Special_Notice_(SCIP_Purchase_Power)(R1).pdf

SPECIAL NOTICE: This special notice is issued by the Bureau of Indian Affairs, San Carlos Irrigation Project, 13805 North Arizona Boulevard, Coolidge, Arizona that the agency intends to award a sole source firm-fixed price contract pursuant to 41 U.S.C. 3304(a)(1) implemented at 48 CFR 6.302-1(a)(2) for participation in the

Southwest Public Power Agency (SPPA), 160 North Pasadena, Suite 101, Mesa, Arizona 85201 for an estimated amount of $15M - $20M per year for a five-year ordering period to purchase up to 60 Megawatts

(MW) of electrical energy from Sempra Generation as a member of the SPPA to replace the existing requirement for SCIP which is due to expire. The Delegation of Authority under 40 U.S.C. 121 (d) and 501 was requested and approved by the General Services Administration, Commissioner of the Public Buildings Service.

The SPPA and purchase of electrical power is located in Arizona.

DESCRIPTION (SYNOPSIS) OF WORK CONTEMPLATED UNDER THIS PROJECT:

PROJECT TITLE: ENTRY INTO THE SOUTHWEST PUBLIC POWER AGENCY (SPPA) JOINT

ACTION AGENCY POWER POOL ARRANGEMENT

The Bureau of Indian Affairs/San Carlos Irrigation Project (SCIP) under the Western Region operates an electric utility as part of their duties as a Federal Agency. As part of managing a full service electric utility providing electric service to customers in southern Arizona purchase of electrical power for distribution is required. SCIP was originally established to provide irrigation water to lands on the Gila River Indian

Reservation and certain lands adjacent to the reservation.

SCIP presently provides service to approximately 2,500 square miles in Pinal County and parts of Pima, Maricopa, Graham and Gila counties. The customer base is primarily agricultural and rural, with a large industrial base in the Lone Butte industrial park area and large residential populations in the San Carlos, Gila

River and Oracle areas. In previous years, the project has served electricity to approximately 16,000 customers, both on and off the reservation. SCIP anticipates that supplemental resources will be needed to meet SCIP’s loads beginning in calendar year 2015.

In order to fulfill its goal, SCIP has actively followed and supported pooling activities designed to identify diversity and build alliances among similarly situated entities. Those alliances build upon existing common resources. Those similarly situated utilities are developing an additional pooling program and SCIP’s staff has determined participation in this pooling program is essential for SCIP to maintain long-term rate stability.

SCIP is entering into a contract with a qualified entity (SPPA) as SCIP must acquire new services that provide the anticipated power requirement with significant flexibility in scheduling to maintain affordable and reliable service. To meet these power supply needs, SCIP intends to join the developed SPPA Power Pool; and contract for electric power from the SPPA Power Pool for a five-year term. SCIP seeks to contract with SPPA, a newly developed Joint Action Agency in Arizona, to take advantage of an existing Power Purchase Agreement (PPA)

SPPA has with Sempra Generation.

Participating in SPPA will give SCIP access to SPPA members’ Sempra PPA resources and the option to lay off power through a pooling arrangement, which will allow SCIP to schedule power as needed. SPPA will make reasonable efforts to maximize the economic use of capacity and energy available from the pool participants’ pool resources. SPPA will comply with applicable limitations on use of pool resources, including must-take obligations, minimum and maximum scheduling requirements and terms of existing Federal power agreements.

SPPA will manage use of the Sempra PPA and transactions under the Energy Service Agreement (ESA) to maximize its value in serving the aggregate wholesale load requirements of the pool participants.

The procurement of SPPA power and power pooling functions for SCIP’s customer base will realize a substantial savings over the course of the 5-year participation. SCIP’s inclusion in SPPA power pooling and the option of obtaining power from the Sempra PPA and ESA drastically decreases cost outlays over the life of the

SPPA contract thus providing in the end long-term low-cost energy to all customers (including those users on the reservations).

This notice of intent is not a request for competitive proposals and no solicitation will be issued however all responses received within 30 calendar days from the date of publication of this synopsis will be considered by the government. A determination by the government not to compete this proposed contract action based upon responses to this notice is solely with the discretion of the government. Information received will normally be considered for the purpose of determining whether to conduct a competitive procurement. If no affirmative responses are received within 30 calendar days of this notice to determine whether a qualified source is more advantageous to the government, SCIP will join the SPPA as part of the consortium to purchase electrical power. Responses must be received by 1:30pm Arizona Time on December 24, 2014.

If deemed necessary, interested sources may email inquiries regarding the professional services stated in this special notice to Gary A. Haynes, Contract Specialist at gary.haynes@bia.gov and the email should be entitled

“SCIP Electric Arizona Utility Scale Resource and Power Pooling Optimization – Special Notice”. DO NOT

SEND ADVERTISING OR PROMOTIONAL MATERIALS AS THEY WILL BE DISCARDED.

THIS IS NOT A SOLICITATION AND SHOULD NOT BE CONSTRUED AS SUCH. The Justification and

Approval is included with this announcement.

PLACE OF PERFORMANCE: The site location is at the San Carlos Irrigation Project, 13805 North Arizona

Boulevard, Coolidge, AZ 85128.

Point of Contact: Gary A. Haynes, Contract Specialist, Phone 520-723-6218, FAX 520-723-1179, email is gary.haynes@bia.gov mailto:gary.haynes@bia.gov