VA Handbook 0055
July 28, 2003
(d) ESCO subcontractor mark-ups (overhead and profit) shall not exceed 20 percent.
(e) ESCO total mark-up (overhead and profit) on subcontractor and equipment-only
proposals shall not exceed 7 percent.
(f) ESCO total overhead on labor and materials shall not exceed 15 percent.
(g) ESCO total profit on labor and materials shall not exceed 5 percent.
(h) ESCO total project additive markups (including subcontractors) shall not exceed 35
percent.
(5) Written approval to execute a delivery order will be required from OAEM in addition to
any other approval processes required by other procurements oversight offices. OAEM's
approval will be made upon receipt of a "certification of compliance" to the above procurement
guidelines.
(6) The procurement process guidelines and subsequent certification of compliance does
not eliminate, nor is a substitute to any other statutory requirement for ESPCs or required
agency acquisition reviews/approval.
(7) OAEM will provide assistance in reviewing solicitations and proposals. Final selection
is subject to OAEM for approval.
(8) The EA contractor (phase IV of the EA oversight during installation) will have oversight
authority of the ESCO during the ECM installation process to ensure the ECMs are being
installed properly, efficiently, and without unnecessary costs.
e. Step Five Measurement and Verification.
(1) The required measure and verification (M/V) method will be metering. Any alternative
method of measurement and verification will be the exception and will require OAEM approval
for its use.
(2) The ESCO is to follow the approved measurement and verification (M/V) plan to
continue to ensure the performance of the ECMs. The EA contractor (phase V of the EA post-
installation oversight) is to oversee the M/V process to assure compliance.
4. REPORTING REQUIREMENTS. Energy use and cost data for all facilities is required from
all administrations and staff offices. Data will be entered into a Web-based energy
consumption and cost database. The reporting process will include:
a. Quarterly energy reports from all administrations and staff offices
b. Real-time metering of primary commodity types and secondary utilization (when cost
effective) will be installed in all facilities. This metering will allow for real-time data
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