systèmes énergétiques de quartier

Trade Agreement: CETA / WTO-AGP / NAFTA / CFTA / FTAs with Peru / Colombia / Panama / Korea
Tendering Procedures: All interested suppliers may submit a bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address:
Markham District Energy Inc.
8100 Warden Avenue
Markham Ontario
Canada
L6G1B4
Nature of Requirements:

ESAP District Energy Systems

1. Advance Contract Award Notice (ACAN)

An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.
2. Definition of the requirement
2.1 Background
Public Works and Government Services Canada (PWGSC) owns and operates six Central Heating and Cooling Plants (CHCPs) that provide heating and/or cooling for more than 100 buildings in the National Capital Region (NCR) which make up over 2 million rentable square metres of office space. These plants are the Cliff CHCP, Tunney’s Pasture CHCP, National Printing Bureau (NPB) CHCP, Confederation Heights CHCP, National Research Council (NRC) CHCP, and Royal Canadian Mounted Police (RCMP) CHCP. Heating and cooling is distributed through five networks made up of 40 kilometres of pipeline most of which are contained in 12 kilometres of tunnels.
Some of the plants that provide the heating and cooling services were built almost a century ago. The infrastructure is reaching the end of its life cycle and major investments will be required to modernize it and improve its energy efficiency, provide access to more sustainable energy resources and reduce the environmental footprint.
The business of providing energy has changed significantly since these plants were built. Consistent with PWGSC Real Property Branch’s (RPB) Corporate Real Estate Model (CREM) and the associated National Service Management Strategy (NSMS), the Energy Services Acquisition Program (ESAP) seeks to move from operating energy assets & delivering services towards service management, therefore becoming an ?informed buyer?. PWGSC’s strategy is to seek a solution that is cleaner, greener, and more cost-effective through an innovative business arrangement. The selected business arrangement will draw on the expertise of leaders in the field of district energy to obtain maximum value from existing assets, predictable capitalization and operating costs, best value when establishing generation and distribution capabilities, and ultimately best value for the Canadian taxpayer. At this time, the preferred method for implementing ESAP will be a P3 (Public-Private Partnership) agreement, whereby a private partner is engaged to design, build, finance, operate, and maintain the district energy systems (DESs), which consist of the CHCPs and their associated distribution networks. The private partner will carry out the conversion of existing infrastructure to modernize the system while contributing to the government’s sustainability and greenhouse gas reduction objectives.
2.2 Scope of Work
Energy Services Acquisitions Program (ESAP) has a requirement for expert advice regarding structuring and governance of district energy systems together with expert advice on contract management and stakeholder benefit evaluation in regards to a for-profit energy utility.
Under ESAP, it is proposed to progressively convert buildings connected to the DESs from steam to low temperature hot water (LTHW) operation, to convert all or most of the steam distribution systems to LTHW operation, to consolidate district energy systems and reduce the number of plants in operation, to explore alternative sources of energy and to explore the potential for expansion.
In support of the ESAP district energy systems upgrade and conversion implementation, the Contractor shall provide the following types of Advisory Services, on an as-and-when-requested basis:
I) Business Structure, Business Systems and Governance Advisory Services

(a) Provide advice on how to structure for success a separate entrepreneurial, for-profit district energy organization to drive results within the context of government ownership;
(b) Recommend business structures that are flexible for future changes including partnerships, subsidiary businesses and exit strategies;
(c) Provide relevant advice on how to establish effective and independent governance including the procedures and strategies for reporting, performance monitoring and compensation strategies to drive success;
(d) Provide advice on how to structure annual business plans, capital and operating budgets, and regular reporting formats;
(e) Provide advice on building the senior management team to deliver the business plan;
(f) Provide advice regarding the appropriate cost base for head office management, non-fuel operational costs, and target earnings for the business at various stages of maturity; and
(g) Provide advice on the establishment of efficient financial management tools and reporting of key metrics to deliver financial targets.

II) District Energy Marketing, Contract Management and Rate Development Advisory Services

(a) Provide advice on the design of Thermal Energy Service Agreements for the sale of hot water and chilled water to a variety of new energy customers;
(b) Provide advice on understanding the key contract features offered to a variety of new energy customers;
(c) Provide advice on the sales and marketing of district energy services to a variety of new energy customers including the financial and non-financial benefits to customers;
(d) Provide advice on understanding the sales cycle for district energy sales;
(e) Provide advice on rate-setting strategies for non-rate regulated services;
(f) Provide advice on understanding how to sell non-rate regulated energy services within the context of a non-mandatory connection;
(g) Setting up invoice and customer reporting; and
(h) Provide advice on understanding ongoing management of customer contracts and renewal provisions.
3. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)

Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements:

• The firm must provide relevant and expert advice regarding the structuring, governance and operations of an independent for-profit energy utility within the context of government ownership in the Ontario energy market;
• The firm must provide relevant and expert advice regarding how to structure and market district energy contracts with third party building developers, owners and operators in the Ontario energy market; and
• The firm must provide relevant and expert advice regarding the evaluation of benefits to the district energy system owner including financial, economic development, environmental and resiliency benefits.

4. Applicability of the trade agreement(s) to the procurement
This procurement is subject to the following trade agreement(s):
I. Canadian Free Trade Agreement (CFTA) OR Agreement on Internal Trade (AIT)
II. World Trade Organization - Agreement on Government Procurement (WTO-AGP)
III. North American Free Trade Agreement (NAFTA)
IV. Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

5. Justification for the Pre-Identified Supplier

The proposed firm is the only Utility known in North America that has all the following skills:
1. The firm has extensive operational and technical experience with supply of thermal district energy including hot water, chilled water, and steam serving large urban centers; and
2. The firm has a consumer base comprised of multiple independent customers covering a wide range of market sectors including commercial buildings, residential condominiums, community centers, hotels, university campus, data centres, and government assets; and
3. The firm has a proven record for successfully marketing district energy and has a consumer base which is expanding by application of a city planning process (fee structure and contract terms) that is proven and seen as beneficial to developers and building operators; and
4. The firm has Experience with Environmental Compliance Approvals (ECA) and Environmental Activity and Sector Registry (ESAR) as it applies to facility emissions (including noise) that are unique to Ontario.

All these skills - technical, managerial, financial, customer relations within the context of district energy utility with municipal ownership within the Ontario jurisdiction - together comprise a unique capability and the proposed firm is the only Utility known in North America that has all these skills.
These skills reflect those required now by PSPC under the Energy Services Acquisition Program (ESAP) for strategic analysis and planning for the expansion of the thermal district energy system in Ottawa.
6. Government Contracts Regulations Exception(s)

The following exception(s) to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work").

7. Exclusions and/or Limited Tendering Reasons
The following exclusion(s) and/or limited tendering reasons are invoked under the:

I. North American Free Trade Agreement (NAFTA) Article 1016: Limited Tendering Procedures; ?(b) ?where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists?;
II. Canada-European Union Comprehensive Economic and Trade Agreement (CETA) Article 19.12: Limited Tendering; ?1.(b)?iii. due to an absence of competition for technical reasons?;
III. World Trade Organization Agreement on Government Procurement (WTO-AGP) Article XV: Limited Tendering;?1.(b)? in the absence of competition for technical reasons, the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists?; and
IV. Canadian Free Trade Agreement (CFTA) Article 513: Limited Tendering or Agreement on Internal Trade (AIT) Article 506: Procedures for Procurement, paragraphs 11 and 12; ?12.(b)? where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists?.

8. Ownership of Intellectual Property

Canada intends to retain ownership of any Foreground Intellectual Property arising out of the proposed contract on the basis where the material developed or produced consists of material subject to copyright, with the exception of computer software and all documentation pertaining to that software.

9. Period of the proposed contract or delivery date

The proposed contract is for a period from contract award to 31 March, 2021 with irrevocable option to extend the term of the Contract by up to two additional one year period(s) under the same conditions.

10. Cost estimate of the proposed contract

The estimated value of the contract, including option(s), is $3,277,000.00 (GST/HST extra).

11. Name and address of the pre-identified supplier

Markham District Energy Inc.
8100 Warden Ave, Markham, ON L6G 1B4

12. Suppliers' right to submit a statement of capabilities

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

13. Closing date for a submission of a statement of capabilities

The closing date for submitting statements of capabilities is March 15, 2018 at 2:00pm Eastern Standard Time (EST).

14. Inquiries and submission of statements of capabilities
Inquiries and statements of capabilities are to be directed to:
Name: Justin Hirsch
Title: Supply Officer
Public Works and Government Services Canada
Acquisitions Branch
Directorate: Professional Services Procurement Directorate
Address: 10 Wellington St, Gatineau, Québec, K1A 0S5
Telephone: (613)292-8963
E-mail address: j••••••••@••••••••.••.ca

Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.