OHIO POWER COMPANY (“AEP OHIO”) REQUEST …c.ymcdn.com/sites/ POWER COMPANY (“AEP OHIO”)...

OHIO POWER COMPANY

(“AEP OHIO”)

REQUEST FOR PROPOSAL For an Implementation Contractor for

Business Energy Efficiency Program

June 17, 2014

Intent to Bid Due: Monday, June 30, 2014, 5:00 p.m. EST

Proposal is Due: Monday, July 21, 2014, 5:00 p.m. EST

For more information

Contact:

Jennifer L. Downey American Electric Power (“AEP”)

[email protected]

Phone: 614.552.2136

IN ORDER TO PARTICIPATE YOU MUST BE REGISTERED IN AEP’S SUPPLIER DATABASE. ALL PROPOSALS MUST BE SUBMITTED ELECTRONICALLY THROUGH THAT DATABASE. TO GET REGISTERED, PLEASE

CONTACT JENNIFER DOWNEY

Request for Proposal

AEP Ohio Business Energy Efficiency Programs June 17, 2014

Table of Contents

1.0 Introduction 2.0 General Requirements 3.0 Prescriptive 4.0 Custom 5.0 New Construction 6.0 Express 7.0 Self-Direct 8.0 Retro-commissioning 9.0 Business Program Outreach 10.0 Incentive Processing 11.0 Call Center Services 12.0 Marketing Services 13.0 General Implementation 14.0 EM&V 15.0 Incentive Processing and Data Tracking 16.0 Performance Goals 17.0 Qualifications, Experience and Management Plan 18.0 Budget

1.0 Introduction

Ohio Power Company (“AEP Ohio”), a subsidiary of American Electric Power and the largest of its regional utility divisions, serves nearly 1.5 million customers in Ohio, approximately 214,000 (104,000 small or ‘Express’) of which are business sector accounts. We provide power to more than 920 communities located in 61 of the state’s 88 counties. Our headquarters is in Gahanna, Ohio.

AEP Ohio is issuing this Request for Proposal (“RFP”) for the selection of experienced implementation contractor(s) capable of providing cost-effective, turnkey services for the six business energy efficiency programs and four comprehensive services:

• Prescriptive • Custom • New Construction • Express • Self-Direct • Retro-commissioning • Business Program Outreach Services • Incentive Processing Services • Call Center Services • Marketing Services

AEP Ohio seeks experienced, motivated implementation contractor(s) who can provide leadership and pro-active initiatives and strategies leading to highly cost effective and customer focused results within budget. The selected program implementer(s) must oversee delivery of results, and quality assurance of the program(s). Contractor(s) may submit RFP(s) for one or multiple programs. For background information, Contractors may reference the AEP Ohio 2012-2014 Portfolio Plan, specifically plan year 2014; and the 2013 Status Report filed May 15, 2014 for program result information.

1.1 Due Date and Submission of Proposal Proposals must be received no later than 5:00 p.m., EST on July 21, 2014. Proposals shall be submitted electronically via the Ariba system, formatted as a Microsoft (MS) Word document or Adobe Acrobat Reader.pdf file. The entire proposal should be contained in a single file with the addition of the budget portion which should be contained in the excel format provided in the example excel file. AEP Ohio reserves the right to reject as non-responsive any proposals that do not contain the information requested in this RFP. Late proposals will be rejected. AEP Ohio is not liable for any costs incurred by any person or firm in responding to this RFP or while participating in the final interview process.

1.2 Intent to Bid Contractors are required to submit an “intent to bid” no later than 5:00 p.m., EDT on June 30, 2014. Contractors will submit their intent to bid in the Ariba system.

1.3 Question and Answer Process

All questions related to RFP process, budgets, costs, or other general information must be submitted in writing on or before close of business on July 9, 2014. Questions and answers will be sent via the Messages tab within the Ariba system.

1.4 RFP Schedule The program(s) delivery period for AEP Ohio is January 1, 2015 through December 31, 2016 with optional annual extension(s). These dates illustrate when the program(s) will be delivered to AEP Ohio’s customers. The actual contract term may begin before the dates identified to allow the Contractor to work with AEP Ohio to design and prepare the program(s) for launch.

Note: Contract start dates and lengths are estimated and subject to regulatory approval.

Table 1 shows estimated completion dates for Contractor selection and various tasks surrounding this initiative. The below schedule is subject to change at the discretion of the AEP Ohio.

Table 1

Task Estimated Date

Issue RFP June 17, 2014 Intent to bid response due June 30, 2014

RFP question period ends July 11, 2014

Proposals due July 21, 2014

Interview finalists and contract negotiations

July 28, 2014- August 8,

2014

Contract Award August 15, 2014

1.5 Post Proposal Negotiation and Awarding of Contracts

AEP Ohio reserves the right to negotiate both price and non-price factors during any post-proposal negotiations with a finalist. AEP Ohio has no obligation to enter into an agreement with any respondent to this RFP and may terminate or modify this RFP at any time without liability or obligation to any respondent. This RFP shall not be construed as preventing AEP Ohio from entering into any agreement that it deems appropriate at any time before, during or after this RFP process is complete.

1.6 Minimum Qualifications Criteria

The Contractor responding to this RFP must have at least the following qualifications to be considered for selection:

• At least five years of experience with design, delivery, and marketing for utility sponsored energy efficiency programs.

• Ability to conduct work immediately upon contract execution.

• Track record of successfully implementing the program(s).

1.7 Proposal Format

The proposal should be organized into the following sections in either Microsoft Word files or Adobe Acrobat pdf files. The table of contents and organization of the proposal must be ordered as described below. Please include as many subdivisions as deemed necessary.

• Cover Letter; o The cover letter should reference the RFP name and include the

bidder’s name, address, telephone number, a single point of contact within your organization and their email address. Also include the names of all proposed subcontractors (if any).

• Executive Summary;

• Proposed Approach to Scope of Work;

• Proposed Schedule;

• Management Plan;

• Client References;

• Conflict of Interest;

• Legal Claims;

• Financial Information Requirements;

• Budget; and • Appendices.

Note: Proposals shall not exceed 100 pages total, including appendices.

2.0 General Requirements

1. Maintain strict confidentiality of all customer information including, but not limited to, personally identifiable information (PII).

2. Maintain and provide appropriate program and category cost allocations to AEP Ohio.

3. Provide strategic input to AEP Ohio yearly marketing plans through developed template and support execution of the plan.

4. Collect and input data on Program activities, expenditures, and results into AEP Ohio database and tracking system.

5. Develop a structured meeting schedule (weekly, monthly, and quarterly) with AEP Ohio.

6. Develop meeting agendas that cover status of ongoing projects, new action items and year-to-date performance discussion.

7. Develop a proposed service level plan that clearly defines customer service levels for the program.

8. Coordinate as necessary with AEP Ohio’s Evaluation, Measurement and Verification (“EM&V”) Contractor regarding Program data tracking.

9. Develop a clear, concise delivery work plan with corresponding timetable, and budget for implementation.

10. Establish quality control measures to ensure professional services are delivered; ensure that energy savings goals are met, and that funds are accounted for properly.

11. Use generally accepted management and accounting procedures in implementing the Program.

12. Provide the necessary support to integrate into the AEP Ohio on line application and tracking and reporting system at AEP Ohio request if the tool will enhance program delivery.

13. Provide a flat file, if required, that can be uploaded to AEP Ohio’s tracking and reporting system. AEP Ohio shall provide the specific file format required and process for transmitting data on a daily, weekly or monthly basis.

14. During the course of the Program the contractor shall furnish the entire database, all current application information, and all other required information to AEP Ohio on a timely basis. Upon termination and/or completion, any remaining data base entries, application information and all other required information will be furnished to AEP Ohio on a timely basis.

15. Any modifications to Contractor’s software or systems shall be at Contractor’s sole expense, unless AEP Ohio requests and approves significant changes after the systems have been constructed.

16. In-house rebate processing is under consideration at AEP Ohio. All bidders are requested to provide cost(s) both with and without rebate processing.

17. Contract term expectation is two years (2015-2016) with optional annual extension(s). Upon execution of contract, Implementation Contractor is expected to set up operations and begin full operation beginning January 1, 2015.

18. AEP Ohio is interested in opportunities to increase economic development in the state of Ohio. Indicate location of primary operations office for each program(s); identify positions that will be located in AEP Ohio territory dedicated to the AEP Ohio Program(s).

19. Proposal length should be no more than 100 pages, including appendices.

20. Indicate all economies and savings associated if bidding multiple programs.

21. Attach completed pricing matrix spreadsheet for applicable program(s) and indicate the amount of kWh savings achievable with provided maximum budget. Marketing costs will be limited to providing strategic input into yearly marketing plan and development of materials for program technical presentations such as webinars and is considered to be less than one FTE and does not need to be local. All other materials will be produced by AEP Ohio.

22. Provide the current safety policy and include safety related documentation.

2.1 Key Objectives

1. Measure and demonstrate improved customer satisfaction and customer experience from the Program.

2. Achieve cost-effective annual energy savings goals that exceed those identified in the attached pricing matrix.

3. Coordinate, implement, and oversee day-to-day operations of programs on behalf of AEP Ohio.

4. Maximize administrative efficiencies and cost savings to achieve savings under the cost budget identified in the attached pricing matrix.

5. Maintain a flexible process to allow for changes to be made to achieve performance results, customer satisfaction and ensure delivery of quality program services.

6. Maintain reliable administrative processes and monitoring systems that allow for ongoing evaluation of program effectiveness.

7. Deliver award winning programs based on “best practices” from the energy efficiency industry.

8. Implement programs under AEP Ohio’s marketing umbrella to help build educational outreach and broaden awareness.

9. Develop AEP Ohio as “The Trusted Energy Advisor” to AEP Ohio Customers by being the face of AEP Ohio (not the Implementation Contractor).

3.0 Prescriptive

3.1 Scope of Work

All business (non-residential) customers in AEP Ohio’s service territory are eligible to participate in this program. The program provides a simple and easy way to help fund common energy efficiency projects in existing facilities and new construction projects. A

standard menu of incentives, updated annually based on customer participation levels, competitive incentive pricing and market conditions, includes lighting, heating, ventilation, and air conditioning (HVAC), motor drives, refrigeration, and food preparation and storage equipment. Three primary objectives will focus on increasing market share, installation rates, and operating efficiency. Additionally, a midstream component for specific lighting and equipment measures to make efficiency available for small projects where an application is a barrier to participation and also to encourage energy efficiency choices at the point of sale with lighting and equipment distributors is included.

3.2 Incentive Strategy

Incentives will be offered to customers installing qualifying measures. Incentives typically ranging from 20 percent to 50 percent of the incremental cost to purchase energy efficient products will be offered to customers. Incentives may be adjusted to increase cost effectiveness and/or program participation.

3.3 Eligible Measures

Reference AEP Ohio’s existing business program application for our qualified measure list. Recommendations of additional measure(s) or measure removal(s) are welcome.

3.4 Key Success Factors

• Ability to develop a mid-stream lighting component is desirable. • Ability to support and receive data from the online application.

4.0 Custom

4.1 Scope of Work

All business (non-residential) customers in AEP Ohio’s service territory are eligible to participate. The Custom program is for cost-effective energy efficiency improvements that reduce energy consumption and peak demand not already covered by other AEP Ohio programs. All technologies are subject to eligibility and verification of savings. The program assists larger commercial and industrial customers with the analysis and selection of high-efficiency equipment or processes not covered under the Prescriptive program or other program offerings. This program approach identifies more complex energy savings projects, provides economic analysis and aids in the completion of the incentive application.


Incentives will be offered to customers installing qualifying measures. Customers receive an incentive customized to the specific results of the energy savings technologies implemented. Incentives are based on energy savings on a per kWh basis for installed measures. Adjust incentive levels annually as appropriate with

consideration of Bid to Win auction results. Incentives may be adjusted to increase cost effectiveness and/or program participation. 4.3 Eligible Measures



• Ability to have local technical engineering assistance for customers and solution providers is desirable.

• Ability to conduct opportunity site assessments with customers is desirable. • Ability to support and receive data from the online application.

5.0 New Construction

5.1 Scope of Work

All business (non-residential) customers in AEP Ohio’s service territory are eligible to participate in this program. This program is for new construction and major renovation projects to encourage building owners, designers, and architects to exceed standard building practices to achieve efficiency above current building energy code requirements. The program provides interactive design assistance to the architects and engineers that are designing new buildings. The key design assistance tool is building simulation modeling of more efficient building designs.


The program provides incentives to new facility owners for the installation of high-efficiency lighting, HVAC, building envelope, refrigeration and other equipment and controls. The program provides a marketing mechanism for architects and engineers to promote energy efficient new buildings and equipment to end users. This whole building approach requires fully-executable energy models for evaluation and therefore has incentives for the design team as well as the owner. Incentives may be adjusted to increase cost effectiveness and/or program participation.




Ability to actively provide proactive model consultation and a pre-design enhanced program is desirable.

• Ability to actively provide local proactive model consultation and a pre-design enhanced program is desirable.

• Ability to support development and data interactions with the online application. • Ability to support and receive data from the online application.

6.0 Express

6.1 Scope of Work

The Express Program provides a streamlined, one-stop, turn-key energy efficiency service delivered through a program implementer. The program generates energy savings through program services and incentives to help qualifying customers reduce energy usage and lower energy costs. Incentives for energy efficiency retrofit projects are generally higher than the Prescriptive and Custom Programs, with a designated cap based on a percent of the project costs.

The Express Program targets small business customers, generally indicated as customers with annual energy consumption of 200,000 kWh or less, based on the last 12 months of billing history. Funding for large franchisee-owned national accounts customers are eligible but may be limited to ensure local small business participation. As with residential low income customers, small non-profit customers may need additional incentives to afford energy efficiency improvements, and these opportunities will be considered to remove barriers to this group’s participation.

The Express Program is designed to operate with assessment and installations provided by a single Implementation Contractor.


• The program provides incentives to new facility owner. • Implementation contractors or other partners may offer financing to reduce barriers

to small business installation of measures. • Incentives may be adjusted to increase cost effectiveness and/or program

participation. • Participating small businesses receive:

o A free facility assessment to identify potential energy-saving opportunities o A proposal that includes a list of recommendations and estimates of energy

savings, project cost and payback period o Incentives paid directly to the contractor o Installation of approved energy-savings equipment by a local, trained,

insured, bonded, contractor o Pre- and post-installation inspections to assure quality and to verify energy

savings


Provide a list of lighting, HVAC and refrigeration measures recommended for the Express program.


• Financing with the program is required. • Ability to support and receive data from the online application.

7.0 Self-Direct

7.1 Scope of Work

AEP Ohio commercial and industrial “mercantile” customers that consume more than 700,000 kWh/year or customers that are part of a national account can participate. Projects must be cost effective. The program is designed to capture energy savings and demand reduction from large customers with the capability to administer internal energy management efforts of their own. To participate, customers submit an application, calculation spreadsheets and supporting documentation. The application is reviewed and if approved by AEP Ohio and by the PUCO, a one-time payment is made or an EE/PDR rider exemption is applied. Customers’ accounts accepting an exemption from the rider for a specified number of months are not allowed to participate in any other AEP Ohio EE/PDR programs during the period of exemption. The program allows customers to submit energy efficiency projects that are up to three years old.


Currently, the standard percentage of 75 percent of the calculated incentive under the Prescriptive, Custom, or Data Center Programs for customers applies. Incentives may be adjusted to increase cost effectiveness and/or program participation.




• Ability to support and receive data from the online application. • Ability to complete PUCO application and prepare documents for filing. • Ability to support and receive data from the online application.

8.0 Retro-commissioning

8.1 Scope of Work

The Retro-Commissioning program obtains energy savings through the identification and implementation of low-cost, operational adjustments that improve the efficiency of existing buildings’ operating systems by optimizing the systems to meet the building’s requirements, with a focus on building controls and HVAC systems.

The Retro-commissioning (RCx) Program targets non-manufacturing medium to large commercial customers.

The program includes a detailed application screening process to qualify candidates having the highest potential for successful project completion. The program requires participants to implement all recommended measures that have a simple payback of 2 years or less. In addition, the program operates in a highly controlled manner with significant technical and managerial oversight provided on each project to ensure project success.


• The program provides incentives to fund a portion of the RCx Study. • AEP Ohio also offers financial incentives for assisting customers in overcoming first

cost barriers in implementing RCx study recommendations. The program funds a portion of the initial RCx study in exchange for the customer’s commitment to complete those recommendations with short paybacks. Measure implementation support will be provided by the RSP or solution providers and funded during the retro-commissioning process.

• Incentives may be adjusted to increase cost effectiveness and/or program participation.


Eligible measures will vary depending on the business sector served, but should include at least:

• HVAC systems and controls: Economizers, demand control ventilation, heat/energy recovery ventilators, fan and pump controls, head-pressure controls, setback controls, night venting controls.

• Lighting controls: Occupancy/vacancy controls, photo-sensors, timer controls.

• Motor controls: Variable frequency/speed drives, timer controls.

• Process controls: Where applicable.

• Distribution transformers: Harmonic filtering and harmonic mitigating.


• Ability to provide technical guidance and assist solution providers and customers with RCx study is required.

• Ability to have local technical staff available to meet with end users and Solution Providers regularly is desired.

• Ability to support and receive data from the online application.

9.0 Business Program Outreach Services

9.1 Scope of Work

AEP Ohio requires all business (non-residential) customers to understand the entire portfolio of opportunities to customers and participants in the AEP Ohio programs. To properly convey these opportunities, a single comprehensive outreach entity is required. Outreach will be to solution providers and customers on a regional basis (5 regions throughout Ohio defined by the AEP Ohio service territory). The AEP Ohio commercial database is the vehicle that will connect the outreach professional to solution providers and customers as well as AEP Ohio Customer Services, AEP Ohio commercial call center, AEP Ohio Community Affairs and the technical outreach person(s) or engineering lead from the individual programs (Data Centers, RCx, Custom). The outreach professional will be responsible for coordination of the roles, and ensuring excellent customer support by all connected entities. The AEP Ohio Business Team will have some limited and defined responsibility for outreach to key customers and solution providers and all outreach to Trade and professional associations.

The Business Program Outreach will be coordinated by the AEP Ohio Outreach Manager and will be responsible to identify and enter and detail opportunities to develop a viable, real, time bound pipeline of projects that will meet or exceed program goals.


• Ability to understand and communicate ALL AEP Ohio business programs

• Familiarity and ability to communicate to all segments of AEP Ohio customers

• Ability to translate project details, key milestones and project completion into the data base, extract reports and coordinate an effort with all internal and external parties

• Ability to help customers accurately complete program applications

• Proper regional coverage with defined back-up

• Ability to temporarily fill open regions and permanently fill on an expedited basis.

• Ability to identify through all channels, sufficient opportunities to exceed kWh savings goals without excessive incentives

• Ability to translate a technical message to all levels appropriately

• Ability to help customers identify opportunities for energy efficiency projects

• Ability to build and nourish solid relationships and consistent communications with solution providers, customers, AEP Ohio commercial call center and the AEP Ohio customer service managers and community affairs team

• Ability to plan and execute small meetings, trainings and webinars as directed by the AEP Ohio outreach strategic plan

10.0 Incentive Processing Services

10.1 Scope of Work

The incentive processing function of both Energy Efficiency Business and Consumer Programs are under consideration by AEP Ohio for implementation within AEP Ohio as well as with an implementation contractor. Interested contractors are encouraged to provide a proposal for the Incentive Processing Service. Note that the AEP Ohio Consumer Programs RFP will be released in the near future and may be incorporated in your proposal for economies of scale.


• Ability to send and receive data within AEP Ohio requirements. • Ability to process incentives within each program requirement turnaround time. • Provide all tax and escheatment functions. • Effectively communicate with all AEP Ohio Program Coordinators and Program

implementation contractors..

11.0 Call Center Services

11.1 Scope of Work

AEP Ohio requires call center activities for Business and Consumer Energy Efficiency Programs. Note that the AEP Ohio Consumer Programs RFP will be released in the near future and may be incorporated in your proposal for economies of scale.

The contractor will provide a full service call center facility where calls are placed and received and can handle high volume call periods will little to no wait times for AEP Ohio customers. The Call Center will consist of well trained professionals to answer and address the customers need(s) with customer service and customer satisfaction being the top priority. The vendor will have access to AEP Ohio customer account information and will need to answer program questions, schedule and reschedule appointments, problem-solve, provide completeness of information, complaint resolution, up-sell and cross sell other programs, etc. Contractor must have state-of-the-art telephony equipment with the ability to listen in on calls for quality assurance, record calls, log call volume and have a redundancy process implemented. Calls must be answered between 8am-8pm Monday thru Friday, 8-6pm Saturday.


• Ability to understand and communicate all energy efficiency programs in detail and effectively.

• Ability to meet required call times, hold times, and other data metrics required by AEP Ohio.

• Provide ongoing hiring and training for call center staff. • Provide daily metrics to AEP Ohio. • Provide IVR (voice response systems) capabilities, interactive web chat, voice mail

with call back • Be fully operational and ready to accept inbound calls beginning on January 1, 2015 • Adherence to privacy laws and any other laws associated with call centers • Require previous experience with call centers in particular with energy efficiency and

technical calls.

12.0 Marketing Services

In collaboration with AEP Ohio, contractor will develop a marketing plan that will outline the strategy for each portion of the Business Programs, including a complete strength/weakness assessment, a strategy for responding to each challenge, segmentation strategy, public relations, speech writing, press releases, tactical marketing plans including by not limited to web, social media, direct mail, print, media, email, telemarketing, etc. The Contractor will create compelling messaging and collateral that will resonate with customers. The Contractor will follow AEP Ohio’s branding guidelines and submit all marketing materials and messaging for AEP Ohio’s written approval prior to release.

Contractor will use a variety of methods to determine the effectiveness of the marketing campaigns, including tracking increases in contractor activity, event traffic, web hits, direct mail response, call center intake, calculation of cost per impression (CPM) of all advertising efforts, and the quantity of informational materials disseminated at events. Contractor will also use

customer surveys to assess attitudes, behaviors, and personal characteristics. These surveys will be administered to individuals in a systematic manner through a variety of media (e.g., paper, oral, electronic) using various delivery methods (e.g., face-to-face, telephone, mail, Internet).

Contractor will provide previous overall experience developing marketing plans and materials to support similar programs and how they were tailored to the target audience.

13.0 General Implementation

Key aspects of the Business programs implementation strategy include:

• Solution Provider Recruitment and Training: Solution providers will be a key delivery mechanism for the program as they promote participation and available incentives to their customers. Solution Providers will be recruited to participate in training sessions to inform them about program incentives, participation processes, and requirements. Solution provider training for solution providers able to participate in multiple programs will be coordinated by AEP Ohio

• Customer Recruitment and Outreach: Customers will be recruited by AEP Ohio marketing activity and a consolidated outreach team, AEP Ohio Account Manager referrals, AEP Community Affairs Managers and solution providers. To ensure that commercial and industrial (C&I) customers perceive AEP Ohio EE/PDR programs as a seamless set of offerings, cross-referrals from other programs will also be provided where appropriate.

• Customer/Solution Provider Communication: In order to achieve maximum customer satisfaction levels, on-going project status and program communication letters and emails should be sent.

• Technical Assistance: The program implementation contractor will provide site evaluations and guidance regarding program offerings and participation processes to customers and solution providers as needed to minimize confusion and barriers to participation.

• Application Submittal: Customers and/or implementation contractor will submit incentive applications and required documentation after installation of qualifying energy efficiency measures has been completed.

• Quality Assurance/Quality Control (QA/QC) Review: Incentive applications will be subject to a QA/QC review to ensure all required forms and documentation have been submitted and that the calculation of incentive totals are correct.

• Project Verification: AEP Ohio will reserve the right to site-verify installations prior to approval and incentive payment.

• Incentive Payment: To minimize barriers to participation, AEP Ohio will seek to expedite incentive payment. AEP Ohio may also opt to distribute incentives internally upon receipt of project verification from contractor.

• Customer Satisfaction: AEP Ohio requires each implementation contractor to include surveys to gauge customer satisfaction levels.

• Data Transfer: Program implementation contractor will be required to submit/receive data in a format that is compatible with AEP Ohio’s tracking system at a frequency determined by AEP Ohio.

14.0 EM&V Strategy

All evaluation activities will be conducted by a third-party evaluation contractor. An integrated evaluation approach will be taken which includes addressing evaluation at the onset of program design, collecting evaluation data as part of program administration, assessing and documenting baseline conditions, establishing tracking metrics, as well as conducting primary and secondary research as part of impact and process evaluations.

• The overall goal of the impact evaluation will be to validate/calibrate the deemed savings values and determine program cost-effectiveness. Self-report surveys with both participants and nonparticipants may be used to assess free riders/spillover. The participant and nonparticipant surveys will also address program awareness, barriers to participation, participant satisfaction, and process efficiency. These surveys will be enhanced by collecting market data and assessing trends as well as interviews with program staff, vendors, manufacturers, and other solution providers.

• The process evaluation will be conducted during the first program year and then coordinated with follow-on impact evaluation work to be performed once program-approved measures have been installed and operating for a sufficient time to enable a robust impact evaluation.

Describe your experience and processes used to work with independent Evaluation, Measurement and Verification (EM&V) contractors.

15.0 Incentive Processing and Data Tracking

Describe your previous experience and processes used to process incentive applications, issue incentive checks, track participant and program savings data. Note that AEP Ohio may elect to process incentives in-house. Please provide two separate budgets as indicated on “Business Programs RFP – Budget Matrix”. One budget should reflect if AEP Ohio elects to process incentives in-house and the other budget should reflect if AEP Ohio elects to have the contractor process incentives.

• Please describe your approach to incentive processing. Detail the processes that you have in place internally or with subcontractors (if applicable).

• Describe the software format and database structure you propose to use for tracking participant and savings data, and your ability and flexibility to change formats depending on AEP Ohio’s request. Contractors will be required to submit their data in

a format that is compatible with AEP Ohio’s internal tracking system and database. AEP Ohio’s data tracking and reporting system is hosted by Direct Technology. Please describe if you currently work with other utilities that utilize the Direct Technology solution.

• Please describe your approach to reporting on key program metrics and operational milestones, establishing new performance metrics and milestones as needed, and overall ability to track progress.

• Provide monthly, quarterly and an overall program annual report for each calendar year to AEP Ohio program management. (Web dashboard system is highly preferred with the ability to create various reports; if this method is available, manual reports previously mentioned could be removed from requirements).

• Provide at least bi-monthly extracts and updates to the AEP Ohio database.

• Clearly identify any financing charge, or cost of money that will be passed through to AEP Ohio for rebate processing and check issuing, or ideas for financial arrangements that will minimize or eliminate any financial costs for this service.

16.0 Performance Goals

Referencing the attached spreadsheet entitled “Business Programs RFP – Budget Matrix ”, the Contractor will provide gross annual maximum kWh and kW savings by Program that are realistically achievable with a performance-based contract and their suggested performance structure and terms, within the available budget. All projected savings should be expressed at meter. Estimates on summer peak demand savings alone is sufficient (both PJM and Ohio).

Performance goals are subject to final negotiation between AEP Ohio and contractor prior to contract signing. AEP Ohio reserves the right to review Contractor proposed performance goals and engage in a mutually agreed upon process to revise goals, if deemed necessary. Contractors are invited to propose an approach for any potential revisions of performance goals and reasons for why those goals may need to be revised, based on a contract modification, in the event of changing circumstances or new direction from AEP Ohio. Discuss how the Contractor would prefer to structure this process in a manner that is both an efficient use of time and is cost-effective.

17.0 Qualifications, Experience & Management Plan

For the Management Plan, please describe how the approach to the Scope of Work will be organized and managed. Bidders are requested to describe their firm’s experience and

capabilities in managing, delivering, and implementing the tasks requested in this RFP. Bidders must provide detailed information on their overall core team qualifications and experience.

• Provide a brief description of the bidder’s company and the services it provides including number of employees, office locations and capabilities. Describe the business structure under which the bidder’s typically operate (i.e., -for-profit corporation, not-for-profit corporation, partnership, etc.).

• Include the bidder’s management and organizational chart to accomplish the tasks included in the Scope of Work. Indicate position, title, job responsibilities, and percentage of Full-Time Employee (FTE) equivalent. If available, please specify names and positions of local organization. Clearly specify any subcontractor mark-up percentage.

• Provide the professional experience and resumes of partners, principals and employees in the bidder’s company who will be responsible for, and actively involved in, the provision of professional services related to this RFP including the appropriate evidence of accreditation, certification or licensing in their respective stated professions. Resumes and bios should describe relevant responsibilities from other projects that will help to evaluate the qualifications and experience of key personnel.

• Bidders must clearly specify any subcontractors who are retained by the bidder at the time of the application and/ or who are expected to perform work as a subcontractor in connection with this project. Provide the same detailed information regarding subcontractors’ project staff as requested above for the bidder’s proposed staff. The bidder must obtain the prior written consent from AEP Ohio to use any subcontractors who are not included in the original bid submission.

17.1 Client References

Contractors are requested to provide five (5) references from previous (or preferably current) clients for whom they have performed projects that are relevant to the Scope of Work. References should include a brief synopsis and date of specific services provided, company name and location, contact name, contact title, telephone number and, email address. In the event the contractor is forming a new organization to bid on this proposal, the contractor should provide the related references for the key staff members proposed for the project.

17.2 Conflicts of Interest

Bidders shall disclose any potential or perceived conflicts of interest. The selected Contractor is prohibited from having a financial interest in any enterprise receiving incentive payments or technical assistance under the program(s). Any such interest must be disclosed in the proposal. AEP Ohio reserves the right to approve all

subcontractors. AEP Ohio must be notified of all subcontractors eligible for services under AEP Ohio’s program(s) prior to beginning work.

17.3 Legal Claims

Bidder must identify any pending legal or administrative action to which it is a party, and any judgments that have been rendered against it. AEP Ohio reserves the right to reject any bidder that is party to pending legal action or against which judgments have been rendered, or that has a history of claims against it if AEP Ohio believes that these affect the ability of the bidder to perform.

17.4 Financial Information Requirements

Contractors are requested to demonstrate that they have the financial resources and stability to perform the proposed work.

• Note any other related and pertinent financial information or disclosures that the contractor considers important

• Specify any preferred or desired financial terms which will facilitate your firm’s ability to respond to this RFP

• Contractors must demonstrate that they have the financial resources to perform the proposed work; for example, three years of financial statements for their firm and any significant subcontractors, which should include a profit and loss statement, a cash flow statement, and a balance sheet (SEC form 10-K, or equivalent, is acceptable) and most recent Independent Audit Report

• A non-public or non-profit entity shall provide three years of financial statements comparable to the information required above, that allows an assessment of financial status and capability and most recent Independent Audit Report

• In the event a contractor is forming a new organization to bid on this RFP, the contractor should provide comparable documents from investors, partners, and/or principals

• Contractors must clearly identify the accounting method that they propose to utilize throughout the term of the contract

18.0 Budget

18.1 Compensation and Discount Structures

As an option, AEP Ohio prefers that contractors propose alternative compensation structures, or concept ideas, for consideration. AEP Ohio is interested in meaningful and creative responses that will help ensure goals are achieved. All alternative compensation

structures will be considered and subject to negotiation. Contractors, at their discretion, may propose:

• Performance Incentives & Penalties: Contractors may propose a performance incentive structure which would reward contractors for achieving goals, under budget. The amount of potential performance incentive must be factored out of stated available contractor budgets, after accounting for projected program delivery costs. If contractors propose a performance incentive, then contractors are requested to propose an equivalent penalty structure for failure to achieve goals, or a justification for why a penalty structure is not appropriate.

• Hold Back: Contractors may propose a portion of their invoices be “held back” in good faith, until annual performance goals, processing time, local required positions goals, etc. are achieved. AEP Ohio may propose at contract time, a portion of the invoices be ‘held back’ in good faith, until operational agreements are met.

• Other: Contractors may propose other compensation or performance incentive structures for consideration.

PLEASE NOTE: AEP Ohio seeks to achieve cost efficiencies through the possible selection of a Contractor to implement multiple programs. If more than one program is awarded to the same contractor, there may be an opportunity for cost savings in certain areas of the budget.

AEP Ohio expects the Contractor to outline its budget based on several scenarios. Separate budgets shall be proposed based on the cost of providing services for each individual program.

Note that it is not required for a Contractor to bid on more than one program or service. In fact, Contractors are encouraged only to bid on those programs that they have the highest level of proficiency to deliver cost effectively and with high levels of customer satisfaction. Proposals that indicate a bulk percentage discount for specific multiple programs may not be able to be considered if the contractor is not being considered for one or more of these programs, therefore Table 2 is the best way to discount multiple programs.

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