Investment Grade Audit Agreement

Prior to negotiating a contract for EMS with the most qualified person under 225 CMR 19.05(1), the Local Governmental Body shall enter into an Investment Grade Audit contract for design and engineering services with said qualified person. A Local Governmental Body shall only negotiate a contract for EMS after completing an IGA. The IGA agreement shall include the following requirements: (a) Price data on each proposed Energy Conservation Measure and Energy Conservation Project that includes a breakdown of each Energy Conservation Measure and Energy Conservation Project cost structure, mark-ups, overhead, and profit; (b) Estimated Guarantee of Savings or Energy Savings based on the specified savings calculation methodology prescribed by the most recent standards established by the Federal Energy Management Program (FEMP) Guide for Measurement and Verification; and (c) The minimum payment terms including, but not limited to, all payments to the Contractor; any related Energy Savings; revenues such as utility sponsored rebates; tax incentives or other incentives; and payments to the Local Governmental Body.