Oklahoma § 61-212 - Performance-based efficiency contracts - Alternative to

§ 61-212. Performance-based efficiency contracts - Alternative to

bidding process for certain contracts.

A. For purposes of this section:

1. "Performance-based efficiency contract" means a contract for

the design, development, financing, installation, construction and

service of any improvement, repair, alteration or betterment of any

public building or facility; or any equipment, fixture or furnishing

to be added to or used in any such building or facility; or any

maintenance or operational strategy that is designed and implemented

that will reduce utility consumption or lower operating costs, and

may include, but is not limited to, one or more of the following:

a.

utility services,

Oklahoma Statutes - Title 61. Public Buildings and Public Works

b.

heating, ventilating or air conditioning system

modifications or replacements and automated control

systems,

c.

replacement or modifications of lighting fixtures,

d.

indoor air quality improvements to increase air

quality that conform to the applicable state or local

building code requirements when done in conjunction

with other cost-saving measures,

e.

any additional building infrastructure improvement,

cost saving, life safety or any other improvement that

provides long-term operating cost reductions and is in

compliance with state and local codes, or

f.

any facility operation and support programs that

reduce operating cost; and

2. "Qualified provider" means a person or business experienced

or trained in the design, analysis, construction and/or installation

of energy conservation and facility management measures. A

qualified provider must employ a professional engineer registered in

the State of Oklahoma.

B. In addition to any other legally permissible alternatives of

entering into contracts, the Office of Management and Enterprise

Services may enter into performance-based efficiency contracts on

behalf of all state agencies with a qualified provider pursuant to

the provisions of this section.

A qualified provider to whom the contract is awarded shall be

required to provide to the Office a sufficient bond for its faithful

performance of the contract. In addition, the Office may require

performance bonds covering the annual amount of guaranteed savings

over the contract term. State agencies may enter into an

installment contract, lease purchase agreement or other contractual

obligation for the purpose of financing performance-based efficiency

projects for a term not to exceed the greater of twenty (20) years

or the useful life of the project.

The qualified provider must guarantee the contract's cost

savings each year during the term of the agreement. In calculating

cost savings, the public entity may consider capital cost avoidance

and include additional revenue that is directly attributed to the

performance-based efficiency contract. The savings must be

sufficient to offset the annual costs of the contract. The contract

shall provide for reimbursement to the state agency undertaking the

project annually for any shortfall of guaranteed savings. Savings

must be measured, verified and documented each year of the term and

may be utilized to meet the annual debt service.

The contracts authorized by this section shall include

procedures for modifying the contract should the Office determine it

necessary.

Oklahoma Statutes - Title 61. Public Buildings and Public Works

This section shall constitute the sole authority necessary to

enter into performance-based efficiency contracts, without regard to

compliance with other laws which may specify additional procedural

requirements for execution of contracts.

Added by Laws 2006, c. 271, § 32, eff. July 1, 2006. Amended by

Laws 2012, c. 304, § 330; Laws 2021, c. 128, § 1, eff. Nov. 1, 2021;

Laws 2022, c. 238, § 37, eff. Nov. 1, 2022.