Kentucky Administrative Regulations
Title 200 - FINANCE AND ADMINISTRATION CABINET
Chapter 5 - Purchasing
Section 200 KAR 5:350 - Guaranteed energy savings performance contracting
Universal Citation: 200 KY Admin Regs Service 5:350
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 56.770-56.784
NECESSITY, FUNCTION, AND CONFORMITY: KRS 56.784(2) requires the Finance and Administration Cabinet to promulgate administrative regulations to establish a process for procurement of energy savings performance contracts, including required contract language. This administrative regulation establishes the process for procurement of energy-savings performance contracts.
Section 1. Definitions.
(1) "GESPC" means a guaranteed energy savings
performance contract as defined in
KRS
56.770(5), and further
described at
KRS
56.774(5).
(2) "Memorandum of understanding" is defined
alternatively as "memorandum of agreement" at
KRS
45A.690(1)(d).
(3) "Offeror" is defined at
KRS
45A.070(6).
(4) "Owner" means:
(a) The Finance and Administration Cabinet;
or
(b) The governing board of an
institution of postsecondary education that, pursuant to
KRS
164A.560(1), has elected to
perform in accordance with
KRS
164A.555 to
164A.630
regarding capital construction.
(5) "RFP" means a request for proposals as
defined in
KRS
45A.070(5).
Section 2. Contracting Process.
(1) A GESPC shall be awarded by competitive
negotiation in accordance with
KRS
45A.085,
200 KAR
5:307, and this administrative regulation.
(2) If a GESPC is needed, owner shall form a
selection committee and issue an RFP.
(3) The selection committee shall conduct a
walk-through of the proposed project facility which interested potential
offerors shall attend, if indicated in the RFP.
(4) An offeror shall submit qualifications, a
preliminary proposal, and other information and documentation as set out in the
RFP.
(5) The selection committee
shall evaluate, rank, and interview each offeror in accordance with the
criteria set out in the RFP.
(6)
The top-ranked offeror shall:
(a) Be notified
and authorized to perform a technical energy audit; and
(b) Submit a final proposal indicating the
scope of the guaranteed energy savings performance project.
(7) If an acceptable energy audit
and project proposal have not been approved by the selection committee within
sixty (60) days from the date of notification provided for in subsection (6) of
this section, negotiations with the next highest ranked offeror shall be
initiated, unless owner has granted an extension of time to the top-ranked
offeror.
(8) Owner shall enter into
a memorandum of understanding with an entity occupying facilities involved in a
guaranteed energy savings performance project. The memorandum shall state the
responsibilities and obligations of each party, including reporting,
administration, and repayment.
Section 3. Required Contract Terms. A GESPC shall contain the following language.
(1)
"All savings projected shall be guaranteed to owner."
(2) "A professional engineer licensed in the
state of Kentucky shall supervise, review, and approve all design work done in
relation to this project."
(3) "The
term of this contract shall not exceed the life of the energy savings generated
from implementation of the energy efficiency measures financed by the contract,
in accordance with
KRS
56.770(5)."
(4) "The contractor shall maintain specific
standards of comfort, safety, and functionality as determined by the owner.
Persistent failure to maintain the defined climate and lighting conditions
shall constitute a breach of contract by the contractor."
(5) "Combined savings achieved by the
installed projects shall be sufficient to cover all project costs, including
debt service and contractor fees maintenance, monitoring, and other services,
for the duration of the contract term. If a project does not generate the
guaranteed level of savings in any predefined reconciliation term, the
contractor shall be liable to owner for the amount of the shortfall plus
related costs, in accordance with
KRS
56.770(5)."
(6) "The contractor shall provide a
sufficient number of sets of operation and maintenance manuals for all
equipment replacements or upgrades at each location. The number of sets of
manuals shall be determined by owner."
(7) "Owner shall have the right to inspect,
test, and approve the work conducted under this contract during construction
and operation."
(8) "All drawings,
reports, and materials prepared by the contractor in performance of the
contract shall become the property of owner and shall be delivered to owner as
needed or upon completion of construction."
STATUTORY AUTHORITY: KRS 56.784(2)
Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.