Pepco and Delmarva Power

Statement of Work

Pepco and Delmarva Power C&I Energy Savings Program Multi-Dwelling Subprogram

Version 1

May 21, 2015

Christin Sun May 21, 2015 Approved by Mark Bailey, Program Manager 1 1.0Introduction

Lockheed Martin, the Pepco and Delmarva Power Commercial and Industrial (C&I) Energy Savings Program’s implementation contractor, (hereafter known as Buyer) is looking to secure a limited number of contractors (hereafter known as Seller or subcontractor) to help develop projects for the Pepco and Delmarva Power C&I Energy Savings Multi-Dwelling Subprogram. The seller will target dormitories and senior living facilities with common area kitchens for energy efficiency upgrades.

1.1 Background

The Buyer is soliciting proposals for work that will require direct Customer outreach; site visits; field notes; energy audits; installation of identified energy efficiency measures that best fits the Customer’s needs; preparation and submission of incentive applications; and timely reporting of ongoing activities. The Seller will perform a Quick Energy Check-Up (QEC) and install low-cost energy efficiency measures in each unit. The Seller will be paid for each QEC and low-cost installed measures once direct install has been completed, final inspections performed, and required documentation approved.

Specific territories and sectors (assigned by SIC codes) for the multi-dwelling facilities will be assigned to winning subcontractors. Payment will be made upon satisfactory completion of tasks pertaining to each specific facility.

1.2 History

The Pepco and Delmarva Power C&I Energy Savings Programs offer cash incentives to C&I Customers for energy efficient electric equipment upgrades and technical studies. Incentives are provided for upgrading existing equipment to high efficiency equipment including lighting, kitchen and refrigeration equipment, chillers, packaged heating, ventilation, air-conditioning systems (HVAC), CHP, and more. Pepco and Delmarva Power offer incentives that are either prescriptive or custom for measures that are applicable to targeted facilities. The program is launching a Multi-Dwelling subprogram in 2015 to increase energy savings in commercially owned facilities where there are dwelling or dwelling-like units. Quick Energy Check-Up (QEC) and installation of low cost energy efficiency measures are performed in each dwelling unit. These facilities include units in hotels, motels, dormitories, and senior care facilities with common kitchens. Approved Trade Allies will target hotels and motels. Due to the residential nature of dormitories and senior care facilities, Lockheed Martin’s subcontractors will service dormitories and senior care facilities.

Lockheed Martin and its subcontractors have been authorized to target and service all eligible Customers. Notification will be given to the Seller if the Multi-Dwelling Subprogram funding is depleted.

2.0Subcontractor Requirements

The primary objective of the Seller selected will be to generate direct install program applications for the above noted types of Pepco and Delmarva Power commercial Customers by December 31, 2015. Project completion must occur no later than April 2016.

The Seller shall assist Buyer personnel by providing services in four areas:

1. Project Development - Outreach to Customers within specific sectors identified 2. Customer assistance in reviewing the QEC report, submitting applications, and understanding return on investment 3. Installation of direct install measures and other measures as approved by Customer 4. Monthly Subcontract Status Meetings / monthly reporting requirements

Area 1 Project Development

The Buyer seeks a robust business development approach targeting Pepco and Delmarva Power Multi-Dwelling dormitory and senior living facility commercial Customers. Target audience may include:

 Senior living facilities which contain 5 or more units with common area kitchens and may include assisted living, nursing homes, and short and long term care from the

3 following SIC codes: 80590000, 83610400, 80599901, 80510000, 80599904, 80599906, 83610400, 83610401, and 83610403. Additional SIC codes shall be reviewed with the Buyer’s Point of Contact (POC).  Dormitories similar to those found at colleges and universities including but not limited to the following SIC code: 70219901. Additional SIC codes shall be reviewed with the Buyer’s POC.  There will be no Pepco or Delmarva Power Customer list provided from the Program.

Estimated Market potential within service territories: Pepco  265 senior living facilities/ nursing homes  58 residence buildings representing 4,684 college / university units Delmarva Power  52 nursing homes/retirement representing and 1,304 units  2,264 college / university units

Seller is encouraged to verify these numbers. Buyer shall not be responsible for errors in these estimates.

Based on the market data, the Buyer is estimating a combined sector minimum of 350 units completed in Pepco and 175 units completed per month in Delmarva Power.

All marketing and communications plans and materials must be approved by Lockheed Martin prior to implementation and distribution. Seller shall plan for two reviews and up to eight business days to gain approval.

Area 2 Customer Support

 Seller team members shall be trained by Buyer’s staff to explain the program, complete the QEC, and review the final report with the Customer including direct install measures and other energy saving opportunities in the units and common areas that have been identified within the QEC.  Buyer will provide program orientation to all key staff as identified by Seller.  The program intends for the QEC and direct installation of low cost measures to be an opportunity to complete larger projects throughout the facility. a. For other opportunities identified in the QEC and approved by the Customer, the Seller shall submit Program applications, workbooks and supporting documentation, obtain pre-approval, and implement the efficiency measures. Once the Seller has submitted these applications, the Customer is no longer “exclusive” to the Seller. b. Energy Efficiency Measures (EEM)s identified in the QEC that the Seller does not submit for pre-approval may be submitted by another approved trade ally or contractor. c. The Seller may work with other contractors to provide direct referral to the Customer as well. The intent is to create a stream-lined program experience for the end user. d. Sellers will be responsible to meet facility protocols for entry into the building. If escorts are required, days and hours Seller will be on-site, etc”.

 Seller team members shall have the technical background to identify energy efficiency projects and advise Customers concerning the economics of each measure included in the projects (i.e., installed cost net of program incentive, annual bill savings, payback period, measure Effective Useful Life (EUL).  The Seller shall work with Buyer to service leads that originate from the programs’ Customer service hotline and websites, or from program representatives.  The Seller shall work with the Customer to accurately assemble and submit all program required applications, workbooks and supporting documentation throughout the pre- and post-installation process.  The Seller must submit applications by December 31, 2015 and complete the projects by April 2016.

Area 3 Installation of Direct Install Measures and Other EEMs

 All dwelling and dwelling-like units will receive an assessment which will be identified in the QEC tool and will generate the list of measures to be direct installed. The Seller shall install the appropriate “residential-like” direct install measures once approved by the program office. The general implementation process and eligible measures are as follows: o Seller completes the QEC, gains approval from the Customer to proceed, and submits application to program office for pre-approval. o Once application has been pre-approved, Seller secures product needed to complete the entire project and installs within four months of pre-approval date. o Refer to the following table for the minimum/maximum of estimated measures.

5 Measure Senior living units Dorm units (min/max) (min/max) CFLs 4-8 5-8 Power Strips 1-2 1-4 If Electric DHW - showerhead 1-2 0-1 If Electric DHW – faucet aerator 1-2 0-1 If Electric DHW in unit – tank wrap 0-1 0-1 If Electric DHW in unit – pipe wrap 0-1 per facility 0-1 per facility If Electric DHW in unit – adjust 0-1 0-1 temperature

o Seller is responsible for purchasing all materials per product specifications and provide a minimum one year warranty for product and services, unless superseded by warranty figures in table below. Below are the approved Direct Install Measures: Measure Specification Bathroom Sink 1.0 gallon per minute flow rate or less. Non-removable pressure Faucet Aerator compensator. Dual-thread brass connection. Minimum 5 year warranty. WaterSense labeling, meets EPA WaterSense criteria: http://www.epa.gov/WaterSense/product_search.html?Category=1 http://www.epa.gov/WaterSense/docs/faucet_spec508.pdf http://www.epa.gov/WaterSense/docs/faucet_suppstat_final508.pd f Low Flow 1.5 or 1.75 gallon per minute flow rate, standard or handheld, non- Showerheads removable pressure compensator, non-aerated spray, multiple spray settings. Minimum 3 year warranty. WaterSense labeling, meets EPA WaterSense criteria: http://www.epa.gov/WaterSense/product_search.html?Category=4 http://www.epa.gov/WaterSense/docs/showerheads_finalspec508.p df http://www.epa.gov/WaterSense/docs/showerheads_finalsuppstat5 08.pdf CFL 13, 19, 23 watt integral, 16 watt R30, 12/22/33 watt 3-way CFL, 23 watt dimmable, 23 watt R40, 9 and 13 watt mini globe, 9 watt candelabra, 14 watt type A. CFL lumen output must match existing lamp. Energy Star rated: https://www.energystar.gov/productfinder/product/certified-light- bulbs/results https://www.energystar.gov/ia/partners/product_specs/program_re qs/ENERGY_STAR_CFL_V4.3.pdf?044f-95a8 Smart (Power) Strips Lighted power switch, 6 foot 14 gauge heavy-duty power cord, 7-8 outlets total (1 control/primary – always hot, 3 constant hot – transformer spacing, 3 or 4 secondary – standard), UL listed, 120 Volt, 1875 watt, 15 amp Circuit breaker, 1050 joule rating, clamping voltage 400V, maximum spike voltage 6000V. Similar to Niagara Conservation Smart Strip. Electric Domestic Maintain 120 degrees maximum. Water Heater Temperature Turndown Electric Domestic Add tank wrap if existing tank R-value is less than 24, or if tank feel Water Heater Tank warm to touch Wrap Electric Domestic Add 1.5 or 2.0 inch pipe insulation Water Heater Pipe Insulation

 All other Existing Building, Small Business Program, and New Construction project applications, will be submitted according to the guidelines provided on the program websites (www.Pepco.com/business and www.Delmarva.com/business)

Area 4 Reporting

Seller shall provide monthly updates regarding leads, the existing pipeline and aging, qualitative feedback from Customers, and recommendations for program improvements.

3.0Program Direction

Seller effort shall be at the overall direction of the Buyer’s Program Manager (PM) or PM’s designated POC. Technical direction shall be provided by PM or designated POC. Technical direction is construed to mean clarification, interpretation, and/or specification of technical requirements within the scope of this SOW. The Seller shall, to the extent practical, manage tasks within these established allocations. Questions or conflicts with technical tasking shall be directed to the PM or designated POC.

Seller may have access to Customer information provided by the program per the direction of the Customer or directly from the customer. The Seller shall not sell or

7 barter exchange any information provided for this program including, but not limited to, the Customer information in perpetuity.

The Seller and its employees, subcontractors, and agents shall not use Customer’s information or deliver the program for the generation of leads of sales for any other services or products the Seller may offer.

3.1 Program Meetings

Seller shall support meetings as required by the Buyer to discuss technical, schedule, or other issues relative to this subcontract. The Seller shall participate in Monthly Subcontract Status Meetings to discuss items listed in Area 2 and any issues and concerns. Participants may include the Buyer’s Subcontract Administrator (SCA) and Subcontract Program Manager and the Seller’s Contracts Administrator and Program Manager.

3.2 Deliverables

Seller shall provide the Buyer the following reports that addresses each area of the SOW:

Deliverable Deliverable Due Delivery Method Date Project Applications On-going Electronically to the with all supporting program’s primary email documents as address outlined on the program website and applications. Communication plans 10 days prior to Electronically to Buyer’s and materials for production or Marketing Manager review distribution Launch Period: Each Friday through the Electronically to primary Weekly Status first 8 weeks of POC Updates including approval future appointments Monthly Report 21st of each month Electronically to POC 3.3 Seller Personnel

Complete staffing table on Attachment G, Proposal Template.

3.4 Place of Performance

The place of performance shall be within the Pepco and Delmarva Power Maryland territory.

3.5 Seller Travel

Seller is responsible for all travel plans and expenses. 4.0Qualifications

 Agree to the terms and conditions and meet the qualifications for an approved Pepco or Delmarva Power Trade Ally o Complete and submit Attachment F, Trade Ally Program Application  Experience in providing the following services will be beneficial to the applicant: o Providing QEC in the Multi-Family Program or Small Business Program o HVAC Tune-ups (specifically PTAC units) o Specialized controls (room HVAC occupancy controls or combined HVAC/receptacle occupancy controls, vending machine controls) o Lighting and lighting control efficiency upgrades o Refrigeration / Kitchen efficiency upgrades  Seller shall provide staff qualifications. Seller shall disclose to Buyer the process and procedures used to conduct background checks on their employees. The Buyer reserves the right to request additional background checks if the Seller’s procedure is deemed inadequate.

5.0 Period of Performance

The period of performance for this effort shall begin award date and continue through April 2016 with an opportunity to extend through 2017. All applications must be submitted by December 31, 2015 with installations completed by April 2016. The Seller reserves the right to terminate the contract and select another Seller to perform the work. 6.0 Quality Assurance As part of the direction to the Seller(s) identified in this SOW, the Buyer and Program Management will provide guidance concerning Buyer corporate and program policy requirements, and processes to the personnel performing work subject to this SOW. Personnel supplied by the Seller shall comply with the guidance provided.

9 Seller should be aware that their documents and work will become part of the public process to be reviewed and scrutinized by Pepco and Delmarva Power, Lockheed Martin staff, independent consultants, and regulatory staff. All data developed by the Seller under these contracts are the property of the Buyer and electronic files containing all data shall be submitted to the Buyer as described herein.

7.0 Acceptance Criteria

Buyer’s staff shall have ten (10) business days to review each deliverable. If a deliverable is found to be deficient or non-compliant, the Seller shall provide a new or corrected deliverable within five (5) business days or request an extension. If after ten (10) business days of receipt of Seller’s new or corrected deliverable, Lockheed Martin has not formally accepted or rejected in writing, or notified Seller that a review extension is warranted, Seller may assume that Seller has accepted the deliverable.