collaborative procurement for sustainability projects

CGSA Conference

Collaborative Procurement for Sustainability ProjectsCGSA CONFERENCE APRIL 2, 2014

Alameda County CGSA Conference 2

Agenda Intro Why collaboration? What we’ve done Lessons learned Q&A


Sustainability at Alameda County

4CGSA Conference Alameda County

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


Collaborative Procurement Projects

Local Government EV Fleet Demonstration Project


InSearch of aCreative 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?


Agencies across four counties collaborating on the procurement of distributed renewable energy systems for public facilities


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


R-REP Project TeamLead Agency

Conveners

19 Public Agencies• Cities (11)• Special Districts (4)

• Counties (3)• Educational Institutions (1)

Participating Agencies

Consultants


R-REP Sites19 Agencies186 Sites31 MW


R-REP TimelineOutreach phase begins September 2011Feasibility studies completed February 2013

Consultants engaged March 2013RFP released September 2013Vendors selected March 2014 Contracts taken to Councils/Boards Spring – Summer 2014Site installations/site commissioning activities Summer – Fall 2014

Project completion Winter 2014 – Spring 2015


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


The challenges of renewable energy adoption are weighing public agencies down

$$$

ComplexityTime

Renewable Energy

Public Agency


Collaboration allows public agencies to tip the scales

Public Agency

Complexity

Time

$$$

Renewable Energy

Public Agency

Public Agency

Public Agency


Leverage Investment of the Lead Agency Leverage prior experience of lead agency in

renewable energy procurement

Lead agency invests significant staff resources, participating agencies save resources:

SV-REP – Agencies saved 75-90% in admin costs and time

Complexity

Time


Leverage Investment of Lead Agency

Outreach Negotiated MOU IRFQ for sites assessments RFP for consultants Managed consulting team RFI - Vendor outreach


Leverage Investment of Lead Agency

Wrote RFQ/P Gathered detailed information on sites

Standardized template documents Led evaluation of bids


Leverage Investment of the Lead Agency

Consulting team funded through County’s Designated Energy Fund – incentives from past energy projects and rebates from current projects

$$$


Consultants Play Key Role Bundling strategy Economic/technical analysis of sites Assistance in writing RFP Advised on the evaluation of bids

Leverage Investment of the Lead Agency

Complexity

Time

$$$


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

$$$


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. Complexity

Time

$$$


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


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.


Lessons Learned Engage internal staff early

Executive sponsorPurchasing DepartmentLegal

Maintain engagement of all outside stakeholders Education is key Standardize assumptions for site assessments Expert consultants are key


Collaborative ProcurementA Creative Solution

Public Agency

Complexity

Time

$$$

Renewable Energy

Public Agency

Public Agency

Public Agency


Local Government EV Fleet Demonstration Project


Electric Vehicle (EV) Initiatives at Alameda Countyo Installed 40 EV Charging Stations in 2013 – free to the public until end of 2014o Will purchase 26 EVCS in 2014o Over 20 EVs in fleet (Miles Electric, Volt, Focus, RAV4, C-MAX, Prius)o Additional 26 EVs in next few months


Why EVs? Vehicle Fuel Cost Avg. MPG Cost per

MileCost/8000 miles

Compact $4.50 27 $0.16 $1,280Intermediate $4.50 21 $0.21 $1,680Full Size $4.50 12 $0.37 $2,960Hybrid $4.50 37 $0.12 $960EV-Peak $0.15 per

kWh100 miles per charge

$0.036 $288

EV-Off Peak $0.08 per kWh

100 miles per charge

$0.019 $152

o Eliminate tailpipe pollution, drastically reduce GHG emissionso “Greener” over timeo Fits duty-cycle: most trips under 40-50 mileso Cost savingso Fun to drive!


Challenges

??


Local Government EV Fleet Demonstration Project Partnerso Collaborative procurement with 10 other Bay Area municipal government o 90 all-electric vehicles and charging stations


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


Local Government EV Fleet Demonstration Project - Grant Detailso 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 all-electric fleet vehicle and fully fund purchase and install of EV charging stations


Cost Breakdowno 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!


Project TeamLead Agency

Participating Agencies

Consultants

Convener

Funding

10 Public Agencies• Cities (5)• Water Districts (2)

• Counties (2)• City/County (SF)


EV Charging Station Locations


How we did thisPROCESS

o Non-profit project convener – lead agencyo “Buy America” waiver o Environmental clearance o Memorandum of Understanding (MOU) o Preparation of bidso Procurement and award o * Handover to partner agencies *

STAKEHOLDERSo Project partner contacts (fleet & sustainability) o Alameda County purchasing & legal o Partner’s purchasing & legal o Caltrans liaisons (Alameda County) o Partner’s engineering o External consultants


Role of lead agencyo Led RFQ/P process, including review/approval by all participating agencies, drafting of procurement documents, purchasing process o Developed MOU and coordinated approvalo Managed environmental review o Caltrans liaison (federal funding)o Created A/E site designs for project


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 2011Environmental review June 2012Second MOU August 2012 – July 2013Electric vehicle procurement September 2013 - March 2014Site designs (Design/bid/build), including consultants hiring

November 2013 – June 2014

Charging stations procurement July 2014 – October 2014Installation of charging stations November 2014 – December 2014


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 - $31,360o Leaf (SV) - $33,947

o Successful utilization of federal tax-incentive in vehicle bid


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.


EV + PVo 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


Lessons learnedo Anticipate delays – participating agencies need various Council/Board approval and budget appropriationso Engage all stakeholders early (purchasing department, legal, etc.) o Balance inclusiveness and expedience


For more…

http://www.acgov.org/sustain/documents/2013_Alameda_County_Transportation_Annual_Report.pdf





Q&A www.acgov.org/sustain

Kayla PlattManagement Associate II

[email protected]

Phillip KobernickSustainability Project Manager,

GSA [email protected]

mailto:[email protected]

mailto:[email protected]

collaborative procurement for sustainability projects

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