REQUEST FOR PROPOSALS FOR:
Online Marketplace Pilot
Proposal Due: Monday, April 1, 2019
Due to: Aptim Government Solutions, LLC Wisconsin’s Focus on Energy Program Administrator
Issued: March 1, 2019
Online Marketplace Pilot RFP
Table of Contents
Definitions ...... 1 1. RFP Summary Information ...... 6 2. Proposal Checklist ...... 7 3. Overview of Focus on Energy ...... 8 3.1. Governance Structure of Focus on Energy ...... 8 4. Program Information ...... 9 4.1. Program Summary ...... 9 4.2. Eligible Program Areas and Program Elements to Consider ...... 9 4.2.1. Program Design ...... 9 4.3. Program Priorities ...... 10 4.4. Goals ...... 11 4.5. Budget ...... 11 4.6. Cost-Effectiveness ...... 12 4.7. Contracting Terms ...... 12 4.8. SPECTRUM ...... 12 4.9. Program SOW ...... 13 4.9.1. Program Design Services ...... 13 4.9.2. Program Implementation Services...... 13 5. Bidder Qualifications and Restrictions ...... 17 5.1. Program Implementation Experience ...... 17 5.2. Financial Requirements...... 17 5.3. Bidder Conflicts of Interest ...... 17 5.4. Multiple-Program Limit ...... 18 5.5. Subcontractor Restrictions ...... 18 6. Bidder Instructions ...... 19 6.1. RFP Schedule ...... 19 6.2. Intent to Bid ...... 20 6.3. Submitting RFP Questions ...... 20 6.4. Proposal Submission ...... 20 6.5. Verification of Receipt of Proposal ...... 20 6.6. Errors or Omissions ...... 20
Online Marketplace Pilot RFP
6.7. RFP Updates ...... 20 6.8. RFP Withdrawal ...... 20 6.9. Proposal Preparation Cost ...... 21 6.10. Proposal Not Confidential ...... 21 6.11. Post-Proposal Negotiation ...... 21 6.12. Proposal Submission terms and conditions ...... 21 7. Selection Criteria ...... 22 7.1. Evaluation Committee ...... 22 7.2. Minimum Threshold Criteria ...... 22 7.3. Preliminary Evaluation ...... 22 7.4. Evaluation Criteria ...... 22 7.5. Evaluation Process ...... 23 7.6. Proposal Review – Clarifications ...... 24 8. Agreement General Terms and Condition ...... 24 9. Proposal Bid Package ...... 24 9.1. Proposal Document...... 24 Proposal Section 1. Cover Letter ...... 24 Proposal Section 2. Executive Summary ...... 24 Proposal Section 3. Bidder’s Capabilities & Experience ...... 25 Proposal Section 4. Program Approach ...... 26 Proposal Section 5. Approach to the Scope of Work ...... 26 Proposal Section 6. Key Challenges ...... 28 Proposal Section 7. Program Targets – Energy Savings and Cost-Effectiveness ...... 28 Proposal Section 8. Staffing Plan ...... 29 Proposal Section 9. Launch/Transition Timeline ...... 30 Proposal Section 10. Proposed Budget ...... 30 Proposal Section 11. Conflict of Interest ...... 32 Proposal Section 12. References ...... 32 Proposal Section 13. Proposal Supporting Documentation ...... 32 13.1.1 Cost Effectiveness Calculator ...... 32 13.1.2 Financial Requirements Documentation ...... 33 13.1.3 Affidavit of Non-Collusion ...... 33
Online Marketplace Pilot RFP
RFP Appendices ...... 34 A. 2017 Potential Study ...... 34 B. Deemed Savings Review ...... 34 C. Evaluation Report ...... 34 D. General Terms and Conditions of the proposed Agreement ...... 34 E. Policy Manual ...... 34 F. TRM ...... 34 G. Cost-Effectiveness Calculator ...... 34 H. CEC User Manual ...... 34 I. Workpaper template...... 34 J. Non-Collusion Certification ...... 34
Online Marketplace Pilot RFP
Definitions When capitalized, whether in singular or plural, the following words and phrases shall have the following meanings:
ACHIEVED SAVINGS: means savings for which a payment approval workflow has been completed in SPECTRUM, and SPECTRUM indicates the Incentive is “pending export” to the Fiscal Agent.
ADDENDUM or ADDENDA: means a written change to the Agreement, which is only effective when signed by both the Implementer and Program Administrator.
AGREEMENT: means the sample contract for a Focus on Energy implementation agreement and all attachments thereto, including the General Terms and Conditions, which may be amended prior to execution after this RFP closes.
APPLICATION(S): means a request for an Incentive for an eligible Measure(s) submitted by a Participant or Trade Ally.
BIDDER: A party submitting a response to this RFP.
BILLING RATE: Combined rate that includes labor, fringe, indirect costs, overhead, profit, etc.
BUSINESS DAY(S): Days not including Saturdays, Sundays or Federal Holidays.
BUSINESS PORTFOLIO: Portfolio of Program offerings designed to serve a particular non-residential Sector. Business Portfolio Programs may target industrial, commercial, agricultural, schools, local governments, and non-local customers.
COMMISSION or PSC: Refers to the Public Service Commission of Wisconsin that may delegate tasks to Commission staff as needed.
COMPLIANCE AGENT: The Contractor that performs compliance audits to ensure Program Contractors comply with the Focus on Energy policies and procedures as well as contractual requirements specified in their individual contracts.
CONFIDENTIAL INFORMATION: Refers to (1) program participant-specific information and databases comprised of such information, and (2) any information provided or made available by one party (a “disclosing party”) to the other party (a “receiving party”) that (a) is marked as proprietary or confidential at the time of disclosure; or (b) is orally identified as being confidential at the time of disclosure, followed by written confirmation of confidentiality within 30 days of such verbal identification; or (c) the receiving party knew or should have known, under the circumstances, was considered confidential or proprietary by the disclosing party.
CONTRACT ADMINISTRATOR or SEERA: The Statewide Energy Efficiency and Renewables Administration (SEERA), which is the legal nonprofit entity formed by the Energy Utilities to fulfill their obligations under Wis. Stat. §196.374(2)(a). The SEERA creates and funds statewide energy efficiency and renewable energy Programs. The SEERA also contracts, on the basis of competitive bids, with one or more organizations to administer Focus on Energy.
Page 1
Online Marketplace Pilot RFP
CONTRACTORS: Where capitalized, refers to organizations contracted directly with the SEERA or the Commission in connection with Focus on Energy. These organizations include, but are not limited to, the Program Administrator, Fiscal Agent, Evaluator, and the Compliance Agent.
COST-EFFECTIVENESS CALCULATOR OR CALCULATOR: means the MS Excel-based computer software tool that is used by Focus on Energy to calculate Program costs, savings and cost-effectiveness.
CUSTOMER: Unless the context requires otherwise, means a Utility customer that is eligible to participate in one or more Focus on Energy Programs.
CUSTOMER INFORMATION: is the Personal Information that may be associated with a Focus on Energy Customer and is considered Confidential Information, unless otherwise specified. Any unique identifying number, characteristic, code or combination that allows identification of an individual or business is considered Confidential Information. Examples of this include any of the following: • SSN • FEIN • Or any combinations of the following information that is not publicly available: o Customer name o Primary, payment, or tax addresses o Telephone or fax numbers o Email addresses • Utility account numbers o Customer’s energy usage information
ELECTRIC COOPERATIVE: Cooperative association that is organized under Wis. Stat. § 185 for the purpose of providing electricity at retail or wholesale to its members only and that own or operate a retail electric distribution system.
ENERGY UTILITY OR ENERGY UTILITIES: means, as defined in Wis. Stat. §196.374(1)(e) and the Focus on Energy Policy Manual, Investor-Owned Utilities, Retail Electric Cooperatives, Wholesale Electric Cooperatives, and Municipal Utilities that provide energy to Customers in Wisconsin.
EVALUATOR: Third Party Contractor hired by the Commission to evaluate the Performance of all Programs administered by the Program Administrator.
FISCAL AGENT: means the Contractor that, in a fiduciary capacity, receives funds, distributes funds and accounts for statewide energy efficiency and renewable energy programs specified under Wis. Stat. §196.374(2)(a)..
FOCUS ON ENERGY®: The statewide energy and renewable energy programs specified under Wis. Stat. § 196.374(2)(a).
FOCUS ON ENERGY OPERATIONAL PROCEDURES GUIDE: means the compilation of procedures, as amended and updated, which provides the day-to-day guidance for implementing the Focus on Energy Program and is to be followed by Administrator, Implementers, Implementer Subcontractors, and others working for the Focus on Energy programs.
Page 2
Online Marketplace Pilot RFP
FOCUS ON ENERGY POLICY MANUAL: means the compilation of policies, as amended and updated, developed by Compliance Agent in conjunction with Program Administrator and Commission, which provides the rules, regulations and policies of Focus on Energy to be followed by Program Administrator, Implementers and others working for the Focus on Energy programs. IMPLEMENTER: An organization contracting with the Administrator to implement a Focus on Energy Program. Implementers do not include Subcontractors, as that term is defined below. Implementers shall receive funding directly from the Contract Administrator for services provided by them in implementing Focus on Energy Programs.
IMPLEMENTER SUBCONTRACTOR: An organization contracted with an Implementer to support the implementation of the Focus on Energy Programs.
INCENTIVES: Payments provided by Focus on Energy to a customer or trade ally that reduces the cost of an energy efficiency or renewable energy measure. The term “Incentive” does not, however, include technical assistance or in-kind services.
INVESTOR-OWNED UTILITY (IOU): A form of electric and/or natural gas utility owned by a group of investors.
KEY PERFORMANCE INDICATOR(S) OR KPI(s): a quantifiable measure used to evaluate the success of meeting objectives for Performance.
MANUFACTURER: means an entity that manufactured the Measures.
MEASURE: An energy-using appliance, piece of equipment, audit, or practice that will result in measurable, reduced energy usage at a comparable level of service. Measures may also refer to Program-qualified Renewable Resources.
MULTIFAMILY BUILDING: means a residential building with four (4) or more housing units.
MUNICIPAL ELECTRIC UTILITY: Electric utility that is owned wholly by a municipality and that owns a retail distribution system.
PARTY OR PARTIES: means Program Administrator and Implementer, by and through their representatives.
PERFORMANCE: means implementation of the Work consistent with the requirements established and any applicable professional standards, and to the satisfaction of Program Administrator.
PERSONAL INFORMATION means data or information which names, identifies or gives certain information from which a natural person could be identified, including, but not limited to: personally identifiable information that is protected under any Privacy Laws. Personal Data includes, but is not limited to, (i) name, phone number, address, email address, employer, or date of birth; (ii) non-public information, such as a passport number, social security number, or driver’s license number; (iii) financial information, such as bank account numbers, bank account balances and transactions or information, credit card numbers and/or bank account numbers; and/or (iv) sensitive personal data, such as mother’s maiden name, race, marital status, gender or sexuality.
Page 3
Online Marketplace Pilot RFP
PROGRAM: Program for reducing the usage of energy or increasing the efficiency of the usage of energy by a customer or member of an Energy Utility, Municipal Electric Utility, or Retail Electric Cooperative. Programs may target specific customer types, customer Sectors, or technologies.
PROGRAM ADMINISTRATOR “ADMINISTRATOR”: Refers to Aptim Government Solutions, LLC, the Contractor hired by the SEERA to administer Focus on Energy Programs.
PROGRAM CONTRACTORS: This term is used inclusively to describe Focus on Energy Contractors, Subcontractors, Implementers and Implementer Subcontractors.
PROGRAM EVALUATOR: means the Third Party Contractor hired by Commission to evaluate the Performance of all programs administered by Program Administrator.
PROGRAM MATERIAL(S): means materials created for the Program, including but not limited to Program descriptions, web sites, fact sheets, brochures and advertisements.
PROJECT: means a Measure or group of Measures on a single Customer Application.
RENEWABLE RESOURCE: means, as defined under Wis. Stat. §196.378(1)(h), a resource that derives energy from any source other than coal, petroleum products, nuclear power except as used in a fuel cell, and natural gas. "Renewable Resource" includes resources deriving energy from any of the following: solar energy, wind power, water power, biomass, geothermal technology, tidal or wave action or fuel cell technology that uses a renewable fuel, as determined by Commission and as addressed in Commission’s ruling 163778 under Docket 5-GF-191.
RESIDENTIAL PORTFOLIO: Refers to a collection of programs for residential customers. This includes residential single family housing and Multifamily Building units.
RETAILER OR RETAIL: means an entity that sells Measures in-store through the Program.
RETAIL ELECTRIC COOPERATIVE: means, as defined under Wis. Stat. 16.957(1)(t), a cooperative association that is organized under Ch. 185 for the purpose of providing electricity at retail to its members only and that owns and operative a retail electric distribution system.
REQUEST FOR PROPOSALS or RFP: means this RFP for the Retailer Lighting and Appliance Program.
SECTOR: A group of customers that provide similar goods and services. Utilizing Sectors allows targeting of specific Focus on Energy Incentive offerings and Measures. Sectors served by Focus on Energy include: industrial, commercial, agricultural, schools, local government, non-local-government, and residential.
SPECTRUM: (State Program for Energy Customer Tracking, Resource Utilization and data Management) A comprehensive customer relationship management (CRM)-based data management system that serves as the center for the major functional components of Focus on Energy. SPECTRUM tracks and manages:
• Customer service and relations • Customer, property, and utility information • Energy efficiency and renewable energy applications
Page 4
Online Marketplace Pilot RFP
• Incentive applications, payments and processing • Measures of energy savings • Program/Implementer budgets and expenditures • Subcontractor/Implementer invoicing, budgeting, approval, and payment
SUBCONTRACTORS: Where capitalized, refers to organizations contracted with a Contractor in connection with Focus on Energy, but specifically excluding Implementers and Implementer Subcontractors. These organizations include, but are not limited to, outside legal counsel and marketing firms.
TECHNICAL REFERENCE MANUAL: The compiled catalog of common Measures incentivized through Focus on Energy, including the basis used to assign deemed energy savings and electric demand reduction values, or the algorithms used to derive them, to individual Measures. The TRM is maintained by the Program Evaluator and updated annually.
TERM OF AGREEMENT: The date the Agreement is fully executed until December 31, 2019, to be renewed automatically unless terminated by the Contract Administrator.
THIRD PARTY: An individual or organization that is not a Program Contractor and is not privy to Customer Information without consent from the Public Service Commission.
TRADE ALLY: A contractor or service provider that works with Focus on Energy to deliver energy efficiency and/or renewable energy products and expertise to Customers.
TOTAL RESOURCE COST (TRC): The TRC measures the net costs of a demand-side management program as a resource option based on the total costs of a program, including both the participants' and the utility's costs.
TRC RATIO: The result of the TRC is expressed as a net benefit or a ratio of benefits to costs. A positive TRC expressed as a net benefit or a ratio greater than 1.0 means the measure/program will have a positive impact on the utility's resource acquisitions.
UTILITIES: Energy Utilities, Retail Electric Cooperatives, and Municipal Electric Utilities that provide energy customers in the State of Wisconsin.
WHOLESALE ELECTRIC COOPERATIVE: means, as defined under Wis. Stat. §16.957(1)(v), a cooperative association that is organized under Ch. 185 for the purpose of providing electricity at wholesale to its members only.
WORK: means Implementer’s functions, duties, and activities as set forth in the Agreement and any Attachments thereto.
Page 5
Online Marketplace Pilot RFP
1. RFP Summary Information The table below contains a summary of key information regarding this RFP.
Opportunity Title Online Marketplace Issuing Body Focus on Energy Proposal Due Date 5:00 PM 4/01/2019 Proposal Submission Format Electronic Intent to Bid Required – Due 3/08/2019 Proposal Questions Due 3/18/2019 STEPHANIE O’TOOLE RFP Administrator Procurement Lead [email protected]
The Administrator is issuing this RFP for the selection of one (1) Implementer, or an Implementer with Implementer Subcontractor(s), to deliver energy efficiency programs for residential Customers under the Focus Online Marketplace. An online marketplace is an e-commerce platform to facilitate the purchase of energy efficiency products and promote energy efficiency through informational and educational resources. The purpose of this RFP is to provide Bidders with information to enable them to prepare and submit a proposal to support the Scope of Work. The Administrator intends to use the results of this RFP to select a Bidder to implement the Work and enter into an Agreement with the selected Bidder beginning 8/1/2019. The selected Implementer shall complete program design and launch activities. Costs incurred by selected Implementer for ramp-up and launch activities will come from the Total Contract Budget Amount. The selected Implementer shall bill agreed-upon fees related to program design and launch through 7/31/2019 on the 8/1/2019 invoice.
The Implementer and Implementer Subcontractor(s) will:
(1) Collaborate with the Administrator in designing an energy efficiency Program targeting residential Customers; (2) Conduct cost-effectiveness evaluation of the Measure mix and the Program area; (3) Develop marketing and outreach campaigns to encourage Customer participation while working with Marketing Agency of Record for execution of digital tactics; (4) Engage Customers; (5) Process Incentives for Customers that complete eligible energy efficiency Measures; and (6) Track and report on Program targets and goals.
Page 6
Online Marketplace Pilot RFP
2. Proposal Checklist Bidders shall submit proposal(s) in the format outlined below and detailed in the following pages. A copy of this checklist shall be provided with each proposal submission. The checklist will not be counted toward the maximum page limit.
1. Cover Letter (not to exceed 1 page) 2. Executive Summary (not to exceed 1 pages) 3. Bidder’s Capabilities and Experience (not to exceed 6 pages) 3.1 Company overview 3.2 Implementer Subcontractors overview 3.3 Project Experience 4. Program Approach (not to exceed 4 pages) 5. Scope of Work (not to exceed 15 pages) 5.1 Program Design Services 5.1.1 Finalize the Measures and Measure Mix 5.1.2 Conduct Cost-Effectiveness Analysis 5.2 Program Implementation Services 5.2.1 Quality Assurance/Quality Control Plan Measure & Verification plan 5.2.2 Marketing and Communications 5.2.3 Program Coordination and Leveraging 5.2.4 Incentive Processing and Payment 5.2.5 Call Center Management 5.2.6 Customer Complaint Resolution 6. Key Challenges (not to exceed 3 pages) 7. Program Targets: Energy Savings and Cost-Effectiveness (not to exceed 5 pages) 7.1 Proposed Program Goals and KPIs 7.2 Define Program Objectives 8. Staffing Plan (not to exceed 3 pages) 8.1 Key Personnel 8.2 Organizational Chart 9. Transition Timeline (not to exceed 2 pages) 10. Proposed Budget (not to exceed 3 pages) 11. Conflict of Interest Disclosure 12. References (3 for Bidder; 2 for each subcontractor) (not to exceed 3 pages) Supporting documentation 13.1.2 Cost Effectiveness Calculator 13.1.2 Financial Requirements 13.1.3 Non-Collusion Certification
Page 7
Online Marketplace Pilot RFP
3. Overview of Focus on Energy Focus on Energy is funded by Wisconsin’s investor-owned energy utilities, as required under Wis. Stat. § 196.374(2)(a), and participating municipal and electric cooperative utilities. Since 2001, Focus on Energy has been:
• Educating customers about natural gas and electric energy savings opportunities. • Installing cost-effective energy efficiency and renewable energy projects. • Capturing achieved energy savings through Incentives. • Providing energy use and efficiency information. • Offering skilled technical customer and market support for energy-efficient measures. • Eliminating energy waste by reducing the need to purchase coal and natural gas from other states, lessening the need to build additional power plants. • Focus projects create Wisconsin jobs, upgrade local infrastructure and improve the environment. • Since 2011, Focus on Energy has delivered more than $1 billion worth of net economic benefits to Wisconsin.
With Focus on Energy resources and financial Incentives, customers can participate in a program to complete projects that otherwise would not have been completed. These programs help Wisconsin residents and businesses manage rising energy costs, promote in-state economic development, protect the environment and control Wisconsin’s demand for electricity and natural gas. The Program Administrator works with Implementers, who in turn work with Trade Allies to bring Focus on Energy’s benefits to Residential and Business Customers.
Additional information on the Focus on Energy programs can be found at www.focusonenergy.com. 3.1. Governance Structure of Focus on Energy The primary roles and organizations that make up the Focus on Energy governance structure include:
• SEERA: This organization creates, funds and contracts for the administration of statewide energy efficiency and renewable energy programs. • PSC: This is the independent state agency that regulates Wisconsin’s public utilities and oversees Focus on Energy. • Fiscal Agent: The Fiscal Agent is responsible for paying all approved invoices and incentives for Focus on Energy. • Compliance Agent: The organization performs annual audits of Focus on Energy activities and expenditures to ensure that funds are spent prudently and consistently with Focus on Energy Policy Manual. • Independent Evaluator or Program Evaluator: The organization performs annual process and impact evaluations and assesses program and portfolio cost-effectiveness. • Administrator: The Administrator is responsible for (1) working with the PSC to establish portfolio, Market Sector and individual program goals and budgets; (2) bidding out all programs, selecting and negotiating contracts, and (3) managing program and portfolio Performance and goals. The Administrator is not allowed to implement programs in Wisconsin.
Page 8
Online Marketplace Pilot RFP
• Implementers: These organizations deliver energy efficiency and renewable energy programs to eligible Wisconsin Customers and are responsible for meeting the program goals as established by the Administrator and PSC.
4. Program Information 4.1. Program Summary The Online Marketplace Pilot Program will allow customers of the electric and gas utilities that partner with Focus on Energy to purchase energy-saving products through an eCommerce platform with rebates or at reduced cost, as applicable, for eligible customers. The online platform will extend current retail offerings with potential expansions and provide a consumer education channel, delivering both cost- effective electric and gas savings for Focus on Energy stakeholders and expanding customer engagement opportunities for partnering utilities. 4.2. Eligible Program Areas and Program Elements to Consider 4.2.1. Program Design Focus on Energy plans to launch the Online Marketplace Pilot Program in 2019 to complement current Residential programs. The current Focus on Energy program portfolio includes retail product offerings using a mix of downstream and midstream incentives. Recent efforts in the retail space have demonstrated limits to utilizing third-party online channels for certain products and challenges at brick- and-mortar retail for others. The current retail design also relies on a broad marketing effort with proportional expenses. And existing point-of-purchase incentives provide little opportunity to raise participant awareness of the utility contribution to facilitating their product purchase.
The program design for the Focus on Energy Online Marketplace should move beyond the current retail scope and provide new participant engagement and energy savings opportunities through cost-effective program delivery. Such a design could potentially include a marketing strategy that reaches a broad and diverse audience of potential participants in a targeted way with reduced administrative overhead. It should be flexible in accommodating multiple and evolving utility customer outreach strategies while achieving utility attribution. Bidders might also propose supplemental services that could be incorporated into the Online Marketplace Pilot Program in the near or long term, including, but not limited to, instant discounts and product comparison or education features.
Additional program elements to consider include: • Facilitating streamlined eligible participant authentication and engagement; • Customizing the marketplace appearance to accommodate branding and other visual components for each participating utility; • Working with other Focus on Energy programs to cross-promote and maintain individual participation limits; and • Minimizing free ridership or otherwise reduced Evaluation, Measurement and Verification (EM&V) risk.
Page 9
Online Marketplace Pilot RFP
4.3. Program Priorities Equitable Participation Opportunity – Knowledge of market characteristics and demographics to best address a variety of customers, key and underserved segments, in both rural and urban areas, is essential in achieving equity of participation. A successful bid should aspire to deliver to eligible customers in a way that is broad, and is proportional and equitable for utility partners of Focus on Energy.
Energy-Efficient Lighting – Lighting measures have historically made up a large portion of the energy savings delivered through the Program. Impacts of lighting standards should inform proposals due to their potential diminishment of energy savings opportunities over time. A successful Bidder will characterize an approach to ensure lighting technologies are balanced with non-lighting technologies1.
Ongoing Program Evolution – Online marketplaces for utility programs present a novel and rapidly evolving program design. A successful Bidder will suggest opportunities to improve the Program over the course of the implementation contract.
Stakeholder Coordination – Focus on Energy contains a full portfolio of programs, each with its distinct stakeholders. Often, Focus on Energy programs overlap with one another in terms of eligible customers, incentivized measures, Trade Ally networks, and so on. A Selected Implementer will recognize the importance of close coordination with the Administrator, other Implementers, Trade Allies and their associations, and other stakeholder groups in energy-related issues.
Customer Satisfaction – In addition to receiving incentives from Focus on Energy and long-term energy cost savings through participation, non-financial benefits to participants are fundamental to the reputation and ongoing success of Focus on Energy. Ensuring participating residential customers are satisfied with their involvement in Focus on Energy will be a measure of success for the Program. This will be achieved by simplicity of participation, clarity of messaging, positive customer interaction, and swift resolution of customer complaints.
Data Management and Security – The security of customer data made available by Focus on Energy’s utility partners is paramount. All Focus on Energy programs must abide by the information security and confidentiality terms of the Focus on Energy Policy Manual, as well as any specific terms from partnering utilities, as agreed upon by all parties. Strict and secure data management will be particularly critical for the Online Marketplace Pilot Program given the technological nature of eCommerce.
Utility Customer Engagement – Focus on Energy partners with over 100 electric and gas utilities, including large and small investor-owned utilities, municipal utilities, and electric cooperatives. Select utilities offer add-on or stand-alone rebates that could be managed through Focus on Energy. In addition, some Wisconsin ratepayers are served by two utilities: one for electric service and another for gas service. A successful Bidder will offer creative solutions to accommodate the unique needs and customer engagement strategies of multiple partnering utilities, as informed by utility representatives and the Program Administrator.
1 Note that Focus on Energy accounts for energy savings on a gross lifecycle, rather than first-year energy savings basis. This provides certain advantages to measures with longer Effective Useful Lives.
Page 10
Online Marketplace Pilot RFP
Informational Resources – Focus on Energy strives to educate Wisconsin ratepayers on ways to reduce energy waste and energy cost. An online marketplace is an ideal channel to provide educational features such as product lifetime costs and product comparison tools. A successful Bidder will propose enhancements for the Online Marketplace Pilot Program beyond the core function of product transactions. 4.4. Goals Focus on Energy currently operates under gross lifecycle energy savings targets for kWh, therms and MMBtus, and gross annual energy savings targets for kW. The basis for determining lifecycle gross energy savings under Focus on Energy is a Measure’s first-year energy savings, multiplied by its Effective Useful Life (EUL).
Bidders shall propose four-year year cumulative goals, corresponding to calendar years 2019-2022. 4.5. Budget For this RFP, the estimated total budget for the program resulting from this solicitation is approximately $500,000 for 2019 and approximately $500,000 annually for 2020-2022, totaling $2 million. Allocated funding for 2019 will accommodate Online Marketplace Platform Development and initial launch of the Online Marketplace, with additional funding expected to supplement Online Marketplace Pilot Program Implementation; annual funding for 2020-2022 is dependent on need within the Online Marketplace Pilot Program as well as needs across existing Focus on Energy Programs. Bidders should specify the portion of the estimated total budget that is required for platform development in 2019. A successful Bidder will assume the Program area budgets listed in Table 1 for planning purposes in responding to this solicitation. The estimated budget includes both Incentives and program implementation costs. The goal is to minimize non-Incentive costs, within reason. As a guideline, but not a requirement, Bidders should plan their Incentive Budget to be no less than seventy percent (70%) of the Total Program Budget exclusive of the Online Marketplace platform development budget portion. Bidders may propose variance beyond this threshold within reason and with substantiation. Proposals which attempt to maximize the Incentives portion will be viewed favorably, and the Incentive Budget as a percentage of Total Program Budget may be the subject of negotiation with the successful Bidder.
Table 1: Estimated Budgets by Year, by Program Area (For Planning Purposes)2
Program Area 2019 Budget 2020 Budget 2021 Budget 2022 Budget
Online Marketplace Platform Development, Online Marketplace $500,000 $500,000 $500,000 $500,000 Program Implementation Total $500,000 $500,000 $500,000 $500,000
2 Budget amounts in this table are based on allocated funds as well as estimated supplemental funding. Bidders may propose variance within reason and with substantiation.
Page 11
Online Marketplace Pilot RFP
Costs incurred by selected Implementer(s) for ramp-up and launch activities will come from the Total Contract Budget Amount. 4.6. Cost-Effectiveness Focus on Energy requires that the total program offerings under the Business Programs Portfolio and the Residential Programs Portfolio result in an overall TRC Ratio of a minimum of one (1.0). Residential Programs are required to have a TRC Ratio of one (1.0) or higher. Bidders are required to use the Focus on Energy Cost-Effectiveness Calculator to evaluate Program cost-effectiveness. Proposals scoring higher TRC Ratio values are preferred, though other non-cost effectiveness considerations (e.g., customer satisfaction, ease of participation, marketing needs, etc.) should be taken into account as part of a balanced program offering. 4.7. Contracting Terms Focus on Energy is seeking to enter into an Agreement with an Implementer(s) to deliver energy efficiency programs that will be in effect from January 1, 2019 through December 31, 2022. Implementer contract will extend until December 31, 2019, and extend into the remainder of the quad, unless otherwise terminated by the Contract Administrator.
• Implementer will be expected to meet the requirements of the Agreement and indicate any exceptions to the General Terms and Conditions of the Agreement. Including exceptions to the General Terms and Conditions may result in disqualification of the proposal. • Payments under an Agreement will be Performance based, and failure to achieve verified gross kW, kWh, and therm, and MMBtu targets, which will be negotiated after award of the Agreement, may result in a labor holdback. • KPIs will also be established to set non-energy savings priorities for successful implementation. • Implementers are expected to cross-promote other Focus on Energy programs and initiatives and to coordinate with other Focus on Energy Implementers, partners, Trade Allies and stakeholders at the direction of the Administrator. 4.8. SPECTRUM The Administrator and SEERA, in cooperation with the PSC, utilize SPECTRUM, a comprehensive web- based data-tracking system. SPECTRUM tracks and manages:
• Energy savings • Customer relations • Energy efficiency and renewable energy projects • Incentive payments and processing • Incentive approvals • Customer, property and utility information • Workflows • Contractor invoicing, budgeting approval and payment • Approved Focus on Energy Trade Allies
Page 12
Online Marketplace Pilot RFP
All Implementers are required to use SPECTRUM to enter and track projects, Customer information, and Trade Allies participating in Focus on Energy. The selected Implementer will establish a training schedule with the Administrator during contract negotiations. 4.9. Program SOW The selected Implementer will provide services that include, but are not limited to, the program design and implementation services described below. 4.9.1. Program Design Services Finalize the Measures and Measure Mix If the Implementer seeks to modify an approved energy-saving Measure or add a new energy-saving Measure to its Program, it shall submit a work paper to the Administrator proposing the Measure definition, the engineering calculations used to derive savings, all proposed Measure assumptions including savings, costs, expected useful life, appropriate net-to-gross ratios and Incentive levels, sources of any values used, and any other information requested by Administrator or Commission. The Implementer shall not offer any new or modified Measure until a work paper is reviewed by the Administrator and Program Evaluator and approved by Commission staff. The Implementer shall submit work papers in the template provide by Administrator (Appendix J). In addition, Implementer shall modify or add the approved Measure to the Cost Effectiveness Calculator (Appendix G) in any future cost-effectiveness analyses provided to the Administrator. Finally, the Implementer shall submit completed SPECTRUM upload templates (to be provided at future date). The Commission will upload the completed Measures to SPECTRUM. Conduct Cost-Effectiveness Analysis The Implementer will need to demonstrate program-level cost-effectiveness at the outset of the program and annually thereafter. In addition, the Implementer will need to demonstrate cost- effectiveness of the program any time a new Measure is added or deleted to the Measure mix. The Implementer must use the Focus on Energy Cost-Effectiveness Calculator, available in Appendix G. The Administrator may request an updated Cost-Effectiveness Calculator prior to Contract Performance Reviews if the Implementer is not achieving quarterly contract goals. The Implementer shall update the Cost-Effectiveness Calculator so that Measure-level information conforms to SPECTRUM. The Cost- Effectiveness Calculator shall meet or exceed the Energy Efficiency Achieved Savings and the budget listed in the Agreement, and shall include Measure Incentive levels, Measure penetrations, incremental Measure costs, and Measure values conformed to SPECTRUM.
4.9.2. Program Implementation Services Track and Report on Program Metrics The Implementer shall be expected to achieve quarterly and annual Program targets. If the Implementer does not meet quarterly or annual targets, it shall submit a written corrective action report setting forth a plan to start achieving the targets.
Implementer shall be responsible for monthly, quarterly and annual Program reporting, consistent with the requirements set forth in the Agreement and the Operational Procedures Guide, utilizing a monthly report template. Implementer may need to provide additional information in response to Administrator,
Page 13
Online Marketplace Pilot RFP
Contract Administrator or requests from the Commission. Implementer’s responses to such requests shall be made within one week, unless Administrator provides an earlier deadline.
The Implementer shall forecast and track expenditures based on the defined cost categories below:
• Technical & customer support labor: Bidder shall provide fully-loaded labor rates by job title. Labor costs reflect fully-loaded rates and include compensation to staff in the form of wages and fringe benefits as well as the organization’s markup/profit. • Administrative Costs: Bidder shall provide those costs not directly associated with a specific Program activity, but which are necessary to the development and administration of the Programs. Administrative costs include: record keeping, payroll, accounting, auditing, billing, business management, budgeting and related activities, overhead allocation and other costs necessary to direct the organization of the Program, but do not include Program evaluation. • Incentives: Expenditures that directly result in lower costs for the customer. These can include, but are not limited to product buy downs, instant rebates, mail in rebates, and grants. Alternative incentives such as SPIFFs (salesperson incentive) should be included as a sub line. • Subcontractors: Individuals or organizations hired for program activities. There can be no mark- up on any subcontractor costs. • Travel: No reimbursement for any kind of travel expenses may be billed.
All expenditures must conform to the Focus on Energy Policy Manual. Expenditures shall be reported in an invoice template provided by the Administrator. Focus on Energy does not permit mark-ups on subcontractor labor or other costs. Operating Plan The Implementer shall provide an Operating Plan describing Program processes and controls. The Operating Plan provided by the successful Bidder must be written utilizing the Administrator approved template. Required sections include the following:
• Program Overview • Program Description • Program Definitions • Staffing and Organization • Measure-Level Information • Data Management and Tracking (description of process and systems used) • Application Intake • Incentive Processing • Call Center Management • Customer Satisfaction and Complaint Resolution Process • Utility Coordination • Program-Level Quality Assurance and Quality Control Procedures • Safety/Risk Management • Program Flow Chart, Organizational Chart and all written Program Materials and forms used internally and with Customers and other market actors
Page 14
Online Marketplace Pilot RFP
The Implementer shall update the Operating Plan to respond to and incorporate all Administrator questions and comments and when any item listed changes. In addition, the successful Bidder shall perform an annual review of the Operating Plan to ensure that the Operating Plan still accurately describes Program processes and controls, and accurately reflects any Program changes or improvements.
Quality Assurance/Quality Control Plan Measure and Verification Plan Implementers shall develop and implement a Program-level quality assurance/quality control and Measure verification plan to ensure only qualified Measures receive Incentives under the Program and that Measures are installed and operating.
The quality assurance plan must identify any safety or risk management issues and how the Implementer will address them. The plan will include a description of specifications of qualifying equipment (e.g. minimum energy efficiency rating levels). The plan will also include a description of procedures to ensure accuracy of financial data. Staffing Plan The Implementer shall provide an annually updated staffing plan that shall include: organization chart, and for each staff member the title, fully-loaded labor rate, location, expected amount of time the staff member will spend on Project activities, a short description of roles and responsibilities, full contact information (phone, email, address), and a résumé not to exceed two (2) pages.
New managerial staff and staff that bill more than 50% of their time to the Focus Program may only be added with prior Administrator review and written approval. In addition, the Implementer shall not switch staff included in the proposal without prior Administrator review and written approval. Any significant change in staffing from the proposed staff could result in the revocation of the implementation contract. Marketing and Communications Plan and Services The Implementer shall submit an annual Marketing and Communications Plan (“Marketing Plan”) to Administrator as specified in the template provided by Administrator. At a minimum, the following information will be required:
• Overall Strategy • Market Segments and Targets • Outreach Strategy • Promotion and Rebate Plan • Technology or Media • Budget • Metrics
The Implementer will design, develop and submit all marketing and collateral materials as outlined in the Program Marketing and Communications Plan to Administrator prior to any distribution, circulation or publication by Implementer. The Implementer shall conform any program marketing to meet guidelines and standards established by Focus on Energy. The Administrator will provide final approval of marketing materials, to ensure that all Program marketing meets the established Focus on Energy
Page 15
Online Marketplace Pilot RFP
Brand Standards and Style Guidelines, is error-free, effectively communicates the value of the Program and cost-effectively reaches Customers.
The Implementer, in coordination with the Administrator, will work with utilities to provide timely information and identify and implement marketing and communications tactics such as print and digital collateral, call center scripts, public relations and advertising opportunities.
To educate consumers on the benefits and incentives available through program participation, the Implementer shall recommend the best practices in marketing outreach and customer engagement.
Program Coordination and Leveraging Plan and Services The Implementer shall provide a Program Coordination/Leveraging Plan to Administrator. The Plan shall address:
• Overlapping Measures: List overlapping measures with other programs. State plan for coordinating incentives, measure definitions, measure installations, and quality assurance/quality control (QA/QC) standards. • Cross-Program Referrals: State opportunities and plans for effective cross-program referrals. Include how referrals will be addressed in customer materials, through Trade Ally communications, through the program call center, and any other program marketing channels. • Non-Focus on Energy Programs: State opportunities and plans for coordinating with and leveraging other Wisconsin utility, state, local, and regional energy programs. • Program Implementers: State opportunities and plans for coordinating with other Program Implementers by educating and promoting Focus on Energy offerings to eligible Customers, and providing a Customer with program and contact information for other programs if the Customer expresses interest in learning more about other relevant Focus on Energy Programs.
Incentive Processing and Payment The Implementer shall complete the following tasks for all Incentive Applications utilizing SPECTRUM. Implementer shall adhere to the guidelines contained in the Policy Manual and the Operational Procedures Guide:
• Application intake. • Reviewing Incentive Applications for eligibility and completeness. • Reviewing Applications. • Reviewing any engineering calculations, if applicable. • Entering Customer and project information into SPECTRUM.
Note: All Implementer Incentive payments and subcontractor payments will be made to Implementer and subcontractors by the Fiscal Agent.
Call Center Management The Administrator supports a toll-free number from 9 am to 5 p.m. Monday through Friday that addresses public inquiries on Focus on Energy programs and Incentive offerings; however, inquiries on specific programs are transferred to the Implementers for additional Customer assistance and information.
Page 16
Online Marketplace Pilot RFP
Contract Performance Reviews The Implementer shall attend and participate in Performance reviews with Administrator, as outlined in the Agreement. Customer Complaint Resolution The Implementer shall maintain a complaint resolution log that lists all Customer complaints the Program has received, available to Administrator upon request. Summary reporting on customer complaints will be a feature of monthly reporting.
The Implementer shall immediately seek to resolve any Customer complaints, and shall notify Administrator of any Customer complaints that are not resolved within twenty-four (24) hours. Additionally, any health and safety complaints from Customers shall be reported to Administrator immediately.
Program Transition and Ramp-Down Upon request, the Implementer shall provide Administrator with a transition and ramp-down plan for the Program at the end of the Program Agreement, including procedures utilizing an Administrator- approved template.
5. Bidder Qualifications and Restrictions 5.1. Program Implementation Experience Bidders shall be, at a minimum, entities with knowledge and experience in performing the work for which they are bidding. It is within the Administrator’s sole judgment to determine whether a Bidder meets the general criteria for Focus on Energy selection. Any proposal that does not meet the general criteria for Focus on Energy selection shall be rejected without review. 5.2. Financial Requirements Bidders are required to demonstrate and verify that they have the financial resources and stability to perform the proposed work (see section 13.1.2 Financial Requirements Documentation). 5.3. Bidder Conflicts of Interest The following restrictions apply to all Bidders and subcontractors.
• Firms that are either prime or sub-contractors to Focus on Energy are NOT eligible to bid on this RFP, which includes the Administrator, the Program Evaluator, the Fiscal Agent or the Compliance Agent. Current Focus on Energy Implementers are eligible to bid on this RFP. • Firms that are implementing voluntary utility programs for Wisconsin utilities and firms that are implementing Commitment to Community (CTC) programs that serve residential customers, either as prime or sub-contractors, may bid on this RFP. However, in order to eliminate any perceived conflict of interest, a successful Bidder shall be required to choose to implement either the voluntary utility Program/CTC Program or the Focus on Energy Program.
Page 17
Online Marketplace Pilot RFP
5.4. Multiple-Program Limit An organization serving as an Implementer or Implementer Subcontractor on more than one (1) Focus on Energy Program shall not have more than thirty percent (30%) of the total Programs Portfolio.3 Existing Implementers who choose to bid are advised that their bid could be rejected if it was determined by the Administrator that their total of the Focus Programs Portfolio budget exceeded this threshold. 5.5. Subcontractor Restrictions A successful Bidder can either be an individual firm or firms that are teaming together to respond to this RFP. The only acceptable subcontractor structure is for the prime Implementer to have one tier of subcontractors. “Subs” of subcontractors is strictly prohibited.
3 Refer to Focus on Energy Policy Manual
Page 18
Online Marketplace Pilot RFP
6. Bidder Instructions 6.1. RFP Schedule Table 2: RFP Schedule Key Event Key Date RFP Release Friday, March 1, 2019 Intent to Bid (Required) Due Friday, March 8, 2019 at 5:00 PM CST Training on Focus on Energy Cost-Effectiveness Tuesday, March 12, 2019 at 11:00 – 12:00 Calculator AM CST. (Bidder may select either or both trainings; Q&A Thursday, March 14, 2019 at 2:00 – 3:00 opportunity will be provided) PM CST Bidder Questions Due Monday, March 18, 2019 by 5:00 PM CST. Posted at https://focusonenergy.com/rfp- Bidder Q&A Response Document postings and sent to all registered Bidders by Tuesday, March 19, 2019 Tuesday, March 19, 2019 at 3:00 – 4:00 PM Focus on Energy Webinar - Bidder Q&A CST Bidder Proposal Due Monday, April 1, 2019 by 5:00 PM CST Notification of Request for Interview Interviews will be held the week of April 29. Not all On or before Monday, April 22, 2019. Bidders will be interviewed. Notification of Successful Bidder(s) Tuesday, May 7, 2019 Subject to Negotiations On or before close of business on Friday, Bidder(s) Accept May 10, 2019 Contract Negotiations/ Complete Contract Execution Friday, May 17, 2019 Implementer Training and Transitions Begin On or before Monday, May 20, 2019 Program Launch Thursday, August 1, 2019
Page 19
Online Marketplace Pilot RFP
6.2. Intent to Bid Potential Bidders are required to submit an email notification of intent to submit a proposal in response to this RFP by Friday, March 8, 2019 at 5:00 PM CST. The Bidder will receive an email confirmation receipt. Submit an intent to bid to:
Email: [email protected] Subject Line: Intent to Bid: Online Marketplace Pilot Program RFP
Bidders shall provide main contact person (name, address, phone, email). Any further communications about the bid after this date will only go to Bidders that have expressed intent to bid. 6.3. Submitting RFP Questions Any questions related to this RFP must be submitted via email to the email address identified below by March 18, 2019 by 5:00 PM CST. A webinar will be held to provide answers to bidder questions as noted in the Key Dates Table. Webinar login information and credentials will be circulated to Bidders that have submitted a notice of intent to bid.
Email: [email protected] Subject Line: Questions: Online Marketplace Pilot Program RFP 6.4. Proposal Submission Proposals should be delivered via email, in electronic format by Monday, April 1, 2019 by 5 PM CST.
Attention: Online Marketplace RFP Email: [email protected] Subject Line: Proposal Submission: Online Marketplace Pilot Program RFP
Proposals must be received by Focus on Energy by the time and date specified above. Requests for deadline extensions will be rejected, and absolutely no proposals will be accepted after the deadline. 6.5. Verification of Receipt of Proposal It is the Bidder’s responsibility to ensure that its proposal is received at the email address specified above by the deadline for submission. Bidders will receive an email receipt of submission. 6.6. Errors or Omissions A Bidder that discovers an error or omission in its proposal response package may withdraw that package and resubmit a revised version, provided that it does so before the deadline for submission of proposal responses. 6.7. RFP Updates Focus on Energy reserves the right to make changes or updates to this RFP. Any updates to this RFP will be communicated ONLY to prospective Bidders that have indicated their intent to bid. 6.8. RFP Withdrawal Focus on Energy reserves the sole and absolute right to withdraw this RFP at any time before the duly authorized execution of the contract/purchase order with Bidders for any reason including, but not limited to, action by the PSC that modifies or withdraws Focus on Energy funds. In its sole and absolute
Page 20
Online Marketplace Pilot RFP
discretion, Focus on Energy may accept or reject any or all proposals, and may accept a proposal that is not the most cost-effective proposal. Furthermore, Focus on Energy reserves the right not to select any proposals and to re-issue a new RFP. Focus on Energy will not assume any liability, under any circumstances, to any Bidder submitting a proposal in response to this RFP. 6.9. Proposal Preparation Cost All Bidders accept any and all costs and/or expenses incurred prior to the duly authorized execution of the Agreement/Purchase Order and may not seek reimbursement of any costs and/or expenses from Focus on Energy. 6.10. Proposal Not Confidential Focus on Energy does not guarantee that proposals will be kept confidential, including either the proposal submitted in response to this RFP or any Agreement/purchase order arising from the solicitation. Specifically, Focus on Energy may submit Bidder proposals to SEERA or the PSC for review.
Furthermore, Focus on Energy will not assume any liability to a Bidder or other party as a result of any public disclosure of any proposal or the resulting Agreement/purchase order.
However, Bidders will not be allowed to view other Bidders’ proposals, in accordance with Section II of the Procurement Policy in the Focus on Energy Policy Manual. 6.11. Post-Proposal Negotiation Focus on Energy expects to negotiate both price and non-price factors separately, during any post- proposal negotiations with a finalist(s) but will accept no exceptions to flow down terms from the prime agreement with SEERA. Focus on Energy has no obligation to enter into negotiations or an agreement with any respondent to this RFP and may terminate or modify this RFP at any time without liability or obligation to any Bidder. Refer below to Section 8: Agreement General Terms and Conditions. 6.12. Proposal Submission terms and conditions All proposals, along with all other documentation, submitted in connection with this RFP shall become and will remain the property of Focus on Energy and will not be returned to Bidder. At the end of the bid evaluation process, all Bidder proposals shall be destroyed except for one copy of each proposal which shall be maintained by the Administrator. Copies of successful Bidder proposals will be retained and used during the pricing negotiation and program launch period.
By submitting a proposal pursuant to this RFP, Bidders acknowledge and agree that (a) they will be fully bound by the terms and conditions of this RFP in submitting their proposals, (b) they have had the opportunity to seek independent legal and financial advice of their own choosing with respect to this RFP and their proposals, (c) they have obtained all necessary authorizations, approvals and waivers, if any, required by them as a condition of submitting their proposals, (d) they are submitting their proposals subject to all applicable laws, (e) they have not engaged in and will not engage in communications with any other Bidder to the RFP concerning the price or other economic terms contained in their proposals and have not engaged in collusion or other unlawful or unfair business practices in connection with this RFP.
Page 21
Online Marketplace Pilot RFP
7. Selection Criteria 7.1. Evaluation Committee Accepted written proposals will be reviewed by an evaluation committee and scored against the stated evaluation criteria. The evaluation committee will consist of representatives from the Administrator, SEERA and the PSC. A Bidder may not contact any member of the evaluation committee until awards are announced. 7.2. Minimum Threshold Criteria A Bidder must meet the following threshold criteria for its proposal(s) to be considered:
• The Program Level TRC Ratio must be greater than 1.0 (see section 4.6. Cost-Effectiveness: Program Level) • The proposal must contain all information required in this RFP (see section 2. Proposal Checklist). • Bidder must have sufficient financial strength to successfully implement the proposed Program (see section 5.2. Financial Requirements).
Any proposal that does not meet this threshold criteria may be rejected without review, at the sole discretion of the bid evaluation committee/Administrator. 7.3. Preliminary Evaluation Submitted proposals will be preliminarily reviewed to determine if minimum threshold criteria are met, as detailed above. Failure to meet threshold criteria may result in rejection of the proposal.
In the event that all Bidders do not meet one or more of the minimum threshold criteria, the evaluation committee/Administrator reserves the right to continue the evaluation of proposals and to select the proposal that most closely meets the requirements specified in this RFP. 7.4. Evaluation Criteria Written proposals that meet the threshold criteria will be scored by each member of the bid evaluation committee using a scorecard with the criteria detailed in Table 3 below. Bidders should specifically address these criteria in the relevant sections of their proposals.
Page 22
Online Marketplace Pilot RFP
Table 3. Proposal Evaluation Criteria
I. Bidder Experience and Staff (25%)
• Bidder Staff and Management Capabilities: Bidder has key personnel with appropriate experience and qualifications to successfully manage and implement the program. Bidder has a clear and effective team management and organizational structure to effectively implement the program. • Project Experience: Bidder demonstrates past skill, competence and experience in implementing Online Marketplace energy efficiency programs with similar breadth, technical skill set, scope, climate zones and service territories. Bidder has demonstrated success in meeting goals of previous projects. Bidder provides access to program evaluations for other prior projects.
II. Proposed Program Plan (60%)
• Proposed Program Approach: Bidder’s approach to the Scope of Work is clear and reasonable and addresses all of the tasks identified in the RFP. The approach demonstrates specific plans that will meet all program objectives and effectively target the Residential Sector. Bidder includes a detailed plan for each required element. • Program Priorities: Bidder’s response clearly addresses eligible program areas and elements to consider (program design and options for customer delivery, residential customer eligibility requirements, program innovation, marketing and collateral, and measure offering as well as the program priorities (retailer/manufacturer relationships, equitable participation opportunity, energy-efficient lighting, ongoing program evolution, stakeholder coordination, customer satisfaction, data management and security, utility customer engagement, information resources) and the Bidder’s response considers best practices or a clear rationale for their approach. • Proposed Marketing and Outreach Plan: Bidder's marketing and outreach plan to serve the Residential Sector is clear, detailed and reasonable. Bidder's plan specifically identifies approaches and demonstrates they are effective with Residential Customers and Utilities, including marketing and outreach channels that are specific to Wisconsin. Bidder demonstrates an understanding of the unique characteristics of each Sector within the plan.
III. Cost (15%)
• Bidder’s proposed program cost will be evaluated. More cost-effective bids, as determined by Cost per Lifecycle MMBtu and Incentive percentage of total budget, will receive greater points. The Administrator reserves the right to negotiate price with selected Bidder(s). Final contracts are contingent on reaching mutual agreement on price.
7.5. Evaluation Process The evaluation committee’s scoring will be tabulated, and written proposals will be ranked based on the numerical scores received. The evaluation committee reserves the right to contact references and/or request interviews with Bidders. A combination of the scores received for the written proposal as well as results of the interview will be considered when awarding contracts.
Page 23
Online Marketplace Pilot RFP
7.6. Proposal Review – Clarifications The Focus on Energy bid evaluation committee may perform clarification interviews or request clarification in writing. A clarification interview may be performed via telephone and will focus on clarifying the information set forth in the proposals, rather than offering Bidders the opportunity to revise proposals. Bidders will not be compensated for the time spent or the costs incurred for the interview(s) or for responding to a written request for clarification.
8. Agreement General Terms and Condition
Refer to this link at www.focusonenergy.com/about/rfp
9. Proposal Bid Package Proposals should provide concise, yet complete, responses. A successful Bidder shall submit a complete proposal package for one Program covering all Program areas, addressing all Proposal sections identified below. In the event a Bidder chooses not to respond to any section of the RFP format, it should indicate its reason for the omission of a response in place of the appropriate section.
Excessive length is discouraged; figures and visuals are encouraged where appropriate to illustrate how the Program features will be displayed and presented to stakeholders. Certain sections have specific length limitations (see section 2. Proposal Checklist). Bidders are encouraged to proactively present additional information and responses that may not be specifically requested to help demonstrate understanding of the Program’s objectives, as well as the Bidder’s experience and expertise. 9.1. Proposal Document Proposal Section 1. Cover Letter Bidders shall include a cover letter with the proposal that clearly identifies the name of the organization or individual proposing the Program. The cover letter should be signed by an authorized representative and include the following:
• Name of Company/Team • Name of Primary Contact at Company • Contact Information Proposal Section 2. Executive Summary (not to exceed 1 page) Bidders shall provide an executive summary that includes a high-level summary of the proposal as well as a brief description of the Program Area that the Bidder is proposing to implement. Bidders also shall include the following key bid metrics table in the executive summary. See the table below.
Page 24
Online Marketplace Pilot RFP
Table 4. Key Bid Metrics Key Bid Metrics Program TRC Ratio Program kW savings Program lifecycle kWh savings Program lifecycle therm savings Cost* per kW Cost* per lifecycle kWh Cost* per lifecycle therm Incentive percentage of total budget Number of participating Customers * Costs should be inclusive of both incentives and program implementation expenses.
Proposal Section 3. Bidder’s Capabilities & Experience (not to exceed 6 pages) Proposal Section 3.1. Overview of Company Bidders shall include an overview of the company and the following information:
• Core service offerings • Years in operation • Current or planned business structure (e.g. for-profit corporation, not-for-profit organization, partnership, etc.) • Number of employees • Number of employees currently based in Wisconsin • Current or proposed Wisconsin office location or alternate plans. Proposal Section 3.2. Overview of Implementer Subcontractors Bidders shall identify any proposed Implementer Subcontractors that will be part of the implementation team. Bidders should describe the proposed roles for each of the subcontractors and identify their specific experience in the area in which they will perform their work. For every subcontractor, Bidders should identify the following:
• Core service offerings • Years in operation • Number of employees • Number of employees currently based in Wisconsin • Current or proposed Wisconsin office location.
Page 25
Online Marketplace Pilot RFP
Bidders must describe the value that any subcontractors provide to the partnership structure and must include signed letters of participation (or signed letters of agreement) from each subcontractor. Subcontractor letters shall be on organization letterhead. Proposal Section 3.3. Project Experience Bidders shall discuss their company’s relevant experience, for the last three (3) years, in providing program implementation services with similar breadth and scope. For each experience discussed, Bidders must provide the following information:
• Description of program • Location for the program • Years of implementation • Program budget • Program goals and whether goals were achieved: o Number of participants o Energy saved o Other non-energy and non-participant goals • Measures included in the program.
Bidders should specifically mention any related energy efficiency program experience in the state of Wisconsin, the Midwest, or other similar service territories. Bidders should specifically state, for each program, how prior programs are similar to the Focus on Energy program for which they are bidding on. Proposal Section 4. Program Approach (not to exceed 4 pages) Bidders shall describe their proposed Program, including but not limited to items specified below.
• Program details and proposed processes, including Program elements that are required and elements to consider, as described in Section 4, “Program Information.” • Key approaches and tools to achieve forecasted customer participation and energy savings goals, including approach for: o Identifying and targeting Customers. o Utilizing key marketing channels. o Participating in statewide events, utility sponsored events, and community events. • Unique aspects of program design, delivery or other differentiators that make the Bidder’s proposed approach superior to similar programs, including approach for authentication and validation of potential Program participants. • Strategic approach for statewide program penetration. • Systems and processes that are used to deliver high-quality programs, which may include processes for ensuring error-free rebate or incentive processing, call center capabilities, and issue resolution. Bidders should note that Focus on Energy Implementers will be required to use SPECTRUM to track and report program data. Proposal Section 5. Approach to the Scope of Work (not to exceed 15 pages) Note – Not all Scope of Work task items (as detailed in section 4.9. Program SOW) require detailed responses from Bidders regarding their approach to the task items. Specifically, task items that are
Page 26
Online Marketplace Pilot RFP
prescriptive or highly-structured in nature do not required a response from bidders. Bidders shall address the following Scope of Work items in their proposal.
Proposal Section 5.1. Program Design Services Proposal Section 5.1.1. Finalize the Measures and Measure Mix Bidders shall briefly describe any Measures that they plan to add to the Program.
Proposal Section 5.1.2. Conduct Cost-Effectiveness Analysis Bidders shall include a brief summary of the results of cost-effectiveness calculations. Proposal Section 5.2. Program Implementation Services Proposal Section 5.2.1. Quality Assurance/Quality Control Plan Measure and Verification Plan Bidders shall describe their approach to develop and implement a Program-level quality assurance/quality control and Measure verification plan to ensure only qualified Measures receive Incentives under the Program and that Measures are installed and operating.
Proposal Section 5.2.2. Marketing and Communications Plan and Services Bidders shall describe their proposed methods of implementing effective marketing and outreach strategies for reaching Online Marketplace Customers in the Program. Effective Bidders will describe in detail plans for equitable statewide distribution of Program offerings and plans for marketing the Program to Customers statewide. Bidders shall describe their approach and capabilities to develop marketing materials and ensure consistency with overall Focus on Energy brand standards. Bidders shall describe a plan to coordinate with the Administrator, utilities, and other organizations related to the applicable Program area.
Bidders shall review the specific marketing and communications plan requirements in Section 4, “Program Information”. Bidders shall describe how they would specifically target their strategies to key market segments and conduct outreach for the applicable Program Sector.
Proposal Section 5.2.3. Program Coordination and Leveraging Plan and Services Bidders shall identify their proposed approach and capabilities for coordinating with other Focus on Energy programs, including other Implementers. In addition, Bidders shall identify any plans for coordinating with and leveraging other Wisconsin and Midwestern utility, state, local and regional energy programs (see Section 4.9.2 Program Implementation Services).
Proposal Section 5.2.4. Incentive Processing and Payment Bidders shall describe their approach to processing and reviewing Incentive Applications submitted by Customers. This includes, but is not limited to, the following tasks:
• Bidders shall describe their plan for ensuring accurate entry of Customer and Incentive information from program Applications into SPECTRUM. Additionally, Bidders should describe the key elements required to maintain quality assurance and control for the program to ensure error-free Incentive processing and minimal customer service problems. This should include regulatory compliance, quality of engineering/energy savings estimates, complete project documentation, and program data files.
Page 27
Online Marketplace Pilot RFP
• Bidders shall also describe their methods for ensuring that confidentiality of Customer Information is maintained across all program systems and processes.
• Bidders shall describe methods for paying state and other applicable taxes that are required to be collected as part of retail transactions.
• Bidders should note that Incentive payments will be approved by the Administrator and then issued directly to appropriate parties by the Focus on Energy Fiscal Agent. Therefore it is not necessary for Bidders to describe an approach for cutting checks or providing them to other parties.
Proposal Section 5.2.5. Call Center Management The successful Bidder will maintain a call center through software selected by the Administrator and follow guidance set forth in the Operational Procedures Guide. Bidders should describe their capabilities, experience and proposed approach for receiving inquiries specific to the program that the Bidder is proposing to implement.
Bidders shall describe their approach for establishing a Customer service mindset across all team members and to respond to phone or email inquiries in a timely fashion. In addition, Bidders shall address other Customer service activities they will undertake specific to their proposed program.
Proposal Section 5.2.6. Customer Complaint Resolution Bidders shall describe quality assurance plans to address a plan for Customer satisfaction and complaint tracking and verification. Proposal Section 6. Key Challenges (not to exceed 3 pages) Bidders shall describe any foreseen challenges in implementing the proposed Program. In addition, Bidders shall identify a proposed approach to addressing each of these key challenges. Proposal Section 7. Program Targets – Energy Savings and Cost-Effectiveness (not to exceed 5 pages) Bidders shall provide four year cumulative energy savings goals and cost-effectiveness goals. All energy savings should be in lifecycle values. Bidders must use the Focus on Energy Cost-Effectiveness Calculator to calculate the annual targets, cumulative energy savings goals, and cost-effectiveness goals. The Calculator available for this solicitation is listed in Appendix G.
Bidders will be required to enter the following information into the calculator:
• Implementer costs by category and year • Customer incentives by Measure • Measure penetrations by year.
The Calculator is pre-loaded with Measure-level values for many common Measures. If a Bidder selects additional Measures that are not pre-loaded into the Calculator, the Bidder must document assumptions in sufficient detail for proposal evaluators to understand the basis for and reasonableness of the proposed values. In addition, for any prototypical Measures, Bidders must document through workpapers the reasonableness of proposed costs and savings. The workpapers for all input
Page 28
Online Marketplace Pilot RFP
assumptions added by the Bidder to the Cost-Effectiveness Calculator shall be submitted with the bid response. The bid evaluation committee will review these values and reserves the right to modify them. Instructions on how to use the Cost-Effectiveness Calculator are contained in Appendix H. In addition, as set forth in the RFP schedule, Bidders may attend webinar trainings on the Calculator.
The proposed Program must meet a minimum TRC Ratio of one (1.0) to be considered.
Proposal Section 7.1. Proposed Program Goals and KPIs Bidders shall provide the annual incremental targets and four year cumulative goals (kW, kWh, MMBTU, and therms) from the applicable Focus on Energy – Cost-Effectiveness Calculator.
Bidders shall also propose three to five (3-5) KPIs that they believe are useful measures of program success in the market which do not relate to savings, budget or cost-effectiveness.
Proposal Section 7.2. Define Program Objectives Bidders shall describe the program objectives for the proposed program. The proposed program objectives shall include cost, savings, cost-effectiveness, participation, KPIs, and other program objectives that will lead to high-quality, best-in-class, cost-efficient programs. Proposal Section 8. Staffing Plan (not to exceed 3 pages) Bidders shall provide a staffing plan. Implementers shall not change out personnel included in the bid proposal without advance written approval of the Administrator. The staffing plan must, at a minimum, address the following: Proposal Section 8.1. Key Personnel Bidders shall provide the name, title, proposed fully-loaded labor rate, and the number of hours that each key personnel staff member will spend on the proposed program. In addition, Bidders should clearly state whether the staff are employees of the Bidder or subcontractors. Information shall be provided in the format identified in Table 5 below. “Key personnel” indicates any staff member in a management position, as well as any staff member with direct Customer contact who bills more than 50% of their time to the Focus Program.
New staff added to a Bidder’s program after the Bidder’s proposal is accepted requires the advance written approval of the Administrator in accordance with Focus policies and procedures.
Table 5: Staff Billing Rates (add rows as needed)
Position/ Employee or Labor Rate Hours Name Headquarters Title Subcontractor (Fully Loaded) (Weekly)
Page 29
Online Marketplace Pilot RFP
Proposal Section 8.2. Organizational Chart Bidders shall include one (1) organizational chart that clearly identifies the roles and responsibilities of key personnel for Program implementation. Proposal Section 9. Launch/Transition Timeline (not to exceed 2 pages) At program launch, Implementer will begin responsibility for: • Application intake from Customers for qualifying Measures • Collateral materials complete • Marketing and outreach to Customers begins Bidders shall specifically describe how they will design and launch the Program on August 1, 2019. This description should include identification of any challenges and barriers and how the Bidder intends to overcome them in order to launch the Program by the required start date.
Bidders should provide a detailed timeline for the Program launch beginning August 1, 2019. The timeline should include key milestones, including the milestones for rolling out programs to Customers. Bidders should anticipate execution of an implementation contract by August 1, 2019. Proposal Section 10. Proposed Budget (not to exceed 3 pages) Bidders shall provide budgets for each category listed below in Table 7a. Budgets provided by Bidders should be annual budgets for each of the four (4) calendar years covered by the term of the contract, which shall cover the Term of Agreement. The transition period prior to program launch will come from the Implementer’s Total Contract Budget Amount.
Bidders should note that SEERA reserves the right to modify a Bidder’s proposed budget during contract negotiations and to negotiate the final Total Program Budget for the Program.
Bidders shall indicate how much of the Total Program Budget will be spent on Incentive versus non- Incentive program costs.
Non-Incentive costs should be minimized, incentive amounts may be no less than seventy percent (70%) of the Total Program Budget exclusive of the Online Marketplace platform development budget portion (see Table 1). The Incentive Budget as a percentage of Total Program Budget may be the subject of negotiation with the successful Bidder. All budget information shall be provided in the format identified in Tables 7b and 7c below.
Work shall be performed through fixed unit pricing. Bidders should note the Administrator will issue Performance-based contracts that will include provisions for labor hold-backs if annual program targets, including but not limited to gross annual energy targets, are not met by Implementers. The annual targets will be agreed upon by the successful Bidder and Administrator during contract negotiations.
Bidders must clearly identify the accounting method that they propose to utilize throughout the term.
Note: mark-ups on subcontractors or other costs (such as postage, etc.) are prohibited.
Page 30
Online Marketplace Pilot RFP
Table 6a. Proposed Budget by Cost Structure and Line Item category Contract Cost Financial Reporting by Line Item Structure Administrative Costs shall not be invoiced to the Program Incentives (to be paid directly to Customer, Trade Ally, or Implementer by Fiscal Agent) Technical & Customer Support Fixed Unit • Technical & customer support labor • Implementer Subcontractors and Vendors (to be paid directly by Fiscal Agent) • Other direct costs (used for Online Marketplace Platform Development costs)
Online Marketplace Pilot Program Table 7b: Energy Efficiency Budget by Line Items Budget Category 2019 2020 2021 2022 Technical & Customer Support (Includes technical & customer support labor, equipment, marketing, other direct costs, Implementer Subcontractors, and Vendors)
Administrative Costs
Incentives Total Annual Budget (Technical & Customer Support, Administrative Costs and Achieved Savings)
Table 7c: Fixed Unit Pricing Budget Cost Category for Fixed Unit End User Cost Price Description Fixed Unit Price Technical & Incentive Co-Pay Customer Support Ex. Measure
Page 31
Online Marketplace Pilot RFP
Proposal Section 11. Conflict of Interest All potential Bidders shall review conflict of interest restrictions in Section 5.3 and disclose any and all affiliations or financial relationships with the Administrators, Fiscal Agents, Compliance Agents, SEERA members4, and PSC staff.
If a Bidder currently has a contract with the Focus on Energy Portfolio Administrator, Evaluator, Fiscal Agent, Compliance Agent, SEERA or the PSC, the Bidder shall indicate the contract purpose, dollar value of the contract and duration of the contract. Such disclosure shall be included in the response. Failure to accurately respond will result in immediate rejection and exclusion from the program. If no such relationships exist, a Bidder’s response shall contain an affirmative response indicating no relationship exists.
Bidders shall disclose whether they are operating any of the following energy efficiency Programs in Wisconsin:
• Voluntary utility programs • CTC programs.
For each Program identified above, Bidders shall provide the following:
• A short description of the program, which shall not exceed one page • Eligible Measures and Incentives. Proposal Section 12. References (not to exceed 3 pages) The Bidder shall provide three (3) client references for the Bidder and two (2) references for each of its subcontractors; including company name, contact information (name, title, phone number, fax, and email). Additionally, the Bidder shall provide a brief description of the Bidder’s and its subcontractor’s services provided and how those services relate to work that the Bidder proposes. Proposal Section 13. Proposal Supporting Documentation 13.1.1 Cost Effectiveness Calculator All Bidders shall complete the Focus on Energy Cost-Effectiveness Calculator (CEC) to calculate program cost-effectiveness, including a modified TRC Ratio test and program savings, including annual incremental and cumulative annual savings (kW, kWh, MMBTUs, therms).
Bidders shall use the Measure-level inputs contained in CEC. For any Measures that the Bidder would like to include that are not included in the CEC, the Bidder shall provide Measure-level savings values, and documentation supporting the values for these Measures. All supporting documentation for prototypical custom Measures or Measures not included in the CEC shall be submitted as supplemental documentation to the Bidder’s proposal.
4 The SEERA members mainly include representatives from various Focus on Energy participating Wisconsin utilities. The following utilities and entities are presently represented on the SEERA Board: Wisconsin Public Service, St. Croix Gas, North Central Power Company/Northwestern Wisconsin Electric, Superior Water, Light & Power, Consolidated Water Power, Xcel Energy, We Energies, Madison Gas & Electric, and Alliant Energy.
Page 32
Online Marketplace Pilot RFP
Bidders shall manually enter budget and penetration values in the CEC. Bidders shall not change established values in the CEC. The CEC is available in Appendix G. The CEC User Manual is available in Appendix H. See the below table for more CEC instructions.
Training on completing the CEC will be available to bidders. Refer to the RFP Schedule for more information on CEC training.
13.1.2 Financial Requirements Documentation Bidders are required to demonstrate and verify that they have the financial resources and stability to perform the proposed work by providing documentation as described below:
• Last three years of audited financial statements for the firm and any significant sub-contractors, which should include a profit and loss statement, a cash flow statement, and a balance sheet (e.g. SEC form 10-K is acceptable).
• A non-public or non-profit entity shall provide adequate information comparable to the information required above, that allows an assessment of financial status and capability.
• In the event a Bidder is forming a new organization to bid on this proposal, the Bidder should provide comparable documents from investors, partners, and/or principals.
13.1.3 Non-Collusion Certification Pursuant to the Focus on Energy Policy Manual, each Bidder, including the primary contractor and all subcontractors, shall execute the Non-Collusion Certification and submit as part of the bid package.
Page 33
Online Marketplace Pilot RFP
RFP Appendices A. 2017 Potential Study B. Deemed Savings Review C. Evaluation Report D. General Terms and Conditions of the proposed Agreement E. Policy Manual F. TRM G. Cost-Effectiveness Calculator H. CEC User Manual I. Workpaper template J. Affidavit of Non-Collusion
Page 34