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REQUEST FOR PROPOSAL # 2014-033 Program Management, Engineering, Construction, Operations and Maintenance – 2015 through 2019 Material Service Agreement (MSA) Release Date: Tuesday September 23, 2014 Proposals Due: Tuesday October 14, 2014 PEDERNALES ELECTRIC COOPERATIVE STATEMENT OF WORK Confidentiality/Security Warning The information contained within this document is proprietary to Purchaser/Owner and is confidential. It may not be disclosed to any party outside its intended audience without the written permission of Purchaser. This document may not be reproduced, either by photocopy or electronically without the written permission of Purchaser. Every recipient of this document acknowledges, by retention and use, the confidential nature of the material contained herein, and agrees to prevent the distribution of this document, by intent or otherwise, beyond its intended audience.

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  • REQUEST FOR PROPOSAL

    # 2014-033

    Program Management, Engineering, Construction, Operations and Maintenance –

    2015 through 2019 Material Service Agreement (MSA)

    Release Date: Tuesday September 23, 2014 Proposals Due: Tuesday October 14, 2014

    PEDERNALES ELECTRIC COOPERATIVE

    STATEMENT OF WORK

    Confidentiality/Security Warning

    The information contained within this document is proprietary to Purchaser/Owner and is confidential. It may not be disclosed to any party outside its intended audience without the written permission of Purchaser. This document may not be reproduced, either by photocopy or electronically without the written permission of Purchaser. Every recipient of this document acknowledges, by retention and use, the confidential nature of the material contained herein, and agrees to prevent the distribution of this document, by intent or otherwise, beyond its intended audience.

  • TABLE OF CONTENTS

    02 BACKGROUND................................................................................................................................. 1 03 MANNER OF SUBMITTING PROPOSALS ...................................................................................... 2 04 DEFINITION OF TERMS .................................................................................................................. 4 05 SCOPE OF SERVICES .................................................................................................................... 5 06 STANDARDS AND SPECIFICATIONS .......................................................................................... 18 07 TERM OF CONTRACT ................................................................................................................... 18 08 WORKLOAD ................................................................................................................................... 18 09 PERFORMANCE REQUIREMENTS .............................................................................................. 18 10 PROGRESS CHECKS AND APPROVALS .................................................................................... 19 11 SUPPLIER COMPENSATION ........................................................................................................ 20 12 ACCEPTANCE OF THE WORK ..................................................................................................... 20 13 INVOICES ....................................................................................................................................... 21 14 PAYMENTS ..................................................................................................................................... 21 15 WITHHOLDING PAYMENTS .......................................................................................................... 21 16 REIMBURSEMENT TERMS ........................................................................................................... 22 17 WORKMANSHIP ............................................................................................................................. 22 18 LOCAL CONDITIONS ..................................................................................................................... 22 19 EXAMINATION................................................................................................................................ 22 20 PEC’S RIGHT TO COMPLETE SERVICES ................................................................................... 23 21 SUPERVISION AND INSPECTION ................................................................................................ 23 22 RIGHT OF TERMINATION ............................................................................................................. 24 23 TITLE ............................................................................................................................................... 25 24 INDEMNIFICATION REQUIREMENTS .......................................................................................... 25 25 INSURANCE ................................................................................................................................... 26 26 BONDS ............................................................................................................................................ 28 27 WARRANTY .................................................................................................................................... 29 28 PERMITS AND LICENSES ............................................................................................................. 30 29 TAXES ............................................................................................................................................. 30 30 INDEPENDENT CONTRACTOR .................................................................................................... 30 31 PROPERTY DAMAGE .................................................................................................................... 30 32 PUBLIC LIABILITY .......................................................................................................................... 31 33 SUBCONTRACTORS ..................................................................................................................... 31 34 FORCE MAJEURE ......................................................................................................................... 31 35 ASSIGNABILITY ............................................................................................................................. 32 36 RIGHT TO AUDIT ........................................................................................................................... 32 37 EQUAL EMPLOYMENT OPPORTUNITY ....................................................................................... 33

    i CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • 38 SEVERABILITY OF PROVISIONS ................................................................................................. 33 39 CONFLICTS OF INTEREST ........................................................................................................... 33 40 HOLIDAYS ...................................................................................................................................... 34 APPENDIX 1. 2015 CAPITAL IMPROVEMENT PROJECT PROPOSALS ................................................ 35 APPENDIX 2. LABOR UNITS SPREADSHEETS, OVERHEAD AND UNDERGROUND.......................... 39 APPENDIX 3. TIME AND EQUPIMENT RATES ........................................................................................ 94 APPENDIX 4. FORM OF FINAL ACCEPTANCE ....................................................................................... 95 APPENDIX 5. CIRCUIT DIAGRAMS .......................................................................................................... 96

    ii CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • 02 BACKGROUND

    Pedernales Electric Cooperative, Inc. ("PEC") is the largest distribution electric cooperative in the nation

    - one that covers 8,100 square miles and serves more than 260,000 meters in twenty-four counties in

    Texas. PEC’s headquarters is located in Johnson City, Texas, with 16 district and business offices

    located throughout the service area.

    PEC’s operational commitment is to provide reliable electricity and excellent service to members at

    competitive prices and to guide responsible stewardship of our resources and provide a rewarding, fair,

    and safe work place for our employees. As a cooperative, PEC is owned by the "members" it serves.

    Members – not stockholders – invest in the Cooperative through their electric billings and share in the

    cooperative’s margins. Because of this unique business model, PEC members demand the best

    service, reliability, and management at the lowest cost to members

    PEC’s objective is to select a single supplier for operations and maintenance support of its electric

    system facilities. This may include individual or a combination of the following services: Distribution

    and System Planning, Rights of Way, Permitting and Environmental Management, System

    Protection/Event Analysis, Testing, Commissioning, and Maintenance, Program and Project

    Management, and/or Emergency outcall / service restoration (Storm Services). Other support, such as

    liaison support with local municipal, county, or state agencies, such as TX-DOT, may also be required.

    Supplier will provide the necessary manpower and equipment required to perform the requested

    Services, whether in PEC’s service territory or on Contractors own premises as is the case for Planning,

    Engineering, and System Protection. Due to the intricacies of said scope of services, Supplier’s

    operations and maintenance (O&M) offices, as well as Supplier’s material staging facilities, must be

    within a 2 hour driving radius of PEC’s headquarters in Johnson City, TX. Supplier will perform

    requested Services as directed by PEC resources and in accordance with the criteria provided in this

    RFP. Services to be provided must comply with the technical and commercial requirements defined in

    this RFP and resulting Contract, its exhibits, and referenced specifications.

    1 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • PEC Service Territory

    03 MANNER OF SUBMITTING PROPOSALS

    The following section provides direction to each potential Supplier who is anticipating the preparation

    and submittal of a proposal for PEC evaluation (“Bidder”). The following provides direction to the

    potential Bidders as to how they shall submit their proposal to PEC for evaluation. Each Bidder shall

    submit their Proposal as follows:

    1. One (1) electronic copy of the complete Proposal in PDF format including a scanned, signed copy of any required forms;

    2. Six (6) complete bound hardcopies including:

    1. One (1) bound original with the original signed copy of any required forms, and originals of

    the bonds posted;

    2. Five (5) bound hardcopies of the complete Proposal.

    2 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Each copy of the Proposal (electronic and hardcopy) shall be complete proposals containing

    appropriate and binding responses as requested herein. The Pricing section of the Proposal shall be

    included in the proposal as a separate section and clearly marked as such. Contract forms provided

    herein shall be executed by the Bidder and included with the hardcopies of the Proposal. In the Pricing

    Section of the proposal, the Bidder shall complete the proposal pricing using the Price Worksheets

    included in Appendix 1, 2, and 3 of this RFP. For the Price Worksheet in Appendix 1, Bidder shall

    submit pricing for each entire project. For the Price Worksheets in Appendix 2 and 3, the Bidder will

    provide unit pricing. The Pricing form used by the Bidder to provide the details of the pricing for their

    Proposal shall be included in the Appendices of the Proposal as Appendix A.

    Any and all contractual information and technical materials deemed appropriate and required by the

    Bidder to fully clarify their Proposal and confirm compliance with the requirements of this RFP shall be

    submitted and bound with the Proposal. All materials prepared by the Bidders to document their

    capabilities and compliance with the RFP and submitted with the Proposal shall be included in their

    Proposal as appendices. These appendices shall be listed in the Table of Contents clearly referenced

    by the title and document name within the appropriate, corresponding section(s) of the Proposal.

    The Bidder shall guarantee their Proposal to be valid for a period of not less than ninety (90) days after

    the Proposal due date. All prices included in the Bidder’s Proposal shall be guaranteed for a period of

    not less than twelve (12) months following Proposal due date.

    Following the expiration of the Bidder’s twelve (12) month price guarantee the Bidder may escalate the

    price of the material and labor units identified within their Proposal and included in the final Contract

    based on a price escalation calculation tied to the average change in the annual Consumer Price Index

    (CPI) as published in the Wall Street Journal the last week of January each year for the previous

    year. This escalation in price will establish the price ceilings for each labor and material unit for the

    new year (January – December).

    The six (6) hardcopies of the Bidder’s complete Proposal shall be submitted to EnerVision, Inc. acting

    on behalf of PEC, to the attention of Ms. Mary Ellen Cole, Senior Consultant. Ms. Cole’s contact

    information including her e-mail address is provided below.

    Ms. Mary Ellen Cole

    Senior Consultant

    EnerVision, Inc. 4170 Ashford Dunwoody Drive Suite 550 Atlanta, GA 30319 Phone: 678-510-2920 [email protected]

    3 CONFIDENTIAL Pedernales Electric Cooperative September 2014

    mailto:[email protected]

  • Bidders shall deposit their Proposal package by 1:00 p.m. CPT, October 14, 2014. The electronic copy

    of the Proposal shall be e-mailed to Ms. Cole for receipt by or before the same date and time. Proposals

    received after the specified deadline will be rejected and returned to the Bidder up-opened.

    The hardcopies of the Proposal shall be submitted to Ms. Cole in a sealed envelope addressed to

    EnerVision, Inc. The name and address of the Bidder, and the date and time of the Proposal opening

    shall appear on the envelope within which the Proposals are submitted. Each Proposal package

    received will be opened at a public opening at 9:00a CPT the following day. The Proposals will be

    opened and the apparent low Bidder announced. Within five (5) Business Days following the

    announcement of the low Bidder the Proposals will be evaluated by PEC and EnerVision on the basis

    of the compliance of each with the requirements and instructions of the RFP and the winning evaluated

    Bidder notified.

    All contacts, questions, or requests for clarification shall be directed to Ms. Cole via e-mail or phone

    call. Proposals will be date stamped by EnerVision, Inc. on behalf of PEC. Proposals (hardcopies and

    e-mail) received after the deadline specified herein will be rejected and returned to the Bidder un-

    opened.

    PEC reserves the right to reject any and all Proposals received for any cause and without explanation

    or justification.

    04 DEFINITION OF TERMS

    This section is intended to provide a clear definition of those terms used within the text of the RFP.

    1. “Attacher” – Any cables, wires, conductors, or devices that are attached to PEC owned poles, other than those installed by PEC, are considered attachments. Any company other than PEC,

    making these attachments are considered to be “Attachers” regardless of whether that

    company is paying a rental fee for space. 2. “Contract Administrator” and “Administrator” – PEC representative responsible for

    overseeing all aspects of the Contract, including receipt of invoices for work performed. 3. “Contract Date” - the date indicated in the Contract on which it becomes effective, or if not

    indicated, the date on which the Contract was signed by the last party to sign and deliver it. 4. “Day” - a calendar day of twenty-four (24) hours. 5. “Central Prevailing Time” or “CPT” – is the current time in the Central Time zone of the

    United States whether it is Central Standard Time or Central Daylight Savings Time. 6. “Engineering and Construction Contract” or “EC Contract” – the contract between PEC

    and the Supplier which defines the Work to be performed by both parties, the schedule for each

    project assigned the Supplier, associated pricing for the labor units expended and any material

    units identified.

    4 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • 7. “Project Manager” – the person or persons designated by PEC from their staff or consultant staff and a similar position designated by the Supplier to manage the day-to-day activities and

    routine progress reporting for each project. 8. “Proposal” - the priced response offer from the Bidder submitted in the prescribed form in

    response to the RFP which sets forth the Work to be performed, any materials and equipment

    to be delivered or provided to respond to the RFP and the related pricing. 9. “Request for Proposal” and “RFP” – the document comprised of the contract Terms and

    Conditions, project description, technical specifications and instructions to Bidders to which the

    Bidders are to prepare their priced response. 10. “Services” - the work (activities, tasks, and other) performed by the Supplier at the direction

    of the PEC Project Manager to accomplish the various projects identified in the Capital Project

    Implementation Plan included in the EC Contract. 11. “Subcontractor” - an individual, firm or corporation having a direct contract relationship with

    the selected Bidder or Bidder’s contractor for performance of the Work specified. 12. “Supplier” - the Bidder or Respondent selected by PEC to perform the Work specified within

    the RFP or as directed by the PEC Project Manager.

    05 SCOPE OF SERVICES

    Supplier shall furnish engineering and labor described herein. If specific scopes of work are

    subsequently issued, Supplier shall subsequently supply all other costs of doing business, including

    but not limited to overhead, profit, taxes, permits, insurance, fringe benefits, travel, fuel costs, tools,

    and equipment to complete requested Services by PEC. Supplier may consider outsourcing some

    services, however, the Supplier shall be considered the prime contractor with sole responsibility to PEC

    for the successful completion of each project assigned by the PEC Project Manager. Outsourcing of

    material should be less than 30% of the aggregate of the composite of all services in order to provide

    the true single point of contact for overall responsibility. Material purchased for Services by Supplier,

    if any, or issued for Services by PEC to Supplier, must be kept in appropriate storage such that it is not

    damaged by the elements.

    Supplier shall be prepared to safely perform all Services on facilities that may be energized or de-

    energized, easily accessible or with limited access, and overhead or underground, including duct bank,

    in any and all soil conditions, including rock.

    Supplier shall be responsible for providing all tools, equipment (including safety equipment), restoration

    materials, and maintenance of traffic (MOT) to perform all necessary functions associated with the

    Services requested by PEC.

    Supplier shall maintain clean and safe work sites, including offices or anywhere else the Supplier may

    be working. At the completion of the job, Supplier is expected to leave all project sites in original pre-

    5 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • existing or better condition. Conditions left at any and all project and other work sites shall be

    acceptable to PEC, permit agencies, and PEC Members. Under no circumstances shall a site be left

    in an unsafe or unsecured condition.

    A. Rights of Way, Permitting and Environmental Management

    PEC will act as the liaison between Supplier and the permitting agencies in submitting

    the applications, however the Supplier is responsible for the complete documentation required for the

    permits. Supplier is responsible for verification and adherence to all Owner furnished permits, including:

    • Fatal Flaw Analysis,

    • Facilities Siting,

    • Cultural/Archaeological Resources,

    • Biological Resource Assessments,

    • Threatened & Endangered Species,

    • Community/Agency Outreach,

    • Local Permits/Approvals (i.e. conditional use permits, zoning permits, commissioner court

    approvals, etc.),

    • State Permits (no TX state permits required if on private property with private funding; Texas

    PUC or Other permits may be required if using state/federal land or funding),

    • Initial Data Gathering such as

    o Land Cover,

    o Land Use,

    o TxDOT, Railroad, & Pipeline ROW Encroachment - Review current and historical

    records to determine if ROW is located on the project site,

    o Review TX Railroad Commission databases to determine if any oil or gas pipeline

    ROW is located on the project site,

    o Permitting Requirements,

    o Cultural Resources, and

    o Natural Resources,

    • TCEQ Stormwater Permitting,

    • Wetlands, Floodplains, and Water features documented,

    • Cultural/Archaeological Resources,

    • Threatened & Endangered Species and Habitat review for species listed in the project area,

    • Migratory Birds – review the project area and note if it’s located in a migratory flyway, note any

    wildlife refuges used as stopover habitat,

    • Biological Resources Assessment (includes a Threatened & Endangered Species Habitat

    Assessment and Wetlands/Waterway Determination),

    6 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • • Alternate Route Evaluation and Comparison,

    • Licensing and Litigation Support,

    • Phase I Environmental Site Assessments (ESAs),

    • Site Engineering and Design,

    • Texas Pollution Discharge Elimination System Permitting (Stormwater Permitting),

    • TxDOT, Pipeline, Overhead Utility Encroachment Permitting,

    • Spill Prevention Control and Countermeasure Plan (SPCC),

    • Air Quality / Fugitive Dust Permits, and

    • Visual Impact Analysis.

    Supplier Permits

    Supplier will be responsible for providing PEC with the documentation package for each permit

    application to be submitted. The documentation package shall include all the documentation required

    to be considered complete including permit drawings, etc. needed in order to submit applications.

    Supplier is responsible to adhere to all the permitting agencies requirements. Supplier at times may

    be required to apply for permits and, at times, may be required to physically obtain permit from the

    permitting agencies.

    Supplier must independently obtain lane closure and other (MOT) permitting, in its entirety, as required

    by agencies, municipalities, and others to perform all functions under the Scope of Work.

    Supplier shall create drawings and provide photographs of the designed job to satisfy permitting

    application and request for additional information requirements. Supplier shall provide these services

    in compliance with all applicable laws and regulations.

    B. Surveying (including LiDAR and SUE Analysis)

    PEC has their Circuit Maps for the Supplier’s reference available in Appendix 5. These Maps identify

    the facility routes and any critical infrastructures. Supplier may perform Survey Services in any order

    so long as the Supplier meets the agreed upon delivery dates.

    C. Distribution, Design Services

    Supplier shall provide Services including engineering, design and design review, system protection

    coordination and control review, and labor necessary for the modifications and upgrades as well as the

    operation and maintenance of existing electrical facilities. Supplier shall provide electric engineering,

    substation, transmission, or distribution field design which may include, but not be limited to: line or

    station upgrades, line relocation for road widenings, underground line improvements, process pole

    attachment permits, and new loads or additional loads for commercial, industrial, and residential

    7 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • developments, and Make-Ready/Pole Loading Analysis for Joint Use services. Supplier having an

    established office within a 2 hour driving radius of Johnson City, TX shall be required.

    Design Information

    PEC shall provide successful Supplier(s) the following, on the basis of availability to PEC, and deemed

    appropriate by PEC. Some of the information, data, and publications provided by PEC may be

    confidential or proprietary to PEC. These materials will be marked and indicated as such. Access to

    these and similar materials and information may require the execution of non-disclosure agreements

    and/or protection from copying and distribution:

    • Copy of current Construction Standards, Material Specifications, and Electric Service

    Standards

    • Existing drawings of the sites and facilities relevant to the work

    • Detailed design information for existing equipment relevant to the work

    • Data pertinent to the assignment, including previous reports

    • Expected Start Date and Required Completion Date

    • Project Location (address)

    • Status of procured items (if procured by PEC) or defining the Engineer responsible for ordering

    all materials

    • Existence of any environmental or cultural issues or concerns in the project area

    • Any required permits to obtain, either by PEC or Supplier

    • Warranty requirements

    Access

    PEC shall provide Supplier with reasonable access to respective areas and facilities to update PEC-

    provided computers from PEC systems or data files. PEC will provide hardware with appropriate

    software or access through applicable IT firewall for preparatory PEC systems.

    Work Review and Approval

    PEC shall participate in the review of the design, although final approval of the design, as well as,

    accuracy of the design, shall be the sole responsibility of the Supplier and a professional engineer’s

    seal and signature shall be required. It is noteworthy to clarify that the Supplier’s approval of the design

    does not mean acceptance of the design. PEC shall have sole responsibility for acceptance of the

    design.

    For all field designs involving foreign attachments (joint-use), a Texas professional engineer’s seal and

    signature shall be required. For Distribution field designs not covered by PEC Construction Standards,

    8 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • the Supplier shall consult PEC Engineering, and the Supplier may be required to provide a professional

    engineer’s seal and signature.

    Designated PEC Representative

    PEC shall designate, in writing, a PEC representative to oversee field design projects. The PEC

    representative shall have authority to transmit instructions, receive information, and transmit PEC policy

    and decisions respective to field design projects. For EC Contract projects, PEC may expect the

    Supplier to actively manage the Project and Inspection functions on a day-to-day basis, with formal

    reporting to the designated PEC Project Manager and support of progress audits by PEC on a periodic

    basis.

    Working Relationships

    PEC shall provide Supplier procedures to govern the working relationships between the Supplier and

    third parties, such as architects, customers, governmental agencies, etc.

    Record Retention

    Supplier shall maintain complete and thorough working files and records. Supplier shall deliver all files,

    electronic or hard copy, at project end to PEC for legal retention. Such files shall include, but not be

    limited to, project communication log, meeting minutes and notes, field notes, etc. Supplier may retain

    a copy of the working files however, such files are subject to non-disclosure.

    Engineering

    Work shall be performed by or under the direction of a licensed, appropriate professional engineer.

    Scope of work:

    • Ability to analyze and design an electrical distribution system

    • Apply PEC distribution construction standards, specifications and policies and procedures to

    new customer and system expansion projects

    • Provided technical direction to field design and operations personnel on design, operations and

    maintenance of an electrical distribution system

    • Apply fuse protection and coordination appropriately

    • Conduct load flow analysis

    • Meet with customers or other stakeholders, such as LCRA, as needed to discuss projects and

    design options

    • Provide engineering cost estimates on projects

    9 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • • Specify all appropriate distribution equipment to satisfy the needs of a project, to include but

    not limited to fuse size, conductor or wire size, conduit and duct bank specifications, pole

    specifications, capacitor banks, regulators, switches and transformers

    • Inventory of all materials and labor for job estimates

    • Create drawings of the designed jobs using standard PEC symbols and labels for construction

    job prints using templates provided by PEC

    • Create drawings of the designed jobs to satisfy permitting application requirements

    • Create Joint-Use Transfer request forms (if required) for all foreign utilities affected by the

    designed job

    • Create Locate request forms for all utilities affected by the designed job

    • Create Tree Work Authorization forms (if required) for any tree trimming related to the designed

    job

    • Provide pole boring details for all concrete poles

    • Obtain all required switch numbers from PEC’s Dispatch Centers

    • Create or modify substation PEC drawings or as directed by PEC via specifications and/or

    standards including but not limited to the following:

    o Drawing Index,

    o Relay One-Line and Three Lines,

    o Control Schematics and Wiring Diagrams,

    o SCADA/Orion/Annunciator/CRU panels,

    o AC and DC One-Line,

    o AC & DC Panelboards,

    o Cable Schedule,

    o Conduit Schedule,

    o Cable & Conduit Layout including all equipment and yard light locations,

    o Conduit Installation details,

    o Equipment connection details for all external CT’s, PT’s, CCVT’s, Yard Lights & Contactor,

    High Voltage Breakers, Power Transformers, and Low Voltage Breakers, Fence Charger,

    o Control House layout and provide additional drawings as needed to show all wall

    elevations,

    o Insert vendor drawings in a PEC title block,

    o Battery Connection detail drawing, and

    o As-builts and Job Books (if required).

    10 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Engineering - Distribution

    Quality distribution field designs shall be produced in compliance with current PEC Construction

    Standards, local codes and ordinances. Supplier shall obtain a digital set of current PEC Construction

    Standards at the following link: http://pec.coop/contractors.

    In general, the field designs shall consist of equipment and labor estimating units organized by point

    and span and represented on construction drawings that are consistent with the present PEC drawing

    symbology.

    Design Graphic Layout

    The graphic layout shall accurately represent the project. Supplier shall supply accurate profile

    information for designed underground lines, including benchmark information that can be used to

    determine proper cut depth for construction of underground lines. All elevations shall be shown to sub

    grade elevation. The following information shall be included, but may not be limited to:

    • Property & lot lines

    • Public right-of-way

    • Utility easements

    • Existing & proposed utility locations as required on specific projects, i.e. governmental

    relocation projects

    • Existing & proposed buildings, structures, parking lots, etc.

    • Existing & proposed site elevations, as required

    PEC Equipment and Facilities

    Location and description of all PEC equipment and facility additions, removals, and relocations

    associated with the job as well as existing PEC facilities and equipment affected by the job shall be

    shown on the construction drawings. Bidders should refer to the circuit maps which identify the facility

    routes and any critical infrastructure. These maps are available in Appendix 5.

    Existing Utilities

    The design provided by the Supplier must be constructible with regard to the existing facilities in the

    area where the new facilities are proposed. The location of existing facilities, both in the public right-

    of-way as well as in dedicated utility easements on private property, which are directly related to the

    proposed design will be specified on the construction drawing. Identify electrical underground road

    crossings, by the potholing method, to identify potential conflicts during the design stage. There may

    be instances where the Supplier may be requested, by PEC, to perform additional potholing when large

    conduit line or manhole placement jobs dictate.

    11 CONFIDENTIAL Pedernales Electric Cooperative September 2014

    http://pec.coop/contractors

  • Work Responsibilities

    Supplier shall clearly identify responsibilities of both PEC and the customer for work to be completed

    and rights-of-way based on requirements of the PEC Electric Service Standards and/or contracts or

    agreements between PEC and the PEC customer.

    Utility Easements and Rights-of-Way (ROW)

    Supplier is to clearly identify utility easements and rights-of-way with notations for existing easements

    as well as both new easement requirements and abandonment of existing easements. Identification of

    easement and right-of-way boundaries shall be clearly defined on the drawing.

    PEC Construction Standards Drawings

    Supplier is to provide notation of applicable PEC Construction Standards required for the project tied

    to each work activity. Equipment details will be provided as required. These detailed drawings could

    include electrical one-line drawings, detailed equipment location specifications, etc., as required by the

    job. PEC Construction Standards may be obtained using the following link: http://pec.coop/contractors.

    Reviews and Updates

    Field reviews are essential and mandatory during the field design process. Supplier shall use due

    diligence in developing practical and economically sound designs. PEC requires each design to include

    a field review to ensure the design is practical and constructible, consistent with PEC Construction

    Standards and design criteria, and considers appropriate cost saving measures in the creation of the

    final design. Supplier shall attend required progress meetings with PEC representatives, as well as,

    meetings, as required, with PEC Engineering, architects, customers, TxDOT, and other governmental

    agencies related to the design and coordination of the project.

    Design Considerations and Use of PEC Construction Standards

    The Supplier shall follow the design principles and design requirements of the PEC Construction

    Standards. Specifically, if a design does not include attachments by foreign entities nor require design

    considerations outside of the design parameters of the Construction Standards, strict adherence to the

    limitations stated in the Construction Standards shall be followed. If circumstances exist that do not fall

    within the direction or limitations of the Construction Standards, the Supplier shall be responsible to

    develop design(s) or design alternatives that meet PEC’s design philosophy with adherence to the

    NESC and any other applicable codes and requirements.

    12 CONFIDENTIAL Pedernales Electric Cooperative September 2014

    http://pec.coop/contractors

  • MAKE-READY AND POLE LOADING ANALYSIS CRITERIA

    Process Applications

    Supplier shall exercise the ability to electronically receive, track, manage, and coordinate PEC Joint

    Use Pole Permit Applications, to include non-PEC requests for pole attachments, foreign attacher’s

    (“Attachers”) maps and attachment detail. Supplier shall process all PEC Joint Use Permit Applications

    in the order they are received, and shall process the applications in a timely manner in order to adhere

    to the required FCC timeline for the pole loading analysis stage.

    Supplier shall utilize PEC systems and programs to process the permit applications. Supplier shall

    provide the PEC Joint Use team with weekly detailed reporting of the permits received, the permit

    status, associated cost estimates, and any other necessary details.

    Supplier may coordinate with the Attacher to resolve simple questions and/or concerns with the

    applications. For complex issues, PEC involvement is required. In the event the foreign Attacher

    submits a revision or change to the original plan submitted, the date of the revision is documented, and

    the Supplier may require the Attacher to submit a new permit application in order to restart the timeline.

    Pole Evaluation

    Supplier shall collect necessary data required to perform the applicable structural and vertical

    separation analysis to evaluate each pole included in the application and permit form. Also included

    in the pole evaluation shall be the mid-span clearance measurements of the proposed cable to ground

    and to the nearest PEC cable or conductor. The data shall be assembled from available proposal

    information, Attacher provided maps with pole IDs, PEC documents, PEC maps, and a field review of

    each structure. Supplier shall calculate the items listed below to establish percent of allowable loading

    as established by the requirements of the National Electrical Safety Code (NESC) and PEC

    Construction Standards. Calculations shall include consideration of the applicable loading, safety

    factors, and other pertinent factors affecting the structure, the structure condition prior to attachment

    (referred to as “existing”) of proposed cable, and the structure condition after the proposed cable

    attachment (referred to as “proposed”). The percent loading contribution (based on the allowable

    structure capacity) of attachments shall be provided and shall be used as a primary factor in evaluating

    the impact of both proposed and existing attachments. Supplier shall calculate the following data and

    compare the results to the allowable loading:

    • Pole fiber stress due to bending

    • Pole bearing

    • Any Other Visible Violations

    13 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Supplier shall ensure that vertical separation of proposed cables meet the requirements of the NESC

    and PEC Construction Standards. The following separation requirements shall be evaluated:

    • Vertical separation at pole between conductor and cables

    • Mid-span vertical separation between conductor and cables

    • Ground clearances

    • Algorithms/systems subject to review by PEC

    Remediation

    Supplier shall produce remedy designs and cost estimates for those poles and/or installations on, or

    associated with, a proposal that Supplier has determined do not meet PEC Construction Standards

    and conditions, calculated structural capacity requirements, and/or applicable clearance requirements.

    These criteria and requirements will be as approved, defined, and established by the authorized PEC

    representative. Those poles on or associated with the Application & Permit Form, which have been

    identified as failing to meet the evaluation criteria, shall be referred to as Conflict Poles. Approval for

    complex remedies involving additional costs shall involve PEC Superintendent of Contract

    Administration.

    Work Order

    Supplier shall prepare a Work Order using PEC’s compatible unit and estimating costs. This work also

    includes the submittal of the Work Order to PEC in an electronic format. The electronic format selected

    must be fully compatible with existing PEC hardware and software capabilities. This activity shall

    include, but is not limited to, cover maps of the construction work to be performed, list of required

    compatible units, report and document preparation as requested, and other PEC requirements as may

    be requested.

    Use of NJUNS

    PEC will utilize NJUNS (National Joint Utilities Notification System) and expect all of its Attachers to

    utilize NJUNS for notification purposes. Supplier shall use the NJUNS web based application software,

    when designated by PEC, to identify and announce pole line design work and conduit line construction

    that is being proposed or modified. The Supplier shall use this tool to aid in the identification of foreign

    Attachers’ desires and design requirements as stated in this Make-Ready/Pole Loading Analysis for

    Joint Use section.

    Professional Engineer’s Seal and Signature

    As previously mentioned, field designs involving foreign attachments (joint-use) require a Texas

    professional engineer’s seal and signature. For field designs not covered by PEC Construction

    14 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Standards, the Supplier shall consult PEC Engineering, and the Supplier may be required to provide a

    professional engineer’s seal and signature.

    Return of the Application & Permit Request

    At the time the Supplier electronically returns the Application & Permit Form to PEC, the following shall

    be included:

    • Work Order, reflecting separate estimated construction costs for both PEC and the Proposed

    Attacher

    • Provide Pole and Facility Data Sheet on various poles, for the purpose of verification of

    calculations by PEC when requested by PEC Engineering

    • All itemized field design costs (planning costs) associated with the foreign attachment request

    • A digital picture of each pole affected by the application prior to new attachment.

    Designs should be accompanied by full material and field support. Therefore, Supplier shall prepare

    material requisition documents for Supplier or PEC’s action to purchase.

    D. Material Procurement

    All materials and special electrical equipment to be used in construction of any Project will be furnished

    by PEC unless otherwise specified for specific instances.

    E. System Protection and Event Analysis

    Supplier to provide the following services as requested by PEC:

    • Calculations and relay settings for PEC substations,

    • Perform protection relay coordination studies for PEC,

    • Perform load flow and short-circuit studies for PEC,

    • Perform Owner’s Engineer review of relay settings, coordination studies, and event analyses

    for PEC,

    • Utilize CYMTCC or other simulation software to perform studies,

    • Perform AC and DC voltage drop/load calculations,

    • Perform battery and battery charger sizing studies,

    • Perform cable in conduit fill calculations, and

    • Provide analysis of Event Recordings and make appropriate recommendations.

    15 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • F. Program and Project Management Services

    Supplier will be required (with training provided by PEC) to provide all current status and As-Built

    information to PEC using PEC’s Work Management System (“WMS”). The Supplier will be provided

    access to and noted training on the WMS.

    Project Management & Reporting Services include

    • Properly Licensed as an Electrical Contractor in the State of Texas,

    • Coordinate projects with internal PEC Staff,

    • Coordinate third-party ride outs,

    • Coordinate pole setting with foreign utilities (if required),

    • Resolve Member complaints and communicate back to Member,

    • Provide on-going project status communication during Planning, Design, and Construction

    phases,

    • Coordinate project communications on all projects prior to start of construction, and

    • Coordinate schedule Member outages using PEC process.

    G. Distribution Construction Services

    Supplier to provide the following services as requested by PEC:

    • Provide appropriate volume of construction resources to complete PEC workload,

    • Construct adhering to PEC specifications and standards,

    • Follow all pertinent state and federal regulatory guidelines, including OSHA, NESC, TxDOT

    and Federal DOT, etc.,

    • Provide necessary bonding capacity to cover PEC risk of Supplier default,

    • Provide necessary equipment, tools, and safety equipment, including flame retardant clothing

    in good working order,

    • Ready access to specialty equipment as required,

    • Maintain appropriate safety program to ensure safe performance of work and provide

    documentation of such,

    • Obtain necessary locates,

    • Provide proper MOT, as required,

    • Obtain required permits and comply with permit regulations,

    • Meet all environmental requirements,

    • Adhere to PEC switching rules and minimize Member outage exposure,

    • Material reconciliation,

    • Site restoration,

    16 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • • Close out permits (post-construction), and

    • Meet agreed upon service required date.

    H. Transmission System Operation and Maintenance

    For Transmission System O&M, Supplier will be responsible for Operation and Maintenance of the

    transmission system on an as-needed basis, following the direction of the PEC Engineering and

    Operations department.

    I. Storm Services – Emergency Outcall / Service Restoration

    Supplier to provide labor, tools, equipment and supplies to perform storm assessment services and

    storm dispatching services as requested by PEC. Supplier construction and bucket trucks must be

    available for routine emergency restoration work on evenings and weekends, as well as be able to

    provide resources to PEC in the event of a major restoration event.

    Storm Damage Assessment Services:

    Supplier will provide a “Damage Assessor” (“Assessor” or “Assessors”) to be knowledgeable as it

    relates to an electric utility. One must be able to identify primary and secondary electrical facilities

    including pole sizes, type and wire sizes, service wires, arrestors and insulators, transformers, fuses,

    reclosers, regulators, and communication lines, etc. All must know appropriate power electrical safety

    practices and rules. Assessors shall wear appropriate PPE such as hard hat and safety reflective vest.

    Once Supplier has received request from PEC, assessment teams and leadership are expected to be

    on PEC property, and ready to assess damage within 48 hours of the initial contact or as requested.

    Assessors will be required to work no more than a 16 hour shifts per day. Assessment teams will report

    to a PEC Leader at a location specified by PEC. Assessment teams will be paired up by supplier, and

    will be expected to drive pre-determined routes (vehicle to be furnished by Supplier), and report back

    to the PEC Leader periodically during the day. Supplier will provide a crew leader for up to every 10

    assessment teams and management representative on site as the main point of contact for PEC.

    The Assessment teams shall have the ability to use Supplier-provided GPS units to drive to specific

    locations, use laptop/tablets for reading GIS databases and/or reporting damage, able to follow circuit

    maps noting damage, provide recommendation on what needs to be repaired and type of

    supplies/material/equipment needed to complete the repairs.

    Storm Dispatching Services:

    A Senior Assessor/Team Lead is required to be knowledgeable as it relates to PEC’s electric system.

    Individual must know how to, look up information in a management outage system/database, close out

    tickets, and call in emergency locates as required. Training will be required once per year, provided by

    17 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • PEC and PEC will pay for labor costs associated with training, and will reimburse travel expense (prior

    PEC approval required). Supplier will be required to be available during storm restoration, damage

    assessment, and utility restoration on the system.

    PEC typically handles all lodging to minimize coordination issues with local hotels. The same with

    meals, if breakfast, lunch and dinner is provided at designated locations, a per diem amount may not

    be applicable.

    06 STANDARDS AND SPECIFICATIONS

    PEC Standards and Specifications are considered the sole and exclusive property of PEC and are not

    to be duplicated or disclosed to any third party without the express written consent of PEC. Supplier is

    required to meet the current Standards and Specifications in effect at the time of construction. Current

    Construction Standards can be viewed at http://pec.coop/contractors.

    07 TERM OF CONTRACT

    The Services to be provided under this RFP shall be for a period of five (5) years, beginning on January 1, 2015 and ending on December 31, 2019.

    08 WORKLOAD

    Services to be performed will be assigned by the appropriate PEC representative. It is the Supplier’s

    responsibility to accurately assess the work scope and estimate the number of resources required to

    meet PEC’s workload demand. Supplier is expected to complete all Services by the required dates.

    09 PERFORMANCE REQUIREMENTS

    In general, Supplier will be responsible for all activities required to perform the requested Services,

    including but not limited to:

    • Supervision,

    • Safety,

    • Survey,

    • Engineering,

    • Project Management,

    • Project Reporting,

    • Issue Identification,

    • Status Reporting,

    • Remittance,

    • Product Delivery,

    18 CONFIDENTIAL Pedernales Electric Cooperative September 2014

    http://pec.coop/contractors

  • • Product Presentation, and

    • Material and Asset Management.

    Supplier will be responsible for restoring work areas to pre-existing conditions. Any and all damage to

    property, both public and private, caused by the negligence of the contractor, will be repaired at the

    Supplier’s expense and to PEC Member’s satisfaction.

    Supplier will be responsible for reporting any and all near misses, accidents, serious injuries, and

    service interruptions to the appropriate PEC representative. In addition, a complete and thorough

    investigation of such incidents shall be promptly conducted by the Supplier or its liability insurance

    carrier to prevent future occurrences. An Incident Reporting Form furnished by the Supplier shall be

    completed by the Supplier for each incident and returned to the appropriate PEC representative within

    five (5) business days from time of the occurrence.

    When work is in progress, there shall be a General Foreperson available on-site to respond to PEC

    representatives, Members, crews, and the general public. To ensure PEC’s reputation and public

    perception is maintained, the following statements will be complied with by the Supplier:

    • Each crew should have at least two (2) employees capable of communication with PEC

    representative and its Members;

    • The only information Supplier personnel are to give to the public is they are working on a PEC

    project. The Supplier will be provided with the appropriate contact person at PEC and is to

    courteously ask that the person contact the PEC representative. No additional information is

    to be provided;

    • All Supplier personnel will wear proper attire, including shirts, while on or in the vicinity of work

    being performed;

    • All Supplier vehicles will be marked with company name;

    • All Supplier personnel are to abstain from expressing any comments or opinions relative to the

    project they are working on and any PEC business or operation; and

    • All Supplier personnel who are working, or will be working, on a PEC project are to read and

    fully understand all conditions set forth in this RFP.

    10 PROGRESS CHECKS AND APPROVALS

    Supplier will be expected to maintain weekly contact with PEC on each work request (WR) and obtain

    approval from PEC at each of the following checkpoints prior to moving ahead with the project. The

    checkpoints are intended to provide high-level verification of the Supplier’s effort to date and ensure

    compliance with PEC’s expectations:

    19 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • i. Prior to survey commencement,

    ii. At survey completion,

    iii. At wind loading completion,

    iv. 25%, 50%, 75% design to confirm proposed framing, route, and other design related criteria,

    v. At design completion,

    vi. Prior to permit submittal,

    vii. Prior to material order and construction, and

    viii. Post construction.

    11 SUPPLIER COMPENSATION

    A. LABOR UNITS

    Labor Units (refer to spreadsheet in Appendix 2) in general, directly relate to the Installation, Removal,

    and Transfer of items of material and equipment. Labor Units are anticipated to be used in conjunction

    with the construction and maintenance of PEC’s distribution system. Construction Labor Unit prices

    provided by Supplier shall be “fully-loaded” and include all expenses associated with completing the

    associated unit during normal conditions.

    B. TIME & EQUIPMENT

    Time and Equipment (T&E) rates are also being requested by PEC (refer to spreadsheet in Appendix

    3) for certain scopes of work that are deemed to be not conducive to unitized work, such as minor

    routine maintenance or emergency restoration. T&E rates shall be “fully-loaded” and include all

    expenses associated with performing required Services.

    C. LUMP-SUM

    PEC anticipates they may have from time-to-time unanticipated projects that may need immediate

    attention. If any, most of these construction projects shall be compensated on a negotiated lump-sum

    basis. Because of its periodic nature, maintenance work will be conducted on a T&E basis.

    D. EXTRA WORK

    In the event extra work or additional work shall be performed, the extra or additional work shall be the

    amount specified on a Supplemental Purchase Order and/or Amendment to this RFP. Supplier shall

    not make any additions, changes, alterations, or omissions, or perform any extra or additional work, or

    supply extra or additional materials or equipment, except with prior authorization of PEC.

    12 ACCEPTANCE OF THE WORK

    Final acceptance of the Services provided under the required specifications will not be made until:

    20 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • • Supplier has completed all work required under the Work Order, the PEC representative and

    Supplier’s Foreman have “signed off” on the inspection sheet stating that both agree with the

    quantities of work, and the PEC representative has accepted the work (not to include warranty

    work and/or any problems that may become known at a later date), including final clean-up of

    the job site and removal of Supplier’s temporary facilities, construction equipment, and

    personnel from the job site;

    • The completed job package has been returned to the appropriate PEC representative within

    one (1) week of job completion; and

    • All outstanding PEC materials and equipment have been returned to the proper PEC storage

    or material facility with proper documentation of such returns/credits to PEC.

    PEC reserves the right to use and operate completed segments of the work prior to completion of the

    entire project. The care, custody, and risk of loss or damage shall transfer from Supplier to PEC for

    any such segments after Acceptance of the Work.

    13 INVOICES

    All invoices shall be submitted to the attention of the PEC Contract Administrator. All invoices shall

    include any supporting documentation necessary to verify the charges billed. Payment for amount due

    to Supplier shall be construed as the date check is deposited in the United States mail.

    14 PAYMENTS

    Upon completion of Services associated with each PEC Work Order in a good and workmanlike manner

    and written acceptance by the appropriate PEC representative, Supplier shall submit an invoice for the

    Services completed under said Work Order. PEC shall pay Supplier 100 percent (100%) of the properly

    approved invoice thirty (30) days from receipt of said invoice. Supplier shall have option to submit partial

    billings at 25% increments for projects that exceed 4 weeks in duration. For very large EC projects

    (Greater than $2M), Supplier may (but is not required to) submit a milestone payment schedule to PEC

    for approval in advance of any billing.

    15 WITHHOLDING PAYMENTS

    PEC may withhold payments due the Supplier to the extent necessary to protect itself against loss,

    including, but not limited to, the following:

    • Defective work not remedied, as well as incomplete work including incomplete documentation

    on a project by project basis;

    • Claims filed or reasonable evidence indicating possible filing of claims;

    • Failure of Supplier to make payments properly to Subcontractors for material or labor;

    21 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • • Failure to return, replace, or reimburse PEC for loss, theft, or damage to material or equipment

    issued to Supplier;

    • Evidence that Supplier or their employees have falsely reported work hours, equipment usage,

    number of units completed, work accomplished, or materials used. Falsely reporting shall

    result in withholding of payment and shall constitute justifiable reason to require Supplier to

    permanently remove responsible person(s) from the work.

    When the above conditions are removed, payment shall be made for the amount withheld.

    16 REIMBURSEMENT TERMS

    Requested Services may be inspected by a PEC auditing representative at any point, including post

    construction. Deviations between Services performed and Services billed will result in damages as

    described in this RFP. A project is considered complete once a PEC representative has performed a

    final audit, all necessary and requested documentation (including satisfactory as-built prints) is signed

    and accepted, all necessary restoration is completed, and any third-party has provided notice to the

    Administrator that they have been paid. Form of Final Acceptance (Appendix 4) will be required.

    17 WORKMANSHIP

    Supplier shall perform the Services in a safe and satisfactory manner with qualified, careful, and

    efficient workers in strict conformity with PEC’s specifications, and in compliance with state and federal

    law. PEC shall have the right, in its sole discretion, to require immediate removal of any employee of

    Supplier, or of Subcontractor(s), from the PEC project site or from further work on PEC projects.

    18 LOCAL CONDITIONS

    Supplier covenants to and with PEC that it has read and carefully considered this RFP and thoroughly

    understands the same and has satisfied itself to its adequacy, meaning, and purpose. Supplier

    covenants that it can perform the Services according to this RFP. Prior to the initiation of any Services,

    Supplier has made all tests deemed necessary or advisable and familiarized itself with all conditions to

    be met during the performance of this RFP. PEC makes no warranty, expressed or implied, with

    respect to the accuracy or sufficiency of this RFP, or any interpretation of any facts disclosed by any

    preliminary investigations which have been made by PEC.

    It is not the intention of PEC to deviate from the customary good practice in its requested Services.

    Supplier shall consider itself bound by customary good practice, whether referred to specifically or not.

    19 EXAMINATION

    PEC will maintain such representatives as is deemed necessary on the worksite for the purpose of

    examining, testing, inspecting, and ensuring the satisfactory completion of the requested Services. The

    22 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • daily examination of any portion of the work shall not constitute Acceptance of the Work on the part of

    PEC. The examiner shall at any and all times be permitted to view the work being done. Supplier shall,

    at their expense, halt the work on any part of the job, if requested by the PEC representative, until it

    can be verified that such work is being done in accordance with the required specifications. PEC

    representatives shall include engineers, examiners, inspectors, checkers, or other representatives of

    PEC, whether in direct employment of PEC or retained on a service basis. PEC representatives shall

    be made known to the Supplier and shall have the right to correct any errors or omissions therein when

    such corrections are necessary for the proper fulfillment of the requested Services. Any decision made

    by a PEC representative under the provisions of this paragraph shall be final, conclusive, and binding

    to the parties hereto.

    20 PEC’S RIGHT TO COMPLETE SERVICES

    If Supplier neglects to commence or continue correction of un-remedied or defective work within fifteen

    (15) days after receipt of notice from PEC, PEC may, after fifteen (15) days following receipt by

    Supplier, and without prejudice to any other remedy they may have, make good such deficiencies. In

    such case, Supplier shall be responsible for all costs of correcting the deficiencies to PEC. Supplier

    will be billed for the direct cost to PEC to perform the required corrective work, including labor,

    equipment, and overhead. PEC will provide an accounting of these actual costs incurred along with

    the invoice.

    21 SUPERVISION AND INSPECTION

    The Supplier shall give sufficient supervision to the work, using its best skill and attention. The Supplier

    will carefully study and compare all drawings, specifications and other instructions and will at once

    report to PEC any error, inconsistency or omission which it may discover. The Supplier shall cause the

    construction work on the project to receive constant supervision by a competent superintendent

    (hereinafter called the “Superintendent”) who shall be present at all times during working hours where

    construction is being carried on. The Supplier shall also employ, in connection with the construction of

    the project, capable, experienced and reliable supervisors and such skilled workers as may be required

    for the various classes of work to be performed. The Supplier shall be solely responsible for the means

    and methods of construction and for the supervision of the Supplier’s employees.

    PEC reserves the right to require the removal from the project of any employee of the Supplier if in the

    judgment of PEC such removal shall be necessary in order to protect the interest of PEC. PEC shall

    have the right to require the Supplier to increase the number of its employees and to increase or change

    the amount or kind of tools and equipment if at any time the progress of the work shall be unsatisfactory

    to PEC; but the failure of PEC to give any such directions shall not relieve the Supplier of its obligations

    to complete the work within the time and in the manner specified in this Proposal.

    23 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • The construction of the project and all materials and equipment used therein, shall be subject to the

    inspection, tests, and acceptance by PEC and the Administrator and the Supplier shall furnish all

    information required by PEC or by the Administrator concerning the nature or source of any materials

    incorporated or to be incorporated in the project. All Supplier procedures and records pertaining to the

    work shall be made available to PEC and the Administrator for review prior to such inspections and

    tests. The Supplier shall provide all reasonable facilities necessary for such inspection and tests and

    shall maintain an office at the site of the project, with telephone service where obtainable and at least

    one office employee to whom communications for PEC may be delivered. Delivery of such

    communications in writing to the employee of the Supplier at such office shall constitute delivery to the

    Supplier. The Supplier shall have an authorized agent accompany the Engineer when final inspection

    is made and, if requested by PEC, when any other inspection is made. The performance of such

    inspections or tests by PEC or the Administrator shall not relieve the Supplier of its obligations to

    perform the work in accordance with the requirements of this Contract.

    In the event that PEC, or the Administrator, shall determine that the construction contains or may

    contain numerous defects, it shall be the duty of the Supplier and the Supplier’s Surety or Sureties, if

    any, to have an inspection made by an engineer approved by PEC and the Administrator, if approval

    by the Administrator is required, for the purpose of determining the exact nature, extent and location of

    such defects.

    The Engineer may recommend to PEC that the Supplier suspend the work wholly or in part for such

    period or periods as the Engineer may deem necessary due to unsuitable weather or such other

    conditions as are considered unfavorable for satisfactory prosecution of the work or because of the

    failure of the Supplier to comply with any of the provisions of the Contract, provided, however, that the

    Supplier shall not suspend work pursuant to this provision without written authority from PEC so to do.

    The time of completion hereinabove set forth shall be increased by the number of days of any such

    suspension, except when such suspension is due to the failure of the Supplier to comply with any of

    the provisions of this Contract. In the event that work is suspended by the Supplier with the consent of

    PEC, the Supplier before resuming work shall give PEC at least twenty-four (24) hours’ notice thereof

    in writing.

    22 RIGHT OF TERMINATION

    If conditions arise which, in the opinion of either party, make it advisable or necessary to terminate the

    Contract that will follow this RFP, the terminating party shall give sixty (60) days written notice to

    terminate to Supplier. Upon such termination, without fault of Supplier, Supplier shall be paid the

    earned portion of the total cost of the Services completed along with payment for any authorized

    commitments on behalf of PEC at the date of termination. PEC reserves the right to access Supplier’s

    books to verify the amount claimed by Supplier.

    24 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • If the Services to be performed are abandoned by Supplier, or if Supplier is adjudged bankrupt or

    becomes insolvent, or if any part of the property of Supplier is appointed on account of Supplier’s

    insolvency, or if Supplier shall refuse or fail to supply enough properly skilled resources to perform the

    requested Services in a timely manner, or if Supplier should otherwise be in default hereunder, PEC

    may, without prejudice to any other right of remedy, serve written notice to Supplier to terminate the

    Contract that will follow this RFP. Supplier shall cease work and PEC shall thereupon have the right

    and power to complete the requested Services. In such case, Supplier shall not be entitled to receive

    any further payment under the Contract following this RFP until all Services are completed and

    accepted.

    23 TITLE

    The title to all Services shall belong to PEC, and shall not be sold or otherwise distributed by Supplier

    without written approval from PEC. Additionally, all materials furnished by Supplier, or by PEC,

    irrespective of location thereof, shall belong to PEC, but the ownership thereof by PEC shall not absolve

    Supplier from liability for loss or damage to same, nor from any other duty or responsibility for same as

    provided in this RFP.

    24 INDEMNIFICATION REQUIREMENTS

    If selected to provide the services described in this RFP, Respondent shall be required to comply with

    the indemnification requirements set forth below and as to any intellectual property rights as may have

    been previously described in this RFP:

    RESPONDENT covenants and agrees to FULLY INDEMNIFY, DEFEND and HOLD HARMLESS, PEC

    and its employees, officers, directors, agents and representatives of PEC, individually and collectively,

    from and against any and all costs, claims, liens, damages, losses, expenses, fees (including

    reasonable attorney fees), fines, penalties, proceedings, actions, demands, causes of action, liability

    and suits of any kind and nature, including but not limited to, personal or bodily injury, death and

    property damage, made upon PEC directly or indirectly arising out of, resulting from or related to

    RESPONDENT’S activities under the Contract, including any acts or omissions of Respondent, any

    agent, officer, director, representative, employee, consultant or subcontractor of Respondent, and their

    respective officers, agents, employees, directors and representatives while in the exercise of the rights

    or performance of the duties under the Contract. The indemnity provided for in this paragraph shall not

    apply to any liability resulting from the negligence or willful misconduct of PEC, its directors, officers or

    employees, in instances where such negligence or willful misconduct causes personal injury, death, or

    property damage. IN THE EVENT RESPONDENT AND PEC ARE FOUND JOINTLY LIABLE BY A

    COURT OF COMPETENT JURISDICTION, LIABILITY SHALL BE APPORTIONED

    COMPARATIVELY IN ACCORDANCE WITH THE LAWS FOR THE STATE OF TEXAS, WITHOUT,

    HOWEVER, PEC WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. In addition,

    25 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • RESPONDENT agrees to INDEMNIFY, DEFEND, AND HOLD PEC HARMLESS from any claim

    involving patent infringement, trademarks, trade secrets, and copyrights on goods or services supplied.

    This provision survives the termination of the Contract.

    The provisions of this INDEMNITY are solely for the benefit of the parties hereto and not intended to

    create or grant any rights, contractual or otherwise, to any other person or entity. RESPONDENT shall

    advise PEC in writing within 24 hours of any claim or demand against PEC or RESPONDENT known

    to RESPONDENT related to or arising out of RESPONDENT's activities under the Contract and shall

    see to the investigation and defense of such claim or demand at RESPONDENT's cost. PEC shall have

    the right, at its option and at its own expense, to participate in such defense without relieving

    RESPONDENT of any of its obligations under this paragraph.

    25 INSURANCE

    A. SUPPLIER’S INSURANCE

    During the term of this project, as additional security for PEC and as separate obligation of Supplier not

    in conjunction with any other provisions of this project, Supplier agrees to carry and maintain during the

    term of this project (including all warranty periods) liability insurance with coverages and limits of liability

    not less than those shown herein. Each of Supplier’s subcontractors, if any, shall also provide and

    maintain during the term of their respective agreements the insurance coverages specified as follows,

    with limits of liability determined appropriate by Supplier. In the event Work is performed by a

    subcontractor, Supplier shall be primarily responsible for any liability arising directly or indirectly out of

    the Work performed that is not otherwise covered by any subcontractor’s insurance. All such insurance shall be primary with respect to any other insurance or self-insurance programs afforded to or

    maintained by or for the benefit of PEC, and shall not require the exhaustion of any other coverage.

    Supplier shall promptly notify PEC when any insurance policy required is not reasonably available and

    shall state the reasons therefore.

    Supplier shall pay all deductible amounts associated with the required insurance. Supplier will

    indemnify PEC Indemnified Parties in full for any amounts related to such deductibles, retentions and

    self insurance and for any deductibles or amounts owed under any PEC issued policies due to the fault

    of Supplier.

    B. PROOF OF INSURANCE

    Prospective Suppliers shall furnish PEC insurance certificate(s) on a form satisfactory to PEC executed

    by an authorized representative of the insurer, and if requested by PEC, for each policy, a copy of the

    Declaration page; if not on the Declarations page, a copy of any Exhibits A and B showing the limits of

    insurance and a list of all endorsements to the policy, together with a copy of each endorsement herein

    26 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • requested and certified copies of insurance policies, with endorsements, evidencing the applicable

    policies, coverages and limits, including those of its subcontractors. PEC’s receipt of or failure to object

    to any insurance certificates or policies submitted by Supplier or its subcontractors does not release or

    diminish in any manner the liability or obligations of Supplier or its subcontractors or constitute a waiver

    of any of the insurance requirements under this Agreement. Replacement certificates of insurance

    evidencing continuation of such coverage shall be furnished to PEC prior to the expiration of the current

    policies. Should Supplier or any subcontractor at any time neglect, refuse to provide or cancel the

    insurance required herein, PEC shall have the right to terminate Agreement or pursue any remedy

    available at law.

    C. WAIVER OF SUBROGATION; POLICY PROVISIONS

    Upon PEC awarding the Supplier with the project, and, as additional security for PEC and separate

    obligation of Supplier not in conjunction with any other provisions of this Agreement, all insurance

    policies shall be endorsed to provide a waiver of each insurer’s rights of subrogation against PEC, its

    subsidiaries, and their respective successors and assigns, and their respective directors, officers,

    agents and employees ("PEC Indemnified Parties").

    The policies shall also include standard severability provisions that state each insured is provided

    coverage as though a separate policy had been issued to each, except with respects to limits of

    insurance. The policies shall not contain a cross liability or cross-suit exclusion that prevents PEC from

    asserting claims against the Supplier or any other insured under the policies.

    D. ADDITIONAL INSURED

    Upon PEC awarding the Supplier with the project, each such policy, other than Workers’ Compensation,

    Employer's Liability, and Professional Liability, shall name PEC by policy endorsement as additional

    insured. Each policy shall provide notice by the insurer to PEC prior to the cancellation, nonrenewal or

    material change of any insurance referred to herein. Supplier’s insurance shall provide coverage

    whether liability arises out of the operations of Supplier or any subSuppliers or supplier in connection

    with the Work.

    E. INSURER RATING

    Unless otherwise agreed in writing by PEC, all of such insurance shall be written with insurers licensed

    in Texas and such insurers shall maintain a current A.M. Best rating of at least "A-/VII".

    F. REQUIRED COVERAGE

    Insurance policies shall contain at a minimum the following coverages and limits:

    27 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Statutory Coverage Workers’ Compensation Insurance (including Occupational Disease Coverage) in

    accordance with the laws of the states where the Work is to be performed.

    Employer’s Liability Insurance with limits of not less than $1,000,000 per occurrence and $1,000,000

    per disease/each employee.

    Commercial General Liability Insurance insuring the indemnity agreements set forth in this Agreement

    with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the

    aggregate, including endorsements for Premises/Operations, Personal Injury Liability, Independent

    Contractors Liability, Broad Form Property Damage Liability including Completed Operations,

    Products/Completed Operations, Explosion, Collapse and Underground Property Damage Liability,

    Blanket Contractual Liability assumed in the Agreement, including indemnification liability, and

    Completed Operations Coverage (minimum 2 years past completion of Project) and endorsed to

    provide that aggregates limits apply on a per project basis. In the event the Supplier will use herbicide

    or pesticide, an endorsement for herbicide and pesticide applicator coverage and referenced on the

    certificate of insurance.

    Business Automobile Liability Insurance covering liability arising out of any auto (owned, hired and non-

    owned); with a combined single limit of not less than $1,000,000.

    Professional Liability (Engineer's Errors and Omissions) Insurance, in the event Supplier is performing

    design, engineering or other professional services, with limits of at least $1,000,000 for each claim and

    $1,000,000 in the aggregate.

    Umbrella Insurance (Excess Liability) with minimum limits of $10,000,000 per occurrence.

    Pollution Liability Insurance, covering losses caused by pollution conditions that arise from the

    operations of Supplier coverage of not less than $1,000,000 per claim and in the aggregate.

    26 BONDS

    A. BID BOND

    PEC may require Supplier to submit a Bid Bond, made payable to PEC, executed by a corporate surety

    acceptable to PEC who is licensed pursuant to the Texas Insurance Code and listed on the United

    States Department of the Treasury’s Listing of Approved Sureties (Dept Circular 570) in the amount of

    $1,000, or 5% of the total agreement value, whichever is greater. The Bid Bond shall be valid for one

    hundred twenty (120) days following the deadline for submission of proposals. The Bid Bond must be

    accompanied by an original signed and notarized Power-of-Attorney bearing the seal of the issuing

    surety company and reflecting that the signatory to the Bid Bond is a designated Attorney-in-Fact. If

    28 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • Supplier is not selected, PEC will not collect on the Bid Bond, but may keep an electronic copy and

    return the Bid Bond.

    If a Bid Bond is required by PEC, failure to include a Bid Bond with submittal will automatically disqualify

    Supplier from further award consideration.

    B. PAYMENT BOND

    If the contract is in excess of $50,000, the selected Supplier shall provide a Payment Bond as security

    for all persons supplying labor and material in the performance of the contract. Said Payment Bond

    shall be executed by a corporate surety acceptable to PEC, licensed pursuant to the Texas Insurance

    Code in the full amount of the contract price. Said Payment Bond must be in a form acceptable to PEC.

    Said Payment Bond must have attached thereto a Power of Attorney as evidence of the authority of

    the person executing the Payment Bond to bind the surety. This Payment Bond must be furnished in

    compliance with the statutory requirements the Texas Property Code, chapter 53. This Payment Bond

    must be executed and delivered to PEC prior to commencement of work under the contract.

    C. PERFORMANCE BOND

    If the contract is in excess of $100,000, the selected Supplier shall provide a Performance Bond made

    payable to PEC, executed by a corporate surety acceptable to PEC who is licensed pursuant to the

    Texas Insurance Code in the full amount of the Contract price to cover the selected Supplier's faithful

    performance of the obligations under the contract. Said Performance Bond must be in a form

    acceptable to PEC. Said Performance Bond shall further provide that the surety shall indemnify for all

    damages or losses resulting from the principal’s default. Said Performance Bond shall further guarantee

    the principal’s performance of all terms and obligations under the contract. Said Performance Bond

    must have attached thereto a Power of Attorney as evidence of the authority of the person executing

    the Performance Bond to bind the surety. This Performance Bond must be executed and delivered to

    PEC prior to commencement of work under the contract.

    Supplier's failure to deliver Performance and/or Payment Bonds to PEC which comply with the

    requirements herein within 10 days after demand shall be a material breach of the contract.

    27 WARRANTY

    Supplier shall warrant all components, materials, and workmanship for a period of one (1) year from

    the earlier of the (1) the date of use or operation of the Services by PEC, or (2) the date of Acceptance

    of the Work by PEC.

    Supplier warrants the title and guarantees the equipment, materials, and workmanship furnished in the

    completion of the requested Services in this RFP to be as specified and to be free from defects in

    29 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • workmanship and materials. If within the warranty period, any Services fail to meet the provisions of

    this guarantee, PEC shall notify Supplier thereof immediately and the Supplier shall promptly correct

    any defects by adjustment, repair, or replacement.

    28 PERMITS AND LICENSES

    Supplier shall obtain all necessary permits, licenses, contractor’s licenses, and any other forms of

    documentation required relating to completing the requested Services herein at its sole cost, unless the

    law or regulation governing such permitting or licensing requires that PEC do so. Upon request,

    Supplier shall promptly furnish PEC copies of all permits, licenses, or other documentation applicable

    to this RFP.

    29 TAXES

    PEC is exempt from certain sales and use taxes with respect to the purchase price of all materials,

    supplies, equipment, and consumables purchased under a separate contract and which are

    incorporated into the Services requested in this RFP. Supplier shall not invoice or charge PEC for such

    taxes and shall be provided with a Sales Tax-Exemption Certificate upon request. Failure by Supplier

    to request a Sales Tax-Exemption Certificate shall not mean that PEC waives its tax-exempt status.

    PEC shall not pay any taxes for which it is exempt.

    30 INDEPENDENT CONTRACTOR

    Supplier’s relationship to PEC in performing the Services requested in this RFP is that of an

    Independent Contractor. The personnel performing Services shall at all times be under Supplier’s

    exclusive direction and control and shall be employees of Supplier or approved sub-contractor and not

    employees of PEC. Supplier shall be fully liable for all acts and omissions of its employees,

    Subcontractors, and their suppliers and shall be specifically responsible for sufficient supervision and

    inspection to assure compliance in every respect with the requirements in this RFP. There shall be no

    contractual relationship between any Subcontractors or suppliers of Supplier and PEC by virtue of the

    Contract to follow this RFP. No provision of the same shall be for the benefit of any party except PEC

    and Supplier. Supplier shall pay all wages, salaries, and other amounts due its employees in

    connection with the requests in this RFP and shall be responsible for all reports and obligations

    respecting them, such as Social Security, income tax withholding, unemployment compensation,

    workers’ compensation, and similar matters.

    31 PROPERTY DAMAGE

    Supplier shall give reasonable notice to PEC of public or private property and utilities when such

    property and utilities are liable to injury or damage through the performance of the requested Services,

    30 CONFIDENTIAL Pedernales Electric Cooperative September 2014

  • and shall make all necessary arrangements with such member owners relative to the removal,

    replacement, or protection of such property or utilities.

    Supplier is solely responsible and agrees to indemnify PEC from and against all claims for damage to

    public or private property, including existing underground utilities, street paving, curbing, sidewalks, or

    any other improvements, or his employees’ acts.

    Supplier shall promptly remedy all damage or loss to any property, including but not limited to, existing

    PEC property and/or equipment, to the extent caused by Supplier, its Subcontractors, sub-

    Subcontractors, or anyone directly or indirectly employed by any of them, or by anyone for those acts

    any of them may be liable and for which the Supplier is responsible. All repair work to damaged PEC

    property must be accepted by