Case Studies Details
Health Care Facility
Large Health Care Facility with Several Buildings on Campus
The facility engineer handled the annual procurement process for both electricity and natural gas by sending out an RFP to three or four suppliers for each. Suppliers try to vie for the business by contacting the facility engineer and discussing various options. Much time is spent on this process while the real responsibilities are managing the facilities’ systems and equipment. Management asked the facility engineer to assist in finding the right consultant to simplify the process and time involved.
APPI Energy provided the facility engineer and the executive team with an outline of the entire RFP and implementation process. APPI Energy detailed the suppliers it was working with and which suppliers would be invited to bid. The client and APPI Energy signed a Confidentiality Agreement. Additionally, the client signed a Letter of Exclusivity to demonstrate to the suppliers that the process would be handled by APPI Energy.
APPI Energy conducted the RFP and provided consistent updates to the client on the process. The first round allowed for the discovery of market rates and how rates increased with each additional 12-month term.
Based on the client’s needs and business model, a fixed-price contract for up to two-years was desired. During the RFP process, the client received two-year pricing which was only slightly higher than the 12-month pricing. Special care was taken during the contract negotiations so that future facility sales or purchases could be easily transitioned into the contract. APPI Energy handled the entire process.
Management is now reviewing the details of the local Demand Response Program which will provide well needed revenues and help the organization reduce energy consumption during peak periods. This information was a result of additional conversations with the APPI Energy consulting team.