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Authorization for Strategic Plan Implementation Contract with Black & Veatch

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8 diapositives · 188 Views · Aug 14, 2014

Requesting authorization to hire Black and Veatch for RFP development, expenditure approval, negotiation, and oversight responsibility. The plan aims to distribute costs equitably and obtain third-party objectivity. Expectations include RFP preparation, evaluation, cost analysis, and standards development. B&V selected for quality proposal and competitive rates. Detailed discussion included man-hour estimation, team composition, and project timeline. Board motion seeks approval for CEO to execute the contract within specified budget and oversight framework.

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Authorization for Strategic Plan Implementation Contract with Black & Veatch
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  1. RC Strategy Implementation

  2. What we are asking for… • Authorization to hire Black and Veatch to develop and issue the two RFP’s associated with the RC Strategic Plan… and to provide independent assessments of the responses • Authorization for an expenditure of up to $250K for this effort • Authorization for the WECC CEO to negotiate terms and conditions and be the signatory for the contract. • Assignment of oversight responsibility to the RC Strategy TF, along with the appropriate WECC staff personnel.

  3. Why we are asking… • It has proven difficult for the OC to find the volunteer resources needed for this work • B&V has experience and skills for this effort are not typically found in WECC “volunteers” • B&V would provide 3rd party objectivity • B&V pricing is very reasonable • This will provide a more equitable distribution of cost than having one or two companies “contribute” manpower

  4. What we expect to get… • Preparation and administration of an RFP for infrastructure hosting of the RC’s and the WSM • Evaluation of proposals/bids received from the infrastructure hosting RFP • Preparation and administration of an RFP for site hosting of the RC’s • Cost evaluation of independent site hosting versus member site hosting • Evaluation of proposals/bids received from the site hosting RFP • A recommended “Standards of Conduct” for the site host

  5. How did we select B&V… • Started with B&V, KEMA Consulting, and Sergeant & Lundy • S&L declined to offer a proposal • We conducted multiple conference calls and one face to face meeting with the two remaining vendors • B&V provided a much higher quality proposal and much lower average billing rate.

  6. Key points from the B&V discussions… • Estimated about 1000 man hours • Average cost less than $175/hour • Includes 6 experienced B&V team leaders and managers • Project scheduled for completion by July 2007

  7. Questions you might have… • What if the 1000 man hour estimate is too low? • We have included a contingency allowance of 40% in our funding request • Was this in our original cost estimates for the RC Strategic Plan? • No • Who will oversee the consultant? • The ad-hoc RC Strategy Team and WECC staff. • Why can’t we do this with volunteer assistance like we did for the WSM? • We actually ended up heavily utilizing a lawyer to draft and edit the WSM RFP… we effectively hired someone to do the bulk of the real work, and didn’t get the technical benefit of a well qualified consultant’s experience and skills.

  8. Motion for Board Approval… • That the WECC CEO be authorized to negotiate and execute a contract with Black and Veatch to develop and administer the site hosting and infrastructure hosting RFP’s associated with the RC Strategic Plan… and to provide assessments and recommendations based on the RFP responses to the Operating Committee and the Board. The cost of this effort shall not exceed $250,000 and contract oversight shall be the responsibility of the RC Strategy TF and the WECC staff.