TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 4, 2014
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to negotiate agreements with Anaergia Services, LLC, for professional engineering services and for the long-term supply of organic waste material, for Contract 13-RFP-06 Biogas Renewable Energy Project at the Calumet Water Reclamation Plant (As Revised)
Body
Dear Sir:
Authorization is requested to negotiate agreements with Anaergia Services, LLC, Inc. for professional engineering services and for the long-term supply of organic waste material associated with Contract 13-RFP-06 Biogas Renewable Energy Project at the Calumet Water Reclamation Plant (Project No. 11-240-3P Organic Waste Receiving and Processing Facility, Calumet Water Reclamation Plant). The current total cost estimate for this project is $30,611,488.00. The details of the design, long-term supply, construction and maintenance agreements will be brought to the Board for authorization prior to execution.
A Request for Proposals, 13-RFP-06, Biogas Renewable Energy Project at the Calumet Water Reclamation Plant (CWRP), was advertised on March 13, 2013, soliciting proposals for the engineering design and construction of a facility or facilities for the beneficial use of digester gas at the CWRP. This was an open RFP. The overall objective of the RFP was to reduce the District's energy footprint by maximizing the production and beneficial use of digester gas, also known as biogas, as a renewable energy resource in a manner that is economically beneficial, energy efficient, and environmentally responsible. The purpose of the RFP was to identify a highly reputable and experienced contractor to design and build a system for producing renewable energy from the biogas generated in the CWRP's existing anaerobic digesters.
Nine proposals were received from the following firms or teams:
- Ameresco, Inc.
- Anaergia Services, LLC
- Green Recycling Technologies, Inc.
- Honeywell International and CH2M Hill
- Innovative Energy Solutions, Ballard Engineering, IHC Construction Partnership
- Meade Electric Company, Inc.
- Midwestern Electric, Inc, Leopardo Companies, Inc., and Project Integration Joint Venture
- MWH Americas, Inc.
- Natural Systems Utilities, Green Seed Energy, and Middlesex Water Company (NSU)
After review of the initial proposals, it was determined that it would be in the District's best interest to break the proposals into component options, such that the overall project goals could be met by combining the best components from different proposers. Therefore, firm price proposals for specific project options were solicited from the short-listed teams Ameresco, Inc., Anaergia Services, LLC, and NSU. Subsequently, Best and Final Offers (BAFO) were solicited on March 20, 2014 from the same three short-listed firms. The responses to the BAFOs provided firm price proposals for engineering design, construction, and a Five Year Maintenance Plan.
The Selection Advisory Committee panel's independent ratings, when compiled, show the Organic Waste Receiving and Processing Facility option proposed by the Anaergia Services, LLC team to be the most advantageous to the District for utilizing excess digester capacity to increase biogas production. This team's strengths include expertise in design/build projects, an excellent project manager and design team, reliable technology, experience with wastewater treatment plants and numerous full-scale installations related to biogas and digestion. A separate transmittal letter is presented on this agenda for the digester gas utilization option that was also highly rated.
The project work will be accomplished in four separate agreements with Anaergia Services, LLC. The first agreement is for the long-term supply of organic waste material. The second agreement is for professional engineering services to design the facility. The level of expertise required for the engineering design agreement consists of engineers and draftsmen experienced in process, structural, mechanical, electrical, and civil engineering design. When engineering design has progressed sufficiently such that plans and specifications have been developed to the satisfaction of the District, a transmittal letter will be submitted to the Board of Commissioners for authority to enter into the third agreement with Anaergia Services, LLC for the construction work. Subsequently, a transmittal letter will be submitted to the Board of Commissioners for authority to enter into the fourth agreement, which is the Five Year Maintenance Plan. All four of the agreements will require Board approval.
The time frame for the organic waste supply agreement is 20 years. This agreement will stipulate limitations on daily volumes of organic waste material to be delivered, limitations on the constituency of the waste streams, controls on delivery times, tipping fees, and terms for quantity measurement. The RFP provided indicative terms and conditions for the organic waste supply agreement.
The total fee for the engineering design agreement is $2,434,000.00, to be distributed over approximately one and one-half years. The approximate time allowed for services to be performed under this agreement is 540 days from the date the contract is awarded.
Upon completion of design, a request will be made to the Board to enter into an agreement with Anaergia Services, LLC for the construction of the designed facilities. The current price proposal for the construction portion of the work is $26,926,183.00. Based on the final outcome of the design, the price proposal for the construction work will be adjusted as necessary prior to award. As construction nears completion, a request will be made to the Board to enter into an agreement with Anaergia Services, LLC for the Five-year Maintenance Plan. The price proposal for the Five Year Maintenance Plan is $1,251,305.00. Based on a final review of District needs at that time, the price proposal for the Five Year Maintenance Plan will be adjusted as necessary prior to award.
Based on the foregoing, the District requests authorization to negotiate agreements with Anaergia Services, LLC, for professional engineering services and for a long-term agreement for supply of organic waste material.
Requested, Catherine A. O'Connor, Director of Engineering, TK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 4, 2014