Request for Proposal

for an

Independent Operational Efficiency Review

Request for Proposal No. 7900100040

Issued: February 11, 2022

Proposal Submission Deadline: March 10, 2022 by 3:00 p.m.

(Central Time)

CPS ENERGY
P.O. BOX 1771
SAN ANTONIO, TEXAS 78296-1771
www.cpsenergy.com
 PURPOSE

STATEMENT OF INTENT
The City of San Antonio, acting by and through City Public Service Board (“CPS Energy”) issues
this Request for Proposal (“RFP”), to solicit proposals (“Proposal”) from qualified and
experienced companies (each a “Respondent”) in providing an Independent Operational
Efficiency Review pursuant to the following Scope of Services.

This effort is focused on ensuring that CPS Energy continues to provide value that cascades across
our community and helps ensure greater community resiliency, reliable and affordable service to
all customers, and leverage our business practices to consider economic, social, and environmental
equity values.

Scope of Services
Respondents may propose to conduct any one or more of areas of review, comparing the current
policies, programs, practices, and performance of CPS Energy to industry best practices for gas
and electric municipal utility providers of comparable size, in the specific areas described below:

1. Financial Health
CPS Energy’s overall financial health as measured by those financial metrics generally
applicable to a municipal utility. This includes a review of financial records, credit ratings,
debt, real estate and trust portfolios, internal and external audit reports covering the past
four years, and cost-reduction efforts over the past four years.

2. Operational Excellence
a. Operations over the past four years, including achievement of metrics, adherence
to business plans and budgets, progress towards key strategic initiatives, work
environment and organizational structure.

b. Management team design and current executive compensation structure, current

workforce trends, optimal staffing levels, requisite skill level and complexity of
the work performed.

c. Current plans, programs, training, and compensation structure to sustain existing

workforce and transition it to workforce that will be needed by CPS Energy in the
future. Observations and recommendations should include opportunities to
partner with local academic, municipal, and private entities.

3. Customer Engagement, User Experience and Services Design

a. Customer outreach products and services, as well as payment assistance,
weatherization, efficiency/conservation, and emergency preparedness programs.

b. Stakeholder engagement efforts, including the quality, frequency, and

transparency of communications, the communication channels used, the breadth
and diversity of targeted stakeholders, and the alignment with municipal and
stakeholder partners on community-wide topics/issues/interests.
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 c. Capture and use stakeholder feedback, user experiences and / or data to inform
outreach activities and to develop programs, products, and services.

4. Organizational Culture & Workforce Development

Culture and key attributes of the organization. This includes a review of policy, reporting
processes and employee training on reporting concerns or violations. It should also include
a review of decision-making authority and reporting required by policy to confirm its
consistency with applicable governance requirements as well as best practices. Finally,
this review should leverage employee engagement, safety, training, and other enterprise
programs to understand employee perspectives on leadership, decision-making, and
employee opportunities to succeed and contribute.

5. Economic Value to Community

Direct and indirect value contributions to the community, including (at minimum) dollars
contributed to the City of San Antonio, corporate and employee sponsorship and giving to
local entities, local revenue generated through purchasing/procurement of local goods and
services, research/development, as well as direct and indirect spending of the workforce to
help determine CPS Energy’s value-add to the local economy.

Respondents shall develop a final report directed to the CPS Energy Board of Trustees that
includes:
a. Overview of the work conducted,
b. Executive summary of results,
c. Detailed observations, gaps, and opportunities, and
d. Recommendations to better align with best practices for a gas and electric
municipal utility of a comparable size, including the best practice target, gap from
current state, key performance indicators, associated timelines for
implementation, anticipated resource needs, and estimated costs with benchmarks
for comparison.

The implementation of recommendations is not included in the Scope of Services.

Each final report is due to the Board of Trustees within 120 days of contract execution, with interim
reporting dates to the Trustees to be determined at the time of contract execution.

The CPS Energy Board will use these final reports in its consideration of:
a. Strategic initiatives and enterprise planning,
b. Evaluation and mitigation of business risk,
c. Community equity and resiliency,
d. Improvement of community air quality and pollution levels,
e. Creation and retention of a competitive and skilled workforce, and
f. Efficiency and efficacy of the organization to the Board and to its owner.

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 ABOUT CPS ENERGY
CPS Energy is the nation’s largest municipally owned energy utility providing both natural gas
and electric service. Acquired by the City of San Antonio in 1942, CPS Energy serves more than
800,000 electric customers and 340,000 natural gas customers in and around San Antonio (1,515
square mile service area). CPS Energy is governed by a five-person Board of Trustees, consisting
of the Mayor of the City of San Antonio and four citizens representing the four geographical
quadrants of the City of San Antonio. Information about CPS Energy’s history, operations and
management is available on www.cpsenergy.com.

RESTRICTIONS ON COMMUNICATIONS
Respondents are prohibited from communicating with CPS Energy employees,
representatives, staff, or Board Members regarding this RFP during the period in which
submittals have been solicited or are being evaluated (other than the Procurement Agent
identified), with the exception of responses to questions posed during interviews scheduled after
responses are received and opened. Restricted communication includes, but is not limited to,
“thank you” letters, phone calls, emails, and any contact that results in the direct or indirect
discussion of the RFP and/or submitted Proposals. Violation of this provision by Respondents or
their agents may lead to disqualification of the Respondent’s Proposal.

RFP SCHEDULE
CPS Energy will make a concerted effort to maintain the schedule below, but reserves the right to
revise the schedule based on CPS Energy’s business needs.

Milestone Date

RFP Issuance February 11, 2022

Deadline for Respondent’s Questions* By 5:00 p.m. (Central time) on February 24, 2022
*Any inquiries from Respondents shall be
submitted through the question & answer
feature within the CPS Energy Supplier
Management System portal
(https://cpsenergy.diversitycompliance.com).
CPS Energy Responses to Submitted March 3, 2022
Questions

Respondent Proposals Due By 3:00 p.m. (Central time) on March 10, 2022

Proposed Contract Commencement July 1, 2022

PROPOSAL

PROPOSAL SUBMISSION
1. Proposal Format. Respondent must submit the following electronic files:

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 a. Technical Proposal (Section II(B) below), a single, text-searchable PDF (portable
document format, non-zipped) document;

b. Cost Proposal (Section II(C) below), a text-searchable PDF (portable document

format, non-zipped) document; and

c. Bid Submission Supplement (Section II(D) below), a PDF form available below
or may be downloaded from the home page of the CPS Energy Supplier
Management System portal (under “CPS Energy Bidding Documents” at
https://cpsenergy.diversitycompliance.com);

d. Contract Terms & Conditions (Section II(E) below), a Microsoft Word (or
compatible) document, with comments if any, with tracked-changes enabled.

2. Proposal Submission Requirements.

a. All components of the Proposal must be submitted electronically in the CPS Energy
Supplier Management System portal (https://cpsenergy.diversitycompliance.com)
on or before the RFP Proposal Due Date identified in the RFP Schedule above.

b. CPS Energy will evaluate the Respondent’s Proposal and the Respondent’s ability
to satisfactorily perform Services and/or provide Goods or Software. Proposals not
meeting all requirements are subject to rejection.

c. Additional Requirements and Terms and Conditions related to Proposal

Submissions can be found below in Attachment 1, “Additional Proposal
Requirements”.

TECHNICAL PROPOSAL
Cover Sheet
The Cover Sheet shall contain the following:
a. The solicitation number;
b. The name, address, telephone number, and email address of the Respondent; and
c. The names, titles, and contact information of the person(s) authorized to make
representations on Respondent’s behalf with CPS Energy.
Summary
A brief summary of the major facts or features of the Proposal, including any
conclusions, assumptions, and recommendations the Respondent desires to make.
Company/Firm Overview
a. Overview. The name and a brief description or history of the Respondent.
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 b. Location. The location of the Respondent’s headquarters and branch locations that
will have individuals assigned to CPS Energy, or where Respondent will
manufacture Goods.
c. Local Presence. If the Respondent has offices within the San Antonio metropolitan
area, indicate the name, type (headquarters, branch, etc.), address, telephone
number, number of employees, and the general nature of business undertaken at
each San Antonio area location.
d. Local/Diverse Participation. CPS Energy is committed to the economic growth of
the San Antonio Metropolitan Area 1 in the form of increased participation of local,
small, minority, woman, and veteran-owned businesses in our procurement
process. CPS Energy encourages Respondents to maximize practical contracting
opportunities by considering and presenting strategic partnerships, joint ventures,
subcontracts, or other business arrangements with local and diverse businesses.
Please provide a subcontracting plan or outreach efforts regarding Respondent’s
commitment and inclusion to achieve local and diverse participation within this
Proposal.
e. Environmental Sustainability Practices. CPS Energy is dedicated to
environmentally conscious practices that lead to the betterment of our community.
To that end, CPS Energy prefers to purchase products and materials, where feasible,
that demonstratively minimize the harmful effects to the environment from their
production, transportation, use and / or disposition. This is aligned to our belief
that the focus on improving our overall environmental footprint benefits our
community and our customers. Please provide information regarding Respondent’s
environmental sustainability practices, if any.
Experience and Qualifications to perform the Services
a. Experience. A description of the Respondent’s operational history which reflects
that the Respondent has been actively performing the Services for a minimum of
five (5) consecutive years.
b. Qualifications. In a general fashion, describe the Respondent’s experience and
qualifications. Provide information demonstrating the qualifications and resources
the Respondent currently has available to provide the Services, including a
description of all resources that will be used.
c. Detailed Scope of Work. Respondent shall provide a detailed scope of work
reflecting the elements of the study they propose to conduct (1-5 above).
d. Methodology. Respondent shall provide the methodology and processes to be used,
including the identification of the standards utilized to measure best practices and
current state.

1
Includes the following counties: Bexar, Atascosa, Bandera, Comal, Guadalupe, Kendall, Medina, and
Wilson.
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 e. Key Personnel. If Respondent proposes a project team to perform Services,
Respondent shall provide resumes and qualifications of the key project team
anticipated to be assigned to the CPS Energy project, including an organizational
chart of the project team. Specify the approximate percentage of time each
individual will be available for this project, and, if necessary, explain why the key
person possesses the qualifications to perform the proposed position.
f. References. A minimum of three (3) references from different companies which
the Respondent has provided services similar to the Services identified in this RFP.
Respondent shall include for each reference submitted:
i. The company name;
ii. Company address;
iii. Contact person’s name and phone number;
iv. A brief description of the services performed by the Respondent;
v. Evidence of Respondent achieving performance guarantees;
vi. Evidence of Respondent meeting required schedule;
vii. Evidence of proper and timely coordination of all personnel in completing
the project; and
viii. Consistent demonstration of commitment to excellence in workmanship.

In addition to the list provided, CPS Energy reserves the right to independently
contact other companies with which the Respondent has engaged in a business
transaction.
Respondents currently providing services to CPS Energy should provide
information from other clients.
g. Citations. A list of any citations, notices of violation, legal proceedings, fines, or
project terminations that any Federal, State, local regulatory agency or department,
corporation, or individual has issued to or against the Respondent, or any employee
of the Respondent while that employee was working for the Respondent, during the
past three (3) years (“Citations”). For each Citation, state the nature of the Citation
and the date of its resolution, together with the contact person for the Respondent
who could address any questions about the matter. If there are no Citations,
Respondent shall provide such a statement.

COST PROPOSAL - PRICE/FEES/COMPENSATION

This section requests the Respondent’s price and fees for providing the Services requested.
Detail any minimum fee amounts, and the methods of fee calculations. All fee
arrangements must clearly state the type and amount of expenses and costs CPS Energy
would incur relating to Respondent’s Services.
BID SUBMISSION SUPPLEMENT
Respondent shall complete and submit Attachment 2, “Bid Submission Supplement”,
which includes the Business Questionnaire, Responsible Respondent Questionnaire,
Disclosure, and Subcontracting Form. Each section must be completed according to their
individual instructions. CPS Energy reserves the right to reject responses with incomplete
Bid Submission Supplement sections. The Bid Submission Supplement may be
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 downloaded from the home page of the Supplier Management System portal
(https://cpsenergy.diversitycompliance.com).

Business Questionnaire
Respondent shall complete and submit the Business Questionnaire. Business
Questionnaires shall only be considered valid for one (1) year from classification date
and must be updated with a new Business Questionnaire beyond such one (1) year
period.
Responsible Respondent Questionnaire
Respondent shall complete and submit the Responsible Respondent Questionnaire.
Disclosure
Respondent shall complete and submit the Disclosure.
Subcontractors, Subsidiaries & Multiple Parties
Respondent shall complete and submit the Subcontracting Form.

CONTRACT TERMS & CONDITIONS

Existing Agreement
If Respondent has a current, non-expired Master/Services Agreement with CPS Energy
with an Effective Date of February 1, 2016 or later, submit a copy of the relevant
Agreement. CPS Energy reserves the right to negotiate a new Agreement other than
that provided by or referenced by Respondent.
No Existing Agreement
If Respondent does not have a current, non-expired Master/Services Agreement with
CPS Energy with an Effective Date of February 1, 2016 or later, as part of the Proposal,
Respondent must provide a template agreement to be negotiated by the parties.
CPS Energy reserves the right to negotiate a new Agreement other than that provided
by Respondent.

CONTRACT EVALUATION AND AWARD

EVALUATION FACTORS
In evaluating Proposals, CPS Energy in its sole discretion, will give weight and
importance to the evaluation criteria listed below in order of most-to-least important:
• Experience and qualifications to perform the Services;
• The overall cost; and
• Economic Development.

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 Economic Development. Respondents classified as a local business in accordance with
the zip codes defined within the San Antonio metropolitan area, and/or a small,
disadvantaged, minority-owned, woman-owned, service-disabled, veteran-owned,
HUBZone business, will receive a preference in the evaluation process.

CONTRACT AWARD
1. Policies & Procedures. This procurement will comply with applicable CPS Energy
procurement policies and procedures. The evaluation factors outlined above shall be
applied to all eligible, responsive Proposals. Qualifying Proposals will be assessed in
order to identify the best value to CPS Energy. CPS Energy may or may not choose to
award a contract under this solicitation.
2. Investigations. CPS Energy may conduct investigations, as deemed necessary, to assist
in the evaluation of any Proposal and to establish the responsibility, qualifications, and
financial ability of the Respondent, proposed subcontractors, and other persons and
organizations who may perform Services or provide Goods and/or Software. The
Respondent shall furnish, upon request and in a timely manner, all such data and
information requested for this purpose.
3. Award.
a. CPS Energy will evaluate all Proposals based upon the evaluation criteria set forth
in this RFP and as further clarified throughout the evaluation process. Based upon
CPS Energy’s initial evaluation of the Proposals, CPS Energy may make a final
decision for award or may prepare a short list of apparent qualified Respondents.
CPS Energy may select one or more potential Respondents as candidates for a
contract award.
b. CPS Energy may or may not award a contract to a Respondent after analysis and
evaluation of the Proposals.
c. CPS Energy may evaluate Proposals and award a contract without discussions with
Respondents (except for necessary clarifications). Therefore, the Respondent’s
Proposal should contain the Respondent’s best terms from a price and technical
standpoint. CPS Energy reserves the right to conduct discussions if CPS Energy
later determines them to be necessary.
d. CPS Energy will evaluate the Proposals to determine which, in CPS Energy’s sole
judgment, represents the best value for the Services, Goods, and/or Software
requested.
e. The award under this RFP does not in and of itself create a binding agreement
between CPS Energy and the successful Respondent. An agreement including all
terms, conditions, exhibits, and attachments must be executed by both CPS Energy
and the successful Respondent in order to create a binding enforceable agreement
between CPS Energy and the successful Respondent. No Respondent may rely
upon the award of a contract as a promise by CPS Energy to enter an agreement,
and no Respondent may rely upon any written or oral statement(s) or
representation(s) as to the award of a contract or intention to enter an agreement
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 made by any CPS Energy personnel. Subsequent to CPS Energy granting an award,
it is contemplated that there may be a period of negotiations to finalize a contract
between the parties.
f. CPS Energy reserves the right to make an award on any item for a quantity less
than the quantity offered, at the unit cost or prices offered, unless the Respondent
specifies otherwise in the Proposal.
4. Short List. If CPS Energy determines that the number of Proposals that would
otherwise be in the competitive range exceeds the number at which an efficient
competition can be conducted, CPS Energy may limit the number of Proposals in the
competitive range to the greatest number that will permit an efficient competition
among the most highly rated proposals.
5. Unbalanced Pricing. CPS Energy may determine that a Proposal is unacceptable if the
prices proposed are materially unbalanced between line items or subline items.
Unbalanced pricing exists when, despite an acceptable total evaluated price, the price
of one or more line items is significantly overstated or understated as indicated by the
application of cost or price analysis techniques. A Proposal may be rejected if
CPS Energy determines that the lack of balance poses an unacceptable risk to
CPS Energy.
6. Preservation of Contract Information. If this solicitation results in an award of a
contract, the award and contract may be subject to Texas Government Code, Chapter
552, Subchapter J.
7. Board Approval. While preliminary selection, due diligence and even detailed
negotiations and other processes could transpire to ensure critical progress is made, any
action taken to award a contract by CPS Energy may be subject to approval by the
CPS Energy Board of Trustees and may not be final until such approval process has
been completed. No payment can be made for action taken or Services started prior to
the execution of a contract by both parties.

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 ATTACHMENTS

Attachment 1: Additional Proposal Requirements

Attachment 2: Bid Submission Supplement

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