KENTUCKY POWER COMPANY

Transcription

1 KENTUCKY POWER COMPANY REQUEST FOR PROPOSAL Program Implementation Contractor for the. June 25, 2014 Proposal is Due: July 29, :00PM Eastern Standard Time Intent to Bid Due: July 8, :00PM Eastern Standard Time For more information and questions/answers Contact: Jennifer Downey American Electric Power ( AEP ) jldowney@aep.com 1

2 TABLE OF CONTENTS 1 Introduction Summary of Solicitation Contact Information, Due Date, and Submission of Proposals Intent to Bid Questions and Answer Process RFP Schedule Post Proposal Negotiation and Awarding of Contracts Minimum Qualifications Background Customer Eligibility Criteria KPCo Roles and Responsibilities Contractor Roles and Responsibilities Proposal Response Format Scope of Work Task 1 Program Implementation Planning Task 2 Program Delivery Task 3 Marketing Task 4 Incentive Processing and Data Tracking Performance Goals Qualifications and Experience Program-Specific Qualifications and Experience Program Implementation Planning Experience Marketing Experience Incentive Processing and Data Tracking Experience General Administration & Management Experience Qualifications and Experience of Key Personnel Client References

3 6.8 Conflict of Interest Disclosure Financial Information Requirements Budget

4 1. Introduction Request for Proposal KPCo serves approximately 140,000 residential customers and 30,000 commercial customers in the state of Kentucky. KPCo is issuing this RFP for the selection of an experienced Contractor capable of providing cost-effective, turnkey services for the. KPCo seeks an experienced, Contractor who can provide leadership, proactive initiatives and strategies leading to successful results within budget. The selected Contractor must oversee the promotion, delivery, and quality-assurance, of the Program through the year Summary of Solicitation Kentucky Power Company ( KPCO or Company ) seeks proposals from qualified firms to oversee the administration, marketing and reporting for four (4) existing energy efficiency programs. These programs, as briefly defined below, are currently managed using inhouse Kentucky Power resources. However, the Company believes these programs incorporate many similar aspects and seek proposals to move program administration, marketing and reporting responsibilities to a third party program implementation contractor ( Contractor ). The programs are currently promoted by participating dealers, Company sponsored public events, bill inserts newspaper, etc. The four programs include: Mobile Home Heat Pump Program - This program is designed to promote a more efficient heating, ventilation and air conditioning ( HVAC ) system for mobile homes. Incentives are paid to both the HVAC dealers and the customers who purchase high-efficiency heat pumps to replace their existing electric furnaces. Currently the customer incentive is $400 and the dealer incentive is $50 for each installed heat pump. Mobile Home New Construction Program - This program is designed to lower electric usage in new mobile homes by paying incentives to mobile home dealerships and the customers who purchase new mobile homes with high efficiency heat pumps and Zone 3 insulation packages. Currently the customer incentive is $500 and the manufactured housing dealer incentive is $50 per mobile home. High Efficiency Heat Pump Program - This program is designed to reduce residential electric energy consumption by upgrading less efficient electric heating and cooling systems with high-efficiency heat pumps. Currently the customer incentive is $400 and the dealer incentive is $50 per heat pump. Residential and Commercial Heating, Ventilation, Diagnostic and Tune-up Program - This program works with participating licensed HVAC dealers and targets residential and small commercial customers with HVAC system performance problems. The objective of this program is to reduce energy usage by conducting a diagnostic performance check on unitary air conditioning and heat pump units, air restricted indoor and outdoor coils, and over / under refrigerant charges. Currently the customer and dealer incentives are: residential $30; commercial $30; and dealer $25 per diagnostic performance check. Note: Diagnostic services for air conditioners were discontinued in 2013 following 2012 program evaluation. Customers are currently required to mail the incentive application form directly to Kentucky Power for review and processing following validation. 4

5 Additional information related to these programs can be found at Company s website ( and at the Company website for the filed customer tariffs ( The programs are subject to modification depending on performance, cost effectiveness, participation, etc. Program modifications are subject to applicable approvals including regulatory filing with the KY PSC. The implementation contractor will have, at a minimum, the following responsibilities: Develop marketing activities Design and maintain a data tracking system Process rebate applications Engage and monitor participating manufactured home and HVAC dealers Develop QA/QC procedures and conduct random inspections of completed work Please note that the Residential and Commercial Diagnostic program has been evaluated and is under review to determine if continued program operation is justified. The program may be discontinued following review; however, the Company still seeks proposals for implementation with all of the described programs including the Residential and Commercial Diagnostic program. The Company requests that all proposals clearly display separate pricing for the four programs. Requested services are expected to commence January 1, 2015 but are subject to discretion of Kentucky Power. 1.2 Contact Information, Due Date, and Submission of Proposals Proposals must be received no later than 5:00PM Eastern Standard Time (EST) on July 29, Proposals must be uploaded to the Ariba System. Send an electronic copy of your proposal as a Microsoft (MS) Word document, Adobe Acrobat Reader PDF, or compatible document. The entire proposal should be contained in a single file. In addition, please include any supportive analytical data in Microsoft Excel. KPCo encourages simple and straightforward proposals. Late submissions will not be considered. KPCo reserves the right to reject as non-responsive any proposals that do not contain the information requested in this RFP. Late proposals will be rejected. KPCo is not liable for any costs incurred by any person or firm responding to this RFP or participating in interviews. 5

6 1.3 Intent to Bid Request for Proposal Bidders are required to indicate an intent to bid through the Ariba system, by 5:00PM Eastern Standard Time on July 8, Questions and Answer Process Contractor questions related to budgets, costs, RFP process, or other general information must be submitted through the Messages feature in the Ariba system. No other contact with the Company, American Electric Power, Board Members, Executive Managers, Managers and/or any other employees related to this RFP shall be made throughout this entire process. Any unauthorized contact may result in immediate disqualification. 1.5 RFP Schedule Task Tentative Completion Date Issue RFP June 25, 2014 Intent to Bid Response due July 8, 2014 RFP question period ends July 18, 2014 Proposals due July 29, 2014 Interview finalists and contract negotiations August 2014 Anticipated contractor start date 1/1/2015 The above schedule is subject to change at the discretion of KPCo. 1.6 Post Proposal Negotiation and Awarding of Contracts KPCo reserves the right to negotiate both price and non-price factors during any postproposal negotiations with a finalist. KPCo has no obligation to enter into an agreement with any respondent to this RFP and may terminate or modify this RFP at any time without liability or obligation to any respondent. This RFP shall not be construed as preventing KPCo from entering into any agreement that it deems appropriate at any time before, during or after this RFP process is complete. 1.7 Minimum Qualifications The contractor team responding to this RFP must have at least the following qualifications to be considered for selection: At least five years of experience with design, delivery, and marketing for commercial program initiatives for utility sponsored programs or other system benefit charge funded programs Capability to design forms, develop a robust trade ally network to deliver the Program, review applications for completeness and accuracy, process incentive 6

7 checks, and all of the other needed expertise to effectively deliver utility-sponsored programs in a turnkey manner. Demonstrated organizational, financial, and data tracking and reporting abilities Demonstrated commitment to quality and customer service 2. Background Kentucky Power Company has several Demand Side Management Programs in its portfolio. The four energy efficiency programs, as defined above, are currently managed with KPCO resources. The Company believes there are significant similarities between these programs and that economies of scale could be realized if a single Contractor provided overall and turnkey program administration, marketing and reporting associated with these four programs. Therefore, the Company is seeking proposals from a qualified Contractor to oversee the administration of these programs. The selected Contractor will be required to oversee the four programs in a turnkey manner, expand the existing HVAC trade ally network in Kentucky, recruit and train additional trade allies for participation in the programs, provide robust marketing efforts to encourage and grow customer participation, and provide detailed and robust program reporting of all costs, impacts, measures, marketing efforts, etc. Reporting metrics will be defined by Company and all reporting must be provided in both hardcopy and electronic. Contractor is expected to provide electronic data to Company on a frequent basis and in a format compatible with Company s program tracking system. Activity and expense will be reported on program measure, customer class, and specific program. Please note this RFP is not for installation services. These are existing programs within Company s energy efficiency program portfolio. As outlined above, the services requested will build upon Company s existing achievements and, among other things, will provide expanded marketing and promotion of these programs to educate customers on energy efficiency, the programs available, and secure increased customer participation in the programs as well as expand HVAC trade ally participation and education. Contractors are reminded that the objective will be to design the programs to ensure continuity in program offerings throughout the contract period. Please clearly define proposed implementation, marketing, education, and delivery strategies as well as a breakdown of all costs, to the extent possible, for each major cost component of these programs. The proposal should also include pricing and target performance objectives based on preliminary recommendations from program evaluations. Pricing should be separated between base and programs recommendation and should be based on the following potential program modifications: 7

8 Residential High Efficiency Heat Pump: Request for Proposal (1) Enhanced rebates for higher efficiency equipment. Of the customer applications that met program requirements, approximately half of the central electric resistance heat systems replaced and 75 percent of the heat pump systems replaced exceeded the minimum program SEER and/or HSPF requirements. Incentives for 2 Tiers for each type of replaced equipment, as shown in the table below. System Tier SEER HSPF Incentive Replace Resistance Tier $300 Heating Tier $500 Replace Heat Pump Tier $300 Tier $500 Mobile Home High Efficiency Heat Pump: (1) Enhanced rebates for higher efficiency equipment. Of the customer applications that met program requirements, approximately forty percent systems installed exceeded the minimum program SEER and/or HSPF requirements. Incentives for 2 Tiers for each type of replaced equipment, as shown in the table below. System Tier SEER HSPF Incentive Replace Resistance Tier $300 Heating Tier $500 Replace Heat Pump $300 Please describe and recommend an appropriate pre- and post-inspection process to ensure quality control. 2.1 Customer Eligibility Criteria Please reference program tariff description for customer eligibility. 2.2 KPCo Roles and Responsibilities KPCo anticipates providing only high-level administrative, contract management, program design, delivery, and marketing oversight of the selected Contractor. KPCo will have a program manager or coordinator whose responsibility will be to provide oversight of the program. The program manager or coordinator will be the primary point of contact for the Contractor. Additionally, the program manager or coordinator will be responsible for communicating any changes in overall policy, guidance, or cross-program promotion opportunities. KPCo will provide direction and final approval on all marketing and promotional material In summary, the anticipated roles and responsibilities for KPCo utility staff are the following: 8

9 Review and approve Contractor invoices and ensure program activities are within budget and on-schedule Provide high-level guidance and direction to the Contractor, including review and revision of contractor proposed annual implementation plans and proposed milestones Periodic review of Contractor maintained program tracking database Periodic review of Contractor maintained measure saving estimates as needed Periodic field visits and speaking engagements at high-profile events (trade shows, builder conferences, etc.) Sample QA/QC inspections to validate and monitor performance Provide guidance and direction on Contractor proactive proposed new initiatives or strategies Communicate to Contractor other KPCo initiatives that may provide opportunity for cross-program promotion Review and approve all marketing and promotional materials Ensure Contractor is performing proper quality assurance activities and customer service levels are high Submit information to the Kentucky PSC as needed Ensure necessary reporting obligations are completed as required. 2.3 Contractor Roles and Responsibilities The following is a high-level review of KPCo s expectations for the Contractor s roles and responsibilities with the : Contractors are responsible for turn-key program implementation. KPCo anticipates providing only high-level administrative, contract management, program design, delivery, and marketing oversight of the selected Contractor. Contract financial planning and budgeting as well as implementation delivery planning Proposing and developing annual delivery plans, timelines, and milestones Trade ally recruitment, enrollment, and training, as necessary, including face-to-face workshops with trade allies and KPCo personnel Development of all program materials including incentive forms, customer applications, spreadsheets, presentations, program terms and conditions, process maps, training materials, overall policy requirements, and program manual(s) Recommendation of incentive levels and deemed savings values associated with eligible prescriptive measures, Marketing materials development and media placement, including technical fact sheets, mass media marketing materials, and articles for trade association 9

10 newsletters, as necessary. Marketing efforts may be supplemented using internal KPCo resources. All marketing material subject to KPCo review and approval. Sample QA/QC inspections of customer projects. Review and verification of application forms, equipment installed, detailed demand and energy reduction calculations, incentive payment calculations, program qualifications, and associated tasks to ensure accuracy of all performed energy efficiency installations Incentive processing and customer/dealer payment Ensure proper cost accounting is used on all invoices submitted to KPCo for payment Data tracking/reporting as specified by AEP/KPCo Reporting (monthly, quarterly, and annually) all costs, impacts, participant and other necessary information / data Verification to ensure policy and procedures are enforced. Coordination with AEP/KPCo on database design, data fields, reports, costeffectiveness screening, process and impact evaluations, savings verification, etc., as related to the programs. Provide detailed monthly reporting to Company. However, it is expected the Contractor will provide more frequent data files to Company related to: o Breakdown of all costs based on customer class (residential, commercial), program total and program measures, cost category (i.e. equipment, incentive, marketing, administration, etc.) o Breakdown of measures installed (dealer forms attached) Incentives (dealer and customer) Total measure cost Measure life Efficiency ratings of equipment installed Other metrics which may be defined by the Company o kwh and kw impacts (may be required for future reporting) o Achievement to date and performance tracking as compared to target o Trade Ally performance and tracking of educational activities, promotion, etc. o Other reporting metrics to be defined by the Company 3. Proposal Response Format Proposals should be prepared to provide a concise yet complete description of the Contractor's approach and capabilities for satisfying the required services outlined in this RFP. In the event that a Contractor chooses not to respond to any section of the RFP format, the Contractor should, in place of the appropriate section, indicate its reason for the omission of a response. In addition, Contractors should address any and all anticipated difficulties and/or problem areas along with potential approaches to their resolution. Responses which identify staffing limitations or budget constraints, or other specific challenges in achieving desired program goals, along with recommendations to overcoming challenges, will be well received. In addition, the Contractor is encouraged to pro-actively 10

11 present additional information and responses, not specifically requested, which helps demonstrate understanding of the market and ability to achieve program goals. This is especially relevant to the discussion of performance goals and delivery approach. Contractors are requested to prepare their proposal response according to the following format: Cover letter Executive Summary Introduction Review of Roles and Responsibilities and Understanding of Assignment Scope of Work Implementation, Marketing, and Evaluation Timeline and Key Milestones Please include a plan and schedule to transition to new program arrangment Performance Goals Qualifications and Experience of Key Personnel Budget o Please be specific to list proposed budgets for all major categories Appendices The cover letter of each submission should clearly identify the legal entity making the submission, and a single point of contact for further communication regarding this process. An address and telephone number for a specific individual must be provided. To facilitate communication, one (1) other copy recipient may be identified. If a different entity will be the signatory on the contract, please identify the appropriate corporate entity. Note: Proposals shall not exceed 75 pages total, including appendices. 4. Scope of Work The following section details the major task categories. Contractors are requested to discuss in detail their approach to achieving task objectives as detailed below for the design, implementation, and marketing of the KPCo program. 4.1 Task 1 Program Implementation Planning Please discuss your approach and strategy for program implementation planning for the programs for KPCo customers. Your proposal should address, but is not limited to, the following areas: Describe your overall approach to planning the key design and implementation steps and goals, from start-up and on an annual basis, to achieve program success. 11

12 Describe your preferred approach to working with KPCo s program manager, coordinator and other Contractor-selected subcontractors to build on the program designs provided by KPCo. Define, in broad terms, the activities that will be taken to achieve the energy (kwh) and demand (kw) savings targeted for the program. This may include advising KPCo on necessary changes (minor or major) to program plans, such as recalibration of rebate levels, eligible energy efficiency equipment, program outcomes, and budgets. Define proposed implementation timeline, detailing key first year operational goals/ milestones and envisioned milestones for year two. Prepare your proposed implementation timeline and Gannt chart from initial contract signing to program launch and on-going delivery for program years one and two. Indicate the most important milestones, with reference to the various tasks. Describe the communications plans for guidance, and decision-making with KPCo management. Identify your approach to recruiting customers to participate in the program. 4.2 Task 2 Program Delivery Please discuss your overall approach and strategy for successful program launch and delivery. Your proposal should address, but is not limited to the following areas: Establish a toll-free telephone number and website for customer enrollment, appointment scheduling, and questions Maintain a database to store and track interactions with the customers as well as detailed information related to all costs, participant, marketing and specific equipment installation and appropriate baseline equipment efficiency data Provide trained customer service staff for assisting customers with questions about the program, qualifying customers and facilitating participation Verify customer eligibility verifying that caller is a KPCo customer and qualifying their project Fulfill incentive payments within six weeks after equipment installation Development of applications, forms, contracts, spreadsheets, and other necessary documentation Develop and recommend appropriate prescriptive incentive levels for qualifying energy efficiency equipment Recruitment and development of a robust trade ally network to support program objectives Training of trade allies as well as internal KPCo resources, such as KPCo s account representatives, on program processes and procedures Pre- and post- inspection procedures, as deemed appropriate 12

13 Review and verify all applications, incentive requests, and supporting data for accuracy including, but not limited to, estimated demand and energy impacts Development of an overall process, from customer application to final incentive payment Working with KPCo on the evaluation, measurement and verification process to ensure conformity to regulatory rules and requirements Contractors are reminded that the objective will be to design programs to ensure continuity in program offerings throughout the contract period. 4.3 Task 3 Marketing Please discuss your approach and capabilities to develop a marketing and communications plan to support the program delivery of the programs. This task will involve working with KPCo program staff to develop a final program marketing and communications plan and ensuring the KPCo brand look and feel is maintained. Please address, although you are not limited to, the following areas in your proposal: Describe your marketing approach to enroll customers and generate Program participation including any proposed trade ally and KPCo account representative training Explain your initial proposed marketing strategy for the program, milestones, and timeline. Describe where the marketing staff assigned to the program will be based and their availability to meet directly with KPCo managers and/or account managers Include in your proposal appendix examples of previous marketing materials, including fact sheets, brochures, or other related material prepared for other clients. Given the number of proposed program participants in each program, KPCo encourages bidders to propose the most cost effective marketing strategy for these energy efficiency initiatives. Please remember that KPCo may assist with marketing efforts. 4.4 Task 4 Incentive Processing and Data Tracking Contractors should describe their proposed approach and experience with incentive processing and data tracking. The Contractor is expected to keep KPCo well informed of the program s progress. This communication is expected to be both informal (i.e., phone calls and s), through on-line/real-time systems and through formal reporting. 1. Database and automated reporting systems - The Contractor should maintain a program reporting database that tracks all aspects of the programs provided in a mutually agreeable electronic format. The database should be an existing, fullydebugged system capable of providing information to KPCo as requested. Preference will be for a data tracking system that is capable of being fed into KPCo s data tracking system and provide a program dashboard showing 13

14 updated key indicators. Key indicators may include customer participation levels compared to targets, the type and number of measures implemented, the amount of budget spent/remaining, and energy savings compared to targets. 2. Submit monthly invoices documenting services provided, including: Customer name and address Existing equipment, installed equipment, equipment cost, labor cost, incentive amount, energy and demand impacts, baseline data (standards), hours of operation, brand / model number, fixture quantity, and other related data a. Bidders are encouraged to provide details of proposed data collection activities in their proposals 1. Please provide a complete listing of the data that will be captured by the Contractor as part of this program. 2. KPCo reserves the right to request additional data to be collected in order to properly and effectively evaluate this Program 3. Submit monthly and quarterly reports summarizing program activities, impacts, and results, including data from invoices. However, KPCo will require detailed customer, program, and measure data from the Contractor on a regular basis. 4. Annual Reports Provide an overall program annual report for each calendar year Annual reports are tentatively targeted for 30 days following the close of the program year. A hard copy report may be required along with an electronic database report (Excel or Access) reflecting all pertinent customer and pre- / postdata Please also address the following areas in your proposal: Describe the software format and database structure you propose to use for tracking participant and savings data, and your ability and flexibility to change formats depending on the request of KPCo. Clearly identify any financing charge, or cost of money that will be passed through to KPCo for rebate processing and check issuing, or ideas for financial arrangements that will minimize or eliminate any financial costs for this service. Please describe your approach to annually revising the implementation plan, reporting on key program metrics and operational milestones, establishing new performance metrics and milestones as needed, and overall ability to track progress. 14

15 5. Performance Goals The following table summarizes the participation and expense for the four programs for program year 2012 and Please note that your proposal will be in addition to the budgets outlined below since, at this time, these programs are managed with KPCO resources. Contractors will be required to submit a pay for performance budget based on a fully loaded cost of providing turnkey services as outlined in this RFP. Programs Participants/units Expense 1 Mobile Home Heat Pump 412 $194,286 Mobile Home New Construction 281 $160,195 High Efficiency Heat Pump 1,139 $515,369 Residential & Commercial HVAC Diagnostic and Tune-up 2 1,314 $173,824 Total 3146 $1,043, Year 2013 includes evaluation expense for all programs. 2. HVAC Diagnostic had 172 participants in 2013 following implementation of customer mail-in rebate application. and elimination of air conditioner incentive in 2013 based on a recommendation from the 2012 program evaluation. At this point in time, the Company is assuming the projected participants and budgets for 2015 through 2017 will remain the same, or close to the same levels, however, the Company encourages proposals with optional recommendation for expanded goals having separate and/or incremental pricing. Also, the Residential and Commercial Diagnostic program has been evaluated and is under review based on preliminary program results to determine if continued program operation is justified. The program may be discontinued following final review; however, the Company still seeks proposals for implementation with all of the described programs including the Residential and Commercial Diagnostic program. KPCo requests that proposals include specific performance goals, on a yearly basis, with all major cost components clearly defined (program administration, customer incentives, marketing, and other costs). Contractors are requested to designate anticipated gross and net impact savings from each program in the following sample table. Program Name Year Participation /Units Summer Peak Demand (kw) Reduction Winter Peak Demand (kw) Reduction Annual Energy (MWh) Reduction 2015 Vendor Vendor Vendor Vendor 2016 Vendor Vendor Vendor Vendor 2017 Vendor Vendor Vendor Vendor 15

16 Bidders are asked to provide a quote for a turn key project. KPCo will only provide general oversight as defined in Section 2.2. No specific performance incentive is associated with achievement of the performance goals; however, achievement of performance goals will be one of many factors taken into consideration if KPCo considers granting a possible no-bid contract extension. KPCo will also consider unforeseen changing market conditions, unanticipated delays, other KPCo requests, or miscellaneous obstacles which influence achieving goals. We invite Contractors to comment on the value of the proposed goals and, if desired, report an alternative deemed savings value, with documentation of verified source estimates, of specific energy and summer peak demand savings. Contractors are also invited to propose new goals for consideration that might also address market transformation and/or resource acquisition objectives. Performance goals are subject to final negotiation between KPCo and the finalist prior to contract signing. As part of final contract negotiations, KPCo reserves the right to review contractor proposed performance goals and engage in a mutually agreed upon process to revise goals, if deemed necessary. We invite Contractors to propose an approach for any potential revisions of performance goals and reasons for why those goals may need to be revised, based on a contract modification, in the event of changing circumstances or new direction from KPCo. Discuss how you would prefer to structure this process, and indicate approximately what, in your opinion, would necessitate the need to re-visit performance goals, and the most appropriate process to do so in a time and cost-effective way. 6. Qualifications and Experience Contractors are requested to describe their firm and/or team's experience and capabilities in managing, delivering, and implementing energy efficiency services as requested in this RFP. Contractors must provide detailed information on their overall core team qualifications and experience, including the following: 6.1 Program-Specific Qualifications and Experience In this section, Contractors are requested to describe their previous experience with similar turnkey programs. 6.2 Program Implementation Planning Experience Describe your previous experience as the lead contractor responsible for program delivery of utility sponsored energy efficiency programs. Do you have experience serving as a turnkey program delivery contractor or a partial turnkey delivery contractor in coordination with utility staff? Describe your previous experience working directly in Kentucky or the Midwest as it relates to energy efficiency. 16

17 6.3 Marketing Experience Request for Proposal Describe your previous overall experience developing marketing and outreach plans and materials to support similar programs proposed for the programs, and how they were tailored to the target audience. Review your previous experience and capabilities to develop program documents, including customer agreements and applications, technical support guidance documents, marketing collateral to communicate to customers and trade allies. Describe your experience with developing and maintaining general customer technical content for posting on web sites. Provide links to any existing websites which were developed by your firm and are in use today. 6.4 Incentive Processing and Data Tracking Experience Describe your previous experience and ability to process incentive applications, issue incentive checks, track participant and program savings data. Describe your experience and processes used to work with independent Evaluation, Measurement and Verification (EM&V) contractors. 6.5 General Administration & Management Experience Describe overall experience and systems used for administration and management of DSM program implementation and marketing Provide examples of past reports utilized for similar programs delivered elsewhere, in the appendix. Examples of the following report types are anticipated: Data Extracts: Ability to provide periodic data extracts to EM&V contractor(s) and/or KPCo as needed. Monthly Reports: Monthly reports which include numerical data that document progress toward achieving overall performance goals by program area and progress to date in achieving goals/milestones. Annual Reports: Annual Reports that summarizes overall program results and accomplishments in narrative and numerical formats. Describe your financial management experience and systems. Confirm that your financial accounting system is consistent with general accounting standards. Also confirm that you shall be able to provide information and documentation required for independent annual financial audits. Discuss your firm s previous experience, if any, working with EM&V contractors to verify program savings and report on process and impact results. 6.6 Qualifications and Experience of Key Personnel Contractors are requested to identify key personnel to be assigned to this project, describe their primary responsibilities in a brief bio that describes the individual's experience and 17

18 qualifications. At the Contractor s discretion, this information can be included as an Appendix. Contractors will provide: Staff bios and proposed role for this RFP response Identification of key personnel that includes name, address, telephone number and address The bios should describe relevant responsibilities from other projects that will help to evaluate the qualifications and experience of key personnel. The proposal must include agreements by individual subcontractors listed in bids to provide the outlined services. This agreement must be signed by a person with the authority to make such a commitment. There is no prohibition directly by KPCo for firms to be included in more than one proposal. 6.7 Client References Contractors are requested to provide five (5) references from previous (or preferably current) clients for whom they have implemented programs that are relevant to the Scope of Work. References should include a brief synopsis and date of specific services provided, company name and location, contact name, contact title, telephone number and, address. 6.8 Conflict of Interest Disclosure Contractors are requested to describe any potential conflict of interest that may be a factor which could potentially be grounds for rejection by KPCo. Specifically, contractors are requested to disclose if they have ever worked for American Electric Power Company, KPCo s parent company, in the past detailing briefly the year and activities undertaken. Previous experience working for AEP is not necessarily a conflict of interest; however, it must be disclosed. If contractors have any questions, they are encouraged to contact early in the process and seek clarification. 6.9 Financial Information Requirements Contractors are requested to demonstrate that they have the financial resources and stability to perform the proposed work. Note any other related and pertinent financial information or disclosures that the Contractor considers important Specify any preferred or desired financial terms which will facilitate your firm s ability to respond to this RFP Contractors must demonstrate that they have the financial resources to perform the proposed work; for example, three years of financial statements for their firm and any significant subcontractors, which should include a profit and loss statement, a cash flow statement, and a balance sheet (SEC form 10-K, or equivalent, is acceptable) 18

19 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 Contractor is forming a new organization to bid on this proposal, the Contractor should provide comparable documents from investors, partners, and/or principals Contractors must clearly identify the accounting method that they propose to utilize throughout the term of the contract 7. Budget Contractors are requested to provide an estimate of annual costs for program implementation on a turn-key basis, to achieve the demand and energy impacts outlined in Section 5 of this RFP. KPCo is interested in meaningful and creative responses that will help ensure goals are achieved. All alternative compensation structures will be considered and subject to negotiation. Contractors, at their discretion, may propose: 1. Performance Incentives & Penalties: Contractors may propose a performance incentive structure which would reward Contractors for achieving goals, under budget. The amount of potential performance incentive must be factored out of stated available Contractor budgets, after accounting for projected program delivery costs. If contractors propose a performance incentive, then Contractors are requested to propose an equivalent damage structure for failure to achieve goals, or a justification for why a penalty structure is not appropriate. 2. Hold Back: Contractors may propose a portion of their invoices be held back in good faith, until annual performance goals are achieved. 3. Other: Contractors may propose other compensation or performance incentive structures for consideration. Program design strategy and desired levels of program activity will need to be planned carefully given limited budgets. Contractors should carefully consider the available budgets and form the most appropriate program design and delivery strategy. 19