Responses to Questions SIR 697DCK-21-R-00174.pdf

RFO 697DCK-21-R-00174

RESPONSES TO SUPPLIERS’ QUESTIONS

1. Question: Our pricing & structuring team noticed a change in usage pattern that happened around the end of January…

Any insight into what caused the change in pattern would be greatly appreciated, but what we are really looking for is what to expect going forward. Do you know if these lower volumes are to be expected in the future?

Answer: The WJHTC receives electric distribution service from Atlantic City Electric Company via two independent 69kV electric feeders. The feeders are designated as the 100 side and the 200 side. Each feeder is capable of supply 100% of the WJHTC’s load. During normal operation each feeder supplies approximately 50% of the load.

Each feeder has a separate electric meter for billing purposes. On January 31, 2020 the center phase metering PT for the 100 side feeder had a catastrophic failure. This resulted in the loss of potential on the “B” phase which caused the loss of the interval metering data for the 100 feeder. The PT was replaced on February 28, 2021. During the time that the metering PT was out of service, the FAA provided Atlantic City Electric the 15 minute interval data from the FAA’s backup metering. The graph below shows the actual hourly electric consumption from January 1, 2020 to April 1, 2021.

2. Question: How would the Government wish to handle the treatment of Price Formation / ORDC in PJM, approved in FERC Dockets No. EL19-58 and ER19-1486, impacting Energy and Ancillaries costs. These costs were further approved to start in May ’22 by FERC on November 3, 2020. Since there is power flow in May of ’22 under this contract, how should those costs be treated?

Answer: Pursuant the terms of Section G.2 (n) of the Solicitation, the Contractor may request changes or adjustments (without mark-up) (including without limitation, changes in the application or interpretation of existing requirements) in (a) ACE’s requirements or service furnished to the WJHTC; (b) capacity and/or transmission peak load contributions of the WJHTC; (c) ISO or PJM requirements; and/or (d) applicable laws, regulations, and orders.

3. Question: Please clarify that in the event of a default by the Government (which includes, without limitation, failure to pay its bills on time after any applicable cure period or any other material obligation under the Solicitation) that Contractor may terminate the agreement and the Government may be liable for damages calculated in accordance with Section 3.10.6-1 Termination for Convenience.

Answer: The FAA views this question and clarification as an exception to Solicitation Number 697DCK-21-R-00174 and the FAA does not agree to this exception. All clauses referenced in Solicitation Number 697DCK-21-R-00174 apply. If you take exception to the FAA’s Solicitation Number 697DCK-21-R-00174, your proposal will be rendered unresponsive and unacceptable.

4. Question: Would there be any restrictions on Supplier assigning the contract to its affiliate or successor in interest for a reason other than described in Section G.2(a)?

Answer: Please refer to G.2 Contract Terms and Conditions-Commercial Items (a) Assignment and FAA clause 3.3.1-15, Assignment of Claims.

5. Question: Does the Government have the right to assign this contract? If so, please confirm that any assignee would be required to meet the Supplier’s creditworthiness.

Answer: The FAA has the right to assign the contract. The FAA views the remainder of the question and clarification regarding creditworthiness as an exception to Solicitation Number 697DCK-21-R-00174 and the FAA does not agree to this exception. All clauses referenced in Solicitation Number 697DCK-21-R-00174 apply. If you take exception to

6. Question: With respect to any early termination payment due from the Government to Contractor due to Government’s right to terminate for convenience, please confirm that the following formula shall be deemed an acceptable calculation of damages in accordance with Section 3.10.6-1:

The sum of (i) payment of all amounts the Government owes Contractor for electricity provided to the Government, (ii) when the contract is terminated early (entirely or as to certain accounts), payment of an amount (that Contractor will calculate using its reasonable judgment) equal to the positive difference between

(A) the dollar amount the Government would have paid to Contractor under this contract had it not been terminated early and (B) the dollar amount Contractor could resell such electricity for to a third party under then-current market conditions and (iii) all reasonable costs (including reasonable attorneys’ fees, expenses and court costs) Contractor reasonably incurs in collecting amounts the Government owes Contractor under this contract.

Answer: The FAA views this question and clarification as an exception to Solicitation Number 697DCK-21-R-00174 and the FAA does not agree to this exception. All clauses referenced in Solicitation Number 697DCK-21-R-00174 apply. If you take exception to

7. Question: Section K, clause 3.2.2.3 acceptance period appears undefined. That conflicts with Section F.1, which says we must agree to hold prices from 1 PM April 27, 2021 to 10AM April 30, 2021. Please confirm the Section F.1 dates are correct and please confirm we will only need to hold our prices for ~72 hours.

Answer: Section F.1 dates are correct and the prices must be held firm from 1PM April 27, 2021 to 10AM April 30, 2021.

8. Question: Regarding the solicitation for FAA, we cannot accept the proposed contract and we need to modify several clauses. These include:

The government has a termination for convenience right. We then submit a proposal on any make-whole payment, but they evaluate/pay as they see fit.

In the event of a change in law, we only make a request to pass-through such cost impacts (nothing is automatic).

Answer: The FAA views this question and proposed modification to the contract clauses as an exception to Solicitation Number 697DCK-21-R-00174 and the FAA does not agree to this exception. All clauses referenced in Solicitation Number 697DCK-21-R-

00174 apply. If you take exception to the FAA’s Solicitation Number 697DCK-21-R-00174 and/or propose modifications to the contract clauses, your proposal will be rendered