Qms lnet 0001 bundled energy solutions bes by ABMLQ

QMS: Doing the Right Things and Doing Things The Right Way

Bundled Energy Solutions a Quality Initiative

Prepared by: TLG Quality Department December 2004

QMS: Doing the Right Things and Doing Things The Right Way

Bundled Energy Solutions

a Quality Initiative Table of Contents Content

Page

Project Concept

Marketing Strategy

Process Maps

Tools Inventory

Quality Documents (SOP, WI, etc)

Initiative Measurements

134

Prepared by: TLG Quality Department December 2004

REFERENCE DOCUMENT; R-SOP-0501-3 BES PROJECT CONCEPT

QMS STANDARDS

THIS REFERENCE DOCUMENT PROVIDES INFORMATION, GUIDANCE AND/OR SUPPORTING MATERIAL TO A QUALITY MANAGEMENT SYSTEM STANDARD OPERATING PROCEDURE AND/OR WORK INSTRUCTION. THIS COVER PAGE IS INTENDED FOR INTERNAL PURPOSES ONLY AND SHALL BE ATTACHED AND MAINTAINED TO ALL REFERENCE DOCUMENTS. DO NOT PRINT THIS COVER PAGE WHEN DISTRIBUTING DOCUMENTS TO EXTERNAL PARTIES. BUSINESS UNIT: LINC SERVICE STATUS:

AREA: Product and Services TYPE OF PROCEDURE: Master Business Process

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1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 12/31/04

DOCUMENT AUTHOR: Scott Giacobbe

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APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVE WHALEY TITLE: COO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 12/31/04 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-3

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Project Concept Bundled Energy Solutions

Provide Linc customers with facility solutions that include HVAC, lighting, controls, maintenance, energy savings and financing.

Requester: Business Unit: Date: Authors:

Scott Giacobbe Linc Service April 6, 2004 Jeff Evans, Paul Harris, Bruce Phibbs, Doug Smyers, Scott Taylor

1.0 Purpose: By providing a bundled solution built around a financial sale we can increase our project margins, extend our maintenance contracts, and differentiate ourselves amongst the competition while providing more value to our customers. This project aims to define a bundled solution product geared to Linc Serviceâ&#x20AC;&#x2122;s existing/targeted customer base that is simple enough to be rolled out to the entire sales force with sufficient customer applicability as to be repeatable and structured so as to be scalable with customer/company growth. Product Value Proposition: We improve our customerâ&#x20AC;&#x2122;s energy efficiencies and infrastructure while reducing energy cost without sacrificing comfort solidifying our commitment to customer service. 2.0 Project Charter Opportunity The opportunity is to add another successful product offering/category to the traditional Linc mix by tapping into existing LINC knowledge and experience. The goal is to take advantage of the lucrative rapid growth potential that exists within the captive clients of the LINC national network maintenance base. A small number of individuals within Linc Service have been successful in selling the bundled energy services model. There are probably less than a dozen individuals in the company with BES experience. The opportunity is to translate these individual successes into a replicable, trainable and sustainable company wide program. By tapping into our base of knowledge with the experience we have, we can expand our capabilities throughout the Network, creating increased revenues and profits.

Project Concept: Bundled Energy Solutions

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This project addresses our existing problem of how to put into the hands of qualified project salespeople within the network a process that he and his principal will willingly accept, and passionately implement. This product must be tailored to the traditional network core business clients, as well as the traditional Linc principal. While many BES offerings are characterized by extended selling cycles, monitoring and verification, and guaranteed results, not all do. The complicated offerings historically have dominated, or have gotten most of the attention from the major market players (Honeywell, Siemens, etc.). Often the client simply needs to be shown the financial practicality of the proposition and what it means to his facility cost reduction programs. Our program should keep this in mind, as our normal Linc ‘strike-zone’ account is typically 60,000-150,000 square foot buildings, owneroccupied or commercial office/property management. There are probably contractors in the network with large central plants, etc., but the preponderance of our contractors is the former, not the latter. Our program must appeal to the principals (High Margins, LOW RISK). While we need to have in place everything we need to do the complicated and guaranteed performance work, our emphasis should be on our core maintenance base ‘warm’ clients as there is much to be harvested from this captive audience. If our focus goes too far in reaching at long sales cycles and performance guarantees, it might be too much of a ‘leap of faith’ to expect our conservative network principal base to support it. However, a sales process that includes the major ingredients of bundled selling, especially long-term GPM maintenance contracts, will be more acceptable to the Linc network principal base. While the process must include measurement and verification tools, and guarantee procedures, etc., the strategy for acceptance in the network should be developed around the less exotic opportunities, or those that generally exist in most Linc maintenance portfolios. Project Charter • Define and Quantify Market Potential in a Product Pro Forma – 5 year plan • Generate a Strategic Market Analysis identifying target markets • Interview and capture best practices, existing tools and processes currently employed by the LINC team members that have had success in this area. We have a wealth of information that has not yet been totally captured. This information is from: Qualifying, Action Plans, What to Look for in Surveys, Preliminary Proposals, and Letters of Intent, RFP/RFQ, Contract Documents and Ongoing Auditing Procedures. • Create a standard product lifecycle process providing step by step actions required to acquire, qualify, sell, close, implement, deliver, measure and maintain a bundled energy services opportunity. The process will be repeatable and scalable.

Project Concept: Bundled Energy Solutions

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• Design and create a training program to communicate and deploy the process throughout the LINC System. Strategic initiative This process will support our LINC Service Strategic Initiatives of: • Maintenance Base Growth • Higher Gross Margin performance • Higher account retention rates • Stimulate franchisee growth and acquisition activity • Top and bottom line growth for The Company and the Franchisee's • Value added services from us to our franchisee's and Company stores to our customers. • To obtain more negotiated large sales – separating ourselves from the competition. Business risks of not doing this project • We will fail to take advantage of our current and potential capabilities resulting in the loss of high margin projects and longer term maintenance contracts and will place us at a disadvantage among our major competitors. • Our project sales professionals will become reactive rather than proactive in developing project sales opportunities. • We lose our competitive advantage on many large projects – forcing lower profit margins and sometimes even lost business. • We allow someone else to do it first and lose this national opportunity, along with the accompanying erosion of major maintenance base clients as they give this business to others. Critical Success Factors • The BES product must be simple enough for the entire sales force to utilize energy benchmarking data to compare prospective facilities to similar buildings in the same geographical area. • Getting the Project sales reps that are bogged down with reactive projects to have the time and energy to think proactively. • Establish a ‘profile’ of a successful financial salesperson, including key attributes related to experience, perceived selling skills and understanding of the financial process sales call. • Sales activity should be monitored centrally, and include target accounts, presentation activity, results, etc. At year-end, the project group should complete an assessment and the program shortcomings discussed and corrected, and realistic network implementation dates should be set by 1/31/05.

Project Concept: Bundled Energy Solutions

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• This must be done without distracting from the day to day goals and commitments of the sales force. 3.0 Proposed Project Sponsor Scott Giacobbe 4.0 Project Outputs or Deliverables • • • • •

Defined Product Market Strategy and Penetration Goals Scalable Process and Library of Tools to execute the process Education Program Deployment strategy and plan

5.0 Project Scope This project will include the actions necessary to produce the following: 1. Defined Product 2. Market Strategy, Target Market Definition and Penetration Goals • Energy conservation measures (projects) per vertical Market • Case studies per vertical market with needs, solutions and savings • Vertical market identification • How to identify eligible clients within the vertical • How to identify and remunerate necessary strategic partners, e.g., lighting companies, financing partners, etc. • How to help customer develop RFP/RFQ. When to use each, and responses to each. 3. Scalable Process and Library of Tools • Clearly Defined Sales process including for not limited to: a. LINC Executive Summary – qualify customers b. Preliminary Survey – Assess facilities and compare to energy benchmark c. Preliminary Proposal – Present to decision maker or board for approval of a letter of intent d. Final Proposal – Present project scope of work and financial model e. Signed Agreement – Standard form of agreement including savings guarantees and terms & conditions. • Standard Tools including for not limited to:

Project Concept: Bundled Energy Solutions

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a. Executive Summary designed to qualify target market prospects. b. BES assessment guide for customer facilities – energy benchmarking c. Pro forma BES package for target customers d. Standard Letter of Intent (LOI) e. Standard proposal f. Standard terms and conditions g. Measurement and Verification Procedure to quantify actual savings 4. Education Program 5. Deployment Strategy • Capability/Needs assessment of each office. Technical capabilities such as field auditing, engineering, concept design, utility rate analysis etc. will vary widely from branch to branch. • Roll-Out/Training plan Timeframe From inception to implementation should be approximately (4) months. Rollout should be targeted as a test to the (10) Linc Service (company stores) locations. Rollout must/should be completed by September 15th, as facilities are more receptive to major modification in the colder parts of the year. Costs Regarding cost, budgets need to be established for collateral materials development, and project team meetings as considered necessary during the development phase. A rollout meeting for each location, or all locations at once, will require budgeting. On network rollout, those companies chosen for the program must be met with, and this should be done collectively for maximum impact, acceptance, and to facilitate early success. An initial budget should be established for the development phase, which includes collateral materials, and travel and entertainment charges attributable to meetings which management deems necessary, as well as initial training for the designated ‘test’ location(s). 6.0 Project Assumptions •

Market Analysis will conclude with a Pro Forma with the expected ROI to LINC to proceed with this project.

•

Appropriate funding will be available – need to identify

•

Resources will be available to participate on the team

Project Concept: Bundled Energy Solutions

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Related Business Needs to be filled with this project: • Project salespeople will improve their financial selling skills; they will also tend to look/notice building candidates as they recognize the value they can bring to a client as well as volume sales for themselves.

7.0 Plan overview Proposed plan overview. This will be modified as required upon approval of project concept and the business case. 1. Reach group agreement on Project Concept 2. Establish measurement criteria for project scorecard. 3. Define Product a. Reach group agreement on Product Definition and Name b. Reach group agreement on common lexicon 4. Create Market Strategy and Penetration Goals a. Determine market potential: 1. Existing portfolio analysis, potential penetration analysis 2. New customer potential b. Based on (a), determine the “size” of opportunities that present highest return. c. Develop Financial Plan – 5 Year Pro Forma d. Gain approval from Executive Team e. Create Marketing Plan for Deployment 1. Market Segmentation: a. Large complex vs. smaller opportunities 2. Target Market Definition 3. Target Market Sales Tools 5. Design Scalable Process and Library of Tools to execute the process a. Inventory and capture the knowledge, experience and tools that currently exist b. Document the existing process(es) c. Identify gaps, redundancies and impediments to scalability in existing process(es) d. Based on best practices and a-c above, create new process e. Analyze and inventory tools that currently exist, gaps in tools to create a toolset f. Design and create tools

Project Concept: Bundled Energy Solutions

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g. Document process and tools in final process documents 6. Assess system support requirements for the product deployment ie., regional/national support, engineering supportâ&#x20AC;Ś.. 7. Education Program a. Design program b. Create program c. Designate Sales Trainer(s) for rollout(s) 8. Deployment strategy and plan a. Conduct capability/needs assessment of each branch based on product offering requirements. b. Develop roll-out/training guide 9. Measure success 8.0 Proposed Project team 1. 2. 3. 4. 5. 6. 7. 8.

Alan Butcher Scott Giacobbe Jeff Evans Doug Smyers Paul Harris Mark Hagerman Scott Taylor Bruce Phibbs

9.0 Project Awareness Plan Groove and Portal Site

Project Concept: Bundled Energy Solutions

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REFERENCE DOCUMENT; R-SOP-0501-4 BES MARKETING STRATEGY

QMS STANDARDS

AREA: Product and Services TYPE OF PROCEDURE: Master Business Process

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 12/31/04

DOCUMENT AUTHOR: Jeff Evans, Paul Harris, Bruce Phibbs, Doug Smyers, Scott Taylor, Melissa Cipriani, Michelle DeFazio

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Michelle DeFazio; Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

12/31/04

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVE WHALEY TITLE: COO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 12/31/04 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-4

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

The LINC Group Marketing Strategy: Bundled Energy Solutions

Bundled Energy Solutions Marketing Strategy December 10, 2004

Prepared for:

Authors:

Revised 10/22/204

Scott Giacobbe Greg Lush Tracy Price Jeff Evans Paul Harris Bruce Phibbs Doug Smyers Scott Taylor

The LINC Group Marketing Strategy: Bundled Energy Solutions

BUNDLED ENERGY SOLUTIONS PRODUCT DESCRIPTION

P P o d u D e n o n Prrro od du ucccttt D De efffiiin niiitttiiio on n Bundled Energy Solutions (BES) is a combination of energy conservation solutions designed to provide our customers with a measurable return on their investment. It is built around a financial sale that can increase The Linc Group (TLG) gross profit margins, extend TLG existing maintenance contracts, and set TLG apart from the competition while providing more value to customers. The energy conservation solutions may involve a complete HVAC retrofit, lighting retrofit, VFD installation, automation retrofit, and maintenance program depending on the targeted facility’s condition and the customer’s conservation needs. BES deliverables include: 1. Linc Service Energy and Operational Analysis (LSEOA) 2. Project Management 3. Measurement and Verification 4. Performance Guarantee Defining the BES solution in terms of these four deliverables provides both LINC and the customer with flexibility to easily present the BES opportunity to a broad population of prospects from existing customers with smaller facilities that may not be interested in performance guarantees to the larger more complex opportunities such as colleges or large manufacturing plants that are looking for a complete solution inclusive of performance guarantees. B B E S D e v e a b e D e n e d BE ES SD De ellliiiv ve errra ab bllle esss D De efffiiin ne ed d 1. Linc Service Energy and Operation Analysis D D e n o n efffiiin niiitttiiio on n::: A complete assessment of current equipment condition and energy usage of the De facility, recommended facility enhancements and analysis of potential savings that can be realized by the customer. D D e v e a b e De ellliiiv ve errra ab bllle esss::: Linc Service Energy and Operation Report, Savings Recommendation Report, Potential Savings Analysis, Project Proposal A h A p p o a h::: Following the initial sales presentation of the concept and agreement to move Ap pp prrro oa accch forward by the potential customer, a Feasibility Study with on-site evaluation and customerprovided utility data is conducted using a series of standardized tools. 2. Project Management D D e n o n De efffiiin niiitttiiio on n::: Upon completion of the Feasibility Study with the customer’s authorization to proceed, LINC commences project installation managing the entire process for the customer. D D e v e a b e De ellliiiv ve errra ab bllle esss::: Turn-key Installation, O & M’s, Customer Training, Energy Usage Benchmarking A A p p o a h pp prrro oa accch h::: This service starts with a project kick off meeting with the customer where the Ap project plan is jointly prepared and agreed upon. TLG Project Managers assume ownership and accountability from the beginning to the final walk through which is key to the success of any multi-discipline installation.

BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

3. Measurement and Verification D D e n o n De efffiiin niiitttiiio on n::: Upon completion of project installation, TLG will commence the monitoring of the customerâ&#x20AC;&#x2122;s energy consumption by analyzing utility bills to measure the performance of the new installations against the projected energy savings and ROI presented and agreed upon in the terms of the BES Contract. D D e v e a b e De ellliiiv ve errra ab bllle esss::: Monthly and Annual M&V Reports, Contract Performance Analysis, Contract Reconciliation A o a h A p p oa accch h::: Measurement and verification consists of gathering benchmark energy costs prior Ap pp prrro to the project work commencing. Once the project work has been completed and project acceptance has been jointly agreed upon by both the customer and TLG, the measurement and verification is coordinated with the customer and measurement and verification engineer. Monthly energy bills are collected and input into TLG M&V tools. The data is used to assess the energy savings realized, or not, by the customer. The data is used for monitoring all contract performance including performance guarantee contracts. 4. Performance Guarantee D D e n o n De efffiiin niiitttiiio on n::: Performance Guarantee is an option that can be based on operational and/or energy savings agreed upon with the customer. LINC and the customer design and agree on the terms of the performance guarantee which are then documented in the customer contract. D a b e D e v e bllle esss::: Performance guarantees as defined in the customer contract. De ellliiiv ve errra ab A A p p o a h Ap pp prrro oa accch h::: LINC and the customer review the Energy Savings Analysis reports, Measurement and Verification reports and processes and identify agreed upon Performance Guarantees. These guarantees can be based on Operational and/or Energy Savings.

II.

OUR CUSTOMERS

A. Market Segmentation For any new product introduction it is important to design mechanisms to capture data that measures the performance of the product in the marketplace. This data is basic to understanding the impact of the product in the marketplace as well as to the TLG organization. When designing the measurement mechanisms for BES it became clear that there are two distinct types of BES opportunities for TLG to pursue; large complex facilities with single or multiple facilities with over 100,000 square feet and the smaller facilities with single locations typically having buildings with less than 100,000 square feet.

BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

Each of these two types of contracts may potentially generate two very different ROI and Profit Margin scenarios based on the cost of the resource investment required to close a deal, implement and manage through the term of the contract. As a result, the BES core team recommends that all Financial and Management reporting systems track and measure the BES portfolio in terms of these two types of opportunities: Select Segment = Opportunities with < 100,000 square feet Key Segment = Opportunities with 100,000 square feet or more Segmenting the portfolio and reporting in this fashion will enable LINC local and corporate management teams to focus resources on the opportunities that yield the most benefit. Segmenting the potential market in this fashion is also necessary as our franchisees and company owned stores all have varying magnitudes of customer base and resources. Due to this fact, not everyone will be receptive to costly sales cycles with no guarantee of closing the deal. In addition, if their existing customer base is made up of predominantly Select customers, and they don’t have the manpower or resources to go after new and larger scale Key customer, they will need to have an alternate recourse if they want to pursue BES opportunities. Moreover, they could argue that it would not be prudent for their precious resources to go after long-term sales cycles, which would otherwise be focused on low-risk opportunities. To this end, it is critical to define the market segmentation of targeted customers for BES opportunities, which will apply to both new and existing customers. Select or Key Customer Segment identification for existing customers can be performed as part of the initial deployment of BES to franchisees. With the deployment of FX throughout TLG, it will be much easier to identify the market segmentation of our existing customer base. FX has the capability of having each customer identified simply by attaching a definition to a symbol. For example, a customer record with a Gold Star next to its name can be determined as a “Key Customer”, etc. Each customer can also be categorized according to the target market listed above and customer records can easily be sorted as such.

B. Vertical Target Markets The BES Core Team has identified three vertical markets which present the most potential for BES growth opportunities based on current success and experience. Market Education

Commercial Industrial Facilities

Description Private K-12, Public K-12, Junior Colleges, Private Colleges, State Colleges, Religious schools, etc., all of which have their own unique purchasing processes. Owner occupied commercial facilities that have air conditioning and heating equipment Facilities that manufacture goods for consumption

Defining vertical markets enables LINC to focus resources to:

BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

• • • • •

III.

identify opportunities that generate the ROI and PM expected, or not identify opportunities that are most likely to purchase BES (low hanging fruit), or not tailor marketing messages, materials and tools aimed at closing deals quickly and easily refocus LINC organization to most profitable opportunities “deep dive” into market to understand needs, buying habits and processes, trends, motivators, lead generators i.e. trade associations, membership organizations…

POTENTIAL/FINANCIAL PROJECTIONS A. CURRENT OPPORTUNITIES Customer Base Existing Linc Service companies and franchises have the ideal customer base for applying this solution. Linc typically services accounts that have older buildings and inefficient equipment whose performance have been extended through maintenance services by Linc. This solution will provide our customers with added value and at the same time ensure account retention. Sales History As of 2004, there are 31 maintenance contracts sales representatives within 11 company owned locations. About half sell service agreements and the other half sell projects. In 2003, we sold BES Contracts totaling approximately $6 million in BES revenue. These contracts were sold primarily with project sales people teaming with service agreement sales people. In 2004 we will have booked approximately $12 million in BES revenue. BES Potential – Existing Portfolio As of May 2004, nine of the ten TLG service companies (data from Florida was unavailable) have a combined maintenance contract base value of $15.1 million with a total of 1,270 agreements. The following tables illustrate BES opportunities within our existing customer base. Table 1

TLG Existing Portfolio Analysis Total Revenue (millions) Total # of Agreements

$15,107 1,268

HVAC Upgraded % (Not Eligible)

26.11%

Lighting Upgraded % (Not Eligible)

48.89%

Combined Equipment Upgrade Opp % *

62%

*Combined Equipment Upgrade Opportunity = Eligible for retrofit or installation of HVAC, lighting

BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

Table 2

TLG BES POTENTIAL Existing Portfolio Penetration Analysis

Square Footage

Select Segment 50,000 to 100,000 sq ft Key Segment >100,000 sq ft Total # of Existing BES Opportunities

# of Existing Agreements

Combined Equipment Upgrade Opp

Project Annual Revenue per contract

Projected Potential

263

163

$150,000

$24.4m

161

100

$500,000

$50m

424

263

$74.5m

BASED ON EXISTING APRIL 2004 The opportunities for BES for both Select and Key customers based on square footage vs. the total number of current maintenance agreements may seem a low percentage at 33% (1,268/424). However, the equivalent projected revenue associated with this percentage is impressive at $74.5 million. In addition, this percentage does not include existing customers without maintenance contract agreements. Within our customer base, we have captive or “warm” clients some of which may not have a maintenance agreement with Linc. A critical step in BES selling is setting a first appointment to present the concept and having captive or “warm” clients will make this easier for sales personnel and will also present Linc with the most rewarding means to secure a maintenance contract agreement with a previously non-contracted customer. B. NEW OPPORTUNITIES The pursuit of new sales opportunities or “cold selling” of any product is inherently more difficult than “warm selling” and the same can be said for BES sales. However, for TLG the market potential for new BES opportunities is even greater than those that can be garnered from our existing customer base. The typical customer base of a TLG service company is comprised of 60-150,000 square foot, owner-occupied or property managed office buildings. Therefore, outside of our existing customer base are potential BES customers with larger square footage which translates to more lucrative opportunities for our network. C. PROJECTION Whether new or existing customers, there is an abundant market for BES opportunities. In buildings 50 to 150,000 square feet, it is largely an ignored market by competitors and this building size range represents the preponderance of our collective national maintenance base. Based on our BES sales history, the recommended approach would be to set a sales goal for each location and encourage team selling.

BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

If each location were to sell $500,000 in BES product, sales would increase by $5 million and generate an estimated $2 million in gross profit margin (based on historical BES sales data). Based on the projected figures shown in Table 2 above, our current maintenance contract base has the potential to yield approximately $74.5 million in BES sales. This may be an aggressive projection given the 100% closure rate but it clearly shows the revenue potential exists within our customer pool. Product Potential Pro Forma (1-7 Year Analysis) BASED ON ANALYSIS OF REVENUE AND COSTS OF CURRENT TLG BES CONTRACTS

YEAR

20051 2006 2007 2008 2009 2010 2011 1

PROJECTED REVENUE POTENTIAL (IN MILLIONS)

$5 1 $7 $9 $12 $15 $17 $20

PROJECTED POTENTIAL GPM @ 35% (IN MILLIONS)

$1.75 $2.45 $3.15 $4.2 $5.25 $5.95 $7

$5 M already included in current 2005 Plan

The core team recommends that all resource discussions, planning and projections focus on both the resources required for all stages of BES customer relationship management including Sales and Delivery/Measurement as the year progresses. This would be the responsibility of the BES Product Leader. The BES Pro Forma would be modified to reflect the trends and needs of the BES product deployment. The net gain every year will increase proportionately to the number of dedicated, committed sales reps trained to successfully close BES deals. The core team believes that if we do not dedicate resources over time, we will continue to sell somewhere between $3,000,000 and $6,000,000 year after year. One great thing about this process is, we are putting process and measurements to something we are already doing in 45% of our company owned stores now. This reduces our risk with the projects we are selling now and will sell in the future, even if we do not add resources. Ultimately, the TLG success at closing BES deals will be determined by the success of the GMâ&#x20AC;&#x2122;s who will be the champions in their locations to implement the BES process. Expected LINC Investment includes: 1 Full Time Energy Engineer hired in 2005 1 Full Time BES Business Development Executive hired Marketing / Advertising Costs Administrative Costs Education and Training Costs Additional Sales, Delivery and M&V resources will be determined based on the TLG Strategic goals and financial commitment to the Product. Measurements have been recommended that will provide TLG Management with the information necessary to BES Marketing Strategy Revised 12/07/2004

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The LINC Group Marketing Strategy: Bundled Energy Solutions

understand the performance of the portfolio and what is possible in order to make the appropriate business decisions that would ultimately affect costs. IV.

MARKETING APPROACH With increasing utility costs and demands for operational cost reduction, there is clearly a lucrative market potential for BES right now and for Linc Service, its implementation is over due. The typical customer model base of Linc Service companies and franchises that have older buildings is an ideal scenario, ripe for a BES solution. The BES Master Business Process has been designed and documented during the first phase of this project. The final BES Master Business Process can be found in SharePoint. Some of the recommended Marketing Tools to be developed include but are not limited to: • • • • • • • • •

Glossy Sales Brochure Developed for Identified Target Markets Case Studies Customer References Customized Action Plan BES Sales Process Letter of Intent Contract Document Training Program Branch Assistance in Success/Risk Factor Determination

SALES APPROACH Existing sales people will be trained to sell the BES product. The sales process employed will mirror the LINC Selling System. No additional sales resources will be required to deploy this product. The success of the sale of this product will be directly affected by our ability to develop and deliver an effective training program and BES Product Tool Kit to our existing sales force.

VI.

PROCESSES Best practices have been identified by LINC personnel whom have been successful in closing and implementing BES deals. These best practices have been documented using the Quality Management System Business Process Analysis. A BES Master Business Process has been documented and agreed upon by the team. This BES Master Business Process can be found on TLG portal. Processes and supporting tools have been documented for the following: • • • • •

Identifying prospects Qualifying prospects Concept Meeting Feasibility Assessment Feasibility Verification

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The LINC Group Marketing Strategy: Bundled Energy Solutions

• • • • • • •

Comprehensive Technical Study Final Proposal Implementation Project Acceptance Account Management Measurement and Verification CARE

The processes employed by TLG will be consistent for all opportunities in each market segment and each target market vertical. What will vary based on the market segmentation of each opportunity will be the degree to which each process is carried out and the amount of resources and cost necessary to execute the process. VII.

MANAGEMENT APPROACH In order for any corporate initiative to be successful, roles need to be clearly identified from its inception. These roles may either be existing personnel whose BES responsibilities will be included with his current roster, or a new hire if a void exists for a critical position. Role

TLG Level

New or Existing Position

Responsibilities

Business Development and overall Product Management

Corporate Level

New Position in 2005

• • • • • • • • •

Product Manager

Branch Level

Existing Position General Manager/ Sales Manager

• • • • •

BES Marketing Strategy Revised 12/07/2004

Oversee product implementation, initially at LSH stores Oversee product performance of all TLG business units Set business unit BES sales goals and GPM projections Generate sales tracking tool or format Provide guidance to business units on sales strategy Report product company performance to executive management Monitor compliance of BES Process and set corrective or preventive actions where necessary Analyze existing customer base penetration Etc Oversee product performance at branch level Ensure branch sales goals and GPM projections are met or exceeded Provide guidance to sales staff on sales strategy Report branch product performance to Business Unit Product Manager via established sales reporting format Monitor compliance of BES process and sets corrective or preventive actions

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The LINC Group Marketing Strategy: Bundled Energy Solutions

Role

TLG Level

New or Existing Position

Responsibilities

• Project Manager

Account Manager

Branch Level

Existing Position – Project Managers

•

With Regional Oversight from Regional M&V Engineer

•

Existing Sales Personnel and/or General Managers

•

• • • • • • • • •

M&V Engineer(s)

Regional

New Position – 1 additional Full Time And Training of Existing Personnel for the administration of the M&V Process

• • • • • • •

where necessary Etc Oversee and manage project installation and implementation Implement proposed work based on Facility Assessment & Engineering services Work with lighting partner and other subcontractors Communicate project status to customer and sales personnel Operation and Maintenance Manuals Customer Training Etc Product selling Contract execution Project hand off to Project Implementation team Liaison between Project Implementation Team and customer Etc Facility and Assessment Report Estimating and proposal assistance ROI/payback calculations Post project monitoring and verification Assist account manager in providing customer performance or ROI verification Performance guarantee verification/ confirmation Etc

VIII. MEASUREMENT APPROACH Measuring the success of this initiative is vital to understand if the strategy is the right one for LINC and if so, how successful is it, and if not, what must be done to change course and limit our losses. The following measurements are recommended by the core team. The targets are to be established by the BES Product Manager, Vice President of Sales and other key executives.

BES Marketing Strategy Revised 12/07/2004

Page 9 of 11

The LINC Group Marketing Strategy: Bundled Energy Solutions

The recommended measurements have been designed to measure three aspects of the new product launch: 1. Business Strategy Metrics: Measure our performance to ensure we are meeting financial and business objectives (Margins, EBIT, Revenues, Existing Customer Penetrationâ&#x20AC;Ś) 2. Process Metrics: Measure the overall effectiveness of our BES business processes (methodology) to ensure that standards of quality are being met. 3. Customer Metrics: Measure both customer satisfaction and contract performance. Measurement Type

Metric

Strategy that the metric will validate

Business Strategy

1. BES Volume a. New Customers b. Existing Customers

Increase volume / revenue

2. Revenue

Process Strategy

define a (BES) product geared to Linc Serviceâ&#x20AC;&#x2122;s existing/targeted customer base

3. BES Margin

Increase project margins

4. MC Volume

Extend our maintenance contracts

5. Target Market Penetration 1. Sales Cycle 2. Number of Offices closing deals

Repeatable Scalable Simple

Of the $22 Million TLG Goal we would hope that $5 Million

increase our project margins

By how much?

3. BES Margins

Customer Strategy

4. Project Implementation Commitment On-time and within Budget 1. Performance Guarantee % 2. Customer Satisfaction

Expectation

3. Contract Performance

BES Marketing Strategy Revised 12/07/2004

Page 10 of 11

REFERENCE DOCUMENT; R-SOP-0501-1 BES PROCESS MAPS

QMS STANDARDS

AREA: Product and Services TYPE OF PROCEDURE: Master Business Process

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 12/31/04

DOCUMENT AUTHOR: Jeff Evans, Paul Harris, Bruce Phibbs, Doug Smyers, Scott Taylor

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Michelle DeFazio

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

12/31/04

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 12/31/04 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-1

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Process: Process ID: Reference ID: Process Owner: Revision Date:

The LINC Group: Bundled Energy Solutions SOP-0501 BES Master Business Process R-SOP-0501-1 Bruce Phibbs 12/20/04

Process End

Process Start

End of Contract Term

LOI Terms Executed

Prospecting

Account / Project Modifications as needed

Originate Customer

Customer Assurance Review and Evaluation Delivery / M&V

No No

Final Proposal Contract

Qualification

Measurement and Verification (Reconciliation)

Contract

Business Case

Delivery / M&V

Master Business Process

Profile Customer

Concept Meeting Profile Customer

Feasibility Study

Project Modifications as needed

Needs Assessment

Account Management Delivery

Yes

Feasibility Verification Needs Assessment Function Legend Customer / Prospect Engineer (Energy / M&V) Executive Team (LINC) LINC Office Services Project Manager / Team Sales / Account Manager Sub Contractors

Feasibility Proposal

Implementation Transition

Needs Assessment

Letter of Intent

Yes

Project Acceptance Transition

Comprehensive Technical Study Needs Assessment

Technician

NODE:

1.0.0

TITLE:

Bundled Energy Services Master Business Process

NO.:

040405 MD

1 of 13

Prospects - New Customers

Process: Process ID: Process Owner: Revision Date:

Legend

Bundled Energy Solutions: Prospecting WI-LSH-0101 Bruce Phibbs 12/20/04

Unsolicited

Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

New Prospect Contacts Linc Service to inquire about Service

Process Start

Assess Existing Customer

Upsell Technician is trained to identify up sell opportunity

Technician Routine Call

Qualify

BES Opportunity Checklist

Technician

Process Start

Report existing customer as BES prospect to Sales Lead Person

N Update Customer File as "NO BES PROSPECT" or Sales Prospect Database

Cold Call

Sales

Process Start

Obtain Lead Lists based on Target Market Defintion & Sources (Includes Branch Specific Target Market)

Upsell

Process Start

Existing Customer Files canvassed Target Market Defintion & Sources (Includes Branch Specific Target Market) FieldCentrix

Update Customer File with Prospect Info CRM

Initial Qualification using D&B, Internet... BES Opportunity Checklist

Work Order is generated for next PM visit FieldCentrix

Pull file on existing customer and assess BES Opportunity Checklist

Process End

Qualify

Update Customer File as "NO BES PROSPECT" or CRM

Existing customer files are assessed

Qualify

BES Profile Customer Process

Process End

BES Opportunity Checklist

Update Customer File as "YES BES PROSPECT" or CRM

NODE:

1.0.0

TITLE:

Bundled Energy Services: Prospecting

NO.:

040421 MD

2 of 13

Process: Process ID: Process Owner: Revision Date:

Bundled Energy Solutions: Qualification WI-LSH-0201 Bruce Phibbs 12/20/04

Prospects - New and Existing Customers DECISION MAKER

Listen to value proposition, provide further info, including Senior Desicion Maker BES Qualification Checklist

Process Start

Prepare for initial prospect contact by reviewing BES Vertical Market Sales Guides

Legend Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Coordinate Meeting

Phone Call to Prospect set up initial meeting BES Talking Points, BES Qualification Checklist

Set up on site meeting with decision makers

Get appointment.

Update Customer File as "YES BES PROSPECT" or CRM

Sales

Still Qualify

NODE:

1.0.0

TITLE:

Update Customer File as "No BES PROSPECT" or CRM

Bundled Energy Services: Qualification

Process End

NO.:

040421 MD

3 of 13

Prospects - New and Existing Customers DECISION MAKERS

Process: Process ID: Process Owner: Revision Date:

Bundled Energy Solutions: Concept Meeting WI-LSH-0202 Bruce Phibbs 12/20/04

Technician

Process Start

Approval for Feasibility Study/ Proposal

Participate in meeting

For existing Customers: Provide data, insight to sales for initial presentation

Determine all LINC personnel to be included in developing and delivering the Presentation AND team members required to implement if the deal is closed.

Sales

Legend Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Contact all team members to inform them of status of prospect, solicit their input and plan for potential implementation

Prepare Inital Sales Pres. tailored to customer / industry BES Executive Summary Template, BES Action Plan Customer Summary

Prepare and incorporate BES Action Plan Customer Summary into presentation

Deliver Presentation in a colnsultative selling role Completing BES Qualification Checklist, BES Executive Summary, BES Action Plan Customer Summary

Update Customer File as "No BES PROSPECT" or CRM

During meeting determine if they still qualify

During meeting determine if other meetings will be required and schedule

Y N

Update Customer File as "YES BES PROSPECT" or CRM

Process End

1.0.0

TITLE:

Bundled Energy Services: Concept Meeting

BES Action Plan Customer Summary Signed by Prospect

Still Qualify

Communicate with Prospect indicating that we are not moving forward

NODE:

Gain approval to conduct a feasibility study

BES Feasibility Study

NO.:

040421 MD

4 of 13

Process: Process ID: Process Owner: Revision Date:

Legend

Bundled Energy Solutions: Feasibility Study WI-LSH-0301 Bruce Phibbs 12/20/04

Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

3rd Party Financier

Prospect

Coordinate Study with all Customer Resources

LINC TECH Sub Contractors

Coordinate Feasibility Study with all Sub Contractors

M&V Engineer

Contact 3rd Party Financier to determine options to be presented in Feasibility Study

Coordinate Feasibility Study with M&V Engineer

Coordinate Feasibility Study with all Resources

Conduct Study

Sales

Determine resources needed for Feasibility Study based on BES Qualification Checklist BES Feasibility Study Template 8h N

Internal Review Team (Could be Exec, Mgr...)

Process Start

NODE:

RFP, RFI, RFQ Submitted?

Coordinate Consolidation of Data from subs and team

Team Review of RFP.RFI.RFQ requirements. Assess if we want to continue. If so, compare BES Feasibility Study Template with reqts, add addendum if needed to acquire all data necessary for response.

Process End

Analyze Data ECM Checklist (BP) LINC Owning and Operating Cost Worksheet LINC Pricing Tool for Projects LINC Pricing Tool for Maintenance Energy Savings Analysis BES Financial Cost and Savings Analysis Tool LINC Selling Systems Analysis Tool LINC BES Scope of Work Document Lease Purchase Cash Flow Spreadsheet LINC Internal ROI Analysis & Risk Study Template Energy Cost Database and Spreadsheet Metrix Energy Analyser Generate LINC BES Scope of Work Document BES Summary of Cost / Savings (incl. potential Financing / payment schedule) LINC Internal ROI Analysis & Risk Study Communicate with Prospect indicating that we are not moving forward

Update Customer File as "No BES PROSPECT" or CRM

Present to internal team for approval to move forward LINC SAM Process, LINC BES Scope of Work Document BES Summary of Cost / Savings LINC Internal ROI Analysis & Risk Study

Feasibility Verification

Update Status in CRM

Approve, Modify or Deny LINC SAM Process

Still Qualify

N 1.0.0

TITLE:

Bundled Energy Services: Feasibility Study

NO.:

040421 MD

5 of 13

Process: Process ID: Process Owner: Revision Date:

Legend

Bundled Energy Solutions: Feasibility Verification WI-LSH-0302 Bruce Phibbs 12/20/04

Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Prospect Decision Maker

Prospect Technical Resource

Customer Technical Review - verify data from a technical perspective

Verify data / Confirm Decision Maker(s) and Decision Making Process

Coordinate Meeting with Prospect for Onsite Verification

Sales

Process Start

Verification ONSITE Call to Customer to verify costs, present high level recommendations and get a feel for customer focus, hot buttons and interests LINC BES Scope of Work Document BES Summary of Cost / Savings Cash Flow Analysis

Trial Close (Feedback to be used to formulate Sales Strategy )

If necessary, make changes and present to internal team for approval to move forward LINC SAM Process, LINC BES Scope of Work Document BES Summary of Cost / Savings LINC Internal ROI Analysis & Risk Assessment

Determine if RFP or RFP is required

Internal Review Team (Could be Exec, Mgr...)

RFP/RFQ

NODE:

Process End

1.0.0

TITLE:

Communicate with Prospect indicating that we are not moving forward

Gain agreement to work with Prospect to author or to eliminate need for RFP/RFQ

Update Customer File as "No BES PROSPECT" or CRM

Bundled Energy Services: Feasibility Verification

BES Feasibility Proposal

Update status in CRM

Approve, Modify or Deny LINC SAM Process

Still Qualify

NO.:

040421 MD

6 of 13

Prospect

Process: Process ID: Process Owner: Revision Date:

Legend

Bundled Energy Solutions: Feasibility Proposal WI-LSH-0303 Bruce Phibbs 12/20/04

Process Start

RFP, RFI, RFQ Exists

Coordinate meeting with decision makers

Prepare Response in format required by RFP, RFI, RFQ

Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Participate in Meeting

Approve and Sign LOI Letter of Intent

Legal begins review process

Presentation Feasibility Proposal or RFP,RFI,RFQ, Letter of Intent, BES Action Plan Customer Summary, Contract Example

Agree on terms of LOI Letter of Intent

Provide Sample Contract Wording for Customer Legal Review BES Contract Template

BES Comprehensive Technical Study

Y Prepare Feasibility Proposal Feasibility Proposal Template

Sales

Obtain approval to move forward to a Comprehensive Technical Study

Prepare BES Letter Of Intent to move forward BES Letter of Intent Template

Coordinate meeting with Customer and internal team members

Communicate with Internal Review Team (SAM) Reason for not moving forwarrd

Move Forward

RFP, RFQ, RFI

Update Customer File as "No BES PROSPECT" or CRM

Complete process as dictated by RFP, RFQ, RFI

Update status in CRM

File LOI or RFP, RFQ, RFI and forward copy to LINC Contract Administration

LINC Contract Administrator

Process End

NODE:

LINC Contract Administration Process

1.0.0

TITLE:

Bundled Energy Services: Feasibility Proposal

NO.:

040421 MD

7 of 13

Bundled Energy Solutions: Comprehensive Technical Study WI-LSH-0304 Bruce Phibbs 12/20/04

Prospect Team (incl Tech Resource)

Process: Process ID: Process Owner: Revision Date:

Legend Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Coordinate Study with all Customer Resources

LINC TECH Sub Contractors

3rd Party Financier

Contact 3rd Party Financier to confirm, modify options to be presented in Feasibility Proposal

M&V Engineer

Coordinate Study with all Sub Contractors

Coordinate Study with M&V Engineer

Sales

Coordinate Comprehensive Technical Study with all Resources

Process Start

Determine resources needed for Comprehensive Technical Study based on BES Feasibility Proposal Template BES Feasibility Study

Conduct / Participate inStudy BES CTA GUIDE

Coordinate Consolidation of Data from subs and team

Analyze Data Using same tools used on Feasibility Proposal: LINC Owning and Operating Cost Worksheet LINC Pricing Tool for Projects LINC Pricing Tool for Maintenance Energy Savings Analysis BES Financial Cost and Savings Analysis Tool LINC Selling Systems Analysis Tool LINC BES Scope of Work Document Lease Purchase Cash Flow Spreadsheet LINC Internal ROI Analysis & Risk Assessment Template Energy Cost Database and Spreadsheet Metrix Energy Analyser

Internal Review Team (Could be Exec, Mgr...)

Generate LINC BES Scope of Work Document BES Summary of Cost / Savings LINC Internal ROI Analysis & Risk Assessment

NODE:

Process End Entire Comprehensive Technical Study can take 2-4 weeks

1.0.0

TITLE:

Communicate with Customer indicating that we are not moving forward

Update Customer File as "No Go" or CRM

Bundled Energy Services: Comprehensive Technical Study

BES Final Proposal

Deal Size > $x

Update status in CRM Send to Atlanta for approval

Service Manager Assigned to Lead Project

Present to internal team for approval to move forward LINC SAM Process, LINC BES Scope of Work Document BES Summary of Cost / Savings LINC Internal ROI Analysis & Risk Assessment

Approve, Modify or Deny LINC SAM Process

Approved

N NO.:

040421 MD

8 of 13

Process: Process ID: Process Owner: Revision Date:

Legend

Bundled Energy Solutions: Final Proposal WI-LSH-0401 Bruce Phibbs 12/20/04

Prospect

Coordinate meeting with decision makers

Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Approve and Sign Contract BES Contract

Participate in Meeting

3rd Party Financier

Coordinate any changes to FInancing with 3rd Party

Prepare Final Proposal Final Proposal Template

Process Start

Coordinate meeting with Customer and internal team members

Presentation Final Proposal

Sales

Prepare BES Contract BES Contract Template

Obtain approval to close deal (this may take several days / weeks)

Close Deal

File Contract / forward copy to LINC Contract Administration

Negotiate / Agree on terms of Contract based on Final Proposal BES Contract

Update Status in CRM

LINC Contract Administrator

Process End

NODE:

1.0.0

TITLE:

Communicate with Internal Review Team Reason for not moving forwarrd

Update Customer File as "No Deal" or CRM

Execute Letter of Intent

LINC Accounts Receivable Process

LINC Contract Administration Process

Bundled Energy Services: Final Proposal

Sales Handoff Meeting with Implementation Team

LINC Contract Approval Process

BES Implementation

LINC Contract Administration Process (Booking etc...)

NO.:

040421 MD

9 of 13

Customer

Process: Process ID: Process Owner: Revision Date:

Bundled Energy Solutions: Implementation and Project Acceptance WI-LSH-0501/0502 Bruce Phibbs 12/20/04

Review / Gain Approval Plan BES Scheduler, BES Estimate/ Cost Tracker.xls

Sub Contractors and Financiers (if application)

Process Start

Review Plan / Obtain Committments to Schedule

Customer Project Acceptance Sign Off and Final Payment BES Project Acceptance Sign Off

LINC Sub Contractor Management Process

LINC "CORP" Resources Project Manager

Assist Client in setting up Budget Allocations for Project

Legend Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Review Plan / Obtain Committments to Schedule

Prepare for Project Implementation BES Project Management Guide Using the Final Customer Work Scope

Assemble Internal Implementation Teamto review Project

Create Project Plan BES Scheduler, BES Estimate/ Cost Tracker.xls

Determine Internal and external resources required

Meet with external resouirces to review project and obtain timeline committments

Coordinate meeting with Customer and internal team members

Execute Project BES Project Management Guide, BES Scheduler, BES Estimate/Cost Tracker.xls

BES Measurement and Verification (Pre Project/ Install)

Customer Project Acceptance

File Contract / forward copy to LINC Contract Administration

Determine outstanding issues and coordinate completion

Update Status in CRM

LINC Contract Administrator

Account Management

NODE:

Entire Implementatio can take 4-6 months

1.0.0

TITLE:

LINC Accounts Receivable Process

Bundled Energy Services: Implementation

LINC Contract Administration Process

NO.:

040421 MD

10 of 13

Customer

Process: Process ID: Process Owner: Revision Date:

Bundled Energy Solutions: Account Management WI-LSH-0601 Bruce Phibbs 12/20/04

Tools noted in blue not currently exist but may need modification

Process Start

Review communication & account mgmt plan w/ Customer BES Account Management Plan Account Manager or Sales or Project Manager

Legend Tools noted in red do not currently exist

Financial Review

Account Status Reporting

Quarterly Account Review with Management Team

Customer Meetings

On Site Customer Review (Energy Audit...)

Update Internal and Customer Status Reports with updated information

BES Measurement and Verification (Post Project/ Install)

Monthly

Identify Next Generation of Customer Relationship

Qtrly

Annually Contract Expiration

Contract Review / Audit

Meet our Committments

Update Status in CRM

Customer Assurance Review and Evaluation

Customer Financial Renumeration

Are #'s on track

Update Internal and Customer Status Reports with updated information

Project Manager/M&V Engineers

BES Implementation Process

LINC Executive and Business Unit Teams

Identify changes in course/projects... that must take place to meet performance gaurantee

NODE:

1.0.0

TITLE:

Bundled Energy Services: Account Management

NO.:

040421 MD

11 of 13

Process: Process ID: Process Owner: Revision Date:

Bundled Energy Solutions: Measurement and Verification WI-LSH-0701 Bruce Phibbs 12/20/04

Customer Account Manager or Sales or Project Manager Which is it? Measurement and Verification Engineer (jeff Evans)

Tools noted in blue not currently exist but may need modification

Review and Sign Off (this is our benchmark for performance gaurantee)

Compile and forward Energy Bills for Pre-Install M&V Report (Metrix)

Agree to Customer Process for sending Energy Bills to LINC

Process Start

LINC Contract Management

Pre Install

Post Install Energy Audit is analyzed against Performance Gaurantee Expectations

Enter Energy Bill data into Metrix Generate Report Estimated Energy Savings Report Post Install

Review with Customer and obtain Sign-Off from Customer

Review with Customer Process for sending Energy Bills to LINC

Customer Energy Bill Processing

Determine if numbers are on track or not and prepare analysis for Account Mangement

Request Energy Bills from Customer for 2 year period

Using Energy Audit Data from Comprehensive Technical Study Complete Pre-Install M&V Report

Enter baseline year energy bills into Metrix

Finalize Pre-Install M&V Report

and Analyze

Copy to Sales/Acct Mgr

Process Start

LINC Account Management

NODE:

Legend Tools noted in red do not currently exist

LINC Account Management

1.0.0

TITLE:

Bundled Energy Services: Measurement and Verification

NO.:

040421 MD

12 of 13

Bundled Energy Solutions: Customer Account Review and Evaluation WI-LSH-0702 Bruce Phibbs 12/20/04

Legend Tools noted in red do not currently exist Tools noted in blue not currently exist but may need modification

Customer

Process: Process ID: Process Owner: Revision Date:

Account Manager or Sales or Project Manager Which is it?

Process Start

Customer Assurance Review and Evaluation

Corrective or Preventive Actions

SOP-0163_QA-Corrective and Preventive Action BES Issues Log QMS Corrective and Preventive Actions Library

Update status in CRM

LINC Team

Account Management Process

QMS Manager

Work with LINC and Customer Teams to implement corrective and preventive actions

NODE:

1.0.0

TITLE:

Bundled Energy Services: Customer Account Review and Evaluation

NO.:

040421 MD

13 of 13

REFERENCE DOCUMENT; R-SOP-0501-2 BES INVENTORY OF TOOLS

QMS STANDARDS

AREA: Product and Services TYPE OF PROCEDURE: Master Business Process

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 12/31/04

DOCUMENT AUTHOR: Jeff Evans, Paul Harris, Bruce Phibbs, Doug Smyers, Scott Taylor

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Michelle DeFazio; Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

12/31/04

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 12/31/04 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-2

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Bundled Energy Solutions Inventory of Tools

R-SOP-0501-2

The following tools were identified by team members during the Business Process Inventory interviews. Clearly there is an opportunity to condense and streamline the tools. It is anticipated that teams will be formed and assigned to evaluate these tools and to condense and streamline based on the process that the tool is supporting.

Process

Prospecting

Tool Name

BES Opportunity Checklist

Target Market Definition & Sources

Status

Brief Description

12/31/04: A final version was developed by the BES team to be used by either sales or operations personnel (technician, GM, service manager) as an initial data gathering form. The data collected can be used to determine what opportunities can be pursued, including but not limited to BES.

Comments from BPI

Checklist with high level indicators such as Industry, Location, Building > 100K sq ft, T8/T12 Lighting present, Older Equipment, Financial Stability, Years in Business, Owner Occupied.

QMS Doc No/Tool ID (for developed tools only)

WI-LSH-0101 R-WI-LSH-0101-1

Perhaps this form has 2 sections: one for the techs telling them what to look for when they are on a job i.e. lighting, equipment...and one for the Sales people telling them what to look for before a call is made i.e.., Financial stability, Industry...

• Defines vertical target markets by geographic areas and specific criteria and characteristics of ideal prospects • Provides chart - Typical Energy Cost Per Sq Foot by building type and location by vertical (Jeff) • Provides recommended sources for leads by geography i.e.., Business Directories, Associations, Internet, Harris Directory, D&B ….

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 1 of 9

Bundled Energy Solutions Inventory of Tools

Process

Tool Name

R-SOP-0501-2

Status

Brief Description

Comments from BPI

Prospecting

Technician Training

Training tool to educate Technicians on product and what to look for at existing customer sites i.e.., lighting

Paul Harris had implemented this

Prospecting

Prospect database to track prospects through the Sales Pipeline

Bruce Phibbs - Exists in Linc Selling System Contact / Prospect Manager

Profile

LINC Selling System Prospect Database BES Talking Points

Profile

BES Qualification Checklist

Bulleted listing of value proposition. Goal is to get to the right person who can answer questions for pre qualification and who is the MAN money authority – need. 12/31/04: A final version was developed by the BES team to be used by sales personnel an a data gathering form during the Concept Meeting with the Prospect. Initial data will come from the Opportunity Checklist.

Profile

LINC Tool Client Profile

Doug referred to this as the initial data gathering worksheet LINC “Client Profile”

QMS Doc No/Tool ID (for developed tools only)

WI-LSH-0202 R-WI-LSH-0202-3

LINC Tool Client Profile Questionnaire worksheet. Currently exists for: • Projects/Maint. • Maintenance • Projects

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 2 of 9

Bundled Energy Solutions Inventory of Tools

Process

Profile

Tool Name

BES Executive Summary Template

R-SOP-0501-2

Status

Profile

Typical Energy Cost Database

10.

Profile

BES Action Plan Customer Summary (Executive Summary Insert)

BES Action Plan Sales Leaflet

Brief Description

12/31/04: A non-vertical market specific template has been developed by the BES team and is now available for use. PowerPoint presentation that communicates value proposition. This is a sales presentation. It should be tailored to customer based on information gathered on the BES Opportunity Checklist and BES Qualification Checklist. Perhaps there is one template for each vertical identified in the Target Market Definition & Sources. "Typical energy cost pre sq foot by industry and geography". This could be incorporated into the presentation. 12/31/04: Used as an insert in the BES Executive Summary; it outlines the steps that follow the executive summary presentation, once the Prospect agrees to move on to the next phase.

Comments from BPI

Scott, Paul, Doug, Jeff all use a similar .ppt which all came from Scott. There is also a LINC Executive Summary template reported by Bruce Phibbs. These should be combined and modified for BES.

QMS Doc No/Tool ID (for developed tools only)

WI-LSH-0202 R-WI-LSH-0202-1

Jeff has access to "typical energy cost pre sq foot by industry and geography". This could be incorporated into the presentation. Jeff Evans has access to this.

May need modification by vertical market, ie., public vs. private.

WI-LSH-0202 R-WI-LSH-0202-2 WI-LSH-0303 R-WI-LSH-0303-1

12/31/04: A printable version of the BES Action Plan to be used by sales personnel to obtain authorization to proceed with the Project timeline plan. The Prospect and Linc sales personnel will fill this out together.

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 3 of 9

Bundled Energy Solutions Inventory of Tools

Process

11.

Preliminary Proposal Survey

Tool Name

BES Preliminary Survey Template

R-SOP-0501-2

Status

Brief Description

Comments from BPI

Form that provides data capture from preliminary proposal. This would most likely by a 5 part form: Part I: Customer Data Part II: Equipment Survey Part III: Lighting Survey Part IV: Controls Survey Part V: Energy Survey

This proposal format would be completed entirely by LINC or it can be divided up amongst sub contractors. The point is that the data values will be those that are necessary to perform a financial analysis.

Should not be specific enough for someone to “unbundle”

QMS Doc No/Tool ID (for developed tools only)

Some folks referred to this as an "initial walk through". New Chiller New Boiler Lighting Controls • Savings vs. cost Perhaps this form also varies by industry segment.

12.

Preliminary Proposal Survey

LINC Owning and Operating Cost Worksheet

Part of LINC Proposal System “Systems Analysis”

Bruce Phibbs - Exists in Linc Tool set. May need modification for BES.

13.

Preliminary Proposal Survey

LINC Pricing Tool for Projects

Part of LINC Proposal System

Bruce Phibbs - Exists in Linc Tool set.

14.

Preliminary Proposal Survey

LINC Pricing Tool for Maintenance

Part of LINC Proposal System

Bruce Phibbs - Exists in Linc Tool set.

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 4 of 9

Bundled Energy Solutions Inventory of Tools

Process

Tool Name

R-SOP-0501-2

Status

Brief Description

This could be the same tool that was reported by Scott that is provided by Jeff. See below "Energy Cost Database and Spreadsheet".

Comments from BPI

QMS Doc No/Tool ID (for developed tools only)

Jeff Evans

15.

Preliminary Proposal Survey

Energy Savings Analysis

16.

Preliminary Proposal Survey

BES Financial Cost and Savings Analysis Tool

17.

Preliminary Proposal Survey

LINC Selling Systems Analysis Tool

Part of LINC Proposal System. Generates a pie chart of costs for presentation to customer.

Bruce Phibbs - Exists in Linc Tool set.

18.

Preliminary Proposal Survey

LINC BES Scope of Work Document

Part of LINC Proposal System

Bruce Phibbs - Exists in Linc Tool set.

19.

Preliminary Proposal Survey

Lease Purchase Cash Flow Spreadsheet

Tool that has been used by several team members to generate cash flow analysis for prospect. It is on the web at HVAC Capital's website.

Jeff Evans HVAC Capital Tool (L.D.)

20.

Preliminary Proposal Survey

LINC Internal ROI Analysis & Risk Assessment Template

Calculates the internal investment required, profit/loss based on scope, time. Also presents worst case/best case impact on LINC if sale of program is made. Perhaps there is a risk factoring system that dictates implementation / service requirements.

Bruce Phibbs has designed this form.

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 5 of 9

Bundled Energy Solutions Inventory of Tools

Process

Tool Name

R-SOP-0501-2

Status

Brief Description

Comments from BPI

21.

Preliminary Proposal Survey

Energy Cost Database and Spreadsheet

Scott Taylor, Jeff Evans

22.

Preliminary Proposal Survey

Metrix Energy Analyzer

Jeff Evans

23.

Preliminary Proposal Survey

Part of LINC Proposal System. Needs to be modified for BES.

Bruce Phibbs - Exists in Linc Tool set.

24.

Preliminary Proposal Proposal

LINC Strategic Account Management review process (SAM) BES Preliminary Proposal Template

Scott, Paul, Doug, Jeff all use a similar .ppt which all came from Scott. These should be combined to create a standard. Again, we may have tailored versions by industry.

25.

Preliminary Proposal Proposal

BES Letter of Intent

This is a .ppt that provides very high level information from the preliminary survey, photographs, value proposition, and high level recommendations. This .ppt must be high level so that the information cannot be used by the prospect to "shop" around or perform upgrades internally. Presents agreement that if customer will pay for in-depth study if we do not close the deal.

26.

In-Depth Study

Is there an Engineering Study Template that is needed?

QMS Doc No/Tool ID (for developed tools only)

Scott, Paul, Doug, Jeff all use a similar .ppt which all came from Scott. These should be combined to create a standard. The name “In-Depth Study” doesn’t seem to do this process and output justice. When the team spoke about the In-Depth study (some called this Engineering Study) the consensus was that this was a

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 6 of 9

Bundled Energy Solutions Inventory of Tools

Process

27.

In-Depth Study

Tool Name

BES Final Proposal

R-SOP-0501-2

Status

(Some referred to this as the Engineering Report or Engineering Study)

Brief Description

This is a formal document submitted to the customer outlining all of our recommendations, costs and savings. This is the document that the customer will make their final decision from.

28.

In-Depth Study

BES Contract

Documents Terms and Conditions of services being purchased by customers.

29.

Implementatio n

BES Project Implementation Guide

30.

Implementatio n

BES Implementation Project Plan

Describes the Implementation Process. Can be used both internally and with Customer to review process. Used by Project Manager to prepare for the Implementation. Project Plan Template with all steps necessary to manage the project. Use the LINC Project Plan that already exists and modify to include BES tasks.

Comments from BPI

QMS Doc No/Tool ID (for developed tools only)

validation and “deeper dive” into the findings documented in the BES Preliminary Proposal. This is not clear to me. Scott, Paul, Doug, Jeff all have generated this document. It is based off of the one that Scott has used. These need to be consolidated into one template. The customer is paying for this analysis (as stated in the LOI) therefore, the document must be professional and “worth the money”. Scott has a contract that can be used as the straw man to create a standard BES Contract. This contract needs to clearly state responsibilities of both parties and what actions/liabilities are if LINC is unable to meet performance metrix.

Rick Goetz has created a plan and Project Management Tool that we can build upon.

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 7 of 9

Bundled Energy Solutions Inventory of Tools

R-SOP-0501-2

Process

Tool Name

Status

31.

Implementatio n

BES Project Management Tool

32.

Implementatio n

BES Project Acceptance Sign Off

33.

Measurement & Verification

Metrix

Industry software tool used by Jeff Evans for calculating Energy Savings

34.

Measurement & Verification

Pre Install Energy Audit

Report/Tool that is used to capture and document actual energy usage PRIOR to the implementation of our projects.

35.

Measurement & Verification

Post Install Energy Audit

36.

Customer Assurance Review and Evaluation

Customer Assurance Review and Evaluation Process (CARE)

Brief Description

Provides guidance and tools to Project Manager on how to Manage Project including Communications (Internal and External), Status Reporting, Resource Managementâ&#x20AC;Ś. Legal document that serves as the sign off and initiation of our contract commitments and guarantees

This document is a formal document with a Customer and LINC Sign Off section and will become the basis for the performance guarantee. Report/Tool that is used to capture and document actual energy usage for a given time period and compare to contract commitments. This is both an internal and external document. Existing LINC Process to gauge customer satisfaction

Comments from BPI

QMS Doc No/Tool ID (for developed tools only)

Rick Goetz has created a tool that we can build upon.

MUST HAVE. If operations savings are a part of this sale â&#x20AC;&#x201C; we must make sure the customer reallocates the funds to pay for the program. The challenge with this entire process is that there is only one Jeff and one copy of the software tool. This is also a highly administrative process. How can we simplify and move this process to the field? Jeff Evans has generated these in the past.

Jeff Evans has generated these in the past for both internal and external use. Bruce Phibbs

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 8 of 9

Bundled Energy Solutions Inventory of Tools

Process

37.

38.

39.

Customer Assurance Review and Evaluation Customer Assurance Review and Evaluation Customer Assurance Review and Evaluation

Tool Name

R-SOP-0501-2

Status

Brief Description

SOP-0178_QACorrective Action Form

QMS Form used to identify, document and implement Corrective Actions resulting from CARE

SOP-0179-QAPreventive Action Form

QMS Form used to identify, document and implement Preventive Actions resulting from CARE

SOP-0163-QACorrective and Preventive Action

QMS Standard Operating Procedure describing how to handle Corrective and Preventive Actions resulting from CARE

Comments from BPI

QMS Doc No/Tool ID (for developed tools only)

Status Legend: N = New E = Existing but may need modification D = Developed by BES team MMC Revised 1/04/05

Page 9 of 9

QMS: Doing the Right Things and Doing Things The Right Way

Bundled Energy Solutions

a Quality Initiative Standard Operating Procedures Work Instructions Reference Documents

Prepared by: TLG Quality Department December 2004

QMS STANDARDS

CONTROLLED DOCUMENT: SOP-0501

BUSINESS UNIT:

The Linc Group 1201 Louisiana, #2700, Houston, TX 77002-5678

STANDARD TYPE:

Standard Operating Procedure

PROCEDURE TITLE: Bundled Energy Solutions

AREA: Products and Services TYPE OF PROCEDURE: Business Process

DOCUMENT NUMBER: SOP-0501 REVISION: 1.2

PROCEDURE STATUS

IMPLEMENTED

PUBLISHED DRAFT

mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE This Standard Operating Procedure provides the definition of Bundled Energy Solutions (BES) and the Master Business Process employed in the pursuit, sale, and execution of a BES project. 2.0

RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that the BES Master Business Process is adhered to by all relevant personnel in the pursuit, sale, and execution of a BES opportunity. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this SOP, monitor compliance and take the necessary actions to ensure compliance.

3.0

PROCEDURE (SOP) Definition Bundled Energy Solutions (BES) is a combination of energy conservation solutions designed to provide our customers with a measurable return on their investment. It is built around a financial sale that can increase our gross profit margins, extend our existing maintenance contracts, and set us apart from our competition while providing more value to our customers. The energy conservation solutions may involve a complete HVAC retrofit, lighting retrofit, VFD installation, automation retrofit, and maintenance program depending on the targeted facility’s condition and the customer’s conservation needs.

Procedure Title: PS – Bundled Energy Solutions

Page 1 of 5

QMS STANDARDS

CONTROLLED DOCUMENT: SOP-0501

BES Master Business Process The Linc Group’s Master Business Process describes the elements that all “closed loop” business processes contain. For the Bundled Energy Solutions offering, the Master Business Process consists of fourteen (14) elements: • Prospecting • Qualification • Concept Meeting • Feasibility Study • Feasibility Verification • Feasibility Proposal • Comprehensive Technical Study • Final Proposal • Implementation • Project Acceptance • Account Management • Measurement and Verification • Customer Assurance Review and Evaluation (CARE) The following referenced documents, also listed and linked in Section 5.0 of this SOP, should be consulted for detailed information: • R-SOP-0501-1 BES Process Maps • R-SOP-0501-2 BES Inventory of Tools • BES Work Instructions 4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS STANDARD: TERM Master Business Process

Retrofit Standard Operating Procedure, SOP

Procedure Title: PS – Bundled Energy Solutions

DEFINITION The Linc Group’s Master Business Process describes the elements that all “closed loop” business processes contain. By applying these elements to the design and execution of all business processes you are guaranteed that every process delivers customer value in the most cost effective way. The Master Business Process guides all employees to always measure everything that they do from both an internal and external perspective and to identify any corrective or preventive actions that are required to improve our processes and our ability to meet customer expectations. The Master Business Process, at a minimum, must be employed with all 8 elements but can be expanded upon based on the needs of the process at hand. Transitive verb; to modify something such as a machine or a building by adding parts or devices of types not originally included A Standard Operating Procedure is a document produced and approved by The Linc Group managers and issued on the Web Portal requiring that a particular approach be adopted as a means of accomplishing a task, and sets minimum standards to ensure a consistent and repetitive approach to operating practices. The focus of the SOP is on common requirements and results, not common procedures, tools or organizational structure. Page 2 of 5

QMS STANDARDS

CONTROLLED DOCUMENT: SOP-0501

TERM

VFD Work Instruction, WI

DEFINITION Business Units are encouraged to develop and demonstrate creative, adaptive, and flexible approaches for meeting the requirements of the SOP. Acronym for variable frequency drive A Work Instruction (WI) is a document produced and approved by the Business Units and issued on the Web Portal. When details provided within a SOP do not relate entirely to your Business Unit business, WI’s are created to extend the intent of a SOP as viewed from a specific Business Unit perspective. WI's are required by a Business Unit or are required of a Business Unit by a SOP. WI's are specific in nature detailing the steps taken at the Business Unit to accomplish a task. WI's may modify an approach as stated in a SOP to accommodate the needs of a Business Unit.

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process R-SOP-0501-1 BES Process Maps R-SOP-0501-2 BES Inventory of Tools WI-LSH-0101 BES Prospecting WI-LSH-0201 BES Qualification WI-LSH-0202 BES Concept Meeting WI-LSH-0301 BES Feasibility Study WI-LSH-0302 BES Feasibility Verification WI-LSH-0303 BES Feasibility Proposal WI-LSH-0304 BES Comprehensive Technical Study WI-LSH-0401 BES Final Proposal WI-LSH-0501 BES Implementation Plan WI-LSH-0502 BES Project Acceptance WI-LSH-0601 BES Account Management WI-LSH-0701 BES Measurement and Verification WI-LSH-0702 BES Customer Assurance Review and Evaluation (CARE)

Procedure Title: PS – Bundled Energy Solutions

LOCATION (CLICK ON LINK BELOW) QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Reference Documents QMS Links: QMS Released Library: Reference Documents: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service QMS Links: QMS Released Library: Work Instructions: Linc Service

Page 3 of 5

QMS STANDARDS

CONTROLLED DOCUMENT: SOP-0501

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

7.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS

LOCATION

8.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.2 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

Revision

1.0 1.1 1.2

SECTION / PARAGRAPH CHANGED

All 2.0, 5.0 5.0

CHANGE MADE

Initial entry of document Updated point of escalation; updated reference documents Updated reference documents

DATE OF REVISION MM/DD/YY

11/16/04 12/23/04 01/04/05

9.0 ELECTRONIC NOTIFICATION LIST: ELECTRONIC NOTIFICATIONS: CLICK ON THIS LINK TO VIEW NAMES OF CURRENT HOLDERS OF LISTED POSITIONS BELOW. BES Product Manager/VP Chief Information Officer President, Linc Service Procedure Title: PS – Bundled Energy Solutions

Page 4 of 5

QMS STANDARDS

CONTROLLED DOCUMENT: SOP-0501

ELECTRONIC NOTIFICATIONS: CLICK ON THIS LINK TO VIEW NAMES OF CURRENT HOLDERS OF LISTED POSITIONS BELOW. Chief Operating Officer Chief Executive Officer

10.0

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVID WHALEY TITLE: COO SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 11/16/04 by Melissa Cipriani Document Modified on 12/23/04 by Melissa Cipriani Document Modified on 01/04/05 by Melissa Cipriani

Procedure Title: PS – Bundled Energy Solutions

Page 5 of 5

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0101

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Prospecting

AREA: Sales TYPE OF PROCEDURE: Originate Customer

DOCUMENT NUMBER: WI-LSH-0101 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the first of which is Prospecting. This work instruction provides the guidelines and tools necessary to execute the Prospecting phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Prospecting

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0101

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

DEFINITION For BES, ECM’s are mechanical solutions identified as necessary in order to meet the targeted operational and energy cost savings. ECM’s may include a complete HVAC retrofit, lighting retrofit, VFD installation, EMS retrofit/installation and maintenance program, depending on the facility’s condition and the customer’s conservation needs. The Linc Group’s Master Business Process describes the elements that all “closed loop” business processes contain. By applying these elements to the design and execution of all business processes you are guaranteed that every process delivers customer value in the most cost effective way. The Master Business Process guides all employees to always measure everything that they do from both an internal and external perspective and to identify any corrective or preventive actions that are required to improve our processes and our ability to meet customer expectations. The Master Business Process, at a minimum, must be employed with all 8 elements but can be expanded upon based on the needs of the process at hand. A Standard Operating Procedure is a document produced and approved by The Linc Group managers and issued on the Web Portal requiring that a particular approach be adopted as a means of accomplishing a task, and sets minimum standards to ensure a consistent and repetitive approach to operating practices. The focus of the SOP is on common requirements and results, not common procedures, tools or organizational structure. Business Units are encouraged to develop and demonstrate creative, adaptive, and flexible approaches for meeting the requirements of the SOP.

Work Instruction, WI

Procedure Title: BES Prospecting

A Work Instruction (WI) is a document produced and approved by the Business Units and issued on the Web Portal. When details provided within a SOP do not relate entirely to your Business Unit business, WI’s are created to extend the intent of a SOP as viewed from a specific Business Unit perspective. WI's are required by a Business Unit or are required of a Business Unit by a SOP. WI's are specific in nature detailing the steps taken at the Business Unit to accomplish a task. WI's may modify an approach as stated in a SOP to accommodate the needs of a Business Unit.

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0101

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process SOP-0051 BP – Originate Customer SOP-0501 PS - Bundled Energy Solutions R-WI-LSH-0101-1 Opportunity Checklist

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE Dun & Bradstreet Internet

LOCATION http://www.dnb.com/us/ Various search engines and industry related websites

7.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM) FX (FieldCentrix) Service Center

LOCATION Portal (Link to be determined) https://tlgportal.thelincgroup.com/sites/linccos/fieldcentrixd eployment/default.aspx

8.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

Procedure Title: BES Prospecting

DOCUMENT MANAGER: Melissa Cipriani

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0101

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

9.0 ELECTRONIC NOTIFICATION LIST: ELECTRONIC NOTIFICATIONS: CLICK ON THIS LINK TO VIEW NAMES OF CURRENT HOLDERS OF LISTED POSITIONS BELOW. CHIEF EXECUTIVE OFFICER CHIEF INFORMATION OFFICER CHIEF OPERATING OFFICER PRESIDENT, LINC CORPORATION SENIOR VP/BES PRODUCT MANAGER 10.0

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CHIEF INFORMATION OFFICER SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Prospecting

Page 4 of 4

REFERENCE DOCUMENT; R-WI-LSH-0101-1 OPPORTUNITY CHECKLIST

QMS STANDARDS

AREA: Sales TYPE OF PROCEDURE: BP-Originate Customer

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Jim Wharton, Todd Flannery, Fred Wurst, Paul Harris

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVE WHALEY TITLE: COO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-WI-LSH-0101-1

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Opportunity Checklist Date:

SALES

OPERATIONS

Filled out By:

Sales Person’s Name

Lead Source:

Unsolicited

Existing Customer

Cold Call

Referral

Filled out By:

Operations Personnel Name

Lead Source:

Service Call

PM Work Order

Other:

Appointment Date:

LINC Contract #:

Contact Name/Title:

FX Work Order #:

Contact Phone #:

Report Given to:

Sales

Referral

Other:

Jobsite Name: Jobsite Address: Jobsite Contact:

Contact Phone #:

Contact Title:

Building Profile: #

Description

Data

Facility square footage

One or more jobsites

Occupant

Who occupies building

HVAC Age (Life Cycle)

See serial #’s or ask customer

HVAC General Condition

Good

Fair

Lighting System Current Type

T-12

Other

Poor

Comments/Recommendations:

Explain why this would be a BES Opportunity, in addition to the factors listed in the Building Profile above:

Internal Checklist (filled out by sales personnel): Prospect Status

Yes BES Prospect

No BES Prospect

Maintenance Contract Prospect

HVAC Retrofit Prospect

EMS Installation Prospect

Lighting Retrofit Prospect

Forward to

Date

Employee Name

Date Forwarded

Database Updates (CRM & FX) Date Updated

Follow up Action/By

Next step and by whom

7 Other Note to Sales: If this is a BES Prospect, please proceed to the Qualification Checklist process. R-WI-LSH-0101-1 Opportunity Checklist

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0201

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Qualification

AREA: Sales TYPE OF PROCEDURE: Profile Customer

DOCUMENT NUMBER: WI-LSH-0201 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the second of which is Qualification. This work instruction provides the guidelines and tools necessary to execute the Qualification phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail 4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: Procedure Title: BES Qualification

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0201

TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Qualification

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0201

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

7.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

8.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Procedure Title: BES Qualification

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0201

10.0

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CHIEF INFORMATION OFFICER SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Qualification

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0202

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Concept Meeting

AREA: Sales TYPE OF PROCEDURE: Profile Customer

DOCUMENT NUMBER: WI-LSH-0202 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the third of which is the Concept Meeting. This work instruction provides the guidelines and tools necessary to execute the Concept Meeting phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Concept Meeting

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0202

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Concept Meeting

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0202

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process SOP-0052 BP – Profile Customer SOP-0501 PS - Bundled Energy Solutions R-WI-LSH-0202-1 BES Executive Summary Template R-WI-LSH-0202-2 BES Action Plan R-WI-LSH-0202-3 BES Qualification Checklist

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Linc Service: Reference Documents QMS Links: QMS Released Library: Linc Service: Reference Documents QMS Links: QMS Released Library: Linc Service: Reference Documents

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

Procedure Title: BES Concept Meeting

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0202

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

8.0 ELECTRONIC NOTIFICATION LIST: ELECTRONIC NOTIFICATIONS: CLICK ON THIS LINK TO VIEW NAMES OF CURRENT HOLDERS OF LISTED POSITIONS BELOW. CHIEF EXECUTIVE OFFICER CHIEF INFORMATION OFFICER CHIEF OPERATING OFFICER PRESIDENT, LINC CORPORATION SENIOR VP/BES PRODUCT MANAGER 9.0 APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CHIEF INFORMATION OFFICER SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Concept Meeting

Page 4 of 4

REFERENCE DOCUMENT; R-WI-LSH-0202-1 BES EXECUTIVE SUMMARY

QMS STANDARDS

AREA: Sales TYPE OF PROCEDURE: BP-Profile Customer

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Doug Smyers, Larry Jones, Kate Hart, Pat Garner, Lori Bonham, Scott Taylor

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-WI-LSH-0202-1

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

A Linc Service速 Contractor Bundled Energy Solutions Executive Summary for: (PROSPECT)

Presented by: (Your Name Here) Linc Mechanical Services (Date of Presentation)

How We Help Our Customers 9 We dramatically improve comfort and environmental conditions. 9 We help reduce annual energy & operational costs. 9 We fund infrastructure upgrades through energy and operational savings.

Our Company’s Capabilities GEORGIA ORGANIZATION Linc Mechanical Services • Founded in 1956 • Total Facility Service Capabilities • • • •

Custom-designed Service Programs Self-funding Renovations Accountability for Results Construction Services

• Management measured on Customer Satisfaction; current rating is 100%

Our Company’s Capabilities NATIONAL ORGANIZATION • More than 10,000 customers nationwide • Utilize local in-house personnel for projects & service • We are NOT a product manufacturer • We are part of the Linc Service® Network; a worldwide group of 111 HVAC service providers Low Overhead/Cost Effective Solutions

Linc Service速 Contractor Network Canada

Australia

Bermuda United States

New Zealand

We Have Proven Solutions We provide services to many facilities including:

â&#x20AC;˘ REFERENCES

We Understand Facilities (VERTICAL MARKET) OPERATING TRENDS • Aging facilities • Facilities receive low priority • Lack of Funds • Increasing Energy & Operational Costs • Struggles to fund repairs/upgrades • Uncomfortable environments • Environmental Concerns / IAQ

We Have Proven Solutions Strategic Planning for Facilities & Energy â&#x20AC;˘ Upgrade & Repair HVAC Equipment

We Have Proven Solutions Strategic Planning for Facilities & Energy • Upgrade & Repair HVAC Equipment • New High Efficient Lighting

We Have Proven Solutions Strategic Planning for Facilities & Energy • Upgrade & Repair HVAC Equipment • New High Efficient Lighting • Optimize Building Controls

We Have Proven Solutions Strategic Planning for Facilities & Energy • Upgrade & Repair HVAC Equipment • New High Efficient Lighting • Optimize Building Controls • Optimize System Design

• Educational Plan

We Have Proven Solutions Strategic Planning for Facilities & Energy • Upgrade & Repair HVAC Equipment • New High Efficient Lighting • Optimize Building Controls • Optimize System Design

• Educational Plan

• Engineering

We Have Proven Solutions Strategic Planning for Facilities & Energy • Upgrade & Repair HVAC Equipment • New High Efficient Lighting • Optimize Building Controls • Optimize System Design

• Educational Plan

• Engineering

• Ongoing Auditing & Support

Current Operating Expenses Turned Into Capital Investment Energy & Operating Expenses

Current

Future Additional Savings $$

Electric Program Cost Maintenance & Operations

Gas

Gas Maintenance & Operations

Electric

PROGRAM INCLUDES: • State of the Art Controls • High Efficiency Lighting • High Efficiency Air Conditioning & Heating Equipment Technology • Reduced Maintenance & Operations Costs • Energy Reduction & Awareness • Ongoing Support & Auditing • Utility Rate Optimization

Savings of 10-50% are created by the implementation of new technologies of today.

PROGRAM REQUIRES NO UPFRONT CAPITAL

ACTION PLAN CUSTOMER SUMMARY Steps 1

Concept Meeting • BES Executive Summary

Feasibility Study • Identify BES Objectives • Financial Review • Internal Study Review

Feasibility Verification • Scope of Work • Summary of Cost/Savings • Cash Flow Analysis

Feasibility Proposal • Outline Solution • Cost/Benefit Analysis • Authorization for Comprehensive Technical Study

Comprehensive Technical Study • Final Survey • Program Confirmation • Legal Review

Final Proposal

Implementation Plan

CASE STUDY: Madison County Schools The

administrators

for

Madison

County

Schools,

Superintendent Keith Cowne; Cowne; assistant Superintendents Mitch McGhee and Allen McCannon, McCannon, definitely had a need for environmental improvements within the schools in the district. The school system had very limited funds, not near enough to cover the needed improvements. There were major humidity and air quality issues in several schools, major comfort problems, major control problems, and many AC systems beyond their expected lifespan. After meeting with Linc Mechanical Services, Madison County Schools were very excited about the possibility of upgrading and repairing these major needs with NO UPFRONT COST & FUNDED WITHIN THEIR BUDGET, GUARANTEED.

Project: Comprehensive Energy Reduction Program which was used to fund necessary upgrades for the Madison County School District

Program: $1,200,000 Facility upgrades totally funded from existing budget

Customer: Madison County Board of Education

Services Provided: • • • • • • • • •

Engineering Energy Analysis Lighting Upgrades Automated State of the Art DDC Controls Utility Rate Adjustments Air Conditioning/Heating Unit Upgraded Humidity Controlled Balancing of Systems Energy Resource Management Including Auditing

Mr. Cowne said that it would have taken many years to complete these improvements at the pace they were going and with the funds they had available. The improvements generated savings in energy, operating expenses, and capital avoidance. These improvements were funded with Madison County’ County’s current Maintenance & Operations budget.

REFERENCE DOCUMENT; R-WI-LSH-0202-2 BES ACTION PLAN

QMS STANDARDS

AREA: Sales TYPE OF PROCEDURE: BP-Profile Customer

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Larry Jones, Pat Garner, Kate Hart, Bruce Phibbs, Marlyn Kelch

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-WI-LSH-0202-2

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

ACTION PLAN CUSTOMER SUMMARY Steps 1

Concept Meeting • BES Executive Summary

Feasibility Study • Identify BES Objectives • Financial Review • Internal Study Review

Feasibility Verification • Scope of Work • Summary of Cost/Savings • Cash Flow Analysis

Feasibility Proposal • Outline Solution • Cost/Benefit Analysis • Authorization for Comprehensive Technical Study

Comprehensive Technical Study • Final Survey • Program Confirmation • Legal Review

Final Proposal

Implementation Plan

REFERENCE DOCUMENT; R-WI-LSH-0202-3 BES QUALIFICATION CHECKLIST

QMS STANDARDS

AREA: Sales TYPE OF PROCEDURE: BP-Needs Assessment

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Pat Garner, Todd Pierson, John Willard, Fred Wurst

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-WI-LSH-0202-3

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Bundled Energy Solutions Qualification Checklist Date:

Lead Source:

Cold Call

Filled out by: Title:

Unsolicited

Customer Referral

Subcontractor

Opportunity Checklist

Other:

Vertical Market:

Education

Industrial

Commercial

Vendor Contract Award Process:

Public Bid

Negotiated

Design/Build

Healthcare

Customer Information: Entity Name: Contact Name:

Contact Phone #:

Contact Title:

Customer Stats: Previous Year Gross Revenue Total # of Employees D&B Number Other Other Owner Information: Entity Name: Address: City, State, Zip Owner Contact Name:

Contact Phone #:

Contact Title: Decision Makers: Name: Title: Name: Title:

Company: Phone #: Company: Phone #:

Jobsite Information: Jobsite Name:

SIC Code:

Jobsite Address: City, State, Zip Jobsite Contact: Contact Title:

R-WI-LSH-0202-3 BES Qualification Checklist

Technician

Contact Phone #:

Other

Jobsite Name: ___________________________________________

Page 2 of 3

Checklist: #

Description

Data

Data Confirmed

Building Profile: 1.

Combined square footage

One or more jobsites

Yes

Occupancy

Who occupies building

Yes

Operating Cost per sq ft

Opp Checklist/BOMA Source

Yes

Utility Companies

Gas, electric, water

Yes

Hours of Operation

M-F, S-S, After-Hours Access

Yes

Seasonal Schedules

Yes

Building Orientation

Yes

Number of Floors

Construction

N, S, E, W

Yes

Brick, block, frame

Yes

10. Roof type

Flat, pitched

Yes

11. Glass

Approx % of wall & direction

Yes

12. Outside Glass Shading

Overhangs

Yes

13. Inside Glass Shading

Blinds, tinting

Yes

14. Controls

EMS, Time Clocks, Manual

Yes

20. Total HVAC Tonnage

Combined Tonnage

Yes

Water-Cooled

Yes

21. Chilled Water

Air Cooled

22. Direct Expansion

Package units

Air Cooled

Split systems

Heat pumps

Single-zone

Multi-zone

Fan-coil

VAV

PIU

Double Duct

Terminal reheat

Self-contained

Heat pump

23. Air Handling Systems

24. Heating Systems

Water-Cooled

Boiler (gas, hot water)

Heat pumps

Unit heaters

Baseboard heaters

Convectors 25. Current Lighting Type

26. Lighting Count #

Central Plant

Furnaces

T-8 elec ballast

T-12

8 foot lamps

2x4 4/3/2 bulb

Surface mount

Suspended

Can type-flood

Fluorescent

Incandescentwattage

# of Fixtures

Description

Data

Comments

Facility Operational Issues (check all that apply and enter comments if applicable) 27. General Issues (any concerns the customer may have regarding their current facility operations)

Energy operating costs Occupant/tenant complaints Major productivity losses Other (see comments)

28. Current HVAC Provider (any concerns the customer may have regarding their current HVAC service provider)

Limited resources General inadequate service Pricing Other (see comments)

29. Maintenance Issues (any concerns the customer may have regarding their current HVAC maintenance services)

Maintenance contract cost Frequent repairs/nuisance calls Major productivity losses Other (see comments)

R-WI-LSH-0202-3 BES Qualification Checklist

Jobsite Name: ___________________________________________

Page 3 of 3

Summary of Findings: 1) What is your customer’s business strategy or focus?

What is company’s overall business plan, for example, plans for expansion or downsizing…?

2) If BES Prospect Status is Yes, explain why:

Explain the factors that determined the candidate as a BES prospect.

3) If BES Prospect Status is No, explain why:

Explain the factors that eliminated the candidate as a BES prospect.

Internal Checklist: # Prospect Status

Forward to

Date

CRM Update

Follow up Action/By

Yes BES Prospect

Employee Name

Date Forwarded

Date Updated

Next step and by whom

No BES Prospect

R-WI-LSH-0202-3 BES Qualification Checklist

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0301

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Feasibility Study

AREA: Sales TYPE OF PROCEDURE: Needs Assessment

DOCUMENT NUMBER: WI-LSH-0301 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the fourth of which is the Feasibility Study. This work instruction provides the guidelines and tools necessary to execute the Feasibility Study phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Feasibility Study

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0301

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Feasibility Study

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0301

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

SOP-0053 BP - Needs Assessment SOP-0501 PS - Bundled Energy Solutions R-WI-LSH-0202-3 BES Qualification Checklist

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Feasibility Study

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0301

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Feasibility Study

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0302

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Feasibility Verification

AREA: Sales TYPE OF PROCEDURE: Needs Assessment

DOCUMENT NUMBER: WI-LSH-0302 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the fifth of which is the Feasibility Verification. This work instruction provides the guidelines and tools necessary to execute the Feasibility Verification phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Feasibility Verification

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0302

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Feasibility Verification

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0302

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0053 BP - Needs Assessment SOP-0501 PS - Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Feasibility Verification

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0302

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Feasibility Verification

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0303

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Feasibility Proposal

AREA: Sales TYPE OF PROCEDURE: Needs Assessment

DOCUMENT NUMBER: WI-LSH-0303 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the sixth of which is the Feasibility Proposal. This work instruction provides the guidelines and tools necessary to execute the Feasibility Proposal phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Feasibility Proposal

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0303

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Feasibility Proposal

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0303

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

SOP-0053 BP - Needs Assessment SOP-0501 PS - Bundled Energy Solutions R-WI-LSH-0303-1 BES Action Plan Leaflet

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Feasibility Proposal

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0303

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Feasibility Proposal

Page 4 of 4

REFERENCE DOCUMENT; R-WI-LSH-0303-1 BES ACTION PLAN LEAFLET

QMS STANDARDS

AREA: Sales TYPE OF PROCEDURE: BP-Needs Assessment

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Larry Jones, Pat Garner, Kate Hart, Bruce Phibbs, Marlyn Kelch

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-WI-LSH-0303-1

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Action Plan Customer Summary Steps

Target Date

Concept Meeting • BES Executive Summary

Feasibility Study • Identify BES Objectives • Financial Review • Internal Study Review

Feasibility Verification • Scope of Work • Summary of Cost/Savings • Cash Flow Analysis

Feasibility Proposal • Outline Solution • Cost/Benefit Analysis • Authorization for Comprehensive Technical Study

Comprehensive Technical Study • Final Survey • Program Confirmation • Legal Review

Final Proposal

Implementation Plan

Timeline Approval

Linc Service Representative

Bundled Energy Solutions

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0304

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Comprehensive Technical Study

AREA: Sales TYPE OF PROCEDURE: Needs Assessment

DOCUMENT NUMBER: WI-LSH-0304 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the seventh of which is the Comprehensive Technical Study. This work instruction provides the guidelines and tools necessary to execute the Comprehensive Technical Study phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Comprehensive Technical Study

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0304

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Comprehensive Technical Study

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0304

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0053 BP - Needs Assessment SOP-0501 PS - Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

Procedure Title: BES Comprehensive Technical Study

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0304

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Comprehensive Technical Study

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0401

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Final Proposal

AREA: Sales TYPE OF PROCEDURE: Business Case Development

DOCUMENT NUMBER: WI-LSH-0401 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the eighth of which is the Final Proposal. This work instruction provides the guidelines and tools necessary to execute the Final Proposal phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Final Proposal

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0401

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Final Proposal

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0401

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0054 BP – Business Case Development SOP-0501 PS - Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM) Linc Laser

LOCATION Portal (Link to be determined) Role-based user access

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Final Proposal

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0401

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Final Proposal

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0501

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Implementation Plan

AREA: Operations TYPE OF PROCEDURE: Transition and Validation

DOCUMENT NUMBER: WI-LSH-0501 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the ninth of which is the Implementation Plan. This work instruction provides the guidelines and tools necessary to execute the Implementation Plan phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Implementation Plan

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0501

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Implementation Plan

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0501

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0055 BP – Transition and Validation SOP-0501 PS – Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Implementation Plan

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0501

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Implementation Plan

Page 4 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0502

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Project Acceptance

AREA: Operations TYPE OF PROCEDURE: Transition and Validation

DOCUMENT NUMBER: WI-LSH-0502 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the tenth of which is the Project Acceptance. This work instruction provides the guidelines and tools necessary to execute the Project Acceptance phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Project Acceptance

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0502

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Project Acceptance

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0502

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0055 BP – Transition and Validation SOP-0501 PS – Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM) Linc Laser

LOCATION Portal (Link to be determined) Role-based user access

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Project Acceptance

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0502

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Project Acceptance

Page 4 of 4

CONTROLLED DOCUMENT: WI-LSH-0601

QMS STANDARDS

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Account Management

AREA: Operations TYPE OF PROCEDURE: Delivery

DOCUMENT NUMBER: WI-LSH-0601 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the eleventh of which is Account Management. This work instruction provides the guidelines and tools necessary to execute the Account Management phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Account Management

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0601

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Account Management

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0601

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

SOP-0056 BP – Delivery SOP-0501 PS – Bundled Energy Solutions

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM)

LOCATION Portal (Link to be determined)

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

Procedure Title: BES Account Management

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0601

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Account Management

Page 4 of 4

CONTROLLED DOCUMENT: WI-LSH-0701

QMS STANDARDS

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Measurement and Verification

AREA: Operations TYPE OF PROCEDURE: Measurement and Verification

DOCUMENT NUMBER: WI-LSH-0701 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the twelfth of which is Measurement and Verification. This work instruction provides the guidelines and tools necessary to execute the Measurement and Verification phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Measurement and Verification

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0701

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Measurement and Verification

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0701

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION

SOP-0057 BP – Measurement and Verification SOP-0501 PS – Bundled Energy Solutions

QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM) Metrix

LOCATION Portal (Link to be determined) Role-based user access

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

Procedure Title: BES Measurement and Verification

DATE OF REVISION MM/DD/YY

01/04/05

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0701

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Measurement and Verification

Page 4 of 4

CONTROLLED DOCUMENT: WI-LSH-0702

QMS STANDARDS

BUSINESS UNIT:

Linc Service Holdings 1005 Windward Ridge Parkway, Alpharetta, GA 30005

STANDARD TYPE:

Work Instruction

PROCEDURE TITLE:

BES Customer Assurance Review and Evaluation (CARE)

AREA: Quality TYPE OF PROCEDURE: Measurement and Verification

DOCUMENT NUMBER: WI-LSH-0702 REVISION: 1.0

PROCEDURE STATUS Published Draft IMPLEMENTED DATE mm/dd/yy REVISION DATE mm/dd/yy

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 PURPOSE/SCOPE Bundled Energy Solutions (BES) is a Linc offering that provides a combination of energy conservation measures (ECMâ&#x20AC;&#x2122;s) designed to give our customers a measurable return on their investment through operational and/or energy cost savings. The BES offering has 13 Master Business Processes, the thirteenth and last of which is Customer Assurance Review and Evaluation (CARE). This work instruction provides the guidelines and tools necessary to execute the Measurement and Verification phase of the BES Master Business Process. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES It is the responsibility of the respective business unit general managers to ensure that all relevant personnel adhere to this work instruction. 2.2 APPROVAL / ESCALATION RESPONSIBILITIES It is the responsibility of the Product Manager to implement this work instruction, monitor compliance and take the necessary actions to ensure compliance. 3.0 PROCEDURE (SOP OR WI STEPS) The steps, participants and tools for this process of the BES offering are listed in the link below. The BES tools that have been developed can also be accessed in Section 5.0 of this work instruction. BES Master Business Process Detail

Procedure Title: BES Customer Assurance Review & Evaluation (CARE)

Page 1 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0702

4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS WORK INSTRUCTION: TERM Energy Conservation Measure (ECM)

Master Business Process

Standard Operating Procedure, SOP

Work Instruction, WI

Procedure Title: BES Customer Assurance Review & Evaluation (CARE)

Page 2 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0702

5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME SOP-0050 TLG Master Business Process

LOCATION

SOP-0057 BP – Measurement and Verification SOP-0058 BP – Customer Scorecard Industry Benchmark SOP-0163 QA – Corrective and Preventive Actions SOP-0501 PS – Bundled Energy Solutions

QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures QMS Links: QMS Released Library: Standard Operating Procedures

6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE

LOCATION

6.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS Customer Relationship Management (CRM) BES Issues Log QMS Corrective and Preventive Actions Library QMS WIP Library Groove Workspace

LOCATION Portal (Link to be determined) BES Deployment Site QMS Links: QMS WIP Library: QMS CA and PA Library QMS Links: QMS WIP Library Groove Virtual Office

7.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY)

1.0 01/04/05

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT AUTHOR: Melissa Cipriani

DOCUMENT MANAGER: Melissa Cipriani

Procedure Title: BES Customer Assurance Review & Evaluation (CARE)

Page 3 of 4

QMS STANDARDS

CONTROLLED DOCUMENT: WI-LSH-0702

REASON FOR CHANGE:

SECTION / PARAGRAPH CHANGED

Revision

1.0

All

CHANGE MADE

Initial Entry

DATE OF REVISION MM/DD/YY

01/04/05

SECOND APPROVER NAME: SCOTT GIACOBBE TITLE: PRESIDENT SIGNATURE:

THIRD APPROVER NAME: TRACY PRICE TITLE: CHIEF EXECUTIVE OFFICER SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

Procedure Title: BES Customer Assurance Review & Evaluation (CARE)

Page 4 of 4

REFERENCE DOCUMENT; R-SOP-0501-5 BES INITIATIVE SUCCESS MEASUREMENTS

QMS STANDARDS

AREA: Product and Services TYPE OF PROCEDURE: BP-Customer Scorecard and Industry Benchmark

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Michelle DeFazio, Jeff Evans, Bruce Phibbs

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani, Michelle DeFazio

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVE WHALEY TITLE: COO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-5

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

QMS: Doing the Right Things and Doing Things The Right Way

Bundled Energy Solutions a Quality Initiative

Initiative Success Measurements

Prepared by: TLG Quality Department December 2004

REFERENCE DOCUMENT; R-SOP-0501-5 BES INITIATIVE SUCCESS MEASUREMENTS

QMS STANDARDS

AREA: Product and Services TYPE OF PROCEDURE: BP-Customer Scorecard and Industry Benchmark

IMPLEMENTED:

PUBLISHED DRAFT MM/DD/YY

UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT

1.0 DOCUMENT HISTORY REVISION (X.X) 1.0

DATE OF LAST REVISION (MM/DD/YY) 01/04/05

DOCUMENT AUTHOR: Michelle DeFazio, Jeff Evans, Bruce Phibbs

LAST APPROVAL DATE (MM/DD/YY)

DOCUMENT MANAGER: Melissa Cipriani, Michelle DeFazio

REASON FOR CHANGE: SECTION / PARAGRAPH

Revision

1.0

All

DATE CHANGE MADE

MM/DD/YY

Initial creation

01/04/05

APPROVALS FIRST APPROVER NAME: GREG LUSH TITLE: CIO SIGNATURE:

SECOND APPROVER NAME: DAVE WHALEY TITLE: COO SIGNATURE:

DOCUMENT HISTORY SECTION: Document Created on 01/04/05 by Melissa Cipriani

QMS Controlled Document – Reference Document Cover Page R-SOP-0501-5

THIRD APPROVER NAME: TRACY PRICE TITLE: CEO SIGNATURE:

Bundled Energy Solutions Initiative Success Measurements

Project Phase: Team: Revised:

Define BES Success Metrics Bruce Phibbs, Jeff Evans, Michelle DeFazio 12/20/04 – Final Document

I. Objective Identify success measurements for the Bundled Energy Solutions initiative. II. Purpose The project concept for the Bundled Energy Solutions (BES) purpose states: “By providing a bundled solution built around a financial sale we can increase our project margins, extend our maintenance contracts, and differentiate ourselves amongst the competition while providing more value to our customers. This project aims to define a bundled solution product geared to Linc Service’s existing/targeted customer base that is simple enough to be rolled out to the entire sales force with sufficient customer applicability as to be repeatable and structured so as to be scalable with customer/company growth. “ Based on group discussions and findings documented in the Project Concept it became clear that the current LINC BES customer portfolio, team experiences and market focus are not entirely in alignment with the above stated purpose. Specifically, the market focus of the team has been primarily geared towards “larger”, more complex opportunities in the School and Industrial markets which typically have a sales cycle of approximately 9-12 months and generate revenues in excess of $1.0 million. However, the existing LINC customer base is more diverse in terms of markets with customer contracts that may not generate $1.0 million in revenue. Given the project purpose the challenge of the team is to determine how to translate our current BES successes into a sales process that can be applied to the existing LINC portfolio. AS of November 2004 several LINC employees have been engaged in this project to translate their successes in BES sales into a repeatable, scalable process that can be deployed throughout the LINC System. We are now at a point to define success metrics. Measuring the success of this initiative is vital to understand if the strategy is the right one for LINC and if so, how successful is it, and if not, what do must be done to change course and limit our losses. The purpose of this project is to apply the LINC expertise and the QMS Measurement approach to define and implement measurements that will enable LINC to monitor and manage the BES Product to ensure that the product goals are met. III. Analysis of Measurements and QMS Approach Based on the Project Concept there are three levels of measurements that need to be defined in order to effectively and accurately monitor the success of the BES Initiative: 1. Business Strategy Metrics: Measure our performance to ensure we are meeting financial and business objectives (Margins, EBIT, Revenues, Existing Customer Penetration…)

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Bundled Energy Solutions Initiative Success Measurements

2. Process Metrics: Measure the overall effectiveness of our BES business processes (methodology) to ensure that standards of quality are being met. 3. Customer/Contract Metrics: Measure both customer satisfaction and contract performance. The Quality Management System (QMS) 5 Step Measurement Definition Model will be used to identify and implement the metrics: 1. Select what to measure analyze the expected output of a process, initiative or strategy define the customer or owner of process, initiative or strategy define the expected customer service requirements in terms of expectations of the customer or owner 2. Develop operational definitions Definition that customer or owner agrees with and; All parties will defer to when metric is in question to avoid misinterpretations 3. Identify data sources Determine where the data will come from and any actions necessary to integrate measurements into existing systems and processes 4. Prepare a collections and sampling plan 5. Implement and refine measurements The output from steps 1 and 2 are presented below. Steps 3-5 will be completed once approval is gained for the metrics recommended below.

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Bundled Energy Solutions Initiative Success Measurements

IV. Recommended Measurements Based on the team review of the Product Concept and existing TLG Reporting philosophies, it is recommended that the following measurements be integrated into existing LINC Reporting systems and processes. Metric

Metric

Operational Definition

Business Strategy

1. BES Volume a. New Customers b. Existing Customers

1. BES Volume = Count of closed BES Deals a. New Customers= # closed BES Deals for NEW Customers b. Existing Customers= # closed BES Deals for Existing Customers

2. BES Revenue a. New Customers b. Existing Customers

2. Revenue = Total Sales $ for closed BES Deals a. New Customers=Sales $ closed BES Deals for NEW Customers b. Existing Customers=Sales $ closed BES Deals for Existing Customers

3. BES Margin

3. BES Margin = Product Margin calculation consistent with all Project and Maintenance Margin Calculations (as produced by LINC Laser)

4. BES Customer Acquisition Cost 5. BES Component Revenue a. Project $ b. Maintenance $ 6. Target Market Penetration

Process Strategy

6. Target Market Penetration=Breakdown of Sales by SIC Code (or LINC code is used to identify industry) 1. Sales Cycle=By Segment average sales cycle for BES Closed Deals

2. Close Ratio

2. Sales Close Ratio=Currently tracked in LINC Prospect System

3. BES $ by Branch

3. No. Offices closing deals =Same calculation as for BES Volume with added dimension of branch

1. Performance Guarantee % 2. Customer Satisfaction 3. Contract Performance %

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5. BES Component Revenue â&#x20AC;&#x201C; Measure makeup of BES dollars allocated to Project and Maintenance Contracts. (Need to be sure that BES dollars can be booked in this fashions.)

1. Sales Cycle

4. Project Performance a. % On-time, b. % Within Budget Customer Strategy

4. BES Customer Acquisition Cost = All people, travel and entertainment costs incurred during the sales process. This includes cost of Exec, Tech, Sales, Admin in terms of cost of time AND T&E.

4. Project Performance Commitment: Monitor Actual to Target Costs, Dates = Data is currently captured and reported in LINC Laser on the Project Performance Report 1. Performance Guarantee % = Total Count of contracts with Performance Guarantee/Count of contracts that we met Performance Guarantee 2. Customer Satisfaction = Rating based on Existing LINC CARE Process for data 3. Contract Performance = Same as Project Implementation Commitment above AND Projected Energy Savings compared to Actual as currently reported on the LASER Agreement Performance Report (APR).

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Strategies that the metric will validate 1. Increase volume / revenue

Data Source 1. LL 2. LL

2. Design a (BES) product geared to Linc Serviceâ&#x20AC;&#x2122;s existing/targeted customer base

3. LL LL-K. Dally 4. LL Concur CRM

3. Increase project margins

ConcurG.Lush CRM-M. Veronda

4. Extend our maintenance contracts 5. Target markets are: - Schools - Commercial - Industrial 1. Design a process that is repeatable, scalable.

1. CRM

2. Design a product and process that is simple enough for all offices to implement

3. LL

1. Increase our project margins

1. Metrix

2. Design a product that will differentiate ourselves amongst the competition while providing more value to our customers

Data Acquisition To be completed with System Owners:

2. CRM

4. LL-PPR

2. CRM CARE 3. LL-APR