Attachment 1 - PWS - TIP Financial Advisor.pdf

Attachment 1- Performance Work Statement Solicitation # 89503020QWA000054

Performance Work Statement (PWS) Headquarters Office

PROGRAM FINANCIAL ANALYSIS AND SUPPORT SERVICES

FOR TRANSMISSION INFRASTRUCTURE PROGRAM (TIP)

I. BACKGROUND:

The Western Area Power Administration (Western) is a Federal agency under the U.S.

Department of Energy (DOE) that markets and transmits wholesale hydroelectric power generated at Federal dams across the western United States. This power is sold to customers in accordance with Federal law. Western’s transmission system was developed to deliver the Federal hydro-power to those customers. Western owns and operates an integrated 17,000 circuit-mile, high voltage transmission system and markets power across 15 western states covering 1.3 million square-miles. Western’s service area encompasses all of the following states: Arizona, California, Colorado, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Utah, and Wyoming; as well as parts of Iowa, Kansas, Montana, Minnesota, and Texas.

II. PURPOSE:

The purpose of this acquisition is to obtain specialized financial analysis and support services, necessary to support Western’s Transmission Infrastructure Program (TIP). The authority for WAPA use of the Transmission Infrastructure Program includes, but is not limited to:§ 302 and § 641 of the DOE Organization Act (42 U.S.C. §§ 7152, 7251) as amended;§ 402 of the American Recovery and Reinvestment Act of2009 (42 U.S.C. § 16421a), which amended the Hoover Power Plant Act of 1984 (Public Law 98-381) by adding§ 301 ("WAPA Area Power Administration Borrowing Authority"); the DOE Energy and Water Appropriations Act of 1993 (42 U.S.C. § 7278); and the Contributed Funds Act (43 U.S.C. § 395).

The purpose of a Program Financial Analysis and Support Services is to assist TIP in analysis in portfolio level issues including risks and opportunities from a series of project loans as well as identify potential emergent issues from credit risk of new borrowing authority decisions. The service tasks may include both program and individual borrowing authority decisions linked to certainty of repayment for initial loan decisions through the life-cycle to full repayment or special situations. In providing financial analysis and data analysis services to TIP on program level issues and project transactions consultant must possess expertise at a minimum in the areas listed below under section III, “Scope.”

III. SCOPE:

The contractor shall provide a qualified, trained, and experienced professional financial advisor and transaction specialist who has knowledge in:

• Knowledge and experience in modeling interest rates assigned by US Treasury Bureau of Fiscal Services practices and ability to prepare and validate loan amortization schedules, prepayment penalty cost analysis, and assignment of interest rate credit spreads.

• Portfolio management modeling of multiple loans in terms of interest rate risk, timing and sequencing, and other analytical requirements as identified by TIP

• Knowledge of methodologies and expertise in preparation of models for data analysis of portfolio optimization for loan program book

Attachment 1- Performance Work Statement Solicitation # 89503020QWA000054

• Electric Utility sector regulatory and accounting standards with ability to prepare financial modeling, rate analysis, and credit risk assessments supporting both equity sponsors and lenders

• Planning, development and auditing of financial models for independent, regulated and public-private partnership financings for transmission and renewable generation power projects

• Preparation of analytical models for project finance, financial and construction accounting, tax and depreciation and financial structuring implications for electric transmission and related infrastructure projects

• Expertise in preparing and evaluating valuation models with Discounted Cash Flow Valuation and Comparable methodologies for asset disposition and distressed assets

• Advanced skills in working with MS Excel and conducting sensitivity analysis, monte carlo simulations for loan portfolio risks and opportunities as required

• Proven ability to provide oral and writing narrative of financial model assumptions and analysis with senior managers and stakeholders as directed

• Expertise in providing audit and review of third-party and equity sponsor financial models and cost-assumption factors

• Ability to provide Learning Solutions for basic to advance proficiency in credit risk, data analytics and financial modeling skills

With respect to each and all of the foregoing, Contractor shall deliver in paper or by electronic media, as TIP shall deem appropriate, such reviews, memoranda, documents, etc.

V. DELIVERABLES:

The Contractor shall provide TIP with services and deliverables specified above in the “Scope” section, as necessary, or as requested by TIP, in an appropriate format. The individual deliverables (opinions, documents, etc.) will be due to TIP on mutually agreed schedules, with the Contracting making a good faith effort to accommodate requests by TIP to provide a deliverable with minimal lead time. The Contractor shall provide TIP status reports (in a mutually agreed to format) as requested by the Government (COR/Project Officer/CO); and the Contractor will maintain a docketing system to track all outstanding deliverables. The Contractor shall also adhere to all Government requirements to deliver detailed invoices and supporting documentation.

All deliverables will be determined IAW individual task orders.

VI. TRAVEL:

Travel must be authorized by the Government in writing, at a minimum of two (2) weeks in advance. The travel documentation shall be uploaded as an attachment in IPP when submitting involves.