MOU Between FEMP and DOT on Super Energy Performance Contracting

Memorandum of Understanding
Between
U.S. Department of Energy
Federal Energy Management Program
and the
Department of Transportation
for Participation in the
Department of Energy (DOE) Regional
Super Energy Savings Performance Contracting (ESPC) Contracts

I. BACKGROUND

Passage of the Energy Policy Act of 1992 (EPAct) mandated a 20 percent reduction in energy consumption levels at Federal Facilities by the year 2000. Executive Order 12902 dated March 8, 1994, increased this goal to 30 percent by the year 2005 and stipulated that all cost effective energy and water conservation projects be implemented within this time period. The mandate also included a goal of 20 percent energy savings for Federal Industrial sites.

Congress charged the Department of Energy (DOE) Federal Energy Management Program (FEMP) with a leadership role in Federal energy management. FEMP provides many services to support Federal agencies, including audits, design assistance, training, information, financing support, and promotion. In addition, FEMP is providing a leadership role in implementing Energy Savings Performance Contracting (ESPC), bringing together private sector financing for Federal energy projects, and removing barriers to implementation of ESPC projects. ESPC is authorized by 42 U.S.C. 8287 and allows Federal agencies to enter into multi-year contracts, up to 25 years. ESPC contracts provide that the contractor shall incur costs of implementing energy savings measures, including at least the costs (if any) incurred in making energy audits, acquiring and installing equipment, and training personnel, in exchange for a share of any energy savings directly resulting from implementation of such measures during the term of the contract.

The DOE is establishing Regional Super ESPC Contracts (technically Indefinite Delivery/Indefinite Quantity Contracts or IDIQ) in order to simplify the process of energy savings performance contracting. Under this concept, DOE will prepare solicitations and award contracts to a number of energy service companies (ESCOs) to provide private sector financed energy services for Federal facilities in each of six DOE Regions. The ESCOs, awarded IDIQ (Super ESPC) contracts, will be available to Federal agencies within these regions for individual ESPC Project Delivery Orders. Therefore, FEMP is seeking partnerships with Federal agencies that are interested in pursuing projects under the Super ESPC contracts.

II. PURPOSE

The purpose of this Memorandum of Understanding (MOU) is to establish the organizational relationships, responsibilities, and activities of the DOE and the Department of Transportation (DOT) for award of Delivery Orders under the various Regional Super ESPC contracts. This may result in the award of Delivery Orders to selected ESCOs for energy efficiency projects at various DOT owned sites. This MOU will outline responsibilities from project screening through project installation and provide for continued communication or support as necessary during the term of the Delivery Order. This MOU does not obligate DOT to use the DOE Regional ESPC contracts.

III. AUTHORITY

Authority to enter into this MOU is provided under 42 USC 7256, which allows DOE to enter into agreements with other public agencies in order to further its missions. The authority to enter into energy saving performance contracts is provided under 42 USC 8287. Any interagency agreement entered into as a result of this MOU may be subject to the requirements of the Economy Act.

IV. DESCRIPTION

DOE plans to award IDIQ contracts to multiple ESCOs within each DOE region to provide facility energy savings performance contract services for use by all Federal agencies. Any number of Delivery Orders, up to a specified maximum dollar amount of required services, may be issued by agencies under the DOE Regional IDIQ Contracts. Each DOE IDIQ (Super ESPC) contract will include terms and conditions generally applicable to all Federal agencies for acquiring ESPC services. Each Delivery Order will include all agency specific requirements, terms and conditions and all project specific information. Models for the Delivery Order Request for Proposal (DO RFP), the proposal evaluation process, the Delivery Order, and other documents as necessary will be provided by DOE. Delivery Orders will be signed by the Department of Energy Contracting Officer unless specific authority has been delegated to an agency. Administration of the Delivery Order and project will be delegated to the DOT.

V. RESPONSIBILITIES

The following paragraphs identify the primary responsibilities of the organizations involved from the award of a Delivery Order through the term of the Delivery Order. This is designed as a collaborative process with involvement from appropriate parties at all stages. Each party will assume responsibility for staff costs for providing the services of their organization.

A. The Department of Energy will provide the following services if required:

Assess the viability of proposed projects and outline information needs.
Outline cost and availability of additional technical resources that could be provided to DOT on a reimbursable basis.
Provide support in explaining the Super ESPC contracting process and assisting in resolving any issues internal to DOT.
Provide guidance for DOT preparation of the Delivery Order RFP to contain all DOT specific requirements, terms, and conditions.
Provide advice in review of proposals and negotiation of a Delivery Order.
Provide notification of roles and responsibilities for the administration of the Delivery Order.
Issue the Delivery Order to the ESCO or delegate authority to the appropriate DOT contracting officer. If Delivery Order is awarded by DOE contracting officer and Congressional notification is necessary, the DOE contracting officer shall obtain verification from DOT Project Manager, as identified in paragraph B(2) below, that Congressional notification requirements have been met before award.
Provide guidance material for project implementation and Delivery Order administration.
Provide on-going support for resolution of issues involving the IDIQ contract.

B. DOT Components and Operating Administrations implementing a project using the IDIQ contracts will:

Obtain internal commitment from appropriate management, contracting, financial, and technical personnel to enter into a Delivery Order(s) under the DOE Super ESPC contracts.
Form a project team which will include a DOT project manager and may include DOT technical, financial, legal, procurement and other staff as needed to resolve internal issues and provide technical and contractual support.
Identify the scope of the project and/or facilities for energy and water management projects and collection of information for the standard data package.
Determine the estimated value of the Delivery Order and obtain authorization from the DOE contracting officer or contract specialist prior to issuing a DO RFP to ensure ceiling is available under the IDIQ contract.
Prepare and issue the DO RFP and conduct site walk-throughs as appropriate.
Conduct the proposal review process for selectingon an ESCO, negotiate, designate agency administrative and technical support, and prepare the Delivery Order.
In accordance with Transportation Acquisition Manual 1217.70, prepare a Congressional notification identifying the cancellation ceiling and other award information for the delivery order contract, if such ceiling is in excess of $750,000, pursuant to 42 U.S.C. 8287, 30 days prior to delivery order award.
Sign Delivery Order or obtain internal concurrence for DOE to sign the Delivery Order (if DOT has not been delegated Delivery Order signature authority).
Accept responsibility for administering Delivery Orders, including budgeting for contractor payments during the term of the Delivery Order.
During the term of the Delivery Order, alert DOE of significant issues requiring resolution, changes in designation of agency personnel, and provide feedback to DOE on the performance of the ESCO on an annual basis.

VI. PUBLIC INFORMATION COORDINATORION

News releases or conferences held for the purpose of publicizing this partnership, and the results, thereof, will be conducted jointly or with the concurrence of both agencies with respect to content.

VII. FUNDING

Each party will assume responsibility for staff costs for providing the services of their organization to the extent outlined in this MOU. Additional contracting and technical services will be available through DOE for support of DOT projects, based on reimbursement of appropriate costs. The details of the level of support to be furnished one organization by the other with respect to funding will be developed in specific interagency agreements. This MOU shall not be used to obligate or commit funds or as a basis for the transfer of funds.

VIII. EFFECTIVE DATE, AMENDMENT, AND TERMINATION

A. This MOU becomes effective on the date of the later signature.

B. This MOU will remain in effect until superseded suspended or terminated by written mutual agreement. The parties may mutually agree to renew, modify, or extend the MOU as they deem necessary. Either party wishing to terminate the MOU shall submit a written notification 60 days in advance of the desired termination date.

IX. ACCEPTANCE OF AGREEMENT

DEPARTMENT OF ENERGY	DEPARTMENT OF TRANSPORTATION
*(original signed by and dated 2/5/98)* ________________________________ John P. Archibald Deputy Director Federal Energy Management Program	*(original signed by and dated 2/2/98)* ________________________________ Melissa J. Spillenkothen Assistant Secretary for Administration