Neighborhood Heating Decarbonization Plan

REQUEST FOR PROPOSAL
RFP # 26-49
Neighborhood Heating Decarbonization Plan
City of Ann Arbor
Office of Sustainability and Innovations
Due Date: October 21, 2026 by 2:00 p.m. (local time)
Issued By:
City of Ann Arbor
Procurement Unit
301 E. Huron Street
Ann Arbor, MI 48104

TABLE OF CONTENTS
SECTION I: GENERAL INFORMATION ..................................................................... ...3
SECTION II: SCOPE OF SERVICES ........................................................................... 10
SECTION III: MINIMUM INFORMATION REQUIRED ................................................. 14
SECTION IV: ATTACHMENTS .................................................................................... 18
APPENDIX A: SAMPLE PROFESSIONAL SERVICES AGREEMENT ........................ 25
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SECTION I - GENERAL INFORMATION
A. OBJECTIVE
The City of Ann Arbor has set the goal of achieving community-wide carbon neutrality
in a just and equitable manner by the year 2030 (known as A2ZERO). A key piece of
achieving this goal is transitioning away from fossil gas toward decarbonized solutions
for heating and cooling, powering appliances, operating vehicles, and more (e.g.,
beneficial electrification, geothermal). As the City looks at viable technologies and
service models, it is also interested in identifying strategic areas of the city in which to
make gas decarbonization investments - whether individually, with the investor-
owned utility, or through a blended investment approach.
To advance this work, the City is seeking a qualified professional firm to work directly
with the Ann Arbor Office of Sustainability and Innovations to:
1. Create a neighborhood-specific heating decarbonization plan for four-to-five
micro-neighborhoods in Ann Arbor
2. Support implementation of the plan in three to five of the micro-neighborhoods
3. Support the City's intervention in a future DTE Gas Rate Case by serving as
an expert witness on neighborhood decarbonization and non-pipeline
alternatives
4. Actively collaborate via biweekly meetings with the Ann Arbor Office of
Sustainability and Innovations on the project
Work under this RFP is funded through the Ann Arbor Office of Sustainability and
Innovations, with potential support coming from the Michigan Department of Licensing
and Regulatory Affairs' Utility Consumer Participation Board. The total amount of
funding allocated for this work is $125,000. Those unable to perform the tasks outlined
below for this amount should indicate what they can reasonably accomplish with
$125,000 and what it would cost them to complete the full scope. All work under this
RFP must be completed within 12-18 months of contracting.
B. QUESTIONS AND CLARIFICATIONS / DESIGNATED CITY CONTACTS
All questions regarding this Request for Proposal (RFP) shall be submitted via e-mail.
Questions will be accepted and answered in accordance with the terms and conditions
of this RFP.
All questions shall be submitted on or before October 8, 2026 at 10:00 a.m. (local
time), and should be addressed as follows:
Scope of Work/Proposal Content questions shall be e-mailed to Missy Stults,
Sustainability and Innovations Director in the Office of Sustainability and
Innovations - mstults@a2gov.org
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RFP Process and Compliance questions shall be e-mailed to Colin Spencer, Buyer
- CSpencer@a2gov.org
Should any prospective offeror be in doubt as to the true meaning of any portion of
this RFP, or should the prospective offeror find any ambiguity, inconsistency, or
omission therein, the prospective offeror shall make a written request for an official
interpretation or correction by the due date for questions above.
All interpretations, corrections, or additions to this RFP will be made only as an official
addendum that will be posted to a2gov.org and MITN.info and it shall be the
prospective offeror's responsibility to ensure they have received all addenda before
submitting a proposal. Any addendum issued by the City shall become part of the
RFP, and must be incorporated in the proposal where applicable.
C. PRE-PROPOSAL MEETING
A pre-proposal meeting will be held:
WHEN: October 6, 2026 at 12:00 p.m.
WHERE: Virtually via: This Microsoft Teams link
The meeting is not mandatory; however, it is highly recommended that interested
offerors attend the meeting. The purpose of this meeting is to discuss the project with
prospective offerors and to answer any questions concerning RFP 26-49. Any
questions and answers furnished in the pre-proposal meeting will not be official until
verified in writing through an addendum.
D. PROPOSAL FORMAT
To be considered, each firm must submit a response to this RFP using the format
provided in Section III. No other distribution of proposals is to be made by the
prospective offeror. An official authorized to bind the offeror to its provisions must
sign the proposal. Each proposal must remain valid for at least ninety days from the
due date of this RFP.
Proposals should be prepared simply and economically providing a straightforward,
concise description of the offeror's ability to meet the requirements of the RFP. No
erasures are permitted. Mistakes may be crossed out and corrected and must be
initialed in ink by the person signing the proposal.
E. SELECTION CRITERIA
Responses to this RFP will be evaluated using a point system as shown in Section III.
A selection committee comprised of staff from the City will complete the evaluation.
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The fee proposals will not be reviewed at the initial evaluation. After initial evaluation,
the City will determine top proposals, and open only those fee proposals. The City
will then determine which, if any, firms will be interviewed. During the interviews, the
selected firms will be given the opportunity to discuss their proposal, qualifications,
past experience, and their fee proposal in more detail. The City further reserves the
right to interview the key personnel assigned by the selected offeror to this project. If
the City chooses to interview any respondents, the interviews will be tentatively held
the week of November 9, 2026. Offeror must be available on these dates.
All proposals submitted may be subject to clarifications and further negotiation. All
agreements resulting from negotiations that differ from what is represented within the
RFP or in the proposal response shall be documented and included as part of the final
contract.
F. SEALED PROPOSAL SUBMISSION
All proposals are due and must be delivered to the City on or before, October
21, 2026 at 2:00 p.m. (local time). Proposals submitted late or via oral, telephonic,
telegraphic, electronic mail or facsimile will not be considered or accepted.
Each respondent must submit in a sealed envelope
* one (1) digital copy of the proposal preferably on a USB/flash drive
as one file in PDF format
Each respondent should submit in a single separate sealed envelope marked
Fee Proposal
* one (1) copy of the fee proposal
The fee proposal and all costs should be separate from the rest of the
proposal.
Proposals submitted should be clearly marked: "RFP# 26-49 - Neighborhood
Heating Decarbonization Plan" and list the offeror's name and address.
Proposals must be addressed and delivered to:
City of Ann Arbor
c/o Customer Service
301 East Huron Street
Ann Arbor, MI 48104
All proposals received on or before the due date will be publicly opened and recorded
on the due date. No immediate decisions will be rendered.
Hand delivered bids may be dropped off in the Purchasing drop box located in the Ann
Street (north) vestibule/entrance of City Hall which is open to the public Monday
through Friday from 8am to 5pm (except holidays). The City will not be liable to any
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prospective offeror for any unforeseen circumstances, delivery, or postal delays.
Postmarking on the due date will not substitute for receipt of the proposal. Offerors
are responsible for submission of their proposal. Additional time will not be granted
to a single prospective offeror. However, additional time may be granted to all
prospective offerors at the discretion of the City.
A proposal may be disqualified if the following required forms are not included
with the proposal:
* Attachment B - City of Ann Arbor Non-Discrimination Declaration of
Compliance
* Attachment C - City of Ann Arbor Living Wage Declaration of Compliance
* Attachment D - Vendor Conflict of Interest Disclosure Form of the RFP
Document
Proposals that fail to provide these forms listed above upon proposal opening
may be deemed non-responsive and may not be considered for award.
Please provide the forms outlined above (Attachments B, C, and D) within your
narrative proposal, not within the separately sealed Fee Proposal envelope.
All proposed fees, cost or compensation for the services requested herein
should be provided in the separately sealed Fee Proposal envelope only.
G. DISCLOSURES
Under the Freedom of Information Act (Public Act 442), the City is obligated to permit
review of its files, if requested by others. All information in a proposal is subject to
disclosure under this provision. This act also provides for a complete disclosure of
contracts and attachments thereto.
H. TYPE OF CONTRACT
A sample of the Professional Services Agreement is included as Appendix A. Those
who wish to submit a proposal to the City are required to review this sample agreement
carefully. The City will not entertain changes to its Professional Services
Agreement.
The City reserves the right to award the total proposal, to reject any or all proposals
in whole or in part, and to waive any informality or technical defects if, in the City's
sole judgment, the best interests of the City will be so served.
This RFP and the selected offeror's response thereto, shall constitute the basis of the
scope of services in the contract by reference.
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I. NONDISCRIMINATION
All offerors proposing to do business with the City shall satisfy the contract compliance
administrative policy adopted by the City Administrator in accordance with the Section
9:158 of the Ann Arbor City Code. Breach of the obligation not to discriminate as
outlined in Attachment B shall be a material breach of the contract. Contractors are
required to post a copy of Ann Arbor's Non-Discrimination Ordinance attached at all
work locations where its employees provide services under a contract with the City.
J. WAGE REQUIREMENTS
The Attachments provided herein outline the requirements for payment of prevailing
wages or of a "living wage" to employees providing service to the City under this
contract. The successful offeror must comply with all applicable requirements and
provide documentary proof of compliance when requested.
K. CONFLICT OF INTEREST DISCLOSURE
The City of Ann Arbor Purchasing Policy requires that the consultant complete a
Conflict of Interest Disclosure form. A contract may not be awarded to the selected
offeror unless and until the Procurement Unit and the City Administrator have
reviewed the Disclosure form and determined that no conflict exists under applicable
federal, state, or local law or administrative regulation. Not every relationship or
situation disclosed on the Disclosure Form may be a disqualifying conflict. Depending
on applicable law and regulations, some contracts may awarded on the
recommendation of the City Administrator after full disclosure, where such action is
allowed by law, if demonstrated competitive pricing exists and/or it is determined the
award is in the best interest of the City. A copy of the Conflict of Interest Disclosure
Form is attached.
L. COST LIABILITY
The City of Ann Arbor assumes no responsibility or liability for costs incurred by the
offeror prior to the execution of a General Services Agreement. The liability of the City
is limited to the terms and conditions outlined in the Agreement. By submitting a
proposal, offeror agrees to bear all costs incurred or related to the preparation,
submission, and selection process for the proposal.
M. DEBARMENT
Submission of a proposal in response to this RFP is certification that the Respondent
is not currently debarred, suspended, proposed for debarment, and declared ineligible
or voluntarily excluded from participation in this transaction by any State or Federal
departments or agency. Submission is also agreement that the City will be notified of
any changes in this status.
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N. PROPOSAL PROTEST
All protests must be in writing and filed with the Purchasing Agent within 5 business
days of any notices of intent, including, but not exclusively, divisions on pre-
qualification of bidders, shortlisting of bidders, or a notice of intent to award a contract.
Only bidders who responded to the solicitation may file a bid protest. The offeror must
clearly state the reasons for the protest. If an offeror contacts a City Service Area/Unit
and indicates a desire to protest an award, the Service Area/Unit shall refer the offeror
to the Purchasing Manager. The Purchasing Manager will provide the offeror with the
appropriate instructions for filing the protest. The protest shall be reviewed by the City
Administrator or designee, whose decision shall be final.
Any inquiries or requests regarding this procurement should be only submitted in
writing to the Designated City Contacts provided herein. Attempts by the offeror to
initiate contact with anyone other than the Designated City Contacts provided herein
that the offeror believes can influence the procurement decision, e.g., Elected
Officials, City Administrator, Selection Committee Members, Appointed Committee
Members, etc., may lead to immediate elimination from further consideration.
O. SCHEDULE
The proposals submitted should define an appropriate schedule in accordance with
the requirements of the Proposed Work Plan in Section III.
The following is the schedule for this RFP process.
Activity/Event Anticipated Date (all times local)
Pre-Proposal Meeting October 6, 2026, 12:00 p.m.
Written Question Deadline October 8, 2026, 10:00 a.m.
Addenda Published (if needed) Week of October 12, 2026
Proposal Due Date October 21, 2026, 2:00 p.m.
Tentative Interviews (if needed) Week of November 9, 2026
Selection/Negotiations November 2026
Expected City Council Authorizations December 2026
The above schedule is for information purposes only and is subject to change at the
City's discretion.
P. IRS FORM W-9
The selected offeror will be required to provide the City of Ann Arbor an IRS form W-
9.
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Q. RESERVATION OF RIGHTS
1. The City reserves the right in its sole and absolute discretion to accept or reject
any or all proposals, or alternative proposals, in whole or in part, with or without
cause.
2. The City reserves the right to waive, or not waive, informalities or irregularities in
of any proposal if determined by the City to be in its best interest.
3. The City reserves the right to request additional information from any or all offerors.
4. The City reserves the right to reject any proposal that it determines to be
unresponsive and deficient in any of the information requested within RFP.
5. The City reserves the right to determine whether the scope of the project will be
entirely as described in the RFP, a portion of the scope, or a revised scope be
implemented.
6. The City reserves the right to select one or more consultants to perform services.
7. The City reserves the right to retain all proposals submitted and to use any ideas
in a proposal regardless of whether that proposal is selected. Submission of a
proposal indicates acceptance by the firm of the conditions contained in this RFP,
unless clearly and specifically noted in the proposal submitted.
8. The City reserves the right to disqualify proposals that fail to respond to any
requirements outlined in the RFP, or failure to enclose copies of the required
documents outlined within RFP.
R. ENVIRONMENTAL COMMITMENT
The City of Ann Arbor recognizes its responsibility to minimize negative impacts on
human health and the environment while supporting a vibrant community and
economy. The City further recognizes that the products and services the City buys
have inherent environmental and economic impacts and that the City should make
procurement decisions that embody, promote and encourage the City's commitment
to the environment.
The City strongly encourages potential vendors to bring forward tested, emerging,
innovative, and environmentally preferable products and services that are best suited
to the City's environmental principles. This includes products and services such as
those with lower greenhouse gas emissions, high recycled content, without toxic
substances, those with high reusability or recyclability, those that reduce the
consumption of virgin materials, and those with low energy intensity.
As part of its environmental commitment, the City reserves the right to award a
contract to the most responsive and responsible bidder, which includes bids that bring
forward products or services that help advance the City's environmental commitment.
In addition, the City reserves the right to request that all vendors report their annual
greenhouse gas emissions, energy consumption, miles traveled, or other relevant
criteria in order to help the City more fully understand the environmental impact of its
procurement decisions.
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SECTION II - SCOPE OF SERVICES
1. Background
In June of 2020, Ann Arbor adopted one of the nation's most aggressive climate plans -
A2ZERO, which calls for a just and equitable transition to community-wide carbon
neutrality by 2030. One of the core strategies in A2ZERO is transitioning away from fossil
gas towards decarbonized solutions to heat and cool our buildings and to power our
appliances, our vehicles, and our lives overall. Staff in the Office of Sustainability and
Innovations (OSI) are the caretakers of the A2ZERO plan, working to find solutions to
achieve the goals unanimously adopted by the Ann Arbor City Council.
Recently, the OSI started to intervene in utility gas cases before the Michigan Public
Service Commission (MPSC) to challenge investments that seek to prolong the use of
fossil gas within the city and region, and ways to limit costs for ratepayers if fewer
customers want gas in the future than current utility models assume. One area of interest
to the City is identifying and implementing solutions that help move households and
businesses off of the gas system in an economically viable way. Specifically, the City is
interested in understanding which neighborhoods are well primed for a transition from
fossil gas toward sustainable heating solutions, assistance in supporting those
neighborhoods with the transition, the capturing of data regarding the impact of the
transition, and the integration of lessons learned into the City's future gas rate
interventions. Overall, the goal is to both meet the City's ambitious climate goals, but
also, to establish a model for heating decarbonization that can scale across Michigan.
To advance these goals, the City is seeking assistance from a qualified professional firm
to help identifying four to five specific micro-neighborhoods well positioned to start the
gas transition process, identifying the ideal transition technologies, and then to assist the
City with implementing the strategy in three to five of the identified micro-neighborhoods.
Implementation assistance will be technical in nature, as the City will undertake all
outreach and engagement activities. However, the identified professional firm must have
the technical skillset to help the City identify key areas for which implementation of the
decarbonization solutions will lead to cost savings and other co-benefits for the individual
participants, general ratepayers, the utility, or a combination of all stakeholders.
2. CONTEXT
As more local and state governments establish climate-related goals, there is growing
pressure to identify how to decarbonize market segments traditionally powered by fossil
gas. States such as New York, California, Colorado, and Massachusetts have
commissioned "future of gas" studies and formal Future of Gas Proceedings, often
resulting in new policy mandates that require utilities to develop long-term
decarbonization strategies and implement solutions that are holistic and in the best
interest of ratepayers and the public overall. Unfortunately, many of these proceedings
have not yet led to tangible decarbonization solutions in neighborhoods.
The City of Ann Arbor would like to change that narrative. That is why the City is seeking
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