Request for Qualifications
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1 Request for Qualifications Professional Services Advanced Metering Infrastructure July 5, 2016 West Memphis Utility Commission Post Office Box 1868 West Memphis, AR 72301
2 Sealed Statements of Qualifications will be received by the West Memphis Utilities Office, located at 604 East Cooper Ave, West Memphis, Arkansas 72301, until 4:00 P.M. on Monday, August 1, The West Memphis Utility Commission (WMU) is seeking proposals from qualified firms (Consultant) in the Advanced Metering Infrastructure (AMI) industry. The Consultant selected will perform all necessary tasks to assist West Memphis Utilities (WMU) to determine the feasibility for and implementation of an AMI system throughout WMU s water and electric service areas. Copies of the Request for Qualifications for this project are available for prospective CONSULTANTS at the West Memphis Utilities Office, located at 604 East Cooper Ave, West Memphis, Arkansas, between the hours of 7:00 a.m. and 4:00 p.m. Monday through Friday, beginning July 5, 2016, until no later than close of business five days preceding the submittal deadline. The documents are also available through WMU s website: Each prospective CONSULTANT will be evaluated as to their experience in similar projects and their ability to successfully provide the services related to planning and implementing the utility metering upgrade to a successful AMI system. The right is reserved by the West Memphis Utility Commission to reject any or all Statements of Qualifications. West Memphis Utility Commission John Rimmer, General Manager 2
3 1. INTRODUCTION The West Memphis Utility Commission is seeking proposals from qualified firms (Consultant) in the Advanced Metering Infrastructure (AMI) industry. The Consultant selected will perform all necessary tasks to assist the West Memphis Utility Commission to determine the feasibility, planning and implementation of a successful AMI system throughout WMU s water, and electric service areas. WMU is located in Northeast Arkansas in Crittenden County. The Utility serves a population of approximately 27,000 residents as well as several industries throughout the service territory. The service territory is approximately 28.5 square miles with terrain that is mostly flat. The metered utilities to be included in the AMI project include water (potable, lawn meters, etc.), and electric services. Approximately 10,000 existing water and 11,900 electric meters will be involved in the conversion from traditional utility meters to smart meter technology. Water and electric services are limited to the area in and adjacent to the city corporate boundaries. Both the water and electric services are billed by a single utility billing system, which also bills for other non-metered services (e.g. solid waste collection, waste water, etc.). Improvements in business process and the implementation of AMI will need to integrate seamlessly with the existing or a new consultant recommended utility billing system to assure neither our customers nor the accuracy of meter reading and collections are impacted negatively by this upgrade. Preparation of detailed plans and specifications of assistance to WMU is the responsibility of the selected CONSULTANT to assure the successful implementation of the AMI program. The most qualified CONSULTANTS will be selected based upon evaluations and a final ranking will be determined by the Selection Committee composed of representatives from WMU s Engineering, Operations, Customer Service, and/or other departments. The CONSULTANT responses to the RFQ will be evaluated on cost considerations, as well as, the following criteria: The CONSULTANTS technical approach to the project (25%) The proposed project team (organization, management and experience) (25%) Demonstrated past performance of the CONSULTANT (25%) Overall responsiveness to RFQ Requirements (25%) The Selection Committee s decision in qualification of prospective CONSULTANTS shall be final. The West Memphis Utility Commission reserves the right to, at its sole discretion, accept or reject any and all submittals, request clarifications from any prospective CONSULTANT, amend or modify the terms of the RFQ, or re-issue the RFQ if such action is in the best interest of WMU. If there is any doubt as to the true meaning of any part of this RFQ, or if any discrepancies in or omissions from this RFQ are discovered, a written request for an interpretation or correction may be submitted to WMU s Assistant General Manager, Todd 3
4 Pedersen, at 604 E Cooper, West Memphis, AR 72301; or FAX ; or address RFQAMI@citywm.com. The company submitting the request will be responsible for delivery no later than seven (7) calendar days before the submittal due date. Any clarification or correction of this RFQ will be made only by written addendum. A copy of all such addenda will be posted on WMU s website ( prior to the submittal due date. WMU will not be responsible for any other explanation or interpretations of the documents. Following the selection of the most qualified CONSULTANT based on this RFQ, negotiations will begin to finalize scope and fee. 2. OBJECTIVES The Consultant s primary objectives will be provided through various phases. They are: PHASE I Task 1 Evaluate and summarize the feasibility of alternative AMI solutions. Task 2 - Business Case Development. Task 3 - Strategic assessment; Summarize all related technology and associated financial packages, to refine direction of WMU s AMI initiative. PHASE II Task 4 - Develop a Request for Proposal (RFP) for AMI system acquisition and installation; Assist WMU during the evaluation and scoring of Proposals submitted as result of the RFP. Task 5 Assist WMU in contract negotiations with selected AMI vendor. PHASE III Task 6 - Strategy Formulation; Implementation Plans. Task 7 Assist WMU during installation and activation of the AMI system. Task 8 Assist WMU with IT interfaces. Phases I III and Tasks 1 8 above in general, outlines the Consultant services anticipated by the West Memphis Utility Commission such that WMU can progress from initial feasibility analysis to final AMI technology implementation. However, WMU s evaluation of results achieved from each Consultant-completed Task will be the basis for direction to proceed to the subsequent phase; only if in the opinion of the West Memphis Utility Commission it is determined to be in WMU s continued best interests to pursue AMI implementation, will the Consultant be directed to proceed to the next phase. 3. SCOPE OF SERVICES In general, this section outlines the types of services expected of the Consultant by project phase and consists of tasks necessary to support WMU s investigation into and, if determined feasible and practical for WMU, the implementation of an AMI system. The Consultant services provided may include, but are not limited to, the following: 4
5 PHASE I Task 1 Feasibility Analysis A. Within ten (10) working days from issuance of the Notice to Proceed, the Consultant shall conduct a kickoff meeting to discuss the chain of command and communication matrix between WMU and the Consultant; determine procedures for data acquisition, and review target dates for initiation and completion of tasks. B. Develop an effective communications plan that keeps all WMU AMI Team members and subject matter experts informed of project issues and status as the AMI initiative moves forward. Help forge consensus and buy-in among WMU staff. C. Evaluate and summarize the feasibility of AMI alternatives. Task 2 Business Case Development A. Develop the AMI Business Case for WMU to include all benefits and costs applicable to AMI implementation. Costs-and-benefits analysis presented in the updated Business Case should incorporate a full system pricing mechanism that includes life cycle of equipment and operating costs, operating savings, associated cash flows, inflation, and other considerations and constraints based on available information. B. Produce a document based on the Business Case development process that outlines differences in the estimated costs and benefits, strengths and weaknesses, intangible and definitive benefits, and risks. C. As part of the Business Case development, assess and report on the organizational impact of potential AMI and Customer Information System (CIS)/Billing solutions on applicable WMU business processes, personnel, and technology. Task 3 Related Technologies and Strategic Assessment A. If in the West Memphis Utility Commission s opinion the Business Case developed supports upgrading the WMU s metering system to an AMI system, consultant will work with WMU to develop preliminary plan and schedule for the implementation process, from RFP development for Contractor selection to system installation and activation. B. Guide WMU in objectively assessing the criteria and conditions that must be addressed with respect to existing systems within WMU to successfully deploy an AMI system. C. Identify and recommend potential synergies and/or modification of current WMU business processes to ensure operational efficiency and maximize return on investment (ROI). Quantify specific operational benefits to be realized through AMI implementation. D. Identify qualified AMI vendors and technologies that will meet WMU s needs, including assessment of their long-term viability. E. Identify AMI technology alternatives that present reasonable options for WMU. F. Educate WMU staff on the functionality of current systems available in the market, the tradeoffs among those systems, and how the various functionalities of the systems can lead to operational benefits. G. Conduct a risk assessment of available alternatives and recommend strategies to minimize AMI implementation risks. Provide alternatives and strategies to reduce 5
6 the impact and risk in operations, customer service, AMI installation, and management. H. Evaluate applicable existing WMU IT hardware and software systems for required interface with AMI. Determine if meter data management (MDM) system is required and make recommendations. PHASE II Task 4 Request for Proposal A. Formulate and prepare an AMI Request for Proposal (RFP) that encourages the widest possible industry response. The RFP should include performance-based provisions to ensure that the AMI project remains on schedule and budget. Assist WMU in the vendor solicitation process. B. Develop a vendor selection process and scoring system that ensures the best possible solution is selected for WMU. Develop appropriate vendor evaluation criteria and coordinate the overall selection process, including on-site vendor presentations. C. Assist WMU during the evaluation and vendor selection. Task 5 Contract Negotiations A. Assist WMU during contract negotiations for AMI system installation and implementation. PHASE III Task 6 Strategy Formulation/Implementation Plans A. Work with the AMI Project Team to; develop an implementation, integration and installation plan, manage day-to-day processes, involve other departments and organizations in the process and work to ensure that major project milestones are met. Task 7 Installation/System Activation A. Provide ongoing planning and support to assist with day-to-day management of the AMI implementation project. B. Provide expert technical and business support for the changes required to WMU s current metering practices as the new AMI technologies are implemented. Task 8 Information Technology Interfaces A. Evaluate, recommend, coordinate, and assist WMU with IT interfaces required for AMI implementation. The above scope is preliminary in nature and intended to provide respondents with a general overview of the major tasks envisioned as part of this solicitation. The West Memphis Utility Commission reserves the right to expand and/or reduce the preliminary Scope of Services as may be appropriate based on the technical content of the Successful Proposer s proposal and/or during contract negotiations based on budget considerations. ADDITIONAL SERVICES The West Memphis Utility Commission reserves the right to utilize the Successful Proposer when deemed necessary to provide additional assistance/services under WMU s AMI Consulting Services as needed throughout the term of the contract. 6
7 7 4. OTHER REQUIREMENTS AND CONDITIONS RFQ SUBMITTALS: Interested Consultants should state their interest in this project by submitting six hard copies, and one electronic copy of the following: Letter of interest and understanding on Consultant stationery; this letter MUST include a clear and concise statement as to what portion of the RFQ work the Consultant is seeking to secure (one page maximum). Proposed Technical Approach to perform task(s) identified in Section 2 (four page maximum). Description of Consultant to include only the following: o Legal name, years in business, officers, staff size, and staff breakdown by classification; o Names and titles of the project team; Table of organization proposed by the Consultant for this project including clearly stated availability to dedicate resources to the project; o List AMI/AMR experience, preferably in Arkansas, in the past ten (10) years including size of projects, project cost, name of owners, addresses, contact persons, and telephone numbers; o Resumes of all persons who will be working on this project, including subconsultants and engineering design staff; o Statements of professional and general liability insurance; o Cost breakdown per task; o List of legal actions brought against the firm within the last ten (10) years. MULTIPLE CONSULTANT TEAMS: Multiple consultant or joint venture teams must clearly identify the roles and responsibilities of the proposed participants. SELECTION PROCESS: The Selection Committee, consisting of representatives from WMU s Engineering, Operations, Customer Service, and/or other departments, will review and evaluate the RFQ submittals. A. Staff Screening and Selection Committee An Evaluation Committee will review and analyze the qualifications based on professional experience and service proposed. West Memphis Utility Commission (WMU) will review the qualification submittals and: 1. Select the top three consultants on the basis of meeting the qualifications as outlined in this RFQ, or 2. Interview the top four to five consultants submitting qualifications and select the top three consultants, or 3. Reject all Qualification Statements.
8 B. Qualifications Under the terms of this RFQ, consulting and inspection services shall be provided only by organizations or individuals who are properly qualified to perform the work. Those so qualified are: 1. An Advanced Metering Infrastructure (AMI) consultant with adequate engineering and IT expertise within its own organization or multiple consultant/joint venture team to provide all the services required in this RFQ. The consultant/consultant joint venture team (consultant/team) must have experience in all related fields to determine the feasibility of an AMI and CIS/Billing system with future add/on features to meet the needs of WMU. 2. An AMI consultant/team with the ability to develop an AMI Business Case for WMU to include all benefits and costs applicable to AMI and CIS/Billing implementation. Must have the ability to produce a document based on the Business Case development process that outlines all requirements stipulated in PHASE I, Task 2 above. The consultant/team must have the technical ability to oversee the installation, integration, and activation of the AMI system. 3. If WMU decides to upgrade its metering system to an AMI system, the consultant/team must be able to work with WMU to develop preliminary plan and schedule for the implementation process, from RFP development for Contractor selection to system installation, integration, and activation. The consultant/team must be able to complete all requirements of PHASE I, Task 3 above. 4. The consultant/team must be able to formulate and prepare an AMI Request for Proposal (RFP) that encourages the widest possible industry response. The consultant/team must have the ability to satisfy the requirements of PHASE II, Task 4 & Task 5 above, which includes the RFP and contract negotiations. 5. An AMI consultant/team with the capability to work with the AMI Project Team to develop an implementation, integration, and installation plan including activation and technology interfaces in compliance with PHASE III, Tasks 6-8 above. 6. An AMI consultant/team with the capacity to perform the work (including any specialized services) within the time limitations, taking into consideration the current and planned workload of the respondent. The consultant/team must have the required insurance and proof thereof. 8
9 C. Evaluation Rating Criteria The Qualification Statement for each Consultant will be evaluated using the following criteria: Max. Points Technical Approach: Business Case Development 10 RFP Development and Contract Negotiations 10 Project Implementation and Strategy Formulation 5 Subtotal, Experience 25 Project Team (Organization, Management & Experience): Staff Level/Experience of Staff 10 Adequacy of Resources for Project Management 10 All necessary insurance is in force 5 Subtotal, Capacity to Perform 25 Demonstrated Past Performance: Past projects completed on schedule 10 Manages projects within budgetary constraints 5 Work product is high quality 10 Subtotal, Work Performance 25 Responsiveness to RFQ Requirements: Provided All Required Information 10 Show Ability to Complete and Manage the Project 10 Professional Statement of Qualifications 5 Subtotal, Work Performance 25 TOTAL MAXIMUM SCORE 100 The Evaluation Committee will recommend which, if any, Qualification Statement is in the best interest of the West Memphis Utility Commission and authorize scope determination and negotiations to proceed. A Negotiation Team will conduct contract negotiations with the Consultant that scored the highest with the Evaluation Committee. If negotiations with the highest scoring firm are not successful, the Negotiation Team will negotiate with the next highest scoring firm(s) until successful negotiations are completed or the Negotiation Team recommends not awarding the contract. CONDITIONS: The West Memphis Utility Commission reserves the right to accept and/or reject any or all submittals; to waive any irregularity, variance, or informality whether technical or substantial 9
10 in nature; and to negotiate with all qualified Firms in keeping with the best interests of WMU. An award resulting from this request shall be negotiated with the Firm whose proposal and presentation is determined to be most advantageous to WMU. MAIL OR DELIVER COMPLETED RESPONSES TO: Todd Pedersen Assistant General Manager West Memphis Utilities 604 E. Cooper West Memphis, AR Mailing address: P. O. Box 1868 West Memphis, AR All proposals must be received by certified mail not later than 4:00 p.m. local time August 1, The West Memphis Utilit y Commission assumes no responsibility for responses received after the stated time and date, or at any office or location other than that specified herein, whether d u e to mail delays, courier mistake, mishandling or any other reason. Late responses will be held unopened and not considered for award. INSURANCE REQUIREMENTS: The Consultant shall obtain and maintain, at the Consultant's expense, such insurance as shall protect him and the Owner from claims under workers' compensation and from all claims for bodily injury, death, or property damage which may arise from the negligent performance of the Consultant or the Consultant's employees performing the functions and services required under this agreement. Additionally, the Consultant shall obtain and maintain professional liability insurance protecting him and WMU from negligence of his professional duties. DISTRIBUTION: This RFQ is being mailed to Consultants that have contacted WMU and those that are believed to have the experience needed for this project. The project is also being advertised per WMU s purchasing policies and being made available online through the WMU website. PROJECT SCHEDULE: 1) Release date of RFQ July 5, ) Due date of RFQ August 1, ) Selection Committee Recommendation August 3, ) Contract Negotiations Completed August 17, ) West Memphis Utility Commission (Contract letting) August 31, 2016 GENERAL CLAUSES: A. RETENTION AND DISPOSAL OF RESPONSE 10
11 The West Memphis Utility Commission reserves the right to retain all submitted responses for official record purposes. The West Memphis Utility Commission also reserves the right to dispose of any or all copies of responses in whatever manner it deems appropriate. No copies of responses will be returned to the firm. B. ERRORS AND OMISSIONS Once a response is presented, WMU shall not accept any requests by any firm to correct errors or omissions in any calculations submitted. However, WMU may request clarification and additional information for an adequate understanding of the Statement of Qualifications. C. RESERVED RIGHT The West Memphis Utility Commission reserves the right to accept or reject any and/or all submissions/proposals, to waive irregularities and technicalities, and to request resubmission. Any sole response received the first submission date may or may not be rejected by the West Memphis Utility Commission depending on available competition and timely needs of WMU. The West Memphis Utility Commission shall be the sole judge of the submission/proposal and the resulting negotiated agreement that is in its best interest and its decision shall be final. Also, WMU reserves the right to make such investigation, as it deems necessary to determine the ability of any responder to perform the work or service requested. The responder shall provide information WMU deems necessary to make this determination. D. CONFLICT OF INTEREST Any prospective Consultant should make an affirmative statement in its proposals to the effect that, to its knowledge, its retention would not result in a conflict of interest with any party. Alternatively, should any potential conflict exist, the prospective firm should specify the party with which there might be a conflict, the nature of the potential conflict, and the means proposed to resolve such conflict. E. NO COLLUSION By offering a submission to the RFQ, the responder certifies and in the case of a joint submission/proposal each party thereto certifies as to its own organization, that in connection with the submission/proposal: 11 a. No attempt has been made or will be made by the responder to induce any other person or firm to submit or not to submit a submission/proposal for the purpose of restricting competition; and b. The only person(s) or principal(s) interested in this submission/proposal are named therein and that no person other than those therein mentioned has/have any interest in this submission/proposal or in the agreement to be entered into; and c. No person or agency has been employed or retained to solicit or secure this agreement upon an agreement or understanding for a commission, percentage,
12 12 brokerage, or contingent fee, excepting bona fide employees or established commercial agencies maintained by the purchaser for the purpose of doing business. GENERAL TERMS AND CONDITIONS: A. All responses to the RFQ become the property of WMU B. WMU will not reimburse the respondent for any costs associated with the preparation, submittal, or presentation of their responses to this request. C. The respondent acknowledges that all information contained within its response is part of the public domain as defined by Public Record Laws. WMU gives no assurance as to confidentiality of any portion of any proposal once submitted. D. There shall be no discrimination as to race, sex, color, creed, handicaps, or national origin in the operations conducted under this engagement. E. Due care and diligence has been exercised in the preparation of this RFQ, and all information contained herein is believed to be substantially correct. However, the responsibility for determining the full extent of the services rests solely with those making responses. Neither WMU nor its representatives shall be responsible for any error or omission in this response, nor for the failure on the part of the respondents to determine the full extent of the exposures. F. Preference will be given to those responses in full or substantially full compliance with the requested information in this document. G. Each respondent is responsible for full and complete compliance with all laws, rules, and regulations including those of the Federal Government, the State of Arkansas, and the City of West Memphis. Failure or inability on the part of the respondent to have complete knowledge and intent to comply with such laws, rules, and regulations shall not relieve any respondent from its obligation to honor its response and to perform completely in accordance with its response. H. Any interpretation, clarification, correction, or change to the RFQ will be made by written addendum issued by the Assistant General Manager. Any verbal or her type of communication concerning the RFQ shall not be binding unless issued by the WMU in the form of an addendum. I. Responses must be signed by an individual of the respondent s organization legally authorized to commit the respondent s organization to the performance of the services contemplated by this RFQ. J. The successful respondent shall be required to submit proof of licenses, certifications, and proofs of insurance as required by WMU.
13 K. The successful respondent shall not be allowed to substitute project team members named in this response without the written permission of WMU. L. The designer is responsible for all costs associated with any non-discretionary changes. A bond for this purpose may be required. 13
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