Document

Report
Collaborative
Procurement for
Sustainability Projects
CGSA CONFERENCE
APRIL 2, 2014
CGSA Conference
Agenda
 Intro
 Why collaboration?
 What we’ve done
 Lessons learned
 Q&A
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Sustainability at Alameda County
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Why Collaboration?
 Competitive pricing
 Improved regional cooperation/efficiency to
advance common goals
 Participating agencies benefit by finding
support despite lack of expertise,
bandwidth, and funding for these projects
 More streamlined processes for bidders
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Collaborative Procurement Projects
Local Government EV Fleet
Demonstration Project
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In
Search
of a
Creative Solution
In a time of shrinking budgets and scarce staff resources,
how do we increase the use of renewable energy at public facilities to save on energy
costs and reduce greenhouse gas emissions from government operations?
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Agencies across four counties collaborating on the
procurement of distributed renewable energy systems
for public facilities
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Utilize Proven Model
Silicon Valley Renewable Energy Procurement (SV-REP)
 Completed in 2010
 Led by Santa Clara County and Joint Venture Silicon Valley Network
 9 Agencies
 70 Sites
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R-REP Project Team
Lead Agency
Conveners
Participating
Agencies
19 Public Agencies
• Cities (11)
• Special Districts (4)
• Counties (3)
• Educational Institutions (1)
Consultants
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R-REP Sites
 19 Agencies
 186 Sites
 31 MW
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R-REP Timeline
Outreach phase begins
Feasibility studies completed
September 2011
February 2013
Consultants engaged
RFP released
Vendors selected
Contracts taken to Councils/Boards
Site installations/site commissioning activities
March 2013
September 2013
March 2014
Spring – Summer 2014
Summer – Fall 2014
Project completion
Winter 2014 – Spring 2015
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Alameda County as Regional Leader
 Achieving policy objectives
 Increasing the use of renewable energy
 Reducing greenhouse gas emissions from County operations
 Regional leadership
 Leader in renewable energy adoption – 14 solar projects in
operations at its facilities
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The challenges of renewable energy adoption are weighing public agencies down
Renewable
Energy
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Collaboration allows public agencies to tip the scales
Public Agency
Public Agency
$$$
Time
Public Agency
Complexity
Public Agency
Renewable
Energy
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Leverage Investment of the Lead Agency
Complexity
Time
 Leverage prior experience of lead agency in
renewable energy procurement
 Lead agency invests significant staff
resources, participating agencies save
resources:

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SV-REP – Agencies saved 75-90% in admin costs and time
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Leverage Investment of Lead Agency
 Outreach
 Negotiated MOU
 IRFQ for sites assessments
 RFP for consultants
 Managed consulting team
 RFI - Vendor outreach
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Leverage Investment of Lead Agency
 Wrote RFQ/P
 Gathered detailed information on sites
 Standardized template documents
 Led evaluation of bids
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Leverage Investment of the Lead Agency
$$$
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Consulting team funded through County’s
Designated Energy Fund – incentives from
past energy projects and rebates from
current projects
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Leverage Investment of the Lead Agency
Consultants Play Key Role
 Bundling strategy
 Economic/technical analysis of sites
 Assistance in writing RFP
$$$
Time
Complexity
 Advised on the evaluation of bids
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Collaboration Leads to Lower Pricing
 Economies of scale leads to lower pricing
 Standardized procurement documents lowers
transaction costs
$$$
 Lower pricing translates to higher energy cost
savings over the life of the project
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Financing Projects
 Vendor asked to offer pricing under both a PPA
and cash purchase.
 Most agencies interested in 3rd party
ownership model.
 Workshops hosted for Participating Agencies on
financing and renewable energy economics.
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$$$
Time
Complexity
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Environmental Benefits
Annual emissions reductions across all sites:
 Equivalent to the CO2 emissions from the electricity use of
over 6,300 homes in Alameda County
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Regional Economic Growth
 Regional economic growth: If all projects paid for through
a cash acquisition, total project costs would be an
estimated $131.4 million.
 Job creation: 839 jobs created as a result of the initiative if
all projects are developed.
 RFP included 40% GFE Workforce Requirement.
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Lessons Learned
 Engage internal staff early
Executive sponsor
Purchasing Department
Legal




Maintain engagement of all outside stakeholders
Education is key
Standardize assumptions for site assessments
Expert consultants are key
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Collaborative Procurement
A Creative Solution
Public Agency
$$$
Public Agency
Time
Public Agency
Complexity
Public Agency
Renewable
Energy
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Local Government EV Fleet
Demonstration Project
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Electric Vehicle (EV) Initiatives at
Alameda County
o Installed 40 EV Charging
Stations in 2013 – free to
the public until end of
2014
o Will purchase 26 EVCS in
2014
o Over 20 EVs in fleet
(Miles Electric, Volt, Focus,
RAV4, C-MAX, Prius)
o Additional 26 EVs in next
few months
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Why EVs?
o Eliminate tailpipe
pollution, drastically
reduce GHG emissions
o “Greener” over time
o Fits duty-cycle: most
trips under 40-50 miles
o Cost savings
o Fun to drive!
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Vehicle
Fuel Cost
Compact
Intermediate
Full Size
Hybrid
EV-Peak
$4.50
$4.50
$4.50
$4.50
$0.15 per
kWh
$0.08 per
kWh
EV-Off Peak
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Avg. MPG Cost per
Mile
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$0.16
21
$0.21
12
$0.37
37
$0.12
100 miles $0.036
per charge
100 miles $0.019
per charge
Cost/8000
miles
$1,280
$1,680
$2,960
$960
$288
$152
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Challenges
??
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Local Government EV Fleet
Demonstration Project Partners
o Collaborative
procurement with 10
other Bay Area municipal
government
o 90 all-electric vehicles
and charging stations
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Grant Funding for EVs
40 EV Charging Stations
• BAAQMD TFCA - $84,960
• CEC/ABAG - $182,762
Total - $267,722
26 EV Charging Stations
• $286,000
26 EVs
• $526,000.
Total - $812,000
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Local Government EV Fleet
Demonstration Project - Grant Details
o Federal Highway
Administration (FHWA),
Congestion Mitigation and
Air Quality (CMAQ) funding
through the Metropolitan
Transportation Commission
(MTC)
o $2.8 million to fund the
incremental cost of an allelectric fleet vehicle and
fully fund purchase and
install of EV charging
stations
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Cost Breakdown
o Incremental cost covered in grant (about $19K - $21K per vehicle)
o “Match” = appx. $15K
o Full cost of charging station and install (up to $11K)
Estimated EVCS costs:
o $4,000 -$7,000 per station (level 2)
o Appx. $9,500 - $11,000/station for installation
o $13,500 - $16,000 total
o Dual ports reduce cost!
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Project Team
Lead Agency
Convener
Participating
Agencies
10 Public Agencies
• Cities (5)
• Water Districts (2)
• Counties (2)
• City/County (SF)
Consultants
Funding
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EV Charging Station Locations
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How we did this
PROCESS
STAKEHOLDERS
o Non-profit project convener – lead agency o Project partner contacts (fleet &
sustainability)
o “Buy America” waiver
o Alameda County purchasing & legal
o Environmental clearance
o Partner’s purchasing & legal
o Memorandum of Understanding (MOU)
o Caltrans liaisons (Alameda County)
o Preparation of bids
o Partner’s engineering
o Procurement and award
o External consultants
o * Handover to partner agencies *
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Role of lead agency
o Led RFQ/P process, including
review/approval by all participating
agencies, drafting of procurement
documents, purchasing process
o Developed MOU and coordinated
approval
o Managed environmental review
o Caltrans liaison (federal funding)
o Created A/E site designs for
project
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Timeline
PROCESS
Project kicks off
November/December 2010 (Completed AC Board
Resolution and MOUs in November and MTC Council
approval in December 2010)
FHWA issues partial “Buy-America” waiver
October 2011
Environmental review
June 2012
Second MOU
August 2012 – July 2013
Electric vehicle procurement
September 2013 - March 2014
Site designs (Design/bid/build), including
consultants hiring
November 2013 – June 2014
Charging stations procurement
July 2014 – October 2014
Installation of charging stations
November 2014 – December 2014
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Tangible financial benefits
o EV bid saved over $349,000
in the purchase of new EVs
(based on manufacturer's
MSRP) – nearly $4,000 per
vehicle.
o Focus - $31,360
o Leaf (SV) - $33,947
o Successful utilization of
federal tax-incentive in
vehicle bid
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Tangible environmental benefits
o EV fleet is expected to
achieve fuel costs savings
of $500,000 and 1.5 million
lbs. of net CO2 pollution
prevention over the next
five years.
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EV + PV
o 3 sites (11 charging stations
total) currently connected to
buildings with PV solar
arrays
o Approx. 26%-52% of power
for charging stations from
solar panels
o R-REP - potential for EV +
PV at 2 more sites
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Lessons learned
o Anticipate delays –
participating agencies need
various Council/Board
approval and budget
appropriations
o Engage all stakeholders
early (purchasing
department, legal, etc.)
o Balance inclusiveness and
expedience
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For more…
http://www.acgov.org/sustain/documents/201
3_Alameda_County_Transportation_Annual_R
eport.pdf
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Q&A
www.acgov.org/sustain
Phillip Kobernick
Kayla Platt
Management Associate II
[email protected]
Alameda County
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Sustainability Project Manager,
GSA Transportation
[email protected]
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