GSA R11 DC MD Spring 2021 Electricity Solicitation No. 47PA0421R0003-Questions and Answers Amendment 2.docx

47PA0421R0003 GSA R11 DC & MD Competitive Electricity Amendment 2 Version – Question and Answers 13 – 26 added

QUESTIONS RECEIVED DURING MAY 26TH CALL

Q1) GSA referenced during the May 26th call that it may be adding accounts and/or pricing groups to this bid opportunity. Does the Government expect that if this happens it will still be able to keep the auction date on June 23, 2021?

A1) The Government currently plans to keep the auction date on June 23rd.

Q2) The additional renewable power requirement (Renewable Energy Credits (RECs) that comply with Section A.12 of the solicitation) for pricing groups two and four is 7.5%. Would the Government consider increasing or decreasing that percentage to a whole number (i.e. 7.0% or 8.0%)?

A2) Yes. The requirement for pricing groups that were at 7.5% have been updated to 8.0% in the updated solicitation and Exhibit 1.

QUESTIONS RECEIVED IN WRITING

Q3) Would the Government consider alternate terms, conditions or pricing products to the ones included in the GSA solicitation?

A3) No.

Q4) Should Public Utility Commission fees be included in bid prices?

A4) Yes, See Section C.2 and Attachment 2.

Q5) How should the impending ORDC costs be treated? May the supplier pass through these costs once known in 2022?

A5) Any potential future increases of ORDC unknown at this time will handled in accordance with Section A.14 as an Electricity Regulatory Change.

Q6) Do any of the locations have behind the meter generation? If so, how much generation?

A6) Behind the meter generation projects that GSA is aware of are noted in the Exhibit 1 file.

Q7) Does the GSA have any future plans to add onsite generation to any of the meters associated with the bid?

A7) GSA is not aware of any future onsite generation projects planned for the accounts included in this solicitation. Any known load changes are noted in the Exhibit 1 file.

Q8) Do any accounts utilize onsite generation?

A8) Accounts that have onsite generation are noted in the Exhibit 1 file.

Q9) Are there plans for accounts to utilize onsite generation for the proposed contract term?

A9) See A7 above.

Q10) How has COVID-19 impacted usage?

A10) GSA currently does not have estimates regarding overall impacts to historical usage reduction for our facilities at this time but it can be expected to see reduced demand in buildings that have closed or operating at reduced occupancy. A full list of GSA closures and operating status can be found: https://www.gsa.gov/governmentwide-initiatives/emergency-response/facilities-status-and-information-overview "

Q11) Are there any future reductions in usage expected due to COVID-19 for the proposed contract term?

A11) A currently does not have load reduction estimates for our facilities at this time but it can be expected to see reduced demand in buildings that have closed or operating at reduced occupancy. A full list of GSA closures and operating status can be found: https://www.gsa.gov/governmentwide-initiatives/emergency-response/facilities-status-and-information-overview "

Q12) In lieu of providing the “Annual Renewable Report” as specified in section A.12 can we provide confirmation of our annual Green-e audit?

A12) No. Per Section A.12 of the solicitation, the annual renewable requirement must contain attachments three (3), four (4), and five (5).

Q13) Proposer requests the right to withdraw its price(s) at any time prior to bid being awarded.

A13) Confirmed. While GSA strongly encourages all offerors to hold their prices until 1:30 p.m. per the solicitation requirements, Offerors may withdraw bids up until a notice of award via email has been sent by GSA.

Q14) Proposer requests the right to supplement or amend any of the questions, clarifications, or exceptions listed in this document.

A14) The Question and Answer period regarding solicitation terms and conditions closed at 5:00 PM EDT on June 1rst, 2021.

Q15) Proposer would like to understand if any of the accounts to be served have existing or planned behind-the-meter generation including but not limited to cogeneration, solar, wind, fuel cell, etc. If so, please provide as many details as possible including installation date, fuel type, historic output, forecasted output, etc.

A15) See answers to A7 and A8.

Q16) With respect to Page 4, Section A.12.(b), Renewable Power for Facilities in this Contract, Proposer believes that title to the RECs should pass to the Government once delivery and payment for the RECs have been completed. Would the Government agree to this?

A16) Confirmed

Q17) General clarification: Proposer requests the inclusion of the following provisions, which have been acceptable to the Government in connection with prior solicitation responses by Proposer: a. Emissions Reduction Disclaimer: In accordance with Green-e Energy certification requirements, RECs sold hereunder include all greenhouse gas emission reduction benefits associated with the renewable generation that produced such RECs, including carbon dioxide (CO2) reduction benefits, but do not include emission reduction benefits associated with capped and traded pollutants, including sulfur dioxide (SO2), mercury (Hg), and the oxides of nitrogen (NOX). Proposer makes no representations or warranties that the RECs sold hereunder can be used as offsets or otherwise for compliance with any emission reduction program, unless otherwise noted on our response.

b. RECs Resale: The Government agrees that it shall not offer for sale any RECs delivered by Proposer pursuant to this agreement.

A17) No.

Q18) Would the Government consider passing RPS through with no markup via an Economic Price Adjustment? There have been many updates to RPS in Maryland and DC recently, including one that just went into effect in Maryland on 6/1, which delayed Offshore Wind RECs, changed the solar compliance %, solar ACP, hydro eligibility, and biomass eligibility. This has led to a lot of volatility that is expected to result in several Change in Laws in the near term.

A18) No. Costs for RPS should be based on known costs at the time of the auction. Any future regulatory changes to RPS will be handled in accordance with section A.14.

Q19) With respect to Page 34, Price Proposal, subitem (4) – Proposer will accept an award letter on GSA’s letterhead, signed be the Contracting Officer, listing the price and term, referencing the solicitation and list of accounts. Please clarify that this will be the award process.

A19) Per Section C.2 (4) of the solicitation, the Government will provide notice of award via email by 1:30 p.m. EDT to the awarded offeror or offerors but may not provide a fully executed contract the same day. Offerors will be required to honor their prices once the notice of award is provided.

Q20) Proposer is unable to provide an increment of less than 1% of RECs. For groups requesting 7.5%, Proposer asks that the proposal be revised to request an integer of 7% or 8% (or any other whole number).

A20) See answer A2. GSA has changed the requirement to 8.0% as noted in Amendment 1.

Q21) Offshore Wind RECs (“ORECs”) are noted in several places to be passed through. This does not appear noted in 552.216-77 Economic Price Adjustment. Can this be added?

A21) Offshore Wind RECs (“ORECs”) are listed as item (4) in Section B 552.216-77 Economic Price Adjustment of the solicitation.

Q22) Offshore Wind RECs in Maryland are a carve-out of the existing Renewable Portfolio Standards (“RPS”). In the event that the OREC projects are delayed, the OREC carve-out is replaced by additional RPS. Would this be subject to A.14 ELECTRICITY REGULATORY CHANGES?

A22) Confirmed

Q23) PJM plans to implement changes often referred to as Price Formation or Operating Reserve Demand Curve (“ORDC”) as approved in FERC Dockets No. EL19-58 and ER19-1486. These charges are to start in May ’22 and while approved, are not currently charged or known. How should Proposer treat these charges for the Government?

A23) Costs for the above referenced item should be based on implemented costs at the time of the auction. Changes in regulatory compliance costs for the above referenced item post-auction will be handled through Section A.14 Electricity Regulatory Changes.

Q24) Proposer requests that the following language, which has been included in previous solicitations, be included in this contract: “Limitation of Liability: Liabilities not excused by reason of force majeure or otherwise shall be limited to direct actual damages. Neither party will be liable to the other for consequential, incidental, punitive, exemplary nor indirect damages.”

A24) No. Reference FAR 52.212-4(f) in regards to excusable delays.

Q25) Proposer requests the inclusion of the following provisions, which have been acceptable to the Government in connection with prior solicitation responses by Proposer: a. Miscellaneous. If in any circumstance Proposer does not provide notice of, or object to, any default on the Government’s part under this Agreement, such situation will not operate or be construed as a waiver of any future default, whether like or different in character.

b. Miscellaneous (cont’d). If any portion of this Agreement is held legally invalid, the remainder will not be affected and will be valid and enforced to the fullest extent permitted by law and equity, and there will be deemed substituted for the invalid provisions such provisions as will most nearly carry out our mutual intent as expressed in this Agreement.

c. Miscellaneous (cont’d). This Agreement contains the entire agreement between both Parties, supersedes any other agreements, discussions or understandings (whether written or oral) regarding the subject matter of this Agreement, and may not be contradicted by any prior or contemporaneous oral or written agreement.

d. Miscellaneous (cont’d). Proposer is an independent contractor under this Agreement, and nothing in this Agreement will be construed to constitute a joint venture, fiduciary relationship, partnership or other joint undertaking.

A25) No

Q26) With regards to Attachment 3, which includes a Generator Registration Form as part of the Annual Renewable Report, would submission of this report by the Proposer be duplicative when facilities that are in RTOs submit their attestations to Green-e, and the Proposer’s third party auditor follows Green-e protocol? In addition to the Proposer providing proof (via M-RETS/ERCOT/applicable EIS) of eligibility of the tracked facilities used to purchase the REC’s.

A26) The Government’s response is no. The solicitation specifies the awarded Offeror must provide all of the information specified in Attachments three (3), four (4) and five (5) so the Government can verify the source, vintage and number of Renewable Energy Credits purchased and retired on the Government’s behalf by the Contractor for the specific accounts included in this contract.