Georgia Environmental Facilities Authority

1. Georgia Environmental Facilities Authority ARRA - American Recovery & Reinvestment Act of 2009

2. Presenters • David Godfrey, GEFA • Sandra Neuse, USG • Greg Adams, USG • Danny Elijah, GSFIC • Nathan Jones, GSFIC • Rey Palma, GSFIC • Andrew Ladd, GEFA • P.J. Newcomb, GEFA

3. Procedural Notes • Please silence all mobile phones and devices • Presentation will run approximately 90 minutes • Questions will be fielded at the end of the presentation • There will be a microphone for the audience to ask their questions • The presentation will be posted on the web • Please remember to leave your business card or sign in at the reception table

4. Points To Cover Broad Overview USG Track GSFIC Track Reporting Requirements Measurement & Verification

5. Broad Overview State Energy Program (SEP) Formula Grants to all states: $3.1 billion SEP Award to Georgia: $82.5 million with $65 million allocated to State Retrofit Program Project Completion Date: March 31, 2012

6. State Energy Program (SEP) Goals Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government. Reduce reliance on imported energy. Improve the reliability of electricity and fuel supply and the delivery of energy services. Reduce the impacts of energy production and use on the environment.

7. SEP Priority The State will to the extent practicable prioritize the grants toward funding energy efficiency and renewable energy programs, including—  The expansion of existing energy efficiency programs approved by the State or the appropriate regulatory authority, including energy efficiency retrofits of buildings and industrial facilities, that are funded by the State or through rates under the oversight of the applicable regulatory authority, to the extent applicable

8. SEP Prohibitions for construction, such as construction of mass transit systems and exclusive bus lanes, or for the construction or repair of buildings or structures; to purchase land, a building or structure or any interest therein; to subsidize fares for public transportation; to subsidize utility rate demonstrations or State tax credits for energy conservation or renewable energy measures; or to conduct or purchase equipment to conduct research, development or demonstration of energy efficiency or renewable energy techniques and technologies not commercially available.

9. Project Development and Selection Agency solicitation: June 15 –July 15, 2009 334 energy conservation measures (ECMs) submitted; $266 million requested; $23 million in estimated savings 135 ECMs approved; $65 million investment budget; $15 million in estimated annual cost avoidance savings

10. Project Allocation by $ and %

11. Federal Requirements for all Projects Reporting, tracking and segregation of incurred costs; Reporting on job creation and preservation; Publication of information on the Internet; Access to records by Inspectors General and the Government Accountability Office; Prohibition on use of funds for gambling establishments, aquariums, zoos, golf courses or swimming pools; Ensuring that iron, steel and manufactured goods are produced in the United States; Ensuring wage rates are comparable to those prevailing on projects of a similar character; Protecting whistleblowers and requiring prompt referral of evidence of a false claim to an appropriate inspector general; and Certification and Registration.

12. Where we are in the process Projects have been selected GEFA has obtained all of the funding GEFA and GSFIC signed an IAA GEFA and USG signed an IAA GSFIC will provide support to state agencies’ approved for ARRA funding USG Facilities Office will admin USG funded projects

13. Points To Cover Broad Overview USG Track GSFIC Track Reporting Requirements Measurement & Verification

14. USG Track Overview of USG energy plan and how ARRA complements that plan • Context • Goals & Objectives • Past Activities and Successes • Current Implementation Activities

15. History & Context w/in Regents' Strategic Plan • Support of Strategic Goal Six, Operating Efficiently • Led by UGA President Adams

16. Goals and Objectives • Promote and support energy efficiency efforts system-wide • Achieve 'best in class' energy usage levels • Meet the Governor's Energy Challenge

17. Activities & Successes to Date • Development of system-wide Sustainable Energy Management Plan (SEMP) (April 07) • Energy audits and training • Collection and analysis of FY07 baseline energy use and cost data • Participated in development of Georgia Peach standards for new construction/renovation

18. Current Implementation Activities • Updating energy use and cost data to include FY08 and FY09 • Revising and updating SEMP • Administering ARRA/SEP program

19. USG ARRA Overview

20. USG Delegated Authority • USG holds contracts via constitutional authority • Board delegates to Vice Chancellor for Facilities • VC delegates to campuses according to ability to manage the contracts (existing system) • USG manages all contracts not delegated to campus • Procurement and construction processes are the same regardless of system office or campus

21. USG Delegated Authority http://www.usg.edu/ref/contracts/levels_del_auth.phtml

22. What is Procured? • Design Professional Services (DP) • Construction/Public Works • Materials Only

23. Procurement of DP Services • Design Professional Selection Methods • Expanded • Basic • Abbreviated • Campus

24. Expanded Method • IF: • SCL > $5,000,000 and/or • Fee > $300,000 • THEN: • Advertised on DOAS Bid Registry • 3 to 5 respondents are short-listed by a panel from System Office and the Campus(es) • Short list candidates attend interviews • Panel makes final selection

25. Basic Method • IF: • $1,000,000 < SCL< $5,000,000 and • Fee < $300,000 • THEN: • Campus & USG develop list of candidates, or • Project is advertised at discretion of VC as above • Candidates attend interviews • Panel makes final selection

26. Abbreviated Method • IF: • SCL < $1,000,000 • Fee < $40,000 • THEN: • Campus & USG office develop list of candidates • Campus makes recommendation to VC • VC directly appoints design professional

27. Campus Selection Method • If professional fees are anticipated to be within the delegated authority of the campus, the campus may select the Design Professional without the involvement of the Board of Regents Facilities Office, but should follow BOR procedures.

28. What is Procured? • Design Professional Services (DP) • Construction/Public Works • Materials Only

29. Procurement of Construction/ Public Works • Found in Chapter 8 of the USG Building Projects Procedures Manual at: http://www.usg.edu/ref/capital/bppmanual/chapter8/

31. Public Works Contracts • USG is still in the process of developing the actual contracts that will be used for both DP and Public Works • The contract that you sign will be in the bid documents for you to review before you bid

32. USG: Bond Requirements • 5% bid bond • Performance bond and a payment bond required for projects > $50,000 • Performance bond shall guarantee the full performance of the Contract

33. USG Insurance Requirements • Commercial general liability ins $1M/occurrence, $2M/project • Commercial umbrella • Contract < $5,000,000 • $ 2,000,000 per Occurrence • $ 4,000,000 aggregate • Contract > $5,000,000 • $2,000,000 per occurrence • 10,000,000 aggregate

34. Federal ARRA Requirements • ARRA requirements are common to both GSFIC and USG contracts and will be detailed later in the presentation: • Reporting requirements • Davis Bacon • Buy American

35. USG Project Oversight Outside campus delegated authority • USG bids the work, holds the contract, and works with campus personnel to perform project • Pre-bid conferences • Award and pre-construction conference • Periodic construction inspections • Approve pay requests • Ensure required reporting • Ensure compliance with contract documents • Approve pay requests • Project close-out • Verify measurement and verification

36. USG Project Oversight • Within campus delegated authority • Campus performs functions above • USG • Performs spot audit functions • Insures reporting • Insures measurement and verification

37. What is Procured? • Design Professional Services (DP) • Construction/Public Works • Materials Only

38. Materials Only • Materials-only are not public works • Campuses desiring to self-perform must comply with ARRA requirements • Purchases must comply with Department of Administrative Services process and procedure http://doas.ga.gov/StateLocal/SPD/Pages/Home.aspx • Georgia Procurement Manual http://doas.ga.gov/StateLocal/SPD/Docs_SPD_General/GeorgiaProcurementManual.pdf

39. Bundling Projects • Bundling projects for economies of scale is being considered • Possible JOCs, RFQs, RFPs for: • Lighting • Controls • M&V • Commissioning • Metering

40. Points To Cover Broad Overview USG Track GSFIC Track Reporting Requirements Measurement & Verification

41. GSFIC Track • GSFIC – Georgia State Financing and Investment Commission – Construction Division • Providing procurement and project management services • Agent for GEFA – Georgia Environmental Facilities Authority – in the procurement and project management of ARRA/USDOE funded projects.

43. Scope Development • Consult with agencies receiving ARRA awards and assist with development of ECM scope of work. • Assess potential for consolidating similar ECMs among different Awardees for procurement and construction. • Design and Review group will review agencies ECM scope of work prior to solicitation. • Design and Review Group will work in conjunction with GEFA to assist agencies in developing an M&V Plan for each ECM prior to solicitation.

44. GSFIC Procurement Process • Design professionals/vendors/service providers will be procured according to established GSFIC procedures. • Agencies will be consulted for suggested professionals. • Typically all solicitations will be competitive

45. GSFIC Procurement Process • All open solicitations will be posted to the Georgia Procurement Registry (GPR). • Bid Package will include the process for bid, selection, award and contracting • The corresponding contract will be attached to the bid package

46. GSFIC Procurement Process • The bid period will generally be 30 consecutive calendar days unless otherwise allowed • A pre-bid conference may be held depending on complexity • Changes will be managed by addenda

47. Buy American DUNS CCR Copeland Act Davis Bacon Subcontracts Neutrality-Open Competition IG/DOE Audits Field Audits Reporting Requirements ARRA Requirements for all Projects

48. Buy American Provisions(Section 1605 - ARRA) • Recipients may not use any funds obligated under this award for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States unless the Agency waives the application of this provision.

49. Buy American Provisions (Exceptions) • ARRA provisions shall not apply when: • applying 1605 would be inconsistent with the public interest; • iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or • inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

50. Dun & Bradstreet • A Dun and Bradstreet Data Universal Numbering System (DUNS) Number (www.dnb.com) is one of the requirements for registration in the Central Contractor Registration. • If applicable, the Contractor agrees to separately identify to each subcontractor and document at the time of award of contract or approval of application and at the time of disbursement of funds, the Federal award number, CFDA number, and amount of ARRA funds.