All purchases of equipment/vehicles purchased with Weatherization (Wx) Program funds and which have a unit cost of $5,000 or greater require Commerce written approval.
Local agencies must submit an Equipment/Vehicle Purchase Request/Approval Form (Exhibit 6.6A).
Required - Three quotes from different vendors.
Required - statement that low bid will be selected or sufficient justification of “best value selection,” if low bid is not recommended for awarding agency approval.
The grantee’s procurement system should include at the least the following:
A code or standard of conduct that shall govern the performance of its officers, employees, or agents engaged in the awarding of grants using federal funds.
Procedures that ensure all procurement transactions shall be conducted in a manner to provide, to the maximum extent practical, open and free competition.
Minimum procedural requirements as follows:
Follow a procedure to assure the avoidance of purchasing unnecessary or duplicative items.
Solicitations shall be based upon a clear and accurate description of the technical requirements of the procured items.
Positive efforts shall be made to use small and minority-owned businesses.
Some form of price or cost analysis should be performed in connection with every procurement action.
Equipment and vehicles should be acquired with grant funds from Commerce only after all other options have been explored.
Lease versus purchase should be evaluated carefully on all equipment and vehicles.
If equipment is shared with other local agency programs, a rental fee is required and may be implemented based on a proportionate use of the equipment.
Insurance – Local agencies shall provide insurance liability coverage for equipment at a minimum of $1,000,000 liability coverage per occurrence.
10 CFR 440.18 States: For the purposes of determining the average cost per dwelling limitation, costs for the purchase of vehicles or other certain types of equipment as defined in 10 CFR part 600 are encouraged and should be amortized over the useful life of the vehicle or equipment.
Requests for equipment/vehicles purchased with DOE funding require prior written DOE approval. Allow 90 days for DOE review.
Trade-in of previously acquired equipment of $5,000 or more is allowed with DOE approval; see Section 8.12.1A Disposal of Equipment.
DOE would not need to approve a vehicle lease that does not include a “purchase option.” If a lease-purchase option is proposed, regardless of the purchase price, DOE would need to approve the purchase of the vehicle.
Whenever equipment/vehicle purchased with DOE funding is shared with a non-Federal outside organization, a fee must charged no less than private sector rates.
Securing Commerce's Interest in Motor Vehicles, Equipment, and Fixtures
Local agencies are responsible for ensuring Commerce's financial vested interest in motor vehicles, equipment and fixtures with purchase values of $5,000 or more, purchased under Commerce contracts. This shall include insurance coverage in the amount of $1,000,000 minimum liability per occurrence.
Motor Vehicles: Certificates of Title. Local agencies will name Commerce as legal owner/lien holder on Certificates of Title for motor vehicles. See RCW 46.12.095, Requirements for perfecting security interest. (See Procedure)
Equipment: Uniform Commercial Code (UCC) -UCC (1) filings. Visit Washington State Department of Licensing’s Website (http://www.dol.wa.gov/) to download appropriate forms. Visit Special Terms and Conditions of agency Weatherization Program Grant Contract with Commerce under Treatment of Assets. (See Procedure)
Fixtures: UCC (2) filings. Filing will be done at the County Auditor’s Office in which the property is located. Visit Special Terms and Conditions of agency Weatherization Program Grant Contract with Commerce under Treatment of Assets. (See Procedure)
Local agency will submit request for approval (Equipment/Vehicle purchase request/approval form – Exhibit 6.6A) for purchase of equipment/vehicle to Commerce's assigned staff employee.
Fill out Equipment/Vehicle purchase request/approval form – Exhibit 6.6A, completely, (front, back, date and sign).
Send Form – Exhibit 6.6A to Commerce’s assigned staff employee.
Submit Form – Exhibit 6.6A with required 3 bids/quotes attached.
Upon Commerce’s approval of Local Agency’s Equipment/Vehicle purchase request/approval form, Local Agency may proceed with procurement process that conforms to Agency, State, and Federal procurement guidelines.
Procurement records and files must include the following documentation:
Selection or rejection.
The basis for the cost or price.
Justification for lack of competitive bids if offers are not obtained.
DOE approval for any trade-in of previously acquired equipment of $5,000 or more; when making a replacement purchase.
Approved form. See Exhibit 6.6A, Equipment Purchase Request/Approval Forms
DOE approval for equipment/vehicles purchased with DOE funds.
Securing Commerce’s Interest: Motor Vehicles - Original Certificate of Title for motor vehicles. See RCW 46.12.095, Requirements for perfecting security interest (http://apps.leg.wa.gov/rcw/) for information regarding Certificates of Title for motor vehicles.
Local agencies will name Commerce as legal owner/lien holder on Certificates of Title for motor vehicles. See RCW 46.12.095, Requirements for perfecting security interest (http://apps.leg.wa.gov/rcw/).
Local agencies will forward original Certificate of Title for vehicles to Commerce with the expenditure report on which they are claimed.
Securing Commerce’s Interest: Equipment - UCC filings. Check Washington State Department of Licensing’s Website (http://www.dol.wa.gov/) to download appropriate forms. Visit Special Terms and Conditions of agency Weatherization Program Grant with Commerce under Treatment of Assets.
Every five years local agencies will complete and submit to Commerce for approval, signed Uniform Commercial Code Financing Statements (Form UCC1), listing equipment other than motor vehicles and other than fixtures listed below, with acquisition costs of $5,000 or more and purchased under Commerce contracts. Go to (http://apps.leg.wa.gov/rcw/); see RCW 62A.9A, Secured transactions, sales of accounts, contract rights and chattel paper – Part 5, Filing.
Commerce will be named as Secured Party.
UCC1 statements will include the phrase: "all presently owned and after-acquired inventory and equipment."
Commerce will determine which items it wishes to continue its secured interest in from previous filings.
If approved, Commerce will sign the completed statements and file them with the Department of Licensing, UCC Division, Olympia, WA 98504.
Commerce and local agencies will keep copies of all UCC filings.
Securing Commerce’s Interest: Fixtures - UCC (2) filings. Filing will be done at the County Auditor’s Office in which the property is located. Visit Special Terms and Conditions of agency Weatherization Program Grant with Commerce under Treatment of Assets.
Local agencies will complete and submit to Commerce for approval signed Uniform Commercial Code (UCC2) Forms for fixtures (assets attached to realty) with acquisition costs of $5,000 or more and purchased under Commerce contracts. Go to (http://apps.leg.wa.gov/rcw/); see RCW 62A.9A, Secured transactions, sales of accounts, contract rights and chattel paper – Part 5, Filing.
UCC2 Forms may be obtained at the local county Auditor’s Office.
Commerce will be named as Secured Party.
If approved, Commerce will sign the completed statements and file them with the local county Auditor's Office in the county where the real estate is located.
Commerce and local agencies will keep copies of all UCC filings.
Effective Date: September 19, 2016 Page of 2
Replaces: Section 6.7 – July 2015 same as, Weatherization Grant Budget Change Request Form
POLICY 6.7 BUDGET REVISIONS Locating Approved Local Agency Budgets: Approved budgets for local agencies are included on the Face Sheet and Attachment B – Budget of the grant document.
Transferring Funds between Budget Category Line Items: Less than or equal to 5%: Local agencies may make budget revisions less than or equal to five percent (5%) of the Program Operations total without submitting a Budget Revision Request Form.
More than 5%: Local agencies must submit budget revisions more than five percent (5%) of the Program Operations total in writing (email acceptable) with Exhibit 6.7, Budget Revision Request Form to a Commerce Weatherization Program Manager. Local agencies must receive budget revision approval prior to submitting expenditure reports reflecting the revisions.
Allowable budget category line item transfers include:
Administrative funds may be transferred to Program Operations.
Program Operations are broken down into the following categories. Local agencies may transfer funds between these categories based on certain parameters. Please see Exhibit 6, Fund Matrix for more details.
Weatherization Measures (WxM)
Health and Safety Measures (H&S)
Weatherization-Related Repair Measures (WRR)
Program Support Costs (PSC)
Vehicle and Equipment
Other Program Operations Costs (Financial Audit, Liability Insurance, and Leveraging)
Wx Policy 6.7 Budget Revisions Page 2 of 2
All Training and Technical Assistance (T&TA) transfers require written approval from a Commerce Weatherization Program Manager.
Local Agency must submit any T&TA budget category fund transfer requests in writing with an Exhibit 6.7, Budget Revision Request Form. Local agencies must receive budget revision approval prior to submitting expenditure reports reflecting the revisions.
Local agencies may only transfer T&TA funds to WxM. Funds from other categories cannot be transferred into T&TA.
Before approval, Commerce will evaluate whether an agency has sufficient staff training.
If the request is approved, the T&TA budget category amount must comply with the funder’s minimum and maximum T&TA expenditure requirements.
No Adjusting after Contract Termination: No changes to the contract are allowed after the contract is terminated.
Documenting Budget Adjustments: Local agencies must retain records of all Commerce approved budget revisions and provide those records upon request.
SECTION 6.8 AUDITS
All program funds made available to Commerce local agencies will be audited annually in accordance with the following:
Generally accepted accounting principles.
The Office of Management and Budget (OMB) Compliance Supplement for Single Audits of State and Local Governments.
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations or Uniform Guidance – Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as appropriate.
DOE 10 CFR 600, Financial Assistance Rules.
All state and federal laws and regulations governing the programs in which local agencies participate.
Costs of audits will be incorporated into Commerce's contracts, charged to the local agency’s Other Program Operations category of expenditure.
If local agencies meet the threshold contained in OMB Circular A-133 or Uniform Guidance, DOE allows the costs of financial audits to come off the top of the contract.
Local agency auditing will be conducted by any of the following entities:
Office of State Auditor.
A single independent Certified Public Accountant (CPA) firm selected by Commerce.
CPA firms selected by the local agency at Commerce's discretion.
All auditors employed must provide positive assurance to local agencies that they meet required independent CPA provisions, including annual training.
Local agencies must allow Commerce access to all audit reports upon request, and if applicable, audit-finding action plans.
CHAPTER 7 Quality Assurance
Policy 7.1 Local Agency Inspection of Weatherization Work
POLICY 7.1 LOCAL AGENCY INSPECTION OF WEATHERIZATION WORK Written Internal Monitoring Procedures: Local agencies must define written internal monitoring procedures to perform regularly as a means for quality control, compliance assurance, and risk assessment. Such procedures must include written inspection procedures including the use of Exhibit 7.1A, Quality Control Inspection (QCI) Form to ensure comprehensive and consistent inspections of all units weatherized.
Final Inspection Required Prior to Completed Unit Reporting: No dwelling unit will be reported to Commerce as completed until the local agency has performed a final inspection and certified that appropriate work has been completed in a quality manner.
Validating Work Prior to Payment: Local agencies must validate and document subcontractor’s work performed prior to paying them, by confirming work is complete, verifying work is appropriate and allowable, and certifying work is performed in compliance with the Wx Field Guide and in a quality manner. Measures installed in the field require a final or an in-progress inspection
Timing of Inspections: Inspections must take place within 30 days of completion of work on the residence.
Inspector Requirements: A certified Quality Control Inspector (QCI), someone other than the auditor or the installer(s), must conduct final inspections
Exception: Local Agencies that are unable to meet this requirement for any reason including, but not limited to, staff losses or changes, must contact Commerce within 10 business days. Local Agencies may apply for a waiver from the Auditor/Inspector separation requirement. This waiver requires prior written Commerce approval.
Inspector must be certified as a Home Energy Professional Quality Control Inspector.
Exception: To perform multi-family building final inspections, in addition to the Home Energy Professional Quality Control Inspector (QCI) certification, multi-family inspectors must also receive the supplemental multi-family training and pass the test.
Wx Policy 7.1 Local Agency Inspection of Weatherization Work Page 2 of 3
The Peer Circuit Rider/Building Performance Center will provide training and testing.
Newly hired inspectors must have work reviewed by a certified QCI until they are certified.
Eligibility for the Auditor/Inspector Separation Waiver: Local Agencies may apply for an Auditor/Inspector Separation Waiver as part of their Quality Management Plan if the agency:
Has only one QCI certified staff member responsible to perform both audits and inspections,
Is transitioning between certified technical staff,
Experiences technical staff losses, or
Has another reason.
Applying for the Auditor/Inspector Separation Waiver: To request the Auditor/Inspector Separation Waiver, Local Agencies must:
Submit the Auditor/Inspector Separation Waiver Request in writing.
Provide an outline of internal controls documenting how the agency will ensure compliance.
Provide the timeframe for use of the waiver.
If waiver request is due to loss of staff, provide request within 10 days.
Qualifying for the Auditor/Inspector Separation Waiver: To initially qualify for the Auditor/Inspector Separation Waiver, Commerce will review and assess the following local agency information:
Documentation provided in waiver request,
Risk assessment score,
Previous monitoring and inspection reports,
Third party QCI inspection reports for the past year (if applicable),
Using the Auditor/Inspector Separation Waiver: To continue to use the Auditor/Inspector Separation Waiver, local agencies must:
Attach in WIDS for every project, all of the following:
Scope of Work
Audit (Standardized Audit Form) Wx Policy 7.1 Wx Policy 7.1 Local Agency Inspection of Weatherization Work Page 3 of 3
Quality Control Inspection (QCI) Form (Standardized QCI Form)
A minimum 10% of the total annual unit production must be inspected and monitored by Commerce, and
If required by Commerce, Local Agencies must use the Peer Circuit Rider program or identify a peer agency for peer exchange to consult with for 3rd party perspective.
In-Progress Inspector Exceptions: In low volume, low dollar, and low risk project situations, an in-progress inspection may be completed by appropriate staff even if they do not have QCI certification.
Since the QCI signs off on the completed project as a whole and all of the individual measures at the end, the responsibility remains with the QCI. Local agencies are ultimately responsible and liable for their QCI staff or contractors’ work. Local agencies are expected to determine reasonable risk and reach agreement with their QCI on this process prior to final inspection. For example, a specialty contractor installs a fan and the project manager or crew lead inspects fan to determine if it works.
In project situations other than low volume, low dollar, and low risk in-progress inspections require a QCI; e.g. attic insulation in multifamily weatherization represents a high dollar investment that needs an approved inspection by a QCI prior to payment.
Documenting Inspections: Local Agencies must:
Use the required QCI Form: Exhibit 7.1A, Quality Control Inspection Form
Document in the client file the signed and dated documentation (hard copy or electronic copy attached to WIDS project) of all inspections:
In-progress Inspections (if applicable): Requires appropriate staff approval and documentation.
Final Inspections: Requires QCI declaration if unit passes QC inspection (or not), QCI signature, QCI number, and expiration date. If the unit does not pass QC inspection, another Final Inspection is required.
Monitored Inspections: Requires a QCI approved final inspection and a Commerce signature.
Avoiding Third Party QCI Conflict of Interest: Any third party QCI is prohibited from inspecting their company’s work due to conflict of interest.
SECTION 7.2 COMMERCE PROGRAM MONITORING
Commerce conducts annual program monitoring in accordance with the Protocols section of the Weatherization Monitoring Manual.
Local agencies will provide Commerce field representatives with all requested information and assistance in a professional, cooperative manner and by date requested.
Local agencies will complete and submit to Commerce an annual General Weatherization Work Plan and Monitoring Questionnaire.
Questions may be addressed to the local agency during desk review prior to the monitoring visit. The local agency will respond to all Commerce questions in a timely fashion.
Local agencies are expected to ensure that necessary diagnostic equipment and appropriate employees are available throughout the duration of the Commerce site visit, including employees who may have flexible work schedules.
Requests to change a monitoring visit must be received in writing 30 days prior to scheduled visit (emergencies excluded).
Executive directors are strongly encouraged to participate in monitoring exit conferences.
Local agencies will within 30 days of receipt of the monitoring report make corrections to work quality issues and submit a written response to Commerce.
An immediate (24 hour) correction notice may be issued to a local agency for serious Health and Safety violations found during site inspections.
All Wx measures must be installed in compliance with Commerce requirements. Commerce is responsible to monitor and inspect Blended Projects and Blended Measures. Commerce will not monitor, inspect, or issue discrepancies, corrections, or findings for Utility-Funded Projects or Utility-Funded Measures.
Exception:If in the course of a Blended Project inspection a Health and Safety (H&S) hazard is discovered for a Utility-Funded Measure, Commerce will write a correction and expect the local agency to fix or remove the H&S hazard.
See the Weatherization Monitoring Manual on Commerce’s Weatherization Documents Web page.
Risk Assessment: Commerce completes an annual Weatherization Program Risk Assessment for each local agency.
Monitoring Plan: Risk assessment scores will drive the development of each Local agency’s monitoring plan for the July 1-June 30 fiscal year.
Effective Date: July 2017 Page 1 of 1
Replaces: Policy 7.4 – July 2015
Policy 7.4 Weatherization Outcomes
This policy applies to local agencies, which administer the Weatherization (Wx) Program and use Commerce administered funds.
Each fiscal year Commerce, in partnership with the Advisory Committee, will determine a set of outcome measures.
Data for the outcome measures will be pulled from WIDS and submitted invoices at the end of each quarter:
October for July-September (Quarter 1 – Summer)
January for October-December (Quarter 2 – Fall)
April for January-March (Quarter 3 – Winter)
July for April-June (Quarter 4 – Spring)
Commerce measures Weatherization Outcomes quarterly for each local agency.
CHAPTER 8 PROGRAM MANAGEMENT, ADMINISTRATION, AND REPORTING
SECTION 8.1 SOLICITING PROVIDERS FOR WEATHERIZATION PROGRAM SERVICES
Primary service delivery is provided by community-based, nonprofit, and local government agencies. Commerce defines the above entities as local agencies.
Commerce gives special consideration in designating local public or nonprofit agencies that received funds for energy related assistance programs under the 1964 Economic Opportunity Act.
Local agencies must have demonstrated, and continue to demonstrate, fiscal accountability and program effectiveness.
If, in a particular geographic area, a program or local agency has been terminated, or failed to meet Commerce's requirements in the previous program year, a successor agency that operates in substantially the same manner will be considered.