Amendment 2 - Q and As .pdf

47PA0723R0003

GSA New York Competitive Electricity Buy

Questions and Answers received as of 3pm EST on July 17,2023.

1. Is the Government aware of any behind the meter generation being considered at any of the facilities in Exhibit 1?

Answer 1. The included agencies have confirmed there is no existing or currently planned behind the meter generation at any of the included facilities / accounts.

2. “ATTACHMENT 3” shows the price component of: “Ancillary Services & Independent System

Operator (ISO) costs (including Network Transmission Access Charges (NTAC), operating reserves and ISO administrative fees)”. Can the Government confirm that NTAC is meant to refer to the “NYPA Transmission Adjustment Charge”.

Answer 2. Confirmed, and this has been updated in the attachment 3 price component confirmation table.

3. Can the Government confirm the NYPA Transmission Adjustment Charge (NTAC) is fixed for the term of the agreement and the Contractor will not be able to seek an annual price adjustment for changes in NTAC costs?

Answer 3. See amendment 2 solicitation – attachment 3 price component confirmation table showing NYPA Transmission Adjustment Charge (NTAC) as fixed at currently known costs for the entire contract. Any future changes or implemented costs for future projects will be handled under section A.14.

4. Can the Government confirm that Capacity cost are fixed for the term of the agreement and the Contractor will not be able to seek an annual price adjustment for changes in ICAP tags?

Answer 4. Confirmed. any costs associated with changing ICAP tags are to be fully fixed for the requested term.

5. “ATTACHMENT 3” shows the price component of “Applicable Public Service Commission fees”. Can the Government provide an example or additional details around this cost component?

Answer 5. See Amendment 2 solicitation, this item has been removed from the attachment

3 price component confirmation table.

6. “ATTACHMENT 3” shows the price component of “Federal Energy Regulatory Commission

(FERC) Order 494”. Can the Government provide an example or additional details around this component?

Answer 6. See Amendment 2 solicitation, this item has been removed from the attachment

3 price component confirmation table.

7. “ATTACHMENT 3” provides the % compliance for “NYISO TIER 1” through 2024. For 2025 through 2027, is the Government expecting (i) contractor to hold the last compliance % flat for the term (6.45% used for ’25, ’26 and ’27) or (ii) not include NYISO Tier 1 costs for ’25, ’26 & ’27, with the understanding that there would be a price adjust for each of those years, addressed via section “A.14 ELECTRICITY REGULATORY CHANGES”?

Answer 7. GSA confirms per the table associated with attachment 3 that NYISO Tier 1 will be fixed at currently known costs for the entire term of the contract. Any future changes or implemented costs for 2025 through 2027 will be handled under section A.14.

8. “ATTACHMENT 3” provides the ZEC rate to be used through 2024. For 2025 through 2027, is the Government expecting (i) contractor to hold the last ZEC rate of $3.36/MWh flat for the term

(used for ’25, ’26 and ’27) or (ii) not include ZEC costs for ’25, ’26 & ’27, with the understanding that there would be a price adjust for each of those years, addressed via section “A.14

ELECTRICITY REGULATORY CHANGES”?

Answer 8. GSA confirms per the table associated with attachment 3 that ZEC’s will be fixed at currently known rates for the entire term of the contract. Any future changes or implemented costs above currently known rates for 2025 through 2027 will be handled under section A.14.

9. “ATTACHMENT 3” shows the price component of “Public Policy Transmission (PPT) costs” as

“Fixed”. The Transmission developers provide annual estimates to the NYISO by September 30th for the prompt year. Example: By September 30, 2023, they will post estimates for calendar year

2024 only. Since PPT cost are currently unknown for 2024, 2025, 2026 and 2027, will the

Government allow this component to be handled as (i) Pass Through At Cost or (ii) allow

Contractor to adjust annually, addressed via section “A.14 ELECTRICITY REGULATORY

CHANGES”, and based on the Transmission Developers annual NYISO posting?

Answer 9. See amendment 2 solicitation – cost component table attachment 3 with NY

Policy Transmission shown as fixed at currently known costs for the entire term. Any future changes or implemented costs for future projects will be handled under section

A.14.

10. Can the Government confirm that New York Local Transmission Climate Leadership and

Community Protection Act (“CLCPA”) Facilities Costs (“CFC Transmission Costs”) are currently unknown and will be addressed via section “A.14 ELECTRICITY REGULATORY CHANGES”.

“CFC Transmission Costs” are local transmission facilities, being developed or upgraded by the utilities, to further the CLCPA and in accordance with the Cost Sharing and Recovery Agreement and Rate Schedule 19 of the NYISO OATT, as approved by FERC pursuant to Docket No. ER22-

2154 issued on August 19, 2022 and NY PSC Case 20-E-0197 approved on February 16, 2023.

CFC Transmission Costs do not include transmission related charges under Transmission Owner

Transmission Solutions (TOTS), Public Policy Transmission (PPT) or NYPA Transmission

Adjustment Charge (NTAC).

Answer 10. Confirmed, as these costs are presently unknown they will be handled under section A.14.

11. In section “B.4 (k) TAXES”, indicates: “contract price includes all applicable Federal, State, and local taxes and duties.”. Can the Government confirm that they are tax exempt from New York

State Sales and Use taxes and that Sales and Use Tax should not be included in the contract price?

Answer 11. Confirmed, with the exception of New York (GRT) any sales and use taxes are not to be included in the contract price as most federal agencies are exempt per section

C.2 (3). Upon award each agency will provide the necessary documentation for tax exemption certification.

12. In section “B.4 (l) TERMINATION FOR THE GOVERNMENT'S CONVENIENCE”, specifies:

“(B) The forward market price shall be defined as…plus any energy supply items that have been purchased in the forward market to supply the account…”. Certain energy supply items, included in the fixed price, may not be “purchased in the forward market”. Would the Government consider amending item “(B)” to state: ”The forward market price shall be defined as the average of around-the-clock (ATC) energy prices at the New York Independent System Operator (NYISO) Zone where the account(s) is located for a term equal to the remaining term of the contract plus a market price, determined in a commercially reasonable manner, for any other energy supply items fixed in the contract price.”

Answer 12. Bid as shown. GSA will not accept any exceptions to this Solicitation which are inconsistent with the terms and requirements of this Solicitation.

13. In section “A.8 Extension Provisions” can the Government provide additional detail around

“settle prices” and the source of data used to calculate the settle prices?

Answer 13. Settlement data is provided by third party provider S&P Global using futures price data based on the prior day’s close. Per section A.8 the Extension Provision will be bilateral, the contractor reserves the right to decline pricing or the option to extend.

14. In section “A.10 ADDING AND DELETING FACILITIES TO THIS CONTRACT”, the

Government notes: “The provisions of this paragraph shall not apply to accounts with early end dates noted in Exhibit 1 at the time of contract award.”. Since Groups 3, 4, 5, 6 and over 70% of the load in Group 2 end in May/Jun of 2027, would the Government consider a term of 42 months for Group 1 and the Group 2 accounts that are showing a “Contract End Month” of Nov-26, so that all accounts end in May/Jun of 2027?

Answer 14. No. Per section C.2, all pricing groups are for a 36 month term based on their applicable start dates as shown in the exhibit 1. FAR 52.212-4(1) regarding early termination payments are in reference to isolated accounts that have a separate contract end dates shorter than the requested term for the larger group.

15. The Central Hudson account in Pricing Group 1 of Exhibit 1 is in the old account number format. Can the Government provide the new 21-digit number?

Answer 15. Central Hudson account-210024557111000234066 has been added to amendment 2 exhibit 1 file.

16. In Section A.14. Electricity Regulatory Changes (c)(1), request is made that contract price shall be decreased by the amount of any after-relieved charges due to a change of Federal State, or local regulation. Can Contractor add to this to the extent it does not require the Government to provide notice of such decrease to Contractor, at which point Contractor will apply any material decrease to the extent it is realized by Contractor with respect to the Government’s accounts which are part of this Solicitation and under the applicable contract with Contractor?

Answer 16. Bid as shown. Per section C.2(8) GSA will not accept any exceptions to this

Solicitation which are inconsistent with the terms and requirements of this Solicitation.

17. In Section A.14. Electric Regulatory Changes (e) and (e)(1), request is made for the ceiling price for after-imposed regulatory costs is limited to 50% of the contract price. Can the contractor request this be removed? The Government bears the risk of any after imposed costs and the contractor does not agree to a cap on increased costs resulting from a Change in Law or

Regulations, including when a Change in Law was approved by has not been implemented and the costs of which are unknown at the time the parties execute the contract. The Supplier will notify the Government of any after-imposed Charges in accordance with section A14.

Answer 17. Bid as shown. Per section C.2(8) GSA will not accept any exceptions to this

18. Can Contractor request and add the following provisions?

• Information and Authorization. GSA shall designate Contractor to the utility and/or ISO, as appropriate, as an authorized recipient of GSA’s current and historical energy billing and usage data. GSA authorizes Contractor to take such actions it deems necessary to enroll the Account(s) with the utility and/or ISO as accounts to be served by Contractor and otherwise meet its obligations under this contract. GSA shall take any actions and execute any documents as

Contractor shall reasonably request in this regard. Furthermore, GSA shall promptly notify

Contractor in writing of any changes in any of the foregoing information, including without limitation (i) any change to the name associated with the account(s); and (iii) the replacement of an account number with a new number.

• Indemnification. To the extent allowed by law, at and after the point at which GSA takes delivery, GSA agrees to defend, indemnify and hold harmless Contractor and all its affiliates, and all of their respective officers, directors, shareholders, associates, employees, agents, representatives, successors and assigns (collectively including Contractor referred to as the

“Contractor Parties”) from and against all claims, losses, expenses (including attorneys’ fees and court costs), damages, demands, judgments, causes of action or suits (collectively, “Claims”) of any kind, including but not limited to, Claims for personal injury, death, or property damage, arising out of or related to this contract.

• Assignment. GSA may assign all (but not less than all) its rights and obligations under this

Contract in their entirety or solely with respect to certain Accounts; provided (A) it gives Contractor

45 days written notice of its intent to do so; (B) the assignee satisfies in full Contractor’s credit requirements; (C) the assignee assumes in writing all of GSA’s obligations under this contract;

and (D) GSA continues to be liable for performance, including payment for goods and services received, prior to the assignment date.

• Miscellaneous. If any portion of this Contract 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 Contract.

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

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

Answer 18. Bid as shown. Per section C.2(8) will not accept any exceptions to this

19. Can Contractor reserve the right to withdraw its price(s) at any time prior to bid being awarded?

Answer 19. Confirmed. While GSA strongly encourages the bid prices to be held until

1:30pm EST, suppliers may withdraw their prices upon email notification to the contracting officer up to notice of award via email to the offeror.

20. Is Contractor able to supplement or amend any of the questions or clarifications in this document? Contractor wishes to clarify that it reserves any such rights.

Answer 20. The question and answer period regarding the terms and conditions for this solicitation expired on July 17th, 2023 at 3pm. Additional account-related questions pertaining to Exhibit 1 may be asked until 3pm on Tuesday August 8th.

21. With respect to Section A.12 Renewable Power for facilities in this Contract, to properly identify the product offering, can the supplier request the following terms should be included with regard to

“RECs”?

• 2.1. NewMix® consists of Green-e Energy certified renewable energy certificates, sourced from wind Renewable Resources located within the United States (''RECs''). The fixed prices above include in an amount of these RECs equal to X percent of your load volume at the

Accounts during the term of this transaction. ''Renewable Resource'' means any electric power generator meeting the eligibility criteria of a ''New Renewable Resource'' and an ''Eligible

Renewable Resource'', as defined in the Green-e Energy National Standard. NewMix® is Green-e Energy certified and meets the environmental and consumer-protection standards set forth by the nonprofit Center for Resource Solutions. Learn more at www.green-e.org. The RECs included in the NewMix® product do not include any tax credits, depreciation allowances or third party subsidies of any kind.

• 2.2. Emissions Reduction Disclaimer. In accordance with Green-e Energy certification requirements, RECs procured 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). Furthermore, Seller does not represent or warrant that the RECs procured hereunder can be used as offsets or otherwise for compliance with any emission reduction program.

• 2.3. Public Statements. Any press release issued by either Party relating to the subject matter hereof shall be subject to prior approval by the other Party. No materials disclosed to third parties under this clause shall reference the specific terms of this transaction without the prior written approval of the non-disclosing Party. Customer is solely responsible for determining whether any marketing materials or other public claims made by Customer related to Customer’s purchase of electricity hereunder, including but not limited to Customer’s use, if any, of the Green-e Energy logo, comply with Green-e Energy requirements and any licensing agreement between Customer and Green-e Energy.

• 2.4. Indemnification. To the extent permitted by law, in addition to, and not in lieu of, any indemnification provisions applicable to the Parties, Customer agrees to the extent allowed by

Law to defend, indemnify and hold harmless Seller from and against all claims arising out of or related to the manufacture, sale, distribution or any other dealing with the products or marketing/advertising materials of Customer related to this transaction, the RECs, or Customer’s use of the Green-e Energy logo. This indemnification does not apply to the extent a court of competent jurisdiction makes a final determination that a Claim for which Seller seeks indemnification was primarily caused by the willful fraud or deceit of Seller.

• 2.5. Change in Certification Standard. If the Green-E Energy certification requirements are modified or repealed after execution hereof but prior to delivery of RECs hereunder, in such a way as to materially adversely affect the ability of a party to perform its obligations hereunder or the benefits to be derived by a party hereunder (each such occurrence, a ''Change Event''), the parties shall use commercially reasonable efforts to reform this transaction in order to give effect to the original intention of the parties. If the parties are unable, despite such efforts, to reform this transaction within thirty (30) days following such Change Event, the matter shall be resolved in accordance with the dispute resolution provisions applicable to the parties.

• 2.6. Renewable Energy Certificate (REC) Product. NewMix® is a Renewable Energy

Certificate (REC) product and does not contain electricity. A REC represents the environmental benefits of 1 megawatt hour (MWh) of renewable energy that can be paired with electricity. For more information, log-on to www.green-e.org/rec.

Answer 21. Bid as shown. Per section C.2(8) will not accept any exceptions to this

22. Please confirm you are NOT requesting CFE EACs with a COD of 10/1/21?

Answer 22. GSA confirms there is no CFE requirement under section A.11, however in the event CFE becomes available in NYISO during the term of the contract, GSA requests the contractor be willing to discuss such delivery.

23. Will any future / new NY Public Policy Transmission (NYPPT) project costs be treated through section A. 14?

Answer 23. See above answer #9.

24. Are any future enhancements to current/existing NYPPT projects to be treated through section

A. 14 ?

Answer 24. See above answer #9.

25. Under NY Public Policy Transmission NYPPT) do you consider the Empire State

Transmission Line costs included or to be passed through? Empire State Transmission Line costs are typically passed through. Please advise.

Answer 25. Empire State Transmission line costs under NY Public Policy Transmission

(NYPPT) will be fixed at currently known costs. Any future changes or implemented costs for future projects will be handled under section A.14.

26. Sections A.11 and A.12 conflict. For this supply, please confirm the supplier is to meet the requirements in section A.12.

Answer 26. Confirmed, requirements for this solicitation pertain to section A.12. See answer #22 in regards to applicability of section A.11.

27. A.7 PAYMENT AND BILLING. This section mentions that invoices may need to be submitted through the online system. Can you please clarify if this is the case for these accounts? If so, what is the mechanism for entering in the invoice information? Which accounts would need to be entered in this manner? Do any customers/sites require hard copy bills? If so, please confirm GSA will provide after contracting.

Answer 27. Individual agencies are responsible for all account billing. Suppliers are to submit dual invoices in accordance with each agency's specification that may include loading electronic invoices into agency billing systems. GSA will work with the awarded supplier and provide instruction regarding invoice delivery prior to contract start.

28. A.7 PAYMENT AND BILLING- Please confirm the preferred method of billing is dual bill, 30-day net pay.

Answer 28. Confirmed.

29. Please confirm all contracts will be signed under the legal name “U.S. GENERAL SERVICES

ADMINISTRATION” and not the “customer name” listed in the usage files.

Answer 29. Confirmed, suppliers will sign the GSA 1449 included in the solicitation package. See answer #27 in regard to agency invoicing.

30. Please confirm each price group should be priced separately from each other and should not be load weighted with all accounts.

Answer 30. Confirmed.

31. Termination For the Government’s Convenience. If the supplier volumes differ from the volumes provided in Exhibit 1, which volumes are expected to be used in the formula provided?

Answer 31. The Exhibit 1 contract volumes will be utilized for usage determination as described in section A.10.

32. C.1 EVIDENCE OF TECHNICAL ACCEPTABILITY, Subcontracting plans. Is this a requirement to be considered technically acceptable?

Answer 32. Yes, subcontracting plans are a GSA requirement to be considered technically acceptable. See attachment 5 for the subcontracting plan and requirements.

33. Section C.2 Price Proposal- Please confirm that GSA’s notice of award is considered a binding lock-in. Are there any instances where GSA would decide not to execute contracts?

Answer 33. Refer to the RFP, C.2(4). There are no past instances in which GSA has provided a notice of award and not executed a contract.

34. Do any of the accounts that are part of this bid have installed or plans to install behind the meter generation? If so, please provide additional information on fuel type, maximum output, when is the online date, and what is the expected generation by month? Is there currently any scheduled additional load saving measures expected to come online?

Answer 34. See answer #1.

35. Offeror is pending data for accounts included in this RFP. Offeror requests the right to supplement questions regarding the account list should rejections or errors be received from the utility hereafter.

Answer 25. See answer #20.

36. Does the Offeror have the right to withdrawal participation prior to the August 16th even if deemed technically acceptable and invited to participate?

Answer 36. Yes, suppliers deemed technically acceptable are not required to submit pricing on auction day.

37. Please provide account status for the following accounts:

Answer 37. These accounts are currently active and being served on a GSA third party electric supply contract.