TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to exercise the option to extend and amend agreement with World Energy Solutions, Inc. for Contract 10-RFP-20, Energy Procurement and Management Services to Perform Real Time Online reverse Energy Auctions
Body
Dear Sir:
At the Board meeting of April 7, 2011, the Board of Commissioners authorized the Director of Procurement and Material Management to enter into an agreement for Contract 10-RFP-20, Energy Procurement and Management Services to Perform Real Time Online Reverse Energy Auctions with World Energy Solutions, Inc. (World Energy). This agreement was for a five (5) year base term with a one-time option to extend for an additional five years.
The Maintenance and Operations Department desires to extend the term of the existing agreement for an additional five-year period commencing May 16, 2016, pursuant to Section 6 of the existing agreement between the District and World Energy. This extension would be at the same terms and conditions as the existing agreement. World Energy will continue to be compensated by the successful energy suppliers, at a rate of $0.09 per decatherm (dth) for natural gas and $0.00029 per kilowatt-hour (kwh) for electricity, over the life of the contract awarded as a result of services provided. Therefore, no funds will be required. Fees paid to World Energy will be based on the actual amount of natural gas/electricity used. The District has utilized an average of approximately 593,000,000 kwh of electricity annually from 2010 through 2014 and an average of approximately 325,000 dth annually for the same period. Based on this usage, World Energy will collect a fee of approximately $172,000.00 annually for electricity and $29,000.00 annually for natural gas.
World Energy has provided excellent service to the District in the procurement of electricity and will continue to provide the District with their energy market expertise for developing, advertising and running real time online reverse energy auctions for existing and future District facilities, at no up-front risk or cost to the District.
Inasmuch as World Energy Solutions, Inc. possesses a high degree of professional skills, it is recommended that the Director of Procurement and Materials Management be authorized to exercise the option to extend and amend agreement for energy procurement and management services to perform real time online reverse energy auctions.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, AQ:SO’C
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 August 6, 2015