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Guaranteed Energy Savings Program Contracting Process


The following components are included in the Guaranteed Energy Savings Program (GESP) Master Contract used by program participants. Hyperlinks provided for developed documents & templates. 

Click on any of the hyperlinks below to expand the section and access details on the contracting process and a list of required materials.

  • Pre-qualified Contractors

    The state issued an RFP for Energy Services Companies (ESCOs) to pre-qualify to provide Energy Savings Performance Contracting Services to state institutions. The following eleven contractors were qualified and have entered into a Master Contract with the Minnesota Department of Commerce:

    • AMERESCO, Inc.
    • Chevron U.S.A. Inc.
    • Consolidated Edison Solutions, Inc.
    • Control Technology & Solutions LLC
    • Harris Mechanical Contracting Company
    • Honeywell
    • Johnson Controls, Inc. 
    • McKinstry Essention, Inc.
    • Noresco, LLC
    • Siemens Industry, Inc.
    • Trane U.S. Inc.

  • Master Contract
    Each of the 11 Contractors has a Master Contract with the Department of Commerce to provide Energy Savings Performance Contracting Services on an as needed basis.

    Exhibit A – Contractor’s Duties (see Master Contract)
    Exhibit A includes a Sample Work Order Contract along with the Work Order Contract’s Exhibit A and Exhibit B.

    Exhibit B – Contractor’s Fees (see Master Contract)
    These are the maximum markups and fees included in Contractor’s RFP response to pre-qualify. They differ by Contractor.

    Attachment 1 –  Measurement and Verification Guidelines

    Attachment 2 – System Startup and Commissioning Guidelines

    Attachment 3 – General Conditions of the Contract for Construction
    AIA Document A201 – 2007 as modified by the Minnesota Department of Commerce

    Attachment 3 – General Conditions of the Contract for Construction (MnSCU)
    AIA Document A201 – 2007 as modified by the Minnesota State Colleges and Universities

    Amendment No. 1
    Issued in November 2012.

    Parties to Contract
    Minnesota Department of Commerce, and Contractor (ESCO)

  • Interagency Agreement

    The Interagency Agreement (IA) is issued by the Department of Commerce.  An IA is required for State Agencies to access the GESP Master Contract.

    Interagency Agreement
    The IA is provided by the Minnesota Department of Commerce.

    Parties to Agreement
    Minnesota Department of Commerce and other state agency.

  • Joint Powers Agreement

    The GESP Joint Powers Agreement (JPA) is issued by the Department of Commerce. A JPA is required for local governmental units and independent school districts to access the GESP master contract. 

    Joint Powers Agreement
    The JPA is provided by the Minnesota Department of Commerce.

    Parties to Agreement
    Minnesota Department of Commerce and local governmental unit or Independent School District. 
  • Site-specific Request for Proposal (RFP)

    The GESP Site-Specific RFP is issued by the state agency, political subdivision or governmental unit for the purpose of selecting one ESCO from the pool of eleven master contract holders, they determine is best suited to provide energy savings performance contracting services for their site.  The Site-specific RFP also provides for a second round of competition in which the responders' may offer lower markups, overheads and fees for the specific site, than those they agreed to in the master contract.

    Site-Specific RFP document template provided by the Minnesota Department of Commerce.  Site-specific data is added by state agency, political subdivision, or governmental unit. Insert spreadsheet template provided by the Department of Commerce into the Site-Specific RFP.

    Attachments
    Site-Specific RFP will include a link to the Minnesota Department of Commerce website showing sample exhibits and attachments added via the Work Order Contract Amendment.

    Parties to Site-Specific RFP
    The state agency, political subdivision, or governmental unit will issue the Site-specific RFP to all contractors with a GESP Master Contract.
  • Work Order Contract

    The Work Order Contract is issued by the state agency, political subdivision, or governmental unit to the selected ESCO for the purpose of conducting an Investment Grade Audit (IGA) and developing the Energy Savings Performance Contract project proposal. This Work Order enables the ESCO to perform design and engineering services that are required to provide guaranteed maximum pricing and guaranteed savings for the proposed Energy Conservation Measures included in the project proposal.  This is also when the ESCO performs necessary pre-installation measurements and proposes their plan for the measurement and verification of savings.  Assumptions agreed to in this process form the basis of the Energy Savings Performance Contract and are added as exhibits to the Work Order Contract via amendment.

    Issued by the state agency, political subdivision, or governmental unit to contractor selected from Site-specific RFP respondents, under authority of GESP Master Contract.

    Exhibit A – Contractor’s Duties
    Exhibit A includes:
    Section I: Contractor’s duties for performing Investment Grade Audit and Project Proposal
    Section II: Scope guidelines and requirements for Energy Savings Performance Contract Proposal

    Exhibit B – Contractor’s Fees
    Maximum markups and fees provided by contractor in response to Site-Specific RFP.  These fees can be lower, but not higher, than fees in the Contractor’s Master Contract.

    Parties to Work Order Contract
    The state agency, political subdivision, or governmental unit and contractor.
  • Work Order Contract Amendment

    The amended Work Order Contract becomes the Energy Savings Performance Contract, also referred to in statute as the Guaranteed Energy Savings Agreement.

    Issued by state agency, political subdivision, or governmental unit to Contractor that is party to Work Order Contract.

    Exhibit A – Contractor’s Duties  is amended and becomes Exhibit A-1
    Exhibit A-1 includes:
    Section I: Contractor’s duties for performing Investment Grade Audit and Project Proposal.
    Section II: Scope guidelines and requirements for Energy Savings Performance Contract proposal. (Section I and II duties completed at time or amendment).

    Amendment adds:
    Section III: Facility Description is a list of facilities installation work will be performed in.
    Section IV: Contractor’s Duties for ESPC, is the scope of work for installation of energy conservation measures.

    Exhibit B – Contractor’s Fees is amended and becomes Exhibit B-1
    Maximum markups and fees provided by contractor in response to Site-Specific RFP.  These fees can be lower, but not higher, than fees in contractor’s Master Contract.
    Amendment adds the total project price, detailed by energy conservation measure.
  • Work Order Contract Amendment Exhibits and Attachments

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Standard GESP document provided by Minnesota Department of Commerce.  Savings amount agreed to in Savings Measurement and Verification Plan.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Contractor deliverable from Investment Grade Audit and Project Proposal.
    Insert spreadsheet template provided by the Department of Commerce into the exhibit.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Contractor deliverable from Investment Grade Audit and Project Proposal.
    Template provided by Department of Commerce.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Standard GESP document provided by Minnesota Department of Commerce.

    Standard GESP document provided by the Minnesota Department of Commerce.

    Exhibit L – Lease Purchase Agreement (Local Governmental Unit or Independent School District)
    Standard GESP document provided by the Minnesota Department of Commerce.

    Standard GESP document provided by Minnesota Department of Commerce.
    Scope and fee are Contractor deliverable from Investment Grade Audit and Project Proposal.
    M&V Services are required to maintain the Savings Guarantee.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Contractor deliverable from Investment Grade Audit and Project Proposal.

    Template provided by the Minnesota Department of Commerce.

    Template provided by the Minnesota Department of Commerce.

    Parties to Work Order Contract Amendment
    The state agency, political subdivision, or governmental unit and contractor.