CGSA Conference
Collaborative Procurement for Sustainability ProjectsCGSA CONFERENCE APRIL 2, 2014
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Agenda Intro Why collaboration? What we’ve done Lessons learned Q&A
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Sustainability at Alameda County
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Why Collaboration? Competitive pricing Improved regional cooperation/efficiency to
advance common goals Participating agencies benefit by finding
support despite lack of expertise, bandwidth, and funding for these projects
More streamlined processes for bidders
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Collaborative Procurement Projects
Local Government EV Fleet Demonstration Project
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InSearch of aCreative Solution
In a time of shrinking budgets and scarce staff resources,how do we increase the use of renewable energy at public facilities to save on energy costs and reduce greenhouse gas emissions from government operations?
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Agencies across four counties collaborating on the procurement of distributed renewable energy systems for public facilities
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Utilize Proven Model Silicon Valley Renewable Energy Procurement (SV-REP)
Completed in 2010 Led by Santa Clara County and Joint Venture Silicon Valley Network 9 Agencies 70 Sites
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R-REP Project TeamLead Agency
Conveners
19 Public Agencies• Cities (11)• Special Districts (4)
• Counties (3)• Educational Institutions (1)
Participating Agencies
Consultants
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R-REP Sites19 Agencies186 Sites31 MW
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R-REP TimelineOutreach phase begins September 2011Feasibility studies completed February 2013
Consultants engaged March 2013RFP released September 2013Vendors selected March 2014 Contracts taken to Councils/Boards Spring – Summer 2014Site installations/site commissioning activities Summer – Fall 2014
Project completion Winter 2014 – Spring 2015
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Alameda County as Regional Leader
Achieving policy objectives
Increasing the use of renewable energy Reducing greenhouse gas emissions from County operations Regional leadership
Leader in renewable energy adoption – 14 solar projects in operations at its facilities
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The challenges of renewable energy adoption are weighing public agencies down
$$$
ComplexityTime
Renewable Energy
Public Agency
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Collaboration allows public agencies to tip the scales
Public Agency
Complexity
Time
$$$
Renewable Energy
Public Agency
Public Agency
Public Agency
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Leverage Investment of the Lead Agency Leverage prior experience of lead agency in
renewable energy procurement
Lead agency invests significant staff resources, participating agencies save resources:
SV-REP – Agencies saved 75-90% in admin costs and time
Complexity
Time
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Leverage Investment of Lead Agency
Outreach Negotiated MOU IRFQ for sites assessments RFP for consultants Managed consulting team RFI - Vendor outreach
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Leverage Investment of Lead Agency
Wrote RFQ/P Gathered detailed information on sites
Standardized template documents Led evaluation of bids
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Leverage Investment of the Lead Agency
Consulting team funded through County’s Designated Energy Fund – incentives from past energy projects and rebates from current projects
$$$
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Consultants Play Key Role Bundling strategy Economic/technical analysis of sites Assistance in writing RFP Advised on the evaluation of bids
Leverage Investment of the Lead Agency
Complexity
Time
$$$
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Collaboration Leads to Lower Pricing Economies of scale leads to lower pricing Standardized procurement documents lowers
transaction costs Lower pricing translates to higher energy cost
savings over the life of the project
$$$
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Financing Projects Vendor asked to offer pricing under both a PPA
and cash purchase. Most agencies interested in 3rd party
ownership model. Workshops hosted for Participating Agencies on
financing and renewable energy economics. Complexity
Time
$$$
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Environmental Benefits
Annual emissions reductions across all sites: Equivalent to the CO2 emissions from the electricity use of over
6,300 homes in Alameda County
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Regional Economic Growth Regional economic growth: If all projects paid for through a
cash acquisition, total project costs would be an estimated $131.4 million.
Job creation: 839 jobs created as a result of the initiative if all projects are developed.
RFP included 40% GFE Workforce Requirement.
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Lessons Learned Engage internal staff early
Executive sponsorPurchasing DepartmentLegal
Maintain engagement of all outside stakeholders Education is key Standardize assumptions for site assessments Expert consultants are key
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Collaborative ProcurementA Creative Solution
Public Agency
Complexity
Time
$$$
Renewable Energy
Public Agency
Public Agency
Public Agency
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Local Government EV Fleet Demonstration Project
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Electric Vehicle (EV) Initiatives at Alameda Countyo Installed 40 EV Charging Stations in 2013 – free to the public until end of 2014o Will purchase 26 EVCS in 2014o Over 20 EVs in fleet (Miles Electric, Volt, Focus, RAV4, C-MAX, Prius)o Additional 26 EVs in next few months
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Why EVs? Vehicle Fuel Cost Avg. MPG Cost per
MileCost/8000 miles
Compact $4.50 27 $0.16 $1,280Intermediate $4.50 21 $0.21 $1,680Full Size $4.50 12 $0.37 $2,960Hybrid $4.50 37 $0.12 $960EV-Peak $0.15 per
kWh100 miles per charge
$0.036 $288
EV-Off Peak $0.08 per kWh
100 miles per charge
$0.019 $152
o Eliminate tailpipe pollution, drastically reduce GHG emissionso “Greener” over timeo Fits duty-cycle: most trips under 40-50 mileso Cost savingso Fun to drive!
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Challenges
??
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Local Government EV Fleet Demonstration Project Partnerso Collaborative procurement with 10 other Bay Area municipal government o 90 all-electric vehicles and charging stations
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Grant Funding for EVs 40 EV Charging Stations • BAAQMD TFCA - $84,960• CEC/ABAG - $182,762
Total - $267,722 26 EV Charging Stations • $286,000
26 EVs• $526,000.
Total - $812,000
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Local Government EV Fleet Demonstration Project - Grant Detailso Federal Highway Administration (FHWA), Congestion Mitigation and Air Quality (CMAQ) funding through the Metropolitan Transportation Commission (MTC)o $2.8 million to fund the incremental cost of an all-electric fleet vehicle and fully fund purchase and install of EV charging stations
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Cost Breakdowno Incremental cost covered in grant (about $19K - $21K per vehicle) o “Match” = appx. $15K
o Full cost of charging station and install (up to $11K)
Estimated EVCS costs:
o $4,000 -$7,000 per station (level 2)
o Appx. $9,500 - $11,000/station for installation
o $13,500 - $16,000 total
o Dual ports reduce cost!
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Project TeamLead Agency
Participating Agencies
Consultants
Convener
Funding
10 Public Agencies• Cities (5)• Water Districts (2)
• Counties (2)• City/County (SF)
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EV Charging Station Locations
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How we did thisPROCESS
o Non-profit project convener – lead agencyo “Buy America” waiver o Environmental clearance o Memorandum of Understanding (MOU) o Preparation of bidso Procurement and award o * Handover to partner agencies *
STAKEHOLDERSo Project partner contacts (fleet & sustainability) o Alameda County purchasing & legal o Partner’s purchasing & legal o Caltrans liaisons (Alameda County) o Partner’s engineering o External consultants
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Role of lead agencyo Led RFQ/P process, including review/approval by all participating agencies, drafting of procurement documents, purchasing process o Developed MOU and coordinated approvalo Managed environmental review o Caltrans liaison (federal funding)o Created A/E site designs for project
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Timeline PROCESS
Project kicks off November/December 2010 (Completed AC Board Resolution and MOUs in November and MTC Council approval in December 2010)
FHWA issues partial “Buy-America” waiver October 2011Environmental review June 2012Second MOU August 2012 – July 2013Electric vehicle procurement September 2013 - March 2014Site designs (Design/bid/build), including consultants hiring
November 2013 – June 2014
Charging stations procurement July 2014 – October 2014Installation of charging stations November 2014 – December 2014
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Tangible financial benefits o EV bid saved over $349,000 in the purchase of new EVs (based on manufacturer's MSRP) – nearly $4,000 per vehicle. o Focus - $31,360o Leaf (SV) - $33,947
o Successful utilization of federal tax-incentive in vehicle bid
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Tangible environmental benefits o EV fleet is expected to achieve fuel costs savings of $500,000 and 1.5 million lbs. of net CO2 pollution prevention over the next five years.
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EV + PVo 3 sites (11 charging stations total) currently connected to buildings with PV solar arrays o Approx. 26%-52% of power for charging stations from solar panels o R-REP - potential for EV + PV at 2 more sites
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Lessons learnedo Anticipate delays – participating agencies need various Council/Board approval and budget appropriationso Engage all stakeholders early (purchasing department, legal, etc.) o Balance inclusiveness and expedience
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For more…
http://www.acgov.org/sustain/documents/2013_Alameda_County_Transportation_Annual_Report.pdf
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Q&A www.acgov.org/sustain
Kayla PlattManagement Associate II
Phillip KobernickSustainability Project Manager,
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