The Cumberland County Board of Education approved a Performance Contract with McKinstry Viridis, LLC (a Washington-based energy services company) at their meeting last night.

The contract is structured as an energy and operations improvement agreement. McKinstry will provide engineering, design, installation, monitoring, and related services aimed at reducing energy and water usage, improving operations and maintenance, and potentially delivering cost savings at district facilities.

Key contract provisions include:

• – McKinstry will perform the Scope of Work detailed in attached exhibits, providing all necessary labor, materials, equipment, and supervision (including subcontractors).
• – Compensation is outlined in the exhibits, with payment terms generally requiring a 30% mobilization fee at the start, progress payments as work is completed, and full payment within 10 days of invoicing. Late payments accrue interest.
• – The project has a defined timeline, with work expected to reach substantial completion within 365 days (subject to extensions), followed by optional post-construction services such as monitoring and verification for one year. Savings guarantees, if any, align with the services period.
• – McKinstry is responsible for obtaining necessary permits, ensuring safety, cleaning up the site, and maintaining specified insurance coverages. Customer handles other approvals, taxes, and provides access and information.
• – The contract addresses hazardous materials (excluded from scope, with Customer responsible for identification and remediation), delays, warranties (one-year limited warranty on workmanship), indemnification, and limitations on liability and damages.
• – Either party may terminate the contract under defined conditions (for cause, convenience, or lack of appropriated funds for public entities), with payment for work performed. Disputes follow a negotiation-mediation-arbitration/court process in Cumberland County, Tennessee.
• – Other standard clauses cover intellectual property (owned by McKinstry with limited license to Customer), non-solicitation of employees, governing law (Tennessee), and the contract being the complete agreement.

The contract includes four exhibits with specific scopes and pricing:

• – Exhibit A (Phase 2A-1: Operations and Maintenance Improvement Program) covers CMMS (Computerized Maintenance Management System) and workflow implementation, asset labeling/tagging (up to 1,900 assets), CMMS software setup and rollout, installation of Pelican temperature sensors on HVAC equipment (296 rooftop units and 31 split systems), and expansion of the Reveal Energy Module for better monitoring and fault detection. Maximum fee: $220,400.
• – Exhibit B (Phase 2B: Capital Project Engineering and Design) involves on-site evaluations, identification of potential Facility Improvement Measures (FIMs), preliminary cost and savings analysis, development of engineered designs (conceptual, midterm, and final stages), and assistance with funding applications. This phase is performed at no upfront cost to the district. If the district proceeds with a capital project with McKinstry, the design fee ($76,878 maximum) rolls into the larger project. If the district does not proceed within 30 business days after completion (or terminates early), it must pay the prorated or full design fee, and the contract terminates.
• – Exhibit C (Customer Expectations) outlines the district’s obligation to provide data, drawings, utility records, maintenance history, and other facility information to support the work.
• – Exhibit D (Facilities) lists the 16 specific Cumberland County Schools facilities (including elementary schools, high schools, central office, maintenance shops, etc.) that will be evaluated.