The Commonwealth’s Energy Design Build Program

DBIA, July 2015

Jenna Ide, AICP LEED AP BOC

Director Energy & Sustainability

Division of Capital Asset Management & Maintenance Comm. Of Mass.

What the DCAMM Does

The Division of Capital Asset Management and Maintenance (DCAMM), an agency within the Executive Office for Administration and Finance (A&F,) is responsible for integrated facilities management, major public building construction, and real estate services for the Commonwealth of Massachusetts. The agency was created by the legislature in 1980 to promote quality and integrity in the management and construction of the Commonwealth’s capital facilities and real estate assets. DCAMM directly manages 5.5 million square feet of state buildings, with millions more moving under DCAMM management in the coming years. For those buildings not managed by DCAMM, we assist our client agencies using comprehensive and cost-effective maintenance and management strategies and standards. Our agency also manages hundreds of millions in capital construction projects each year, and more than 500 active leases comprising 7 million square feet of privately-owned lease space housing state offices. Further, our agency is also responsible for the disposition of surplus real estate owned by the Commonwealth.

What the Energy Team Does

Initiates, studies, procures, and supports construction of energy/water projects

Supports other offices on LEED and sustainable design

Coordinates with utility companies for incentives on behalf of agency

Tracks compliance with E.O. 484 (LEED, energy and water tracking)

Supports Administration and DOER on energy/sustainability issues that affect state agencies Supports Agencies implementing projects, including training, funding, policy, and development of studies

Coordinates grant funding related to energy/water projects

Manages Clean Energy Investment Program on behalf of agencies and A&F Manages Renewable Energy Credits, Demand Response, and Alternative Portfolio Credits on behalf of Commonwealth Agencies

Supports Integrated Facilities Management (IFM)

Energy Design Build -- Massachusetts

• Projects for nearly 30 years, • Mostly performance

contracting and utility projects until 2007

• Only for improvements that save energy/water units or dollars

• Authorized under M.G.L. Ch. 25A 11c , 11i, or 14

• Funding and projects are wholly or partially based on savings

History of Energy Performance Contracting in MA

Since 2005 61 projects completed 29 in construction

317 facilities (many small) $350 million in capital investment

$25 million in annual savings

Creating A Cleaner Energy Future For the Commonwealth

American Council for an Energy-Efficient Economy: #1 Ranking

• Massachusetts ranked #1 in energy efficiency, four years in a row

• Tied California’s record of four years at top spot

The Present

• Many laws and policies

encouraging energy conservation • Tight budgets, need to save money • Significant Deferred Maintenance

needs • More diverse ways to improve

facility • Desire to improve sustainability • Operations and Maintenance of

complicated systems

Goal 2012 2020 DCAMM

Energy Use Per Sq. Ft.

20% reduction from 2004

35% reduction

- LEED required for new buildings & major renovations - Energy retrofit projects

Renewable Energy

15% of electricity from renewable sources

30% Wind Turbines, biomass cogen, and solar PV primary

CO2 25% reduction from 2004

40 % reduction

Energy Efficiency and renewable energy projects mostly contribute

Other goals 10% water use reduction

15% reduction

Comprehensive energy retrofits

At all state facilities over 100,000 sq. ft.

~48 million square feet eligible (out of 64), ~25 million not in process

Retro-commissioning

at all bldgs. over 50,000 sq. ft.

Executive Order 484

Accelerated Energy Program

Why Design Build?

• Energy savings tied to performance • More competition • Contractor “owns” performance of

subcontractors and designers • Maintenance can be included • Huge demand for energy

efficiency/renewables • Leverage expertise of market • Innovation • Utility Incentives

Advantage: Innovative Technologies

Essex Sheriff’s Department Demand Response and Custom

Metal-enclosed Switchgear

Concord Armory Burner Booster

Berkshire House of Correction Instantaneous water heater in pair with

condensing boilers Sheriff’s Dpts. in Middlesex,

Plymouth and Essex Automated water management

system for laboratories

Bristol Community College

Georges Island, DCR Off grid electricity with PV arrays with battery storage and diesel generator.

ZNE lab with

ground-source

and air-source

heat pumps

AEP Partners

DOER

Utilities

Agencies

Contractors Designers

Advisors

Products

Advantage: Partnerships

Why this program may appeal Design/Build Firms

• Projects are of many sizes and types • We are seeing GC’s and subcontractors team up with design or

energy firms • Need firms with experience integrating teams • Gain experience w/ energy and new technologies • Many subcontracting opportunities • Great opportunities to save the state money and help great

clients

Statutory Basis - MGL Ch. 25A, § 11C (and i)

• Contracts for procurement of energy management services

• For public agencies (cities/towns) - administered by DOER

• For governmental bodies (State Executive Agencies) - administered by DCAMM

• Alternative Mechanism for procuring energy/water conservation projects

• Turnkey Design-Build process, NOT design-bid-build

• Evaluation is not lowest bid

• Chapter 25i requires guarantee, used by most municipalities

Ch. 149 v. Ch. 25A

Process Chapter 149 Chapter 25A 11C

Same or very similar

• DCAMM Certification for Prime • Construction Management through OPDC • Prevailing wage • Commissioning / M&V • Many contract requirements (i.e., bonds, insurance, dispute resolution,

etc) • Third party review • Progress payments

Different • Separate designer & GC/CM • Full design in bidding package

• “Low bid” • No M&V • Funding is mostly G.O. Bonds • No performance term after

contract • Facility does not sign contract • Scope fully defined • Filed sub bids

• One firm does design and construction • Study or maybe schematic design in

bidding package • RFP-Evaluation Criteria, Best value • M&V tied to payment • Funding could be from many sources • Performance period after construction

• 3-party contract, including facility • Scope can evolve, contractor has role • Sub contractors selected by prime; lower

tier subs OK

Comparison of Bidding Processes

Three Types of Design Build Projects

1. Performance Contracts 2. Energy Design Build

• Single Energy Measure • Comprehensive

3. Utility Vendor

Performance Contracts Range $3-40 million, typical,

$5-10 million Many different Energy/Water

Conservation Measures (ECMs)

Typically ESCOs, guaranteed savings

Salem State, UMass Dartmouth examples.

Study done by State Awarded bidder does IGA,

design, construction, M&V, sometimes maintenance

Contracts 10-20 years

Three Types of Design Build Projects

Equipment, Design, and Installation (Energy Design/Build) Range $300,000 to $30 million Started as 1 ECM, like wind, solar, a

boiler, now can be several energy/water retrofits

Not guaranteed savings, but performance verified

Maintenance may be included State conducts study, IGA Contractors provide final design

construction

Three Types of Design Build Projects

Utility Vendor Up to $100,000 per project Small measures, lighting, water,

EMS, small HVAC or boilers Limited design No savings guarantee

Each measure must have savings Open to Utility Approved

Vendors Not competitively bid, pricing is

vetted by DCAMM and Utility Maintenance not included

AEP Spotlight – Early Design Build

Springfield Tech Community College

Springfield, MA

Project Overview: Status: Completed 2009

• 81.6 kW PV • Contractor Lumus

Construction • Designer, Solar Design

Associates • Project Cost $696,918

• Estimated Annual Savings $11,311

• 95,470 kWh

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2006 2007 2008 2009 2010 2011 2012 2013

37 118 692 952 1,100

4,519

6,504

7,714

Installed Solar PV at State Facilities

Cumulative Installed Solar PV

Energy Project Responsibilities

Facility Involved Throughout, Payment, Maintenance

Consultant/Designer – for study

Initial design & third party review

DCAM Project Manager

Manages on Behalf of Client

Contractor Finalizes Design,

Installs, Maintains, Monitors

Sub-consultants

Subcontractors, designers

AEP Spotlight – Comprehensive Retrofit

Sheriff ’s Department Berkshire

Berkshire County Jail and House of Corrections

Pittsfield, MA

Project Overview: Status: Nearly Complete

• 160,000 square foot facility dedicated in 2001 • Comprehensive energy and water retrofit may include:

• Lighting improvements • Occupancy sensors • Metered timer controls for showers – savings 45,625

gallons/year • Condensing boilers • Solar photovoltaic array for on-site power generation • Solar thermal heating system for domestic hot water

• Total investment of $3.5M has a 5.4 year simple payback • Over 50% savings

Berkshire County Jail and House of Corrections

Project Process (Energy Design Build)

1. Planning / Study/Design

• From 4 months 1.5 years

2. Procurement

3. Implementation 4. Post Construction

• 2-5 years

• From 6-9 months

• 1-3 years

Planning/Study/Initial Design Process

• Choosing sites o Master Planning done about every

5 years o Scoping criteria

o Agency requested o Grant opportunities (i.e. solar)

• Studies o Scope of work developed in

coordination with agency o Statewide consultants asked to

propose on scope of work o Study examines

o Baseline, existing conditions, potential opportunities

o Estimates cost and savings o Scope based upon most

feasible mix of measures

• Budget • Built up - based upon

• Savings used to pay off debt (“off-cap”)

• Grants • Utility Incentives • Deferred Maintenance Bonds • Other

• Agency Buy In

• Schematic Design

• Use DSB designers • Typically 30%, sometimes more

sometimes less • Review at 50% and 90% submittals • DCAMM, Agency review

Procurement

• RFP • Developed by Team

• Other States • Updated consistently • Feedback from community

• Advertise • 2-3 month Proposal Development • Proposer Added Value • Evaluation

• Minimum criteria • Non-price • Price

• Q&A • Selection • Contractor Submittals • Final Contract Negotiation

Implementation/Post-Construction

• Final Designs • Subcontractor Approvals • Equipment Selections • Construction • Commissioning • M&V • Training • Final Submittals • Warranty Services • As applicable

• Maintenance • Ongoing Training • M&V

AEP Spotlight – Comprehensive Retrofit

UMass Lowell

Project Overview: Status: Final Design

• 35 buildings equaling approximately 2,771,000sf. • Comprehensive energy and water retrofit includes:

• South Power Plant boiler replacement and optimization

• BACnet compatible meters and controls • Interior and exterior lighting • Variable Air Volume (VAV) HVAC systems • Replacement of chillers and installation of

VFDs on chilled water pumps • Low-flow toilets, faucets and showerheads

w/motion sensing technology • Solar car canopies and solar hot water

systems • Construction cost: $26M • Projected savings: $1.3M per year

Pictured above:

Pinanskly Hall Cooling Tower.

Pictured at Left: Boiler

Tube Scaling at South

Power Plant

AEP Spotlight – Comprehensive

Higher Education

Fitchburg State University

Project Overview: Status: Schematic Design • Over 1.9 million sq. ft. • ECC - $12 million • Savings – over $550,000 annually • Project includes measures such as:

• Lighting • Motors/VFDs • Overhaul of boiler plant • Cogeneration • HVAC • EMS • Controls • Chillers

AEP Spotlight – Comprehensive Retrofit

Bureau of State House

Massachusetts State House Boston, MA

Project Overview: • Status: Procurement • 650,000 square foot facility built in 1798 • Comprehensive $24M energy & water retrofit

includes: • Air Handling Units • Pumps, fans, VFDs • Energy Management System • Retro-commissioning • Rainwater harvesting, toilet fixtures • VFDs on chilled water pumps • Re-design of the central plant chiller • Variable Air Volume (VAV) HVAC systems • Radiators

• Estimated savings of $410,000 per year • State House has just completed a large lighting

upgrade retrofit.

Massachusetts State House

Utility Vendor Program

Total Sites 432 sites

Buildings Includes small to moderate size buildings,

typically under 20,000 square feet but could be larger.

Applicability

Chapter 15A Sec. 14 Utility approved vendors, $500,000

bundles, $100,000 per project No -- DCAMM Certification

Yes -- Prevailing Wage, M/WBE, Insurance, Bonds MA Dept. of Conservation & Recreation (DCR) -

Reservations and Parks

MA Highway Department (MHD) - Depots

Roles & Responsibilities (Utility Vendor Program)

Organization

DCAMM

Agency FM

Vendor

Utilities

Pre-Audit

Contract Utility Vendor, Notify

Agency

Provide utility bills and point

of contact

Contract agency to schedule audit visits

Provide utility account and meter info

Audit

Provide Vendor utility and

building info.

Provide access to Vendor

Walk-thru audit

Coordinate with Vendor on est.

incentives

Post-Audit

QA/QC audit and provide

feedback

Review audit and provide

feedback

Update audit and submit final

proposal

Provide estimated incentives

Implement

Notice to Proceed for

work

Provide access to contractors

Complete work

Post installation inspection

Close-out Process

Pay Vendor invoice

Verify work has been done

Submit invoice to DCAMM

Pay incentive to DCAMM

Common Utility Vendor Measures

Efficient Lighting Appliances

Install programmable

thermostats

Upgrade building automation systems

Install baseboard

heaters with programmable thermostats

Insulate exposed piping and attics

Install weather stripping

Replace windows

Other Utility Vendor Measures

Coming Up

• Projects planned at over 40 sites • Worth over $240 million • Higher Education, Courts, Prisons, Office, State Hospitals

Description Site Town Expected Issue ECC

Comprehensive Energy Design Build – Solar, boilers, Cogen (CHP) included

Mass Hospital School Canton August 2015 $11 million

Roxbury Community College comprehensive Energy Design Build

Roxbury Community College Boston September 2015 $12 million

Comprehensive Energy Design Build – Boiler & Cogen (CHP) included

Fitchburg State University Fitchburg August/Sept. 2015

$12 million

Upgrade of boiler plant, lighting, HVAC upgrades, etc.

Westfield State University Westfield Winter 2015/16 $7 million

Decentralization of boilers, domestic hot water, kitchen controls, VFDs

Chelsea Soldiers’ Home Chelsea Winter 2015/16 $6 million

Lighting, HVAC, major mechanical, white space renovation

MITC Chelsea Winter 2015/16 $10 million

Challenges

• Make new friends, keep the old….. • Streamlining Process –

• Improving Schedule • Updates create challenges of learning curve/training

• “Right” level of design • “Right” information to provide in RFP • Managing Construction

• Budgets • Amendments, changes to BOD

• Financing • Heavily rely on agency debt

• Evaluation

What’s Coming Up

Resiliency

Towards Zero Net Energy

Continuous Facility Improvement

Questions, Where to Look, Contact

• Jenna Ide, Director 617-727-4030 x31487 Jenna.ide@state.ma.us

• http://www.mass.gov/dcam/energy • Will announce new RFPs there

• Always post on Comm-pass and in the Central Register, local newspaper • Look at other pages on DCAMM’s website for what’s new and other

information about energy conservation • Contact Stephen White (stephen.white@state.ma.us)

• Get on Interested Parties list • Set up a meeting with members of team

• DOER – Green Communities, Municipal Projects, roadway projects • Eric Friedman, Director Leading By Example

617-626-1034 Eric.friedman@state.ma.us

Thank you!

General Information for Certification

Prime • Prime/General threshold: Estimated Construction Cost $100,000 • Prime/General required for the 28 Categories of Work listed in M.G.L. c. 149 • Prime/General must be DCAMM certified in Category of Work to bid project • Prime Evaluations Required

• 20 projects • Over $80,000 each project • Within the last 5 years

• Typical categories for energy design/build projects: HVAC, General Building

Construction, EMS, Mechanical, Electrical, and/or Plumbing • DCAMM Certification

• http://www.mass.gov/anf/property-mgmt-and-construction/design-and-construction-of-public-bldgs/contractor-certification/

M/WBE Compliance Goals

Construction M/WBE participation Combined Goal -10.4% * Applies to all projects advertised after January 1st, 2012

Construction Minority Workforce Goal- 15.3% Construction Women Workforce Goal– 6.9%

* All projects awarded after August 1st, 2011 are required to submit workforce reports electronically*

The following documents are required when identified as the Awardee (before contract signing):

1. Letter of Intent 2. Schedule of Participation 3. Current SDO certification of M/WBE Firm

Documentation required during performance period:

1. Certificate of Payment (Quarterly) 2 . Certified Weekly Payroll 3. Weekly Payroll Records Report and Statement of Compliance 4. Payroll Affidavit 5. Certificate of Completion 6. Workforce Certification Form 7. Weekly Workforce report 1 & 2* 8. Qtrly Projected Workforce Table

Monitoring and Verification of Savings

• M&V follows International Performance Measurement and Verification Protocol

• Used to calculate savings, developed in study, design, verified by RFP and Contractor, and sometimes post-construction

• Payments by agency tied to savings