTIONS TO OFFERORS NON-CONSTRUCTION
HUD 5369-C CERTIFICATIONS AND REPRESENTATIONS OF
CERTIFICATE OF CORPORATE PRINCIPAL
HUD 5370-C GENERAL CONTRACT CONDITIONS NON-
HUD 5370 GENERAL CONTRACT CONDITIONS (For Construction
State of: _______________________
County of: __________________________
_______________________________________________ being first duly sworn,
The he/she is ______________________________the party making the
foregoing proposal or bid, that such proposal or bid is genuine and not Collusive or a
Sham; that said proposer has not Colluded, Conspired, Connived, or Agreed, directly or
indirectly, sought by agreement or collusion, or communication or conference, with any
person, to fix the bid price or affiant of any other proposer, or to fix any overhead, profit,
or cost element of said bid price, or of that of any other proposer, or to secure any
advantage against the Rockford Housing Authority or any person interested in the
proposed contract, and that all statements in said proposal or bid are true.
Bidder, if the bidder is an individual
Partner, if the Bidder is a Partnership
Officer, if the Bidder is a Corporation
Subscribed and sworn to before me this _____ day of _______________
My Commission Expires on _________________________, 200__
CERTIFICATE AS TO CORPORATE PRINCIPAL
I, , certify that I am the
(Name of Secretary of Corporation)
Secretary of the Corporation named as Principal in the within Contract;
that who signed the said Contract on
(Name of Signatory)
behalf of the Principal was then of
said Corporation; that I know his/her signature, and his/her signature thereto is genuine; and that said
Contract was duly signed, sealed, and attested to, for and in behalf of said Corporation by authority of
its governing body.