Navigating the Procurement Process for Utilities

Introduction

This guide provides a structured, step-by-step playbook for drafting utility RFPs, from defining objectives and technical requirements to setting timelines, evaluation criteria, and contract values. It explains how to align billing, payment, notification, demand response, and efficiency projects with regulatory drivers, sustainability goals, and operational needs, using real-world examples from utilities like CPS Energy and SAWS. By walking readers through feasibility studies, market assessments, performance metrics, and submission procedures, the guide helps utilities issue clear, defensible RFPs and helps vendors understand exactly how their proposals will be evaluated.

Objectives & Background

• Purpose: Clearly articulate whether our RFP is intended to modernize billing and payment processing, implement notification systems, deploy demand response programs, and/or deliver energy efficiency solutions.

• Context: Explain the regulatory drivers, sustainability targets, and operational needs that inform the utility's requirements. For example, a municipal utility might need a solution that automates billing, collects interval data, integrates with AMI, and provides robust analytics.

  
  

Scope and Specifications

Technical Requirements

• Functional:

  
  

  • Billing & Payment Processing: Support automated billing, invoice generation, secure payment gateways, and customer self-service portals.

  • Meter Data & Energy Management: Automate import and analysis of interval data (electricity, water, gas), integrate with AMI systems, and provide data validation.

  • Reporting & Analytics: Enable real-time monitoring, performance dashboards, and benchmarking (e.g., integration with Energy Star data).

  • User Experience: Ensure intuitive, accessible interfaces (web/mobile) with high security.

    
    

• Non-Functional:

  
  

  • Scalability & Performance: Accommodate growth in data volume and customer base.

  • Reliability & Uptime: Define uptime targets, backup systems, and disaster recovery plans.

  • Security & Compliance: Meet all applicable local, state, and federal regulations and ensure data protection.

    
    

System Architecture

• Provide detailed architecture diagrams that illustrate data flows, integration points (e.g., ERP/CRM), and technology stack (cloud vs. on-premise, APIs).

  
  

Timelines and Milestones

• Schedule Overview:

  
  

  • Pre-Submission Phase: RFP publication, Q&A, and pre-submittal conferences.

  • Submission Deadline: Clearly state date/time for proposals.

  • Evaluation Period: Define timeframes for initial screening, technical evaluation, vendor interviews/presentations, and final selection.

  • Implementation & Go-Live: Milestones for design, development, testing, and deployment.

  • Post-Implementation Review: Scheduled evaluations and performance adjustments.

    
    

Evaluation Metrics and Total Contract Values

• Evaluation Criteria:

  
  

  • Cost Efficiency: Total cost of ownership including licensing, maintenance, and implementation.

  • Scalability & Integration: Ability to scale and integrate with existing systems.

  • Proven Performance: Vendor experience, case studies, and client references.

  • Technical Compliance: How closely proposals meet detailed technical requirements.

  • Support & Maintenance: Service levels and ongoing support provisions.

    
    

• Budgeting & Pricing Structures:

  
  

  • Outline the expected contract value with detailed breakdowns (one-time vs. recurring costs) and pricing models (fixed-price, T&M, or hybrid).

  • Include historical examples (e.g., City of Durham’s contract figures) as benchmarks.

    
    

Pre-Study, Feasibility, and Market Assessment

• Feasibility Assessments:

  
  

  • Technical: Evaluate integration, data migration, and pilot testing requirements.

  • Economic: Analyze potential energy savings, ROI, and payback periods.

  • Risk: Identify technical and financial risks with mitigation plans.

    
    

• Market Assessment & Customer Requirements:

  
  

  • Gather market data, customer feedback, and regulatory targets to ensure the solution meets end-customer needs.

  • Align proposals with market segmentation, as demonstrated in the Sample RFP examples.

    
    

Performance Metrics and Incentive Structures

• KPIs: Define energy savings (kWh/kW or Cubic Feet/Hour), system uptime, customer satisfaction, and response times.

  
  

• Incentives: Link vendor performance to bonus payments or bill credits, using structured incentive models seen in demand response RFPs (e.g., Lake Worth example).

  
  

Bid Submission Procedures: CPS Energy

CPS Energy leverages a dedicated Supplier Management System to streamline its bid submission process. Below are the key steps:

Registration and Portal Access

• Register on the Portal:

  • Vendors must register on the CPS Energy Supplier Management System Portal to access bid opportunities.

    
    

2.2 Navigating the Dashboard

• Dashboard Overview: Once logged in, access the “View” > “My Bid Solicitations” section to see active bids.

  
  

• Following Bid Opportunities: Click “Prime” on any bid opportunity to add it to your Planholders List and receive updates.

  
  

2.3 Preparing Bid Documents

• Review Solicitation Details:

  • Carefully review the bid’s technical specifications and requirements posted in the system.

    
    

• Follow Submission Instructions:

  • Use the step-by-step guidance outlined in the CPS Energy Bid Submission Supplement Document enter your bid amount, attach necessary documents, and add comments.

    
    

• Complete the Supplement:

  • Vendors must also fill out the Bid Submission Supplement, which includes:

    • Business Questionnaire

    • Responsible Respondent Questionnaire

    • Disclosure

    • Subcontracting Form

      
      

2.4 Final Submission

• Review and Attest:

  • Once all sections and attachments are complete, review your submission, sign the attestation, and select “Submit Bid.”

    
    

• Post-Submission Flexibility:

  • Before the due date, you can view, edit, or withdraw your bid if needed.

    
    

3. Procurement Process: SAWS

SAWS follows its own procurement process, which is outlined in its “How to Do Business with SAWS” guide.

3.1 Accessing Procurement Opportunities

• Procurement & Bids Page:

  • Vendors can access SAWS bid opportunities via the SAWS Business Center/Procurement Bids Page

    
    

3.2 Supplier Engagement

• How to Do Business Guide:

  • Director’s Introduction & Overview: Emphasizes the importance of supplier relationships and introduces the Purchasing Department.

  • Procurement Methods & Bid Information: Details on how bid invitations are issued, including contracting thresholds (e.g., contracts over $3,000 or bids over $50,000).

  • Supplier Performance & Certification: Outlines necessary certifications, performance tracking, and documentation required for bid success.

    
    

3.3 Submission Process

• Bid Invitations:

  • SAWS posts bid invitations on its website. Vendors should monitor these opportunities and follow the instructions provided.

• Key Contacts:

  • The guide includes contact details for the contracting and purchasing specialists, ensuring you have clear points of contact for queries.

4. RFP Examples and Additional Resources

Reviewing RFP examples as well as types of demand response and energy efficiency programs provides more insight into how to approach utilities:

• RFPs for Utility Technologies

  • Engagement and Customer Portal

  • Billing and Payment Processing

  • Demand Response Programs

  • Water Meter Data and Analytics

    
    

• Other Resources for Utility Vendors

  • Vendor FAQs for RFPs

  • Vendor Evaluation Criteria

  • Energy Efficiency Procurement Models

  • Types of Demand Response Programs

5. Putting It All Together: A Complete RFP Guide

When drafting our RFPs, we use the following structured approach:

1. Introduction & Background:

   • State the project’s purpose, context, and regulatory drivers.

2. Detailed Scope and Technical Specifications:

   • Outline functional and non-functional requirements, system architecture, and performance metrics.

3. Timelines, Milestones, and Contract Values:

   • Provide a clear schedule with defined milestones and budget details.

4. Evaluation Metrics:

   • List key criteria (cost, scalability, integration, performance) and include a scoring matrix.

5. Feasibility and Pre-Study Requirements:

   • Mandate preliminary studies and risk assessments.

6. Market Assessment & Customer Requirements:

   • Detail market research methodologies and align with regulatory targets.

7. Performance Metrics & Incentive Structures:

   • Define KPIs and tie vendor performance to incentives.

8. Submission Requirements and Process:

   • Include instructions for document attachments, required forms, and proposal format.