REQUEST FOR PROPOSALS ISSUED BY THE STATE OF NEW MEXICO, ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT FOR THE NEW MEXICO ENERGY ROADMAP PROJECT SECTION I. INTRODUCTION The New Mexico Energy, Minerals and Natural Resources Department (EMNRD), Energy Conservation and Management Division (ECMD) is seeking individuals or firms to develop an Energy Roadmap for New Mexico (Energy Roadmap). The objectives of the New Mexico Energy Roadmap Project (Project) correlate with the stated intent and objectives of the U.S. DOE Office of Energy Efficiency and Renewable Energy funding opportunity announcement number DE-FOA-0001415, Area of Interest 1 – State Energy Planning which seeks to “bolster state/regional energy planning by funding efforts to facilitate stakeholder and interagency discussions and related activities concerning (1) the future direction of the energy sector in the region/state, with emphasis on the electric power sector and natural gas supply and transport and (2) how energy efficiency and renewable energy fit into the vision for the future.” The successful Offeror must meet the qualifications in Section III, and all work must be completed according to the work plan in Section IV. ECMD has approximately $100,000 to support the work of this Request for Proposals (RFP). Any procurement which may result from this RFP is valid for one year from date of issue as indicated in Section IX, Contact Person and Proposal Due Date, below. SECTION II. BACKGROUND Project Goals, Objectives, and Expected Outcomes Through this Project, ECMD and energy professionals representing all energy sectors will craft an Energy Roadmap for the future of energy production, distribution and usage. This Energy Roadmap and planning process will define the steps forward for implementation and to assure the state leads in a new energy world, while maintaining important infrastructure and knowledge bases that have supported the state. Proposed Approach and Strategies to Achieve Objectives and Goals The Project shall use scenario-based planning as the primary approach for answering the necessary questions that can lead New Mexico forward to a more economically viable and innovative energy future. A series of stakeholder workshops, led by ECMD, shall inform the development of New Mexico’s Energy Roadmap. Stakeholders to be invited to participate in designing an Energy Roadmap naturally come with positions reflecting their own interests. Nuclear power and wind energy representatives, for instance, may push for maximizing a low- to no-carbon future. High-carbon coal producers would resist such an approach. The use of scenario-based 1 planning model along with the Institute of Participatory Management and Planning (IPMP), Systematic Development of Information Consent (Informed Consent) will assist to mitigate such impulses and allow all parties to see the interests of others while forging a future that can accommodate as many of these interests as possible. Estimated Impacts The prime focus and sought after impact of the Project is to move the state toward a positive sustainable and resilient future through a series of coordinated steps, focusing on the state’s energy sector, that systematically and deliberately transitions the state away from its current stagnant economy to a more prosperous and environmentally friendly future. The Energy Roadmap will provide an organized path for reaching current state energy goals and for adapting to national and international energy developments and trends. Existing Efforts and How They Will Be Leveraged New Mexico’s 2015 Energy Policy and Implementation Plan seeks to develop a lowcarbon energy future for the state. To accomplish this task, there are many uncertainties that must be determined. Scenario-based planning will assist in managing this uncertainty in the decision making process for the state’s energy roadmap. Scenarios offer a tool for imagining plausible and well-researched futures and thereby enable planning across a wider range of potential futures. Through the use of this planning tool, an energy road map shall be developed that not only establishes how to incorporate the state’s vast energy resources into one guided roadmap but will also spur learning and help in identifying emerging energy risks and opportunities for New Mexico. ECMD will build on the 2015 Energy Policy and Implementation Plan and work already developed through its collaborative work with the New Mexico Environment Department and Public Regulations Commission on the State’s Climate Policy Initiative to help inform the scenario-based planning process. Although both initiatives provide needed information on New Mexico’s energy aspirations and current energy baseline, neither provide the guidance or Energy Roadmap to help the state project how to accomplish a low carbon energy future in light of the current economic and infrastructure barriers. These barriers include: • • • • • • • declining oil and gas prices; transmission limitation; access to markets outside of the state; limited in-state economic development; energy sector factions; unrealized energy potential options for the state; and divergent energy viewpoints. 2 Overcoming Barriers; Project team, roles and structure, and engagement of Stakeholders Scenarios cannot take into account all aspects of the complexity of interrelationships and interdependencies of the real world. However, scenarios are a powerful tool for sensitizing decision makers to emergent key factors, which can influence the outcome of their decisions. When used as a tool for guiding long-term decisions, scenarios can help ECMD to step back from trying to absorb energy price shocks, utility disruptions and energy supply integration issues, and instead, work out a framework agreement on how to choose long-term options in the best interest of the state. ECMD along with its Principal Investigator will serve as the Energy Roadmap Team Lead for a team of highly experienced regulatory, regional, commercial and technical stakeholders to build the Energy Roadmap including: the New Mexico Public Regulatory Commission, the New Mexico Environment Department, the New Mexico Oil and Gas Association, Cyrq Energy, New Mexico Experimental Program to Stimulate Competitive Research, Green Builder Coalition, Interwest Energy Alliance, Independent Petroleum Association of New Mexico, New Mexico Finance Authority, Santa Fe Green Chamber of Commerce, New Mexico First, New Mexico Rural Electric Cooperative Association, Public Service Company of New Mexico, Positive Energy Solar, Sacred Power, San Juan Coal Company, Strategic Action Forum, Tri-State Generation and Transmission Association, URENCO USA, Mid-Region Council of Governments, Microgrid Systems Laboratory, Santa Fe Community College, NSE, Inc., Auto Alliance, Ormat, and Homebuilders Association of Central New Mexico. ECMD is aware of the divergent nature of the potential stakeholders that will be involved in the development of the Energy Roadmap. To work past these divergent opinions and interests, ECMD will use an informed consent outreach approach. The informed consent concepts that will be used are listed below. • • • • • • • • • Establish and Maintain the Legitimacy of EMNRD and Project. Establish and Maintain the Legitimacy of the Problem-Solving and DecisionMaking Process. Get to Know our Stakeholders. Be Empathetic to the Needs and Issues of the Stakeholders. Identify and Understand the Needs and Issues of the Stakeholders. Generate Alternative Solution. Articulate and Clarify the Key Issues. Protect and Enhance the Credibility of the Agency and Project as needed. De-Polarize Stakeholders who are Polarized due to their Diametrically Opposing Views. Information and Data Needs The 12 questions outline the fundamental questions the state is currently faced with in developing a future Energy Roadmap. Although these are the current questions being 3 posed in the development of the Energy Roadmap, it is certain that additional questions and data needs will arise through the scenarios-based planning process. • • • • • • • • • • • • What opportunities exist for New Mexico to realize a net benefit in a potential low carbon energy future? What are future business models for a low carbon energy future? What is the future of power generation in New Mexico? How can the state ensure reliable power with large fossil fuel plants, nuclear or geothermal or intermittent with renewables and energy storage? What is the future of the power grid? How should the state integrate renewables into the power grid? Should New Mexico be a net exporter or importer of electric power? What obstacles exist to selling non-dispatchable renewable energy to other states? What is the future outlook of alternative fuel vehicles (e.g., compressed natural gas, electric or hydrogen vehicles)? How does this affect vehicle infrastructure needs? Should New Mexico push to increase electric energy demand within the state? New industry? Electrified Transportation? Hydrogen production? What is the Oil and Gas and Coal Industries’ role in a low carbon energy future? What is an acceptable endgame? What is the role of energy efficiency and conservation? How to best integrate energy efficiency and conservation? What additional policies/regulations may be necessary to further New Mexico’s energy industry? What additional policies/regulations may be necessary to further New Mexico’s renewable energy and energy storage technologies? Are there potential unrealized energy related economic development opportunities for the state? And if so, what are they? ECMD will use the following guidelines to ensure that all information and data needs are addressed during the development of the Energy Roadmap: 1) 2) 3) 4) the development of focus questions that ensure scenarios are developed with a clear sense of the issues at hand; energy professionals will agree upon the focus questions and criteria used in the scenarios-planning process; key drivers will be developed from the focus questions that will most likely influence future conditions; and key drivers will be used to develop scenario matrices for the Project. Technical Scope Summary: The Project will implement a series of technical evaluations, stakeholder engagements, and coordinated Agency strategies using a scenario-based planning process to craft and implement a cohesive and effective Energy Roadmap for New Mexico. The Project will be used to identify and evaluate how to integrate New Mexico’s vast energy 4 resources, transmission system limitation and opportunities, economic development and energy efficiency. The Energy Roadmap aims to establish an energy path forward that combines a sustained economic viability with innovation to achieve a low carbon energy framework. This Energy Roadmap will consider current and future environmental requirements, policies, supply, demand and resiliency. The Project will be arranged around four scenarios: 1) Low Economic Growth, Low Innovation Development (< 0.75% workforce annual growth and < 1% reduction in carbon based energy consumption mix); 2) Low Economic Growth, High Innovation Development (< 0.75% workforce annual growth and > 1% reduction in carbon based energy consumption mix); 3) High Economic Growth, Low Innovation Development (> 0.75% workforce annual growth and < 1% reduction in carbon based energy consumption mix); and 4) High Economic Growth, High Innovation Development (> 0.75% workforce annual growth and > 1% reduction in carbon based energy consumption mix. The Project and subsequent activities will be organized by the New Mexico Energy Office with the cooperation and support of other New Mexico state agencies and commission, local governments, institutions of higher learning and representatives from all of the energy sector industries, and other energy professionals poised to contribute constructively to the Energy Roadmap. Any energy roadmap in New Mexico must also receive input from the vast majority of stakeholders in the New Mexico energy market. To that end, the ECMD has secured letters of support and commitment to contribute information to the process. These stakeholders include representatives from utilities, state regulatory agencies and commissions, local governments, oil and gas industry, coal industry, renewable energy, geothermal and nuclear power suppliers, energy efficiency service companies, energy storage suppliers and the auto industry. ECMD’s approach of assembling a very broad list of stakeholders committed to the energy road mapping process is based on the presumption that individual energy companies, trade groups and regulatory agencies know their respective businesses and regulatory environment better than a small number of presumed energy experts. The Energy Roadmap planning process will rely heavily on individual energy stakeholders to relay their organization’s understanding of the cause and effect scenarios presented. The individual organizations may base their opinions on future developments with output from their own industry specific models or they may base it on their historic understanding of macroeconomics. ECMD’s energy consulting support (Energy 5 Roadmap Expert) will assist in bringing a level of reality, based on their experience and/or modeling analysis, to any unsubstantiated claims raised by individual stakeholders. Existing equipment and facilities ECMD has a standing weekly reservation to a hearing and meeting room which can be used to hold the group meetings specified in the work plan. The facility has adequate space and audio-visual equipment to effectively conduct the meetings. In addition, other onsite meeting spaces can be reserved with relatively short notice for additional subgroup or post Energy Roadmap implementation meetings. Furthermore, partner agencies and a number of individual stakeholders located in various regions of the state, including the Albuquerque metropolitan area, can provide meeting space if needed. All equipment and materials required to complete the specified milestones and the final Energy Roadmap will either be supplied by ECMD or by the successful Offeror. Supplies and equipment used to conduct stakeholder meetings will again be supplied by either ECMD or by the successful Offeror. Previous work efforts and innovation to be used to achieve the Project objectives The Energy Roadmap stakeholder group will build off efforts begun to develop the 2015 New Mexico Energy Policy and Implementation Plan and the energy findings of the 2015 New Mexico Science and Technology Plan. These plans envision new innovation for the future of energy production and usage in New Mexico. The Energy Roadmap will further that vision by proposing a possible low carbon/high innovation scenario where not only the electric generating industry but also the fossil fuel industry move to a lower carbon future to support the apparent growing demands of the consumers. The Energy Roadmap will also address how energy efficiency or lower per capita energy consumption efforts will assist in a low carbon transition by reducing demand during the supply side transition. One goal of the Energy Roadmap is to inform and guide New Mexico’s development of a state climate policy and the Energy Roadmap is integral to that effort. In addition, New Mexico’s oil and gas industry is in discussions with EMNRD regarding methane capture options at the many production sites across the state. Through the Energy Roadmap process, the oil and gas stakeholders will attempt to preempt new federal mandates by finding alternatives that meet the new requirements while also providing an economic payoff to the industry. The Energy Roadmap is inspired by the realization that ongoing environmental and utility regulations and other state policies are not always working toward a common goal with an organized plan. The main goal of any energy roadmap shall be organizing common goals and objectives into a single plan that reaches the final overall goal while maintaining and improving the reliability and resiliency of the current energy 6 infrastructure, while expanding the energy options and improving the economic outlook of the state. This picture of a brighter future for New Mexico provided through scenario-based planning and implemented through a process of informed consent will provide the platform for a diverse group of energy stakeholders to reach adequate consensus to craft an Energy Roadmap and implement a broad set of positive and coordinated actions. SECTION III. QUALIFICATIONS ECMD seeks a successful Offeror (Energy Roadmap Expert) who is knowledgeable in the local, state and regional energy markets and has an understanding of all energy sectors in New Mexico. The Energy Roadmap Expert must be able to provide a thorough review of the baseline data and provide the Energy Roadmap stakeholder group members a basis for developing a reasonable, well developed energy roadmap. The Energy Roadmap Expert, in consultation with ECMD, will be the primary author of the Energy Roadmap. The successful Offeror shall also be responsible for providing one or more meeting facilitator(s), experienced in the Institute of Participatory Management and Planning (IPMP), Systematic Development of Information Consent, to assure a high level of efficiency and success to all Energy Roadmap group meetings. SECTION IV. SCOPE OF WORK The work plan for the Project is comprised of tasks which contain Milestones and Subtasks. Technical Details. The Project will use a scenario-based planning platform to support analysis and evaluation tasks. New Mexico’s Energy sector faces major uncertain, future challenges related to environment, transmission, and economics. Traditional forecasting and planning techniques and methods often fail to predict future changes and potential barriers, especially when the changes are turbulent and there is limited information. Scenario-based planning is a tool specifically designed to deal with major, uncertain shifts in an environment. This is presently the case for energy production and use in New Mexico. The scenario-based planning model will be used to assess the state’s energy network operation strategies, identifying energy, innovation and economic bottlenecks that stem from of the interdependency on the state’s current energy infrastructures, and predicting the impact of integrating increased amounts of renewable energy and energy efficiency. Task 1: Initiate Stakeholder Process (Months 2-5). In summary, the work breakdown for Task 1 commences with identifying the appropriate energy professionals (Milestone 1A); sending out invites to identified energy professionals (Milestone 1B); then prepare for and commence the first outreach initiative. (Milestone 1C). The objectives of Task 1 7 are to 1) assure the appropriate energy professionals are identified and invited to working meetings, 2) work with contractors to prepare for the kick-off working meeting, 3) hold kickoff working meeting. The primary risk to not accomplishing this task is the inability to identify and gain the attendance of a critical mass of energy sector stakeholders. Ideally, each sector of the state’s energy industry and all energy sector government agencies would have a minimum of four representatives to represent their interests in all four scenario meetings simultaneously. As, this may not be possible with all sectors, the scenario meeting schedules will be adjusted to accommodate any representation deficits. The letters/statements of support currently received represent at least one representative from every major private and public sector energy stakeholders in New Mexico. Milestone 1A- Identification of Energy Professionals and Regulatory Agencies (Quarter 1). Subtask 1A1 – Review Already Committed Energy Professionals and Regulatory Agencies (Month 2) Subtask 1A1 Summary. The Energy Roadmap Expert will review the list of energy professionals and regulatory agencies that have already pledged their commitment to the Project and determine data that each entity can supply to the baselining effort Subtask 1A2 – Identify Any Additional Energy Related Entities (Month 3) Subtask 1A2 Summary. The Energy Roadmap Expert will identify any additional energy related entities that have not already committed support for the Project. ECMD and the Energy Roadmap Expert will develop, if necessary, a list of additional energy related entities and determine data that each additional entity can supply to the baselining effort. Milestone 1B – Invite Identified Energy Professionals and Regulatory Agencies to Kickoff Working Meeting (Quarter 2). Subtask 1B1 – Develop and Send Kickoff Meeting Invitations (Month 4) Subtask 1B1 Summary. The Energy Roadmap Expert will develop and disseminate via email or postal mail an invite to all identified energy professional and regulatory agencies to the Energy Roadmap Project kickoff working meeting and request pertinent data, needed from each entity, required to accurately assess the energy baseline in New Mexico. Milestone 1C – Prepare for and Commence the Kickoff Working Meeting for Energy Roadmap (Quarter 2). Subtask 1C1 – Prepare for Kickoff Meeting (Month 4-5) Subtask 1C1 Summary. The Energy Roadmap Expert will finalize the kickoff working meeting activities and agenda. ECMD will coordinate the meeting activities and agenda with the Energy Roadmap Expert and the facilitators/coordinators. The focus of the agenda and activities of the working meeting is to determine the baseline of the current energy landscape in New Mexico. In detail, the Energy Roadmap Expert and the facilitator(s)/coordinator(s), along with assistance from the ECMD Principal Investigator, 8 will mediate the kickoff working meeting to start the Energy Roadmap development process. Subtask 1C2 – Hold Kickoff Working Meeting for Energy Roadmap (Month 5) Subtask 1C2 Summary. The Energy Roadmap Expert will orientate the identified energy professionals and regulatory agencies to the Energy Roadmap process. The energy professionals and regulatory agencies through the working group session using a scenario-based planning model will assist in informing the energy baseline determination for the state. In detail, the focus of the kickoff working meeting is to introduce the concepts of the Project and scenario-based planning model to the identified energy professionals and regulatory agencies. The purpose of the working meeting will be to elicit information and data from identified energy professionals and regulatory agencies to further inform the Energy Roadmap Expert in developing the baseline of the current energy production, distribution, and consumption mix for the state. It will also explore potential barriers to development of the baseline and other drivers that may affect the baseline (i.e., the state’s existing Renewable Portfolio Standard, which expires in 2020, is both a driver and barrier). At the end of the working meeting, the Energy Roadmap Expert will outline the agenda and information needs for the next working meeting. Task 2: Create Baseline Determination for the State (Months 5‐7). In summary, the work breakdown for Task 2 commences with the Energy Roadmap Expert compiling the notes from the kickoff working meeting, circulating the draft notes among the working meeting attendees to receive input and recommendations, and then finalizing the notes (Milestone 2A); based on the finalized notes and all available public information, the Energy Roadmap Expert will develop a report on the current baseline energy landscape for the state as well as additional strategic information that was gathered during the Scenario-based planning model activity during the kickoff working meeting (Milestone 2B). In detail, the primary task is to develop a baseline determination for the state. The risk in completing this task is the inability to collect sufficient data from the energy stakeholders to adequately assess the state’s energy baseline. Some of the requested data may, for some organizations, border on confidential information and therefore they will be reluctant to provide any information. To mitigate this issue, the Energy Roadmap Expert along with ECMD will work with the individual organizations to address their concerns. 9 Milestone 2A – Compile and Distribute Notes from Kickoff Working Meeting (Quarter 2). Subtask 2A1- Compile Notes from Kickoff Working Meeting (Month 5) Subtask 2A1 Summary. The Energy Roadmap Expert will compile the notes from the working meeting. The notes will then be distributed to the working meeting attendees for input and comment. Subtask 2A2 – Finalize Notes from Kickoff Working Meeting (Months 5-6) Subtask 2A2 Summary. The Energy Roadmap Expert will finalize the meeting notes and include any pertinent additional input and comments provided by the meeting attendees. ECMD will make the final notes available on ECMD’s website. Milestone 2B – Develop Energy Roadmap Baseline Determination (Quarters 2-3). Subtask 2B1 – Develop Draft Energy Roadmap Baseline Determination (Month 56) Subtask 2B1 Summary. The Energy Roadmap Expert will develop a draft Energy Roadmap baseline determination for the state (Energy Roadmap Baseline Determination developed based on the information gathered during the kickoff working meeting and available public information. The Energy Roadmap Baseline Determination will address identified structural weaknesses and strengths that currently exist in the state. Subtask 2B2 – Circulate Draft Energy Roadmap Baseline Determination to Working Meeting Attendees (Months 6-7) Subtask 2B2 Summary. The Energy Roadmap Expert will elicit comment from working meeting attendees and ECMD on the draft Energy Roadmap Baseline Determination. Once reviewed, ECMD will circulate the Energy Roadmap Baseline Determination to working meeting attendees for input and comment. Subtask 2B3 – Finalize Energy Roadmap Baseline Determination (Month 7) Subtask 2B3 Summary. The Energy Roadmap Expert will finalize the Energy Roadmap Baseline Determination based on working meeting attendee input. Once finalized, ECMD will make the Energy Roadmap Baseline Determination available on ECMD website’s. Task 3: Prioritize Energy Scenarios (Months 7-9). In summary, the work breakdown for Task 3 commences with the review of the kickoff working group meeting and the final energy Roadmap Baseline Determination by the Energy Roadmap Expert and ECMD and commencing the second in a series of three working group meetings (Milestone 3A); compiling the notes from the second working meeting, circulating the draft notes among the working meeting attendees to receive inputs and recommendations, and then finalizing the notes (Milestone 3B); based on the finalized notes, the Energy Roadmap Expert will the develop a report on the priorities established for each of the four scenarios established for the scenario-based planning process (Milestone 3C). In detail, the primary task is to develop a prioritized list of barriers and drivers for each of the four scenarios. This list will be used in the development of a Priorities Report for each of the four scenarios. 10 For this task the Project starts to look down the road or into the future of the energy sector in New Mexico. Up to this point the Project collected currently available data that should be relatively noncontroversial. During this task, the stakeholders may be asked to think about future scenarios when their industry is modified significantly or in some cases, no longer exists. This is the point in the Project where the many diverging views will become a significant risk to further progress. ECMD is aware of the divergent nature of the potential stakeholders that will be involved in the development of the Energy Roadmap. To work past these divergent opinions and interests, ECMD along with skilled facilitators and the Energy Roadmap Expert, will use an informed consent outreach approach. Milestone 3A – Prepare for and Commence Second Working Meeting (Quarter 3). Subtask 3A1 – Preparation for Second Working Meeting (Months 7) Subtask 3A1 Summary. The Energy Roadmap Expert will review the past findings from the kickoff working meeting and the Energy Roadmap Baseline Determination Report to help inform the second working meeting. In detail, the Energy Roadmap Expert and ECMD will review the findings and establish what information and data is needed and how to structure this need though the Scenario-based planning process. Subtask 3A2 – Commence Second Working Meeting (Quarter 3) Subtask 3A2 Summary. The focus of the second working meeting is to report on the findings of the Energy Roadmap Baseline Determination Report developed from the kickoff working group meeting and utilize the scenario-based planning process to determine the priorities for each of the four scenarios. In detail, the working meeting will elicit information and data from identified working meeting attendees to further inform the Energy Roadmap Expert in developing a priorities report for each of the four established scenarios using the scenario-based planning process. At the end of the working meeting, the Energy Roadmap Expert will outline the agenda and information needs for the next working meeting. Milestone 3B Compile and Distribute Notes from Second Working Meeting (Quarter 3). Subtask 3B1 - Compile Notes from Second Working Meeting (Month 7) Subtask 3B1 Summary. The Energy Roadmap Expert will compile the notes from the second working meeting and provide them to ECMD for distribution to the working meeting attendees for input and comment. Subtask 3B2 - Finalize Notes from Second Working Meeting (Month 7) Subtask 3B2 Summary. The Energy Roadmap Expert will finalize the meeting notes and include any pertinent additional input and comments provided by the meeting attendees. ECMD will make the final notes available on ECMD’s website. Milestone 3C - Develop Energy Roadmap Priorities Report (Quarter 3). Subtask 3C1 - Develop Draft Energy Roadmap Priorities Report. (Month 8) Subtask 3C1 Summary. The Energy Roadmap Expert will develop a draft Energy Roadmap priorities report (Energy Roadmap Priorities Report based on the information gathered during the second working meeting. The report will identify the priorities 11 determined during the second working meeting and establish a hierarchy for those priorities. Subtask 3C2 - Circulate Draft Energy Roadmap Priorities Report (Month 8) Subtask 3C2 Summary. The Energy Roadmap Expert will elicit comment from working meeting attendees on the draft Energy Roadmap Priorities Report and submit the draft report to ECMD for review. Once reviewed, ECMD will circulate the Energy Roadmap Priorities Report for input and comments. Subtask 3C3 - Finalize Energy Roadmap Priorities Report (Month 9) Subtask 3C3 Summary. The Energy Roadmap Expert will issue a final version of the Energy Roadmap Priorities Report. In detail, the Energy Roadmap Expert will finalize the Energy Roadmap Priorities Report based on working meeting attendee input. ECMD will make the final Energy Roadmap Priorities Report available on ECMD’s website. Task 4: Determine Development Goals and Timing (Months 9-11). In summary, the work breakdown for Task 4 commences with the review of the second working group meeting and the final Energy Roadmap priorities report (Energy Roadmap Priorities Report) by the Energy Roadmap Expert and ECMD and commencing the third in a series of three working group meetings (Milestone 4A); compiling the notes from the second working meeting, circulating the draft notes among the working meeting attendees to receive input and recommendations, and then finalizing the notes (Milestone 4B); based on the finalized notes, the Energy Roadmap Expert will then develop a report on each of the four scenarios established for the scenario-based planning process to inform the time-horizons and development goals for the Energy Roadmap (Milestone 4C). In detail, the primary task is to gather information and data on the implementation of goals and time-horizons. This information and data will be used in the development of a goals and timing determination report (Goals and Timing Determination Report) that will further define the needs implementation for each of the four (4) scenarios. The primary risk for this task is similar to the risk associated with Task 3, with the additional complicating factor of the need for agreement on specific goals and timing. This task essentially begins the process of assigning work to individuals with defined delivery timelines. To mitigate the risk of non-commitment by stakeholders, ECMD along with the Energy Roadmap Expert, will use an informed consent outreach approach to relay to the stakeholders that commitment to action is in their best interests by: 1. detailing to stakeholders that there is serious problem/opportunity that just has to be addressed; 2. informing stakeholders that they are the right organizations to address the problem/opportunity and that it would be irresponsible for them not to address it; 3. showing stakeholders that the energy road mapping process and the subsequent Energy Roadmap is the reasonable, sensible and responsible approach to addressing the problem/opportunity; and 12 4. allowing all stakeholders to have substantive input into the energy road mapping process and the subsequent Energy Roadmap. Milestone 4A – Prepare for Third Working Meeting (Quarter 3). Subtask 4A1 – Preparation for Third Working Meeting (Month 9) Subtask 4A1 Summary. The Energy Roadmap Expert will review the past findings from the second working meeting and the Energy Roadmap Priorities Report and use these findings to help inform the third working meeting. In detail, the Energy Roadmap Expert and ECMD will review the finding and establish what information is needed to determine time-horizons and developmental goals and how to structure this need though scenario-based planning process. Subtask 4A2 – Commence Third Working Meeting (Month 9) Subtask 4A2 Summary. The focus of the third working meeting is to report on the findings of the Energy Roadmap Priorities Report developed from the second working group meeting and utilize the scenario-based planning process to determine timehorizons and development goals for the Energy Roadmap. The third working meeting will elicit information and data from identified energy professionals and regulatory agencies to further inform the Energy Roadmap Expert in developing the time-horizons and development goals for the Energy Roadmap. At the end of the working meeting, the Energy Roadmap Expert will outline the next steps in the development of the Energy Roadmap and timeframes. Milestone 4B Compile and Distribute Notes from Third Working Meeting (Quarter 3). Subtask 4B1 - Compile Notes from Third Working Meeting (Month 9) Subtask 4B1 Summary/Detail. The Energy Roadmap Expert will compile the notes from the third working meeting. ECMD will distribute the notes to the working meeting attendees for input and comments. Subtask 4B2 - Finalize Notes from Third Working Meeting (Month 9) Subtask 4B2 Summary. The Energy Roadmap Expert will finalize the meeting notes and include any pertinent additional input and comments provided by the meeting attendees. ECMD will make the final notes available on ECMD’s website. Milestone 4C - Develop Energy Roadmap Goals and Timing Determination (Quarter 4). Subtask 4C1 - Develop Draft Energy Roadmap Goals and Timing Determination Report. (Month 10) Subtask 4C1 Summary. The Energy Roadmap Expert will develop a draft Energy Roadmap goals and timing determination report (Energy Roadmap Goals and Timing Determination Report based on the information gathered during the third working meeting. Subtask 4C2 - Circulate Draft Energy Roadmap Goals and Timing Determination Report (Month 10) Subtask 4C2 Summary. The Energy Roadmap Expert will elicit comments from the working meeting attendees on the draft Energy Roadmap Goals and Timing 13 Determination Report and will submit the draft determination to the Principal Investigation for review. Once reviewed, ECMD will circulate the Energy Roadmap Goals and Timing Determination Report for input and comment. Subtask 4C3 - Finalize Energy Roadmap Goals and Timing Determination Report (Month 11) Subtask 4C3 Summary. The Energy Roadmap Expert will finalize the Energy Roadmap Goals and Timing Determination Report based on working meeting attendee input. ECMD will make the final Energy Roadmap Goals and Timing Determination Report available on the ECMD website. Task 5: Develop and Publish New Mexico Energy Roadmap (Months 11-13). In summary, the work breakdown for Task 5 commences with developing near- and longer-term plans for pursuing the policy directions identified in the Energy Roadmap Goals and Timing Determination Report (Milestone 4C); then circulating the draft Energy Roadmap for comments from the energy professionals and regulatory agencies identified in Task 1 to receive input and recommendations to generate a final Energy Roadmap (Milestone 5B). The primary risk for Task 5 is setting unachievable short-term and long-term goals and objectives. The Project mitigates this risk by establishing short-term goals that are not capital intensive and consist of removing public and private policies and public misinformation that work as barriers to reaching the long-term Energy Roadmap goals. The successful completion of the short-term goals by a proposed 2020 deadline, will provide a positive base for launching the processes toward more progressive long-term goals. Milestone 5A - Develop a draft Energy Roadmap for New Mexico (Quarters 4-5). Subtask 5A1- Plan near term actions (Months 11-12) Subtask 5A1 Summary. The Energy Roadmap Expert will identify measures that New Mexico can pursue in the near term (2018-2020) to further the policy directions identified in the Energy Roadmap Goals and Timing Determination Report. The Energy Roadmap Expert will determine what updates to existing programs and initiatives that can be accomplished under existing authority and operational structures. These measures will be defined and coupled with specific objectives, timelines, and internal resources. Subtask 5A2 - Plan longer term action for Policy Review Report (Months 11-12) Subtask 5A2 Summary. The Energy Roadmap Expert will identify measures that the state can pursue in the long term (2020 and beyond) to further the policy directions identified in the Energy Roadmap Goals and Timing Determination Report by identifying options for coordinating new individual and joint-public and private initiatives that can be accomplished only with new authority, business models and operational structures. These measures will be defined in terms of specific objectives, timelines, internal resources, and guidance concerning the nature and type of new authority required to pursue the measures. 14 Subtask 5A3- Draft Energy Roadmap for New Mexico (Months 11-12) Subtask 5A3 Summary. The Energy Roadmap Expert will draft an Energy Roadmap that reports the best policies and measures that can be taken that allow New Mexico to meet state goals and time horizons that identifies the state goals New Mexico seeks to fulfill, convey the policy preferences as conveyed by the working meeting attendees, provide a detailed description of the measures that Energy Roadmap Goals and Timing Determination Report identified to complete, and project the benefits and costs associated with pursuing those policies and measures. Milestone 5B - Develop final Energy Roadmap for New Mexico (Quarters 4 and 5). Subtask 5B1 - Circulate Energy Roadmap for New Mexico for comment (Month 12) Subtask 5B1 Summary. The Energy Roadmap Expert will elicit comments on the draft Energy Roadmap from the working group attendees. In detail, working meeting attendees will be directed to provide comments on the Energy Roadmap. The Energy Roadmap Expert will consolidate written comments from the working meeting attendees and make them available for reply comments by other stakeholders. The ECMD Principal Investigator shall retain all comments. Subtask 5B2 - Review comments on Energy Roadmap for New Mexico (Months 12-13) Subtask 5B2 Summary. The Energy Roadmap Expert and ECMD will review the working meeting attendee recommendations and comments. Upon review, the ECMD Principal Investigator, with concurrence from the Energy Roadmap Expert, may authorize amendments to the Energy Roadmap. SECTION V. PROPOSAL FORMAT AND CONTENTS Proposals must contain sufficient information to provide EMNRD with a thorough description of Offeror’s qualifications to accomplish the activities described in the Scope of Work. All proposals shall be on white 8.5 x 11” paper, in single-spaced, 12-point type, 50-page maximum. The proposal MUST contain, at a minimum, all listed items in the sequence indicated and be organized in the following format. A. A cover letter that:      identifies the name, title, telephone and fax numbers, and email address of the person authorized to negotiate the contract on behalf of the Offeror; identifies the names, titles, telephone and fax numbers, and e-mail addresses of persons to be contacted for clarification; explicitly indicates acceptance of the terms and conditions of this RFP and its evaluation factors; certifies all entities responsible for authorizing Offeror’s activities have agreed that their proposal should be submitted; if applicable, acknowledges receipt of any and all 15  B. amendments to this RFP; and is signed by the person authorized to contractually obligate the Offeror. Brief descriptions of similar projects Offeror has performed. C. Description of capabilities, equipment, services, training, and any other resources, including qualifications of any subcontractors, used in accomplishing the required work (Refer to Proposal Evaluation Criteria); D. Organizational References - Offerors must also provide two business references from similar projects performed for private, state, or large local government clients within the last three years. Offerors are required to submit Attachment 1 to the business references they list. The business references must submit the Reference Questionnaire directly to the EMNRD Contact Person listed in Section X below. Offerors are responsible for ensuring that the completed forms are received by or before the proposal submission deadline for inclusion in the evaluation process. Business references that are not received, or are not complete, may adversely affect the Offeror’s score in the evaluation process. The Evaluation Team may contact any or all business references for validation of information submitted. E. Federal funds are being used for this project, and therefore New Mexico preference laws do not apply to this solicitation. F. Campaign Contribution Form (Attachment 2) -- Offeror shall complete, sign, and submit with Offeror’s proposal response the Campaign Contribution Disclosure Form and disclose whether Offeror, a family member, or a representative of the Offeror has made a campaign contribution to an applicable public official during the two years prior to the RFP. Offeror shall complete the non-disclosure statement or make separate disclosures for all campaign contributions given by (1) the Offeror, (2) a family member, or (3) a representative of the Offeror; and G. Completed, signed Statement of Assurances Form (Attachment 3). Any proposal that does not adhere to these requirements may be deemed nonresponsive and rejected on that basis. SECTION VI. CONTRACT AWARD AND DURATION The contract period may extend from the date of contract approval by the Department of Finance and Administration (DFA) for a period not to exceed 24 months, including amendments. EMNRD may award a contract under the terms of the attached draft Professional Services Agreement (PSA) (Attachment 4) and in accordance with this RFP. Any PSA 16 awarded as a result of this RFP shall not be binding until approved by the Department of Finance (DFA) and Administration. Protest Period Pursuant to NMSA 1978, § 13-1-172 and applicable procurement rules, Offerors who are not selected for funding have the right to timely protest the procurement. Protests must be written and must include: the name and address of the protestor and the name of the procurement being protested; a statement of the grounds for protest including appropriate supporting exhibits; and the ruling requested from the Division. The protest period begins on the day after notice of selection/non-selection and ends at 5 p.m. 15 days later. Protests must be delivered to: Louise Martinez, Division Director, ECMD, EMNRD, 1220 S. St. Francis Drive, Santa Fe, N.M., 87505. SECTION VII. PROPOSAL EVALUATION CRITERIA EMNRD shall use the following criteria in the evaluation of proposals and in the selection of the successful Offeror. Factor/Criteria Points Available Statement of Qualifications: • 17 list of all team members and their roles in the project, along with education, professions affiliations, certifications and professional organization memberships. Statement of Experience evidencing the following: 45 • a broad and thorough knowledge of the New Mexico energy sectors; • knowledge and experience in scenario based planning efforts; • knowledge of energy sector regulations and public policies; • experience in facilitating large diverse meetings groups; • knowledge of the Institute of Participatory Management and Planning (IPMP), Systematic Development of Information Consent; Organizational Capacity and Qualified Support: 20 • ability of entity to devote necessary resources to accomplish the scope of work within the contract period; and • description of project management framework to be used in accomplishing the scope of work. References: Points will be awarded based upon an evaluation of the responses to 17 18 maximum a series of questions that will be asked of the references concerning the quality of the Offeror’s services, the timeliness of services, responsiveness to problems and complaints, and the level of satisfaction with the Offeror’s overall performance (See Attachment 1, Reference Questionnaire). TOTAL 100 maximum SECTION VIII. EVALUATION PROCESS The evaluation process will follow the steps listed below: A. The Evaluation Team members will document contents of competitive sealed proposals after the submittal deadline. B. The Evaluation Team will review proposals for compliance with the mandatory requirements stated within this RFP. C. The Contact Person may contact Offerors for clarification of the proposal. D. The Evaluation Team shall evaluate responsive proposals based on the criteria in Section VII, Proposal Evaluation Criteria, and select responsive Offeror(s) with the highest total weighted scores as finalist Offeror(s). The Evaluation Team will consult with listed references and select the finalist Offeror whose proposal and references is most advantageous to EMNRD, for award. SECTION IX. CONTACT PERSON AND PROPOSAL DUE DATE Questions regarding this RFP shall be addressed to: Daren K. Zigich, P.E. Program Manager, Engineering Technology EMNRD, Energy Conservation and Management Division 1220 S. St. Francis Dr. Santa Fe, New Mexico 87505 Phone: (505) 476-3323 Offerors shall submit one original and 2 identical hard copies of the proposal at the address above, no later than 4:30 p.m. MST, January 9, 2017. In the event proposals are mailed, they must be physically received at the above location by the stated date and time in order to be considered. EMNRD shall not accept proposals received after this date and shall make absolutely no exceptions for proposals not received at the above location by the appointed time. RFP responses MAY NOT be sent by facsimile or e-mail. 18 SECTION X. NOTICES Award of agreements is contingent upon sufficient appropriations and authorization being made by the State of New Mexico and DOE. The money made available to support any PSA entered into as a result of this RFP must cover Gross Receipts Taxes as a component of the total PSA amount. EMNRD may cancel this RFP and reject any and all proposals when it is in the State of New Mexico’s best interests. EMNRD may conduct discussions with Offerors who submit proposals, but may also accept proposals without such discussions. The New Mexico Procurement Code, NMSA 1978, Sections 13-1-28 through 13-1-199, imposes civil and criminal penalties for its violation. In addition, the New Mexico criminal statutes impose felony penalties for bribes, gratuities, and kickbacks. 19 Attachment 1 REQUEST FOR PROPOSALS ISSUED BY THE STATE OF NEW MEXICO, ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT, ENERGY CONSERVATION AND MANAGEMENT DIVISION, FOR PROFESSIONAL SERVICES TO DEVELOP AN ENERGY ROADMAP FOR NEW MEXICO REFERENCE QUESTIONNAIRE Name of Individual/Entity Requesting Reference: The State of New Mexico, as a part of the RFP process, requires Offerors to submit a minimum of two business references as required within this document. The purpose of these references is to document the experience relevant to the scope of work and provide assistance in the evaluation process. The Offeror is required to send this reference form to each business reference listed. The business reference, in turn, is requested to submit the Reference Form directly to the Procurement Manager by the RFP submission deadline for inclusion in the evaluation process. The form and information provided will become a part of the submitted proposal. This form is being submitted to you for completion as a business reference for the individual or entity above. Please return this completed form directly to the Contact Person (Daren Zigich, Energy Conservation and Management Division, EMNRD, 1220 S. St. Francis Drive, Santa Fe, NM 87505) by January 12, 2017. Do not return this form to the individual or entity requesting the reference. For questions or concerns regarding this form, please contact the Procurement Manager listed above. Name of Individual/Entity Providing Reference: Contact Name and Title/Position: Contact Telephone Number: Contact E-Mail Address: QUESTIONS 1. In what capacity have you worked with this Offeror in the past? (Please explain) 2. How would you rate this Offeror’s knowledge and expertise? (Check one) 3 – Excellent ___ 2 – Satisfactory ___ 1 – Unsatisfactory ___ 0 – Unacceptable ___ Comments: 3. How would you rate the Offeror’s flexibility relative to changes in the Project scope and timelines? (Check one) 3 – Excellent ___ 2 – Satisfactory ___ 1 – Unsatisfactory ___ Comments: 0 – Unacceptable ___ 4. What is your level of satisfaction with hard-copy materials produced by the Offeror? (Check one) 20 REQUEST FOR PROPOSALS ISSUED BY THE STATE OF NEW MEXICO, ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT, ENERGY CONSERVATION AND MANAGEMENT DIVISION, FOR PROFESSIONAL SERVICES TO DEVELOP AN ENERGY ROADMAP FOR NEW MEXICO REFERENCE QUESTIONNAIRE 3 – Excellent ___ 2 – Satisfactory ___ 1 – Unsatisfactory ___ 0 – Unacceptable ___ Comments: 5. How would you rate the dynamics/interaction between the Offeror and your staff? (Check one) 3 – Excellent ___ 2 – Satisfactory ___ 1 – Unsatisfactory ___ 0 – Unacceptable ___ Comments: 6. Who were the Offeror’s principal representatives involved in your Project and how would you rate them individually? Would you comment on the skills, knowledge, behaviors, or other factors on which you based the rating? (3 – Excellent; 2 – Satisfactory; 1 – Unsatisfactory; 0 – Unacceptable) Principal Representative Name: Rating: _______ Principal Representative Name: Rating: _______ Principal Representative Name: Rating: _______ Principal Representative Name: Rating: _______ Comments: 7. How satisfied are you with the products developed by the Offeror? (Check one) 3 – Excellent ___ 2 – Satisfactory ___ 1 – Unsatisfactory ___ 0 – Unacceptable ___ Comments: 8. With which aspect(s) of the Offeror’s services are you most satisfied? (Please explain) 9. With which aspect(s) of the Offeror’s services are you least satisfied? (Please explain) 10. Would you recommend this vendor's services to your organization again? (Please explain) 21 Attachment 2 CAMPAIGN CONTRIBUTION DISCLOSURE FORM Pursuant to the Procurement Code, Sections 13-1-28, et seq., NMSA 1978 and NMSA 1978, § 13-1-191.1 (2006), as amended by Laws of 2007, Chapter 234, any prospective contractor seeking to enter into a contract with any state agency or local public body for professional services, a design and build project delivery system, or the design and installation of measures the primary purpose of which is to conserve natural resources must file this form with that state agency or local public body. This form must be filed even if the contract qualifies as a small purchase or a sole source contract. The prospective contractor must disclose whether they, a family member or a representative of the prospective contractor has made a campaign contribution to an applicable public official of the state or a local public body during the two years prior to the date on which the contractor submits a proposal or, in the case of a sole source or small purchase contract, the two years prior to the date the contractor signs the contract, if the aggregate total of contributions given by the prospective contractor, a family member or a representative of the prospective contractor to the public official exceeds two hundred and fifty dollars ($250) over the two year period. Furthermore, the state agency or local public body may cancel a solicitation or proposed award for a proposed contract pursuant to Section 13-1-181 NMSA 1978 or a contract that is executed may be ratified or terminated pursuant to Section 13-1-182 NMSA 1978 of the Procurement Code if: 1) a prospective contractor, a family member of the prospective contractor, or a representative of the prospective contractor gives a campaign contribution or other thing of value to an applicable public official or the applicable public official’s employees during the pendency of the procurement process or 2) a prospective contractor fails to submit a fully completed disclosure statement pursuant to the law. The state agency or local public body that procures the services or items of tangible personal property shall indicate on the form the name or names of every applicable public official, if any, for which disclosure is required by a prospective contractor. THIS FORM MUST BE INCLUDED IN THE REQUEST FOR PROPOSALS AND MUST BE FILED BY ANY PROSPECTIVE CONTRACTOR WHETHER OR NOT THEY, THEIR FAMILY MEMBER, OR THEIR REPRESENTATIVE HAS MADE ANY CONTRIBUTIONS SUBJECT TO DISCLOSURE. The following definitions apply: “Applicable public official” means a person elected to an office or a person appointed to complete a term of an elected office, who has the authority to award or influence the award of the contract for which the prospective contractor is submitting a competitive sealed proposal or who has the authority to negotiate a sole source or small purchase contract that may be awarded without submission of a sealed competitive proposal. “Campaign Contribution” means a gift, subscription, loan, advance or deposit of money or other thing of value, including the estimated value of an in-kind contribution, that is made to or received by an applicable public official or any person authorized to raise, collect or expend contributions on that official’s behalf for the purpose of electing the official to statewide or local office. “Campaign Contribution” includes the payment of a debt incurred in an election campaign, but does not include the value of services provided without compensation or 22 unreimbursed travel or other personal expenses of individuals who volunteer a portion or all of their time on behalf of a candidate or political committee, nor does it include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee. “Family member” means spouse, father, mother, child, father-in-law, mother-in-law, daughterin-law or son-in-law of (a) a prospective contractor, if the prospective contractor is a natural person; or (b) an owner of a prospective contractor. “Pendency of the procurement process” means the time period commencing with the public notice of the request for proposals and ending with the award of the contract or the cancellation of the request for proposals. “Prospective contractor” means a person or business that is subject to the competitive sealed proposal process set forth in the Procurement Code or is not required to submit a competitive sealed proposal because that person or business qualifies for a sole source or a small purchase contract. “Representative of a prospective contractor” means an officer or director of a corporation, a member or manager of a limited liability corporation, a partner of a partnership or a trustee of a trust of the prospective contractor. 23 Note: A prospective contractor shall make separate disclosures of all campaign contributions given by (1) the prospective contractor, or (2) a family member or (3) representative of the prospective contractor, or shall complete the non-disclosure statement, as applicable. DISCLOSURE OF CONTRIBUTIONS: Contribution Made By: Relation to Prospective Contractor: Name of Applicable Public Official: Contribution(s) Date(s) Contribution Amount(s): Governor _______________________ Nature of Contribution(s): Purpose of Contribution(s): $ $ $ $ $ (Attach extra pages if necessary) Signature: Date: Title/Position: --OR— NO CONTRIBUTIONS IN THE AGGREGATE TOTAL OVER TWO HUNDRED FIFTY DOLLARS ($250) WERE MADE to an applicable public official by me, a family member or representative. Signature: Date: Title/Position: 24 Attachment 3 Statement of Assurances Form Each Offeror MUST complete this form and return it with Offeror’s proposal or EMNRD will deem the proposal as non-responsive. By signing this form below, Offeror acknowledges and agrees to the following: This RFP does not commit the State of New Mexico (State) to pay any costs incurred in the in the preparation or submission of this proposal. Any cost incurred by the Offeror in developing a proposal response shall be borne solely by the Offeror. Offeror understands that that Offeror’s proposal shall become part of the official file on this matter without obligation to the State. Issuance of this RFP does not constitute an award commitment on the part of the State. Offeror shall examine all contract documents, noting particularly all stipulations that in any way affect contract work. Failure of an Offeror to acquaint itself fully with the amount and nature of the work required to fulfill all terms of the contract documents shall not be considered a basis for extra compensation after a contract has been awarded. Offeror represents and warrants to the State that Offeror has the staff, facilities, and competence to furnish the required services. The State may investigate Offeror’s adequacy of the staff, facilities, and competence. For this purpose, representatives of the State may make an inspection of Offeror’s facilities, equipment, etc., and interview staff. In order to receive consideration, Offeror’s proposal must be signed by an officer having the authority to bind Offeror. Offeror agrees to comply with all relevant federal and state laws and regulations or rules. New Mexico Employees Health Coverage: If Offeror has, or grows to, six or more employees who work, or who are expected to work, an average of at least 20 hours per week over a six-month period during the term of any Agreement which may result from this RFP, Offeror agrees, by submitting a proposal, to have in place, and agrees to maintain for the Agreement’s term, health insurance for those employees and offer that health insurance to those employees if the expected annual value in the aggregate of any and all contracts between Offeror and the state exceed $250,000. Offeror agrees to maintain a record of the number of employees who have: 1) accepted health insurance; 2) declined health insurance due to other health insurance coverage already in place; or 3) declined health insurance for other reasons. These records are subject to review and audit by a representative of the State. Offeror agrees to advise all employees of the availability of state publicly-financed health care coverage programs. Employee Pay Equity Reporting – A. Offeror agrees if it has 10 or more New Mexico employees OR eight or more employees in the same job classification, at any time during the term of any Agreement which may result from this RFP, to complete and submit the PE10-249 form on the annual anniversary of the initial report submittal for contracts up to one year in duration. B. If Offeror has 250 or more employees, Offeror must complete and submit the PE250 form on 25 the annual anniversary of the initial report submittal for contracts up to one year in duration. C. For contracts that extend beyond one calendar year, or are extended beyond one calendar year, Offeror also agrees to complete and submit the PE10-249 or PE250 form, whichever is applicable, within 30 days of the annual contract anniversary date of the initial submittal date or, if more than 180 days has elapsed since submittal of the last report, at the completion of the contract, whichever comes first. D. Should Offeror not meet the size requirement for reporting at contract award but subsequently grows such that Contractor meets or exceeds the size requirement for reporting, Offeror agrees to provide the required report within 90 days of meeting or exceeding the size requirement. That submittal date shall serve as the basis for submittals required thereafter. E. Offeror also agrees to levy this requirement on any subcontractor(s) performing more than 10% of the dollar value of this Agreement if said subcontractor(s) meets, or grows to meet, the stated employee size thresholds during the term of the contract. Offeror further agrees that, should one or more subcontractor not meet the size requirement for reporting at contract award but subsequently grows such that the subcontractor meets or exceeds the size requirement for reporting, Offeror shall submit the required report, for each such subcontractor, within 90 days of that subcontractor meeting or exceeding the size requirement. Subsequent report submittals, on behalf of each such subcontractor, shall be due on the annual anniversary of the initial report submittal. F. Offeror shall submit the required form(s) to the State Purchasing Division of the General Services Department, and other departments as may be determined, on behalf of the applicable subcontractor(s) in accordance with the schedule contained in this paragraph. Offeror acknowledges that this subcontractor requirement applies even though Offeror itself may not meet the size requirement for reporting and be required to report itself. Additional Pay Equity Reporting Information For the purposes of complying with the Pay Equity Reporting Information section above: 1. “Job Classification” means an arrangement of tasks in an establishment or industry into a limited series of jobs or occupations, rated in terms of skill, responsibility, experience, training, and similar considerations, usually for wage setting purposes. This term, or job class, refers to a single cluster of jobs of approximately equal “worth.” 2. “New Mexico Employee” (also “Employee”) means a person working within the State of New Mexico at a New Mexico facility, regardless where the employee legally resides, and regardless of the origin of compensation checks. 3. “PE10-249 form” means the reporting form to be used by contractors that meet or exceed the minimum size thresholds for reporting but have less than 250 New Mexico employees. 4. “PE250 form” means the reporting form to be used by contractors that have 250 or more New Mexico employees. 5. “Solicitation” means an Invitation to Bid or a Request for Proposals. B. Report Submittal: Until further notice, successful Offeror shall submit the required form(s) to the State Purchasing Division of the General Services Department, and other departments as may be determined. The mailing address is: PO Box 6850, Santa Fe, NM, 87502-6850. 26 C. The successful Offeror shall not be required to report more frequently than annually unless more than 180 calendar days has elapsed since submittal of the last report and the contract has reached completion. The requirement for reporting at contract completion shall not apply in the case of a onetime fulfillment of a purchase order. D. Exceptions to the Pay Equity Reporting Requirement: 1. Offerors with fewer than 10 employees are exempt, unless they have at least eight employees in the same job classification. 2. Offerors receiving a contract resulting from an emergency procurement are exempt, unless they hold other contracts that would already subject them to the requirement. E. Offerors who are subject to the Pay Equity Reporting Requirement shall complete and sign the applicable pay equity form (PE 10-249 or PE250) and submit the form with their proposal. Offerors who fall within an exception to the Pay Equity Reporting Requirement shall include a statement in their transmittal letter that indicates they are exempt and cites the specific exception they fall under. Application of New Mexico Preference Laws: This procurement is excluded from state preference laws because it is funded with federal dollars. Offeror Signature Date: Offeror’s Printed Name and Title: 27 Attachment 4 STATE OF NEW MEXICO ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into by and between the State of New Mexico, Energy, Minerals and Natural Resources Department (EMNRD) and (insert Contractor Name) (Contractor), and is effective as of the date set forth below upon which it is executed by the Department of Finance and Administration (DFA). IT IS AGREED BETWEEN THE PARTIES: 1. Scope of Work. Contractor shall perform the following work: (Insert Scope of Work here.) In the event this Agreement is funded with federal monies, Contractor shall comply with 2 C.F.R. Sections 200.318 through 200.326 for procurement conducted pursuant to this Agreement. In the event this Agreement is funded with federal monies and Contractor wishes to enter into an agreement with a small business firm or non-profit organization regarding the substitution of parties, assignment or performance of experimental, developmental , or research work under this Agreement, Contractor shall comply with the requirements of 37 C.F.R. Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements an any implementing regulations issued by the (insert name of federal funder). Contractor shall not award subcontracts to parties listed on the governmentwide exclusions in the federal System for Award Management (SAM), in accordance with OMB guidelines that implement federal Executive Orders 12549 (3 C.F.R. part 1986, Comp., p. 189) and 12689 (3 C.F.R. part 1989 Comp., p. 235), “Debarment and Suspension.” SAM exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regularity authority other than Executive Order 12549. If the value of this Agreement exceeds $100,000, Contractor shall comply with the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352) regarding the limitations of use of appropriated funds to influence certain federal contracting and financial transactions. If this Agreement is valued at more than $150,000, Contractor shall comply with all applicable standards orders or requirements issued under the federal 28 Clean Air Act (42 U.S.C. § 7401 et seq.); Clean Water Act (33 U.S.C. § 1251 et seq.); Executive Order 11738 (Providing for Administration of the Clean Air Act and the Federal Water Pollution Control Act With Respect to Federal Contracts, Grants, or Loans); and U.S. Environmental Protection Agency (EPA) regulations. 2. Compensation. Option 1: Work Product. A. EMNRD shall pay Contractor for services satisfactorily performed pursuant to the Scope of Work and as specified below. This amount shall not exceed _______________________________ ($ ______________), which amount includes New Mexico gross receipts taxes, if any, and travel, pursuant to Paragraph C of this Compensation Section. EMNRD shall make payment upon the satisfactory and timely completion of the work described in the Scope of Work and for no more than the maximum amount set forth below for each deliverable: (Insert deliverables/payment schedule here. Delete this instruction.) The parties do not intend for Contractor to continue to provide services without compensation when the total compensation amount is reached. Contractor is responsible for notifying EMNRD when the services provided under this Agreement reach the total compensation amount. In no event shall Contractor be paid for services provided in excess of the total compensation amount without this Agreement being amended in writing prior to those services in excess of the total compensation amount being provided. B. (For single-year contract, may need to revise the FY references) Payment in FYXX, FYXX, and FYXX is subject to availability of funds pursuant to Section 5, Appropriations, set forth below and to any negotiations between the parties from year to year pursuant to Section 1, Scope of Work, and to approval by DFA. EMNRD must receive all invoices no later than 15 days after the termination of the Fiscal Year in which the services were delivered. Invoices received after such date WILL NOT BE PAID. (—OR—) Option 2: Lump Sum Amount Upon Completion of All Work. A. Upon satisfactory completion of services, EMNRD shall pay Contractor for services satisfactorily performed pursuant to the Scope of Work in an amount not to exceed _______________________($____________), which amount includes New Mexico gross receipts taxes, if any, and any travel, if necessary. B. Payment is subject to availability of funds pursuant to Section 5, Appropriations, set forth below, and to any negotiations between the parties from year 29 to year pursuant to Section 1, Scope of Work, and to approval by DFA. In no event shall Contractor be paid for services provided in excess of the total compensation amount without this Agreement being amended in writing prior to those services in excess of the total compensation amount being provided. EMNRD MUST receive all invoices no later than 15 days after the termination of the Fiscal Year in which the services were delivered. Invoices received after such date WILL NOT BE PAID. Option 3: Time and Materials. A. EMNRD shall pay to Contractor in full payment for services satisfactorily performed pursuant to the Scope of Work rendered at the rate of $00.00 per hour, such compensation not to exceed $.00, which amount includes New Mexico gross receipts taxes, if any, and travel pursuant to Paragraph C of this Compensation Section. This amount is a maximum and not a guarantee that the work assigned to be performed by Contractor under this Agreement shall equal the amount stated herein. The parties do not intend for Contractor to continue to provide services without compensation when the total compensation amount is reached. Contractor is responsible for notifying EMNRD when the services provided under this Agreement reach the total compensation amount. B. Payment is subject to availability of funds pursuant to Section 5, Appropriations, set forth below, and to any negotiations between the parties from year to year pursuant to Section 1, Scope of Work, and to approval by DFA. In no event shall Contractor be paid for services provided in excess of the total compensation amount without this Agreement being amended in writing prior to those services in excess of the total compensation amount being provided. EMNRD MUST receive all invoices no later than 15 days after the termination of the Fiscal Year in which the services were delivered. Invoices received after such date WILL NOT BE PAID. C. (For multiple year (To be negotiated at EMNRD’s discretion.) EMNRD shall pay such travel expenses as may be incurred in, and that are necessary for, the performance of this Agreement at the rates established in the New Mexico Per Diem and Mileage Act, NMSA 1978, §§ 10-8-1 et seq., as implemented by the current Department of Finance and Administration (DFA) rule and the current EMNRD Travel Policy. D. Contractor shall be responsible for paying New Mexico Gross Receipts taxes, if any, levied on amounts payable under this Agreement. E. Contractor must submit detailed statements accounting for all services performed, and expenses incurred. (Invoices Vouchers must be supported by approved purchase order or equivalent document and invoice by the supplier, evidencing the propriety of each claim for payment. Wage amounts charged shall be based upon payrolls maintained by Contractor and must be supported by time and attendance sheets.) If EMNRD finds that the statement, services, or expenses are not acceptable, within 30 days after the date of receipt of (i) written notice from Contractor that payment is requested, and (ii) all supporting documentation, EMNRD shall provide 30 Contractor a letter of exception explaining the defect or objection to the statement, services, or expenses, and outlining steps Contractor may take to provide remedial action. Upon certification by EMNRD that the statement, supporting documentation, services, or expenses have been received and accepted, EMNRD shall tender payment to Contractor within 30 days after the date of acceptance. If payment is made by mail, the payment shall be deemed tendered on the date it is postmarked. However, EMNRD shall not incur late charges, interest, or penalties for failure to make payment within the time specified herein. 3. Term. THIS AGREEMENT SHALL NOT BECOME EFFECTIVE UNTIL APPROVED BY DFA. This Agreement shall terminate on (DATE) unless terminated pursuant to Section 4, Termination, or Section 5, Appropriations. In accordance with NMSA 1978, § 13-1150, no contract term for a professional services contract, including extensions and renewals, shall exceed four years, except as set forth in NMSA 1978, § 13-1-150. 4. Termination. A. Grounds. EMNRD may terminate this Agreement for convenience or cause. Contractor may only terminate this Agreement based upon EMNRD’s uncured, material breach of this Agreement. B. Notice; EMNRD Opportunity to Cure. 1) Except as otherwise provided in Section 4(B)(3), EMNRD shall give Contractor written notice of termination at least 30 days prior to the intended date of termination. 2) Contractor shall give EMNRD written notice of termination at least 30 days prior to the intended date of termination, which notice shall (i) identify all EMNRD’s material breaches of this Agreement upon which the termination is based and (ii) state what EMNRD must do to cure such material breaches. Contractor’s notice of termination shall only be effective (i) if EMNRD does not cure all material breaches within the 30 day notice period or (ii) in the case of material breaches that cannot be cured within 30 days, EMNRD does not, within the 30 day notice period, notify Contractor of EMNRD’s intent to cure and begin with due diligence to cure the material breach. 3) Notwithstanding the foregoing, this Agreement may be terminated immediately upon written notice to Contractor (i) if Contractor becomes unable to perform the services contracted for, as determined by EMNRD; (ii) if, during the term of this Agreement, Contractor is suspended or debarred by the State Purchasing Agent; or (iii) the Agreement is terminated pursuant to Section 5, Appropriation, of this Agreement or (iv) this Agreement is terminated pursuant to Section 12, Conflict of Interest; Governmental Conduct Act, Paragraph C, of this Agreement. (May need to revise 31 Section number to track actual contract contents. Either way, delete this instruction.) C. Liability. Except as otherwise expressly allowed or provided under this Agreement, EMNRD’s sole liability upon termination shall be to pay for acceptable work performed prior to Contractor’s receipt or issuance of a notice of termination; provided, however, that a notice of termination shall not nullify or otherwise affect either party’s liability for pre-termination defaults under or breaches of this Agreement. Contractor shall submit an invoice for such work within 30 days of receiving or sending the notice of termination. THIS PROVISION IS NOT EXCLUSIVE AND DOES NOT WAIVE EMNRD’S OTHER LEGAL RIGHTS AND REMEDIES CAUSED BY CONTRACTOR'S DEFAULT/BREACH OF THIS AGREEMENT. D. Termination Management. Immediately upon receipt by either EMNRD or Contractor of notice of termination of this Agreement, Contractor shall: 1) not incur any further obligations for salaries, services or any other expenditure of funds under this Agreement without EMNRD’s written approval; 2) comply with all directives EMNRD issues in the notice of termination as to the performance of work under this Agreement; and 3) take such action as EMNRD shall direct for the protection, preservation, retention or transfer of all property titled to EMNRD and records generated under this Agreement. Any non-expendable personal property or equipment provided to or purchased by Contractor with contract funds shall become property of EMNRD upon termination and shall be submitted to EMNRD as soon as practicable. (If federal funding is involved, include the following clause. If not, delete it.) Otherwise, all property procured under this Agreement shall be used and disposed of in accordance with (insert name of federal funding entity) regulations. 5. Appropriations. The terms of this Agreement are contingent upon sufficient appropriations and authorization being made by the Legislature of New Mexico and (insert name of federal funding entity) for the performance of this Agreement. If sufficient appropriations and authorization are not made by the Legislature and (insert name of federal funding entity), this Agreement shall terminate immediately upon written notice being given by EMNRD to Contractor. EMNRD's decision as to whether sufficient appropriations are available shall be accepted by Contractor and shall be final. If EMNRD proposes an amendment to the Agreement to unilaterally reduce funding, Contractor shall have the option to terminate the Agreement or to agree to the reduced funding, within 30 days of receipt of the proposed amendment. 32 6. Status of Contractor. Contractor and its subcontractors, agents, and employees are independent contractors performing professional services for EMNRD and are not employees of the State of New Mexico. Contractor and its agents and employees shall not accrue leave, retirement, insurance, bonding, use of state vehicles, or any other benefits afforded to employees of the State of New Mexico as a result of this Agreement. Contractor acknowledges that all sums received hereunder are reportable by Contractor for tax purposes, including without limitation, self-employment and business income tax. Contractor may not, does not have the authority to, and agrees not to purport to bind the State of New Mexico unless Contractor has express written authority to do so, and then only within the strict limits of that authority. 7. Assignment. Contractor shall not assign or transfer any interest in this Agreement or assign any claims for money due or to become due under this Agreement without EMNRD’s prior written approval. 8. Subcontracting. Contractor shall not subcontract any portion of the services to be performed under this Agreement without the prior written approval of EMNRD. No such subcontract shall relieve Contractor from its obligations and liabilities under this Agreement, nor shall any subcontract obligate direct payment from EMNRD. (Option: Depending on your underlying federal funding source, you may need to include subparagraphs A and B if you are using federal funds to pay for this Agreement.) A. Contractor is required to provide EMNRD with evidence of competitive procurement for any subcontract, including records of advertisement of bid, proposals received, and methods to select each subcontractor. B. Any subcontract agreement shall include all provisions necessary to allow Contractor to meet its obligations and requirements under this Agreement and all provisions required by law. (Option: Include subparagraph below if subcontractor will be reimbursed for travel expenses.) C. Travel expense reimbursement requested for subcontractors, if applicable, shall be reimbursed in accordance with rates established in the New Mexico Per Diem and Mileage Act, NMSA 1978, § 10-8-1 et seq., as implemented by the current DFA Rule and EMNRD Travel Policy. 33 9. Release. Final payment of the amounts due under this Agreement shall operate as a release of EMNRD, its officers and employees, and the State of New Mexico from all liabilities, claims and obligations whatsoever arising from or under this Agreement. 10. Confidentiality. Any confidential information provided to or developed by Contractor in the performance of this Agreement shall be kept confidential by Contractor and shall not be made available to any individual or organization by Contractor without EMNRD’s prior written approval. 11. Product of Service -- Copyright. All materials developed or acquired by Contractor under this Agreement shall become the property of the State of New Mexico and shall be delivered to EMNRD no later than the termination date of this Agreement. Nothing developed or produced, in whole or in part, by Contractor under this Agreement shall be the subject of an application for copyright or other claim of ownership by or on behalf of Contractor. 12. Conflict of Interest; Governmental Conduct Act. A. Contractor represents and warrants that Contractor presently has no interest and, during this Agreement’s term, shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance or services required under the Agreement. B. Contractor further represents and warrants that Contractor has complied with, and, during this Agreement’s term, shall continue to comply with, and that this Agreement complies with all applicable provisions of the Governmental Conduct Act, NMSA 1978, §§ 10-16-1 through 10-16-18. Without in anyway limiting the generality of the foregoing, the Contractor specifically represents and warrants that: 1) in accordance with NMSA 1978, § 10-16-4.3, Contractor does not employ, has not employed, and will not employ during the term of this Agreement any EMNRD employee while such employee was or is employed by EMNRD and participating directly or indirectly in EMNRD’s contracting process; 2) this Agreement complies with NMSA 1978, § 10-16-7(A) because (i) Contractor is not a public officer or employee of the state; (ii) Contractor is not a member of the family of a public officer or employee of the state; (iii) Contractor is not a business in which a public officer or employee or the family of a public officer or employee has a substantial interest; or (iv) if Contractor is a public officer or employee of the state, a member of the family of a public officer or employee of the state, or a business in which a public officer or employee of the state or the family of a public 34 officer or employee of the state has a substantial interest, public notice was given as required by NMSA 1978, § 10-16-7(A) and this Agreement was awarded pursuant to a competitive process; 3) in accordance with NMSA 1978, § 10-16-8(A), (i) Contractor is not, and has not been represented by, a person who has been a public officer or employee of the State within the preceding year and whose official act directly resulted in this Agreement and (ii) Contractor is not, and has not been assisted in any way regarding this transaction by, a former public officer or employee of the State whose official act, while in State employment, directly resulted in EMNRD's making this Agreement; 4) this Agreement complies with NMSA 1978, § 10-16-9(A)because (i) Contractor is not a legislator; (ii) Contractor is not a member of a legislator's family; (iii) Contractor is not a business in which a legislator or a legislator's family has a substantial interest; or (iv) if Contractor is a legislator, a member of a legislator’s family, or a business in which a legislator or a legislator's family has a substantial interest, disclosure has been made as required by NMSA 1978, § 10-16-9(A), this Agreement is not a sole source or small purchase contract, and this Agreement was awarded in accordance with the provisions of the Procurement Code; 5) in accordance with NMSA 1978, § 10-16-13, Contractor has not directly participated in the preparation of specifications, qualifications or evaluation criteria for this Agreement or any procurement related to this Agreement; and 6) in accordance with NMSA 1978, § 10-16-3 and § 10-16-13.3, Contractor has not contributed, and during this Agreement’s term shall not contribute, anything of value to a public officer or employee of EMNRD. C. Contractor’s representations and warranties in Paragraphs A and B of this Section 12 are material representations of fact upon which EMNRD relied when EMNRD and Contractor entered into this Agreement. Contractor shall provide immediate written notice to EMNRD if, at any time during this Agreement’s term, Contractor learns that Contractor’s representations and warranties in Paragraphs A and B of this Section 12 were erroneous on this Agreement’s effective date or have become erroneous by reason of new or changed circumstances occurring after this Agreement’s effective date. If EMNRD later determines that Contractor’s representations and warranties in Paragraphs A and B of this Section 12 were erroneous on this Agreement’s effective date, or have become erroneous by reason of new or changed circumstances, in addition to other remedies available to EMNRD and notwithstanding anything in this Agreement to the contrary, EMNRD may immediately terminate this Agreement. D. All terms defined in the Governmental Conduct Act have the same meaning in this Section 12. 35 13. Amendment. This Agreement shall not be altered, changed or amended except by instrument in writing executed by the parties hereto and all other required signatories. 14. Merger. This Agreement incorporates all the agreements, covenants and understandings between the parties hereto concerning the subject matter hereof, and all such covenants, agreements and understandings have been merged into this written agreement. No prior agreement or understanding, oral or otherwise, of the parties or their agents shall be valid or enforceable unless embodied in this Agreement. 15. Penalties for Violation of Law. The Procurement Code, NMSA 1978, §§ 13-1-28 through 13-1-199, imposes civil and criminal penalties for its violation. In addition, the New Mexico criminal statutes impose felony penalties for bribes, gratuities, and kickbacks. 16. Equal Opportunity Compliance. Contractor agrees to abide by all federal and state laws and rules and regulations, and executive orders of the Governor of the State of New Mexico, pertaining to equal employment opportunity. In accordance with all such laws of the State of New Mexico, Contractor assures that no person in the United States shall, on the grounds of race, religion, color, national origin, ancestry, sex, age, physical or mental handicap, or serious medical condition, spousal affiliation, sexual orientation, or gender identity, be excluded from employment with or participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity performed under this Agreement. If Contractor is found not to be in compliance with these requirements during the life of this Agreement, Contractor agrees to take appropriate steps to correct these deficiencies. 17. Applicable Law. The laws of the State of New Mexico shall govern this Agreement, without giving effect to New Mexico’s choice of law provisions. Venue shall be proper only in a New Mexico court of competent jurisdiction in accordance with NMSA 1978, § 38-3-1 (G). By execution of this Agreement, Contractor acknowledges and agrees to the exclusive jurisdiction of the courts of the State of New Mexico over any and all lawsuits arising under or out of this Agreement’s terms. 18. Records and Financial Audit. A. Contractor shall maintain detailed time and expenditure records that indicate the date; time, nature and cost of services rendered during the 36 Agreement’s term and effect and retain them for a period of six years from the date of final payment under this Agreement. (Option: If you are using federal funding, Contractor must retain the records for three years after the funding expires, even if the contract ends prior to the funding expiring. Revise this paragraph to indicate a date certain by which Contractor must retain the records. Delete this instruction.) Contractor further agrees to include in all subcontracts hereunder the same right of inspection and audit against all subcontractors. EMNRD shall have the right to audit billings both before and after payment. Payment under this Agreement shall not foreclose EMNRD’s right to recover excessive or illegal payments. In EMNRD’s, DFA’s, or the State Auditor’s (or insert name of federal funding entity)’s sole discretion, the periods of inspection and audit may be extended for records, which relate to litigation or settlement of claims arising out of performance of this Agreement (and costs and expenses of this Agreement for which exception is under consideration by the federal funding agency or any authorized representative) and shall continue until all potential litigation, appeals, claims, or exceptions have expired or been resolved. (Option: Are you using federal funds to pay for this contract? If yes, you need to include the following paragraph in your contract because the requirements are cumulative. If no, delete this paragraph. Delete this instruction.) B. If Contractor receives $750,000 or more in federal funding from all sources in the aggregate in a fiscal year, Contractor’s financial records involving services and procurement under this Agreement shall be audited annually pursuant to all federal, state and local government audit requirements, and in accordance with the Single Audit Act Amendments of 1996, 2 C.F.R. 200, Subpart F – Audit Requirements, OMB Circular Compliance Supplement and Government Auditing Standards, as prescribed by the Single Audit Act of 1984, or any subsequent OMB Circular. Contractors who do not meet the $750,000 audit threshold (Tier 7), must complete the State of New Mexico – Office of the State Auditor Certification Form for Tier 1 and Tier 2, or the Office of the State Auditor Agreed Upon Procedures (Tiers 3-6) in accordance with the Audit Act, NMSA 1978, §§ 12-6-1 through 12-6-14, and 2.2.2.16 NMAC, Annual Financial Procedures Required for Local Public Bodies with Annual Revenues Less than Five Hundred Thousand Dollars. In order to comply with state audit requirements, Contractors shall have one of the above-mentioned Forms or Agreed Upon Procedures on file with the Office of the State Auditor. Contractor shall provide EMNRD with a copy of the independent financial audit, either in hard copy format or on disk, no more than 45 days after the audit’s completion for each fiscal year this Agreement is in effect. 19. Indemnification. Contractor shall defend, indemnify, and hold harmless EMNRD, its officers, employees, agents, and representatives, and the State of New Mexico from all actions, proceeding, claims, demands, costs, damages, attorneys’ fees, and all other liabilities and expenses of any kind from any source which may arise out of the performance of this Agreement, caused by the negligent act or failure to act of Contractor, Contractor’s officers, employees, servants, subcontractors, consultants, or agents, or if caused by 37 the actions of any client of the Contractor resulting in injury or damage to persons or property during the time when the Contractor, Contractor’s officers, agents, employees, servants, consultants, or subcontractors thereof has or is performing services pursuant to this Agreement. In the event that any action, suit or proceeding related to the services performed by Contractor or any officer, agent, employee, servant, or subcontractor under this Agreement is brought against the Contractor, Contractor’s officers, employees, servants, subcontractors, consultants, or agents, shall, as soon as practicable but no later than four days after it receives notice thereof, notify EMNRD’s legal counsel, and the Risk Management Division of the New Mexico General Services Department by certified mail. Nothing in this Agreement shall be deemed to be a waiver by the State of New Mexico of the provisions of the Tort Claims Act, NMSA 1978, §§ 414-1 et seq. 20. New Mexico Employees Health Coverage. A. If Contractor has, or grows to, six or more employees who work, or who are expected to work, an average of at least 20 hours per week over a six -month period during the term of the contract, Contractor certifies, by signing this Agreement, to have in place, and agree to maintain for this Agreement’s term, health insurance for those employees and offer that health insurance to those employees if the expected annual value in the aggregate of any and all contracts between Contractor and the state exceed $250,000 dollars. B. Contractor agrees to maintain a record of the number of employees 1) accepted health insurance; who have: 2) declined health insurance due to other health insurance coverage already in place; or 3) declined health insurance for other reasons. These records are subject to review and audit by a representative of the state. C. Contractor agrees to advise all employees of the availability of State publicly financed health care coverage programs. 21. Employee Pay Equity Reporting. A. Contractor agrees if it has 10 or more New Mexico employees OR eight or more employees in the same job classification, at any time during the term of this contract, to complete and submit the PE10-249 form on the annual anniversary of the initial report submittal for contracts up to one year in duration. B. If Contractor has 250 or more employees, Contractor must 38 complete and submit the PE250 form on the annual anniversary of the initial report submittal for contracts up to one year in duration. C. For agreements that extend beyond one calendar year, or are extended beyond one calendar year, Contractor also agrees to complete and submit the PE10-249 or PE250 form, whichever is applicable, within 30 days of the annual agreement anniversary date of the initial submittal date or, if more than 180 days has elapsed since submittal of the last report, at the completion of the agreement, whichever comes first. D. Should Contractor not meet the size requirement for reporting at contract award but subsequently grows such that Contractor meets or exceeds the size requirement for reporting, Contractor agrees to provide the required report within 90 days of meeting or exceeding the size requirement. That submittal date shall serve as the basis for submittals required thereafter. E, Contractor also agrees to levy this requirement on any subcontractor(s) performing more than 10% of the dollar value of this Agreement if said subcontractor(s) meets, or grows to meet, the stated employee size thresholds during the term of the contract. Contractor further agrees that, should one or more subcontractor not meet the size requirement for reporting at contract award but subsequently grows such that the subcontractor meets or exceeds the size requirement for reporting, Contractor shall submit the required report, for each such subcontractor, within 90 days of that subcontractor meeting or exceeding the size requirement. Subsequent report submittals, on behalf of each such subcontractor, shall be due on the annual anniversary of the initial report submittal. F. Contractor shall submit the required form(s) to the State Purchasing Division of the General Services Department, and other departments as may be determined, on behalf of the applicable subcontractor(s) in accordance with the schedule contained in this section. Contractor acknowledges that this subcontractor requirement applies even though Contractor itself may not meet the size requirement for reporting and be required to report itself. G. Notwithstanding the foregoing, if this Agreement was procured pursuant to a solicitation, and if Contractor has already submitted the required report accompanying Contractor’s response to such solicitation, the report does not need to be re-submitted with this Agreement. 22. Additional Pay Equity Reporting Information. A. Equity Reporting: For the purposes of complying with Section 21, Employee Pay 1) “Job Classification” means an arrangement of tasks in an establishment or industry into a limited series of jobs or occupations, rated in terms of 39 skill, responsibility, experience, training, and similar considerations, usually for wage setting purposes. This term, or job class, refers to a single cluster of jobs of approximately equal “worth.” 2) “New Mexico Employee” (also Employee) means a person working within the State of New Mexico at a New Mexico facility, regardless where the employee legally resides, and regardless of the origin of compensation checks. 3) “PE10-249 form” means the reporting form to be used by Contractors that meet or exceed the minimum size thresholds for reporting but have less than 250 New Mexico employees. 4) “PE250 form” means the reporting form to be used by Contractors that have 250 or more New Mexico employees. 5) “Solicitation” means an Invitation to Bid or a Request for Proposals. B. Exceptions to the Pay Equity Reporting Requirement: 1) Contractors with fewer than 10 employees are exempt, unless they have at least eight employees in the same job classification. 2) Contractors receiving a contract resulting from an emergency procurement are exempt, unless they hold other contracts that would already subject them to the requirement. 3) Out-of-state Contractors that have no facilities and no employees working in New Mexico are exempt if the agreement is directly with the out-of-state Contractor and fulfilled directly by the out-of-state Contractor, and not passed through a local vendor. 23. Invalid Term or Condition. If any term or condition of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected and shall be valid and enforceable, unless failing to give effect to such term or condition defeats the purpose of this Agreement. 24. Enforcement of Agreement. A party's failure to require strict performance of any provision of this Agreement shall not waive or diminish that party's right thereafter to demand strict performance with that or any other provision. No waiver by a party of any of its rights under this Agreement shall be effective unless express and in writing, and no effective waiver by a party of any of its rights shall be effective to waive any other rights. 40 25. Notices. Any notice required to be given to either party by this Agreement shall be in writing and shall be delivered in person, by courier service or by U.S. mail, either first class or certified, return receipt requested, postage prepaid, as follows: To EMNRD: (insert position title and address of Project manager) General Counsel EMNRD – Office of the Secretary 1220 S. St. Francis Drive Santa Fe, NM 87505 To the Contractor: [insert name, address and email]. To Risk Management Division: Risk Management Division General Services Department P.O. Drawer 26100 Santa Fe, NM 87502-0110 26. Authority. If Contractor is other than a natural person, the individual(s) signing this Agreement on Contractor’s behalf and Contractor represent and warrant that he or she has the power and authority to bind Contractor, and that no further action, resolution, or approval from Contractor is necessary to enter into a binding agreement. 27. Acknowledgement. (Option: Include in PSA if acknowledgement required. If not using this section, delete it and renumber successive sections accordingly. Delete this instruction.) Contractor shall acknowledge EMNRD and (insert name of federal funding entity) as a co-sponsor and funding source in all news releases, programs, proceedings, and related publicity/publications for the Project. 28. Attorneys’ Fees and Costs. (Negotiable clause.) Contractor agrees that if Contractor is found by a court of competent jurisdiction to have breached this Agreement, or any amendments hereto, or to have committed any tortious act relating to the scope of this Agreement, EMNRD may recover from 41 Contractor reasonable attorneys’ fees and costs in connection with pre-litigation enforcement efforts, litigation brought to obtain such judicial determination, or any appeal of such determination, and to collect any judgment. 29. Minimum Wage Rate. If applicable, Contractor shall comply with minimum wage rates as established by the New Mexico Department of Workforce Solutions, Labor Relations Division, and with all other applicable requirements of that Department, including posting of the wage rates in a prominent location on the site of hiring for and performance of this Agreement. 30. Compliance with Funding Source Conditions. Contractor shall comply with all applicable state and federal statutes and rules or regulations imposed as a consequence of funding pursuant to this Agreement. (Are you using federal funds for this Agreement? Depending on the funding source, you may be required to include the following. If not, delete this instruction and the inapplicable clauses.) Contractor shall also comply with the following clauses in the performance of this Agreement: 1) Compliance with use of Minority Business Enterprises (MBEs) and Women’s Business Enterprises (WBEs) - Contractor shall take affirmative steps to assure that MBEs and WBEs are used when possible as sources of supplies and services. The affirmative steps shall include the following: a) including qualified MBEs/WBEs on solicitation lists; b) assuring that MBEs/WBEs are solicited once they are identified; c) when economically feasible, dividing total requirements into smaller tasks or quantities so as to permit maximum MBE/WBE participation; d) where feasible, establishing delivery schedules which will encourage MBE/WBE participation; e) encouraging use of the services of the U.S. Department of Commerce's Minority Business Development Agency and the U.S. Small Business Administration to identify MBEs/WBEs, as required; and f) if any subcontracts are to be let, requiring the subcontractor to take the affirmative steps listed above. 42 2) Compliance with Trafficking Victims Protection Act of 2000 Contractor, Contractor’s employees, subcontractors, and subcontractors’ employees shall not: a) engage in severe forms of trafficking in persons during this Agreement’s term; b) procure a commercial sex act during this Agreement’s term; or c) use forced labor in the performance of this Agreement. 3) Compliance with NMSA 1978, § 66-7-374, Texting While Driving Contractor and Contractor’s employees shall not read or view a text message or manually type on a handheld mobile communication device for any purpose while driving a motor vehicle in connection with this Agreement, except to summon medical or other emergency help, or unless that device is an amateur radio and the driver holds a valid amateur radio operator license issued by the Federal Communications Commission. 31. Insurance. (Type of insurance required varies with nature of work performed. Will always require Workers’ Compensation. Delete this instruction.) A. Contractor certifies that, by signing this Agreement, to have in place and agrees to maintain for this Agreement’s term, the following policy or policies of insurance providing: 1) Workers’ Compensation protection that complies with the requirements of the New Mexico Workers’ Compensation Act, NMSA 1978, §§ 52-1-1 et seq., if applicable. If Contractor fails to comply with the Workers’ Compensation Act and applicable rules when required to do so, EMNRD may terminate this Agreement. 2) Comprehensive general liability protection (including endorsements providing broad form property damage, personal injury coverage and contractual assumption of liability for all liability Contractor has assumed under this Agreement or any amendment thereto, in amounts equal to or greater than liability limits set forth in NMSA 1978, § 41-4-19, as may be amended from time to time. Such policy or policies shall name the State of New Mexico and EMNRD as additional insured and shall specifically state the coverage provide under the policy is primary over any other valid and collectible insurance and provide a waiver of subrogation. 3) Comprehensive performance liability protection covering contractual liability that may arise under this Agreement and any amendment hereto. Such policy or policies shall name the State of New Mexico and EMNRD as additional insured and shall specifically state the coverage provide under the policy is primary over any other valid and collectible insurance and provide a waiver of subrogation. 43 4) Professional liability insurance covering Contractor’s negligent acts, errors or omissions. (For agreements with architects, engineers, lawyers, etc.) 5) Medical malpractice liability insurance that complies with the Medical Malpractice Act, NMSA 1978, §§ 41-5-1, et seq. (For agreements with medical providers who are required to have malpractice insurance.) 6-) General liability insurance sufficient to cover the claims which may fall under the Indemnification Paragraph of this Agreement. (For agreements with medical providers who are not required to have malpractice insurance.) B. At EMNRD’s request, Contractor shall provide EMNRD with a copy of the insurance policy. At EMNRD’s request, Contractor shall provide EMNRD with a copy of the insurance policy. Contractor shall notify EMNRD 10 days before cancellation or expiration of any required Workers' Compensation or contractual or general liability insurance coverage. (Only include the references to the types of insurance you are asking for.) IN WITNESS WHEREOF, the parties have executed this Agreement as of the date of signature by the DFA Contracts Review Bureau below. STATE OF NEW MEXICO, ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT By: Cabinet Secretary or Designee Date: By: Legal Counsel - Certifying legal sufficiency Date: By: Chief Financial Officer Date: CONTRACTOR NAME Federal ID No.: 44 By: Date: Authorized Representative Signature Printed Name and Title 45 This Agreement has been approved by the DFA Contracts Review Bureau By: Date: 46 (Selection Option 1, 2, OR 3) Option 1: The records of the Taxation and Revenue Department reflect that Contractor is registered with the Taxation and Revenue Department of the State of New Mexico to pay gross receipts and compensating taxes. STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT I.D. No.:________________________________ (must be 11 digits long) By:____________________________________ Date:___________________________________ Option 2: Services will be performed out-of-state, Contractor is exempt from paying gross receipts taxes. STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT I.D. No.:______________________________ (must be 11 digits long) By:__________________________________ Date:_________________________________ Option 3: Services are to be performed by tax exempt organization per NMSA 1978, § 7-9-29. STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT I.D. No.:______________________________ (must be 11 digits long) By:__________________________________ Date:_________________________________ 47