Aviano AB NOO- SP060424R0405.pdf

Notice of Opportunity Aviano Air Base, Italy

Aviano Air Base Italy

Energy Savings Performance Contract (ESPC) Task Order Under the Department of Energy’s (DOE) Fourth Generation

ESPC Indefinite Delivery Indefinite Quantity (IDIQ) Contract Solicitation: SP0604-24-R-0405

1. Notice: The Defense Logistics Agency (DLA) Energy, on behalf of Aviano Air Base (AB)

Italy plans to award an ESPC Task Order (TO) using the DOE Fourth-Generation ESPC IDIQ contract. DLA Energy invites the current 20 DOE Fourth-Generation ESPC IDIQ contract holders (also referred to as Energy Service Companies (ESCOs)), to submit a written response to this Notice of Opportunity (NOO) for DLA Energy’s consideration. Only those 20 DOE Fourth-Generation ESPC IDIQ contract holders/ESCOs are eligible for award. To be clear, in the event of a resultant TO award, the award will only be made to one (1) of the 20 DOE Fourth-Generation ESPC IDIQ contract holders/ESCOs as the prime contractor.

2. Authority: The DLA Energy authority is in accordance with 42 U.S.C. §8287, the Federal

Acquisition Regulation (FAR) 23.205 “Energy-savings performance contracts”, Energy Policy Act of 1992 (EPAct), and DOE Final Rule, 10 CFR 436 Subpart B – Methods and Procedures for Energy Savings Performance Contracting and Energy Policy Act of 1992 (EPA, April 10, 1995).

3. Project Approach:

Aviano AB is looking for a comprehensive project to achieve progress toward a reduction in energy intensity and progress toward Carbon Free Energy (CFE) goals in line with EO 14057: Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, address the installation’s most pressing mission-level gaps and resiliency needs that impact crucial facilities to ensure energy security and resilience in line with 10 USC § 2911, and address specific infrastructure deficiencies, in line with 42 U.S.C. § 8287 utilizing the DOE Fourth-Generation ESPC IDIQ contract. In implementing EO 14057, each agency shall prioritize actions to achieve carbon pollution-free electricity goals, achieve net-zero emissions, and reduce greenhouse gasses to reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission. By enhancing energy assurance, Aviano AB will make progress towards meeting Air Force and Federal mandates to address its most pressing mission-level resilience needs that impact the critical facilities at Aviano AB. To achieve its energy conservation goals, Aviano AB is interested in any Energy Conservation Measure (ECM) defined in Attachment J-3 of the DOE Fourth-Generation ESPC IDIQ contract, with the exception of two (2) technical categories: TC.15 – Energy Cost Reduction through Rate Adjustments, and TC.20

– Future ECMs. Aviano AB, along with any other ESCO-identified opportunity authorized under the DOE Fourth-Generation ESPC IDIQ, is specifically interested in evaluating ECMs focused on the following objectives for Area F comprised of the Flightline, Community, and Flightline Support Districts: renewable energy generation with the potential of energy storage, standby generation and microgrid controls to support critical and essential loads;

Energy Management Control Systems (EMCS) upgrades retrocommissioning; monitoring based commissioning; and the potential for net-zero buildings as well as deep energy retrofits. The selected ESCO shall be responsible for evaluating the feasibility of an Energy Sales Agreement (ESA) as part of an ESPC and providing a business case analysis comparing the benefits of an ESA within an ESPC to that of a typical ECM, as part of its Preliminary Assessment (PA).

The selected ESCO shall be responsible for the operation, maintenance, repair and replacement of all installed ECMs for the life of the contract, pursuant to the DOE Fourth- Generation ESPC IDIQ and any resultant TO, and as required by 42 U.S.C. § 8287. Be advised that the resultant project shall be accomplished in compliance with Air Force Civil Engineer ESPC 2022 Playbook, published 6 July 2022, and Air Force Guidance Memorandum (AFGM) 2022-32-01 for Civil Engineer Control Systems Cybersecurity along with the current version of UFC 4-010-06 Cybersecurity of Facility Related Control Systems.

Attachment 1 – Aviano Air Base Data provides the buildings available for inclusion in the project scope and their pertinent data and available energy consumption information.

Available for inclusion in the project scope at this time are 329 buildings encompassing 2,761,243 square feet at Aviano AB Italy. This information is offered only for project scoping potential in response to this NOO. The Government may remove or consider additional buildings at Aviano AB during the project development phase and include such added buildings in any resultant project upon the receipt of a good business case analysis that illustrates a benefit to the Government. Attachment 1 also provides a list of measures currently implemented on Aviano AB facilities.

The selected ESCO will be required to develop a formal Preliminary Assessment (PA) and Investment Grade Audit (IGA), as applicable, in accordance with the DOE Fourth Generation ESPC IDIQ. The selected ESCO shall be responsible for determining the actual energy consumption during the PA and IGA phases. The selected ESCO shall review each building during the PA and illustrate its Measurement & Verification (M&V) approach.

During development of the PA, the selected ESCO shall be required to provide a white paper of its proposed escalation rate approach for the Government’s review and approval. The PA shall specify the building metering requirements and the ESCO’s approach to utilizing existing meters or installing new meters to ensure compliance with the Air Force 2022 ESPC Playbook, published July 6, 2022. It will be the ESCO’s responsibility and cost to install the necessary meters during the IGA to satisfactorily meet the M&V requirements of the Air Force Civil Engineer ESPC Playbook and other applicable guidance.

DoD installations and facilities in Italy are governed by the Status of Forces Agreement

(SOFA) (Attachment 2) and by the 1954 Bilateral Infrastructure Agreement (BIA), which generally regulates the utilization, function, consignment and construction with U.S. funds of infrastructure of interest to the U.S. Armed Forces stationed in Italy. Both the BIA and the subsequent Italy/U.S. Memorandum of Understanding (MOU) of 2 February 1995

(Attachment 3) establish that U.S. funded infrastructure built, upgraded or repaired on Italian Ministry of Defense (MOD IT) land ceded in use to the U.S. Government, will eventually be consigned to the Italian Government. Therefore, any construction, upgrade or repair of a facility shall be considered as “executed on behalf of the Italian Government.” This project, and the selected ESCO shall be responsible for complying with the SOFA, BIA and MOU and shall comply with the requirements of, and approvals required by the Construction Mixed Commission (CMC). The Direttiva PI (Attachment 4), the CMC Technical Handbook 03292021(Attachment 5), and FY21 Project Submission Requirements (Attachment 6) are included as reference to this NOO, and the selected ESCO is responsible for compliance with the procedures set forth in these references and may require that certain terms and conditions flow down to the selected ESCO’s subcontractors (e.g., Antimafia Screening Procedures).

Referenced laws, regulations and policies within these references are subject to change and amendment. In consideration of these requirements and the scheduling of the CMC, the Government anticipates receipt of the selected ESCO’s PA no later than May 2024.

Pursuant to the DOE Fourth-Generation ESPC IDIQ, Section C.12, Financial, Tax, or Other Incentives for Energy Efficiency and Renewable Energy and Water Projects, any applicable and allowable credits, rebates, and incentives from the Government, Host Nation, utility companies, and private companies shall be pursued by the ESCO to the maximum extent practicable. The selected ESCO shall also be responsible for assisting the installation in submitting any and all documentation for applicable incentives and possible funding (e.g., AFFECT Grant, ERCIP funding, etc.) to assist in the financial viability of this project.

In any resultant IGA, the selected ESCO will be required to include and illustrate the clear lines of demarcation between its new project and any existing energy conservation projects as noted in Attachment 1. The project M&V Plan shall clearly illustrate the savings to assure the Government review team that any energy savings achieved are the result of the ESCO’s installed ECM(s) under the resultant project and are not the result of an existing or separate energy project or some other circumstance unrelated to the resultant project.

The ESCO shall provide its own Italian speaking staff and translation services as the Government will not provide any translation or interpretation services. The ESCO shall comply with any and all security requirements to include requesting waivers for unescorted access, scheduling and working with escorts, and providing U.S. Citizens with security clearance as required to work in specified secure areas. ESCOs may be required submit Installation Access Requests (IAR) or USAFE IMT 79’s and/or to undergo a background check to receive base access and/or security clearances. Non-Italian and non-US citizens may be required to submit timely Request for Visit to respective embassies in Italy prior to the Government granting base access passes. In general, the ESCO shall submit access requests at least 60 working days prior to arrival. The ESCO shall affirm its intent to comply with all applicable U.S. and Italian laws, standards, regulations, and agreements.

4. Submission Requirements:

The DOE Fourth-Generation ESPC IDIQ will be the contracting vehicle used to implement this energy conservation project. DLA Energy, on behalf of Aviano AB, invites the twenty (20) current DOE Fourth-Generation ESPC IDIQ contract holders/ESCOs to submit a written response to this NOO for consideration. This NOO constitutes your opportunity to be considered for this potential project. A site visit will not be offered as part of the down-selection process.

a. Response Preparation Instructions:

(1) Document Submission:

Responses must be completed and submitted to the following email mailbox:

DLAEnergy-ESPC@dla.mil. The maximum size limit for any email is 10MB. It is the submitting ESCO’s responsibility to ensure and confirm its response is delivered in its entirety, in accordance with the submission requirements, by the required date and time specified herein. Facsimile and/or hard-copy responses to this NOO are not acceptable. Late responses will only be considered as authorized by the Federal Acquisition Regulation.

Any formal communications, such as requests for clarifications and/or information concerning this NOO, must be submitted to the above email address no later than 05 January 2024, 3:00 p.m. Ft. Belvoir, VA time.

To assure timely and equitable evaluation of responses, ESCOs must follow the instructions contained herein. ESCOs are required to meet the requirements of the DOE Fourth-Generation ESPC IDIQ, the NOO, and all attachments thereto to include any terms and conditions, representations and certifications, and technical requirements. Failure to meet a requirement may result in a response being ineligible for selection.

(2) Page Limitations and Number of Copies:

Page limitations for each eligible ESCO’s response are stated in paragraph (7) below. If page limitations are exceeded, the excess pages will not be considered as part of the evaluation of the submitted response. Each page shall be counted except the following: cover page, blank pages, tables of contents, tabs, and glossaries, and those parts of the response noted herein as exempt from the page limitations.

mailto:DLAEnergy-ESPC@dla.mil

(3) Page Size and Format:

A page is defined as the electronic equivalent of a single side of a sheet of paper containing information. Page size shall be 8.5 x 11 inches. The draft TO-4 schedule may be submitted as an 11x17 document and will not count toward the page limit requirements. Pages shall be single-spaced. Except for the reproduced sections of the NOO and its attachments, if needed, the text size shall be no less than 12 point.

For tables, charts, graphs and figures, the text shall be no smaller than 10 point. Use at least 1 inch margins on the top and bottom and ¾ inch side margins. Pages shall be numbered sequentially.

The response shall be submitted in a format readable by Microsoft (MS) Word 2007®, MS Excel 2007®, MS-Power Point 2007®, Micro-Soft Office XP®, or Adobe Acrobat, as applicable, and conform to the requirements listed above.

Legible tables, charts, graphs and figures shall be used wherever practical to depict organizations, systems and layout, implementation schedules, plans, etc.

(4) Indexing:

To the greatest extent possible, indexing shall be used to readily identify information contained in the response. The response shall contain a detailed table of contents to delineate the paragraphs, subparagraphs, etc. Tab indexing shall be used to identify sections. Indexing and tabbing pages shall not count against the page limitations.

Any information included on these tab or index pages outside of the realm of a tab or index intent shall not be considered. All .pdf documents shall include electronic bookmarks marrying section or tabs accordingly.

(5) Glossary of Abbreviations and Acronyms:

The response shall contain a glossary of all abbreviations and acronyms used, with an explanation for each. Glossaries do not count against the page limitations.

(6) Response Requirements

The ESCOs are responsible for verifying the completeness and accuracy of all information furnished to them by the Government. Failure to include all information requested may adversely affect the evaluation and may result in a response being ineligible for consideration. Responses to this NOO must be received no later than 22 January 2024, 3:00 p.m. Ft. Belvoir, VA time. All interested and eligible ESCOs shall submit the following in order to be considered:

Factor 1 – ESCO Approach: (Twenty (20) single-sided pages maximum)

The ESCO’s response to this factor shall include sufficient information to identify and describe the ESCO’s project management capabilities, general approach and proposed strategy for this project, addressing the identified ECMs in paragraph 3 of the NOO.

To qualify as an ECM under this NOO and any resultant TO award, any ECM or component in an ESCO's response must improve energy efficiency consistent with 10 CFR § 436.31 and otherwise meet the definition of ECM as defined in the DOE Fourth- Generation ESPC IDIQ. The Government is not seeking a response similar to a PA. The Government is only looking for a reasonably illustrated approach as to how the ESCO would pursue energy conservation efforts to meet Aviano AB needs. The response shall present the following:

ESCOs shall present the ESCO’s management capabilities and personnel qualifications related to Aviano AB facility characteristics and the project objectives to a) manage the design, construction, and continued performance of ECMs in efficient and cost-effective manner; b) management style and capacity for resources as demonstrated through the organization and critical project personnel c) manage and experience in managing efforts in an overseas environment similar to that of Aviano AB.

a) ESCOs shall present the ESCO’s approach to its investigation and development of its recommended ECMs for Aviano AB culminating in the scope of work for this project given the noted time constraints. The ESCO shall include in its response its qualifications for conducting Investment Grade Audits. The ESCO shall provide its rationale for each ECM recommended and the determining factors that led to the recommendation. The response must provide clear and convincing evidence as to why and how the selected ECM(s) will meet the needs of Aviano AB. The ESCO shall draw upon and reference information provided in Attachment 1 for the development of its response, as well any applicable industry standards and all other information reasonably available. The ESCO shall also address its plan for energy data verification for high consumption buildings with ECMs other than lighting that have no or non-functional meters. In addition, the ESCO shall submit a draft Task Order Schedule 4, Performance Period First Year Estimated Cost Savings, by ECM illustrating the ESCO’s recommended ECMs savings, less the ECMs’ associated implementation costs. Any included industry standards may be submitted in 11x17 size and format to improve readability, which does not count against the page limit for Factor 1. Any ESCO’s assumptions utilized in the development or selection of ECMs shall be clearly presented and highlighted in its response.

b) ESCOs shall include a discussion of resources it intends to utilize during the project, as well as any local agreements, subject matter experts or teaming arrangements to be established if selected. The ESCO shall demonstrate a supply chain and logistical support for delivery of personnel and materials to Italy while meeting all necessary requirements. The ESCO shall demonstrate any local and regional resources within Italy or adjacent countries for support during all phases of the contract, including the ability to engage local contractors and suppliers when practicable. This is critical during the Implementation and Performance Period phase of the contract to successfully execute this effort and to provide support to Aviano AB for ongoing maintenance needs or to remedy shortfalls in energy performance.

c) The ESCO shall affirm its intent to comply with all applicable U.S. and Italian laws, standards, regulations, and agreements.

Factor 2 – Past Performance: (Two (2) single-sided page maximum)

The ESCO’s response to this factor shall include up to six (6) references illustrating the ESCO’s past performance as the prime contractor or prime subcontractor on any ESPC or Utility Energy Service Contracting (UESC) project. The ESCO shall provide a brief project description, the agency/owner point of contact (name, title, phone number, and email address), location of each project, contract number, date of task order or contract award, and actual or anticipated project construction completion date. The Government will use its discretion to determine the sources of past information used in the Past Performance evaluation. The information may be obtained from the Government’s knowledge of contractor performance, other government agencies or commercial entities, or past performance databases. It is not a requirement that the ESCO have past performance history in the execution of its recommended ECMs for this project. The DOE Fourth Generation ESPC IDIQ has already determined each ESCO responsible for the sound implementation of each of the technical categories.

Factor 3 - Price: (Five (5) single-sided pages maximum)

The ESCO shall provide a narrative discussing and defining any cost benefit or other financial advantage its company can provide that would minimize the project cost to the Government. The discussion of each benefit or advantage must identify, at a minimum, a percentage discount to the implementation costs that are recommended. Be advised that the ESCO will not be held to this exact percentage if selected, however, will be held to the fulfillment of the concept. It is expected and accepted that during the development of the project scope and finalization of all attributes of the project during the Investment Grade Audit that further definitization will occur.

The Government is not looking for a cost breakdown of the project visualized in response to Factor 1. The Government seeks to understand the ESCO’s practices and ardent pursuant of any financial benefits that will assist in bringing the implementation cost of the final project down while at the same time not eroding or compromising the success of the project.

5. Evaluation Methodology

a. Basis for Selection:

Task Order down-selection procedures, as set forth in the DOE Fourth-Generation ESPC IDIQ, paragraph H.3, will be used to make an integrated assessment for a best fit decision for ESPC services at a firm-fixed price. Responses will be evaluated using the following three (3) factors:

1) ESCO Approach;

2) Past Performance; and

3) Price.

Factor 1, ESCO Approach, more important than Factor 2, Past Performance. When combined, Factor 1 and Factor 2 are more important than Factor 3, Price.

The resultant TO may be awarded to the responsible ESCO that provides the best fit in achieving energy assurance, reduction of energy use intensity, and increased use of renewable energy and energy production for Aviano AB. Best fit means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in satisfying the requirement and represents the best value to the Government in consideration of the ESCO’s approach, past performance, and price. The Government will provide notifications in accordance with the DOE Fourth-Generation ESPC IDIQ, paragraph H.3.7 Notification of Contractors Not Selected.

b. Number of Contracts to be Awarded:

The Government intends to award one (1) resultant TO for this requirement. However, the Government reserves the right not to award a TO at all.

Attachments:

(1) Aviano AB Building Data

(2) Status of Forces Agreement (SOFA)

(3) Direttiva PI

(4) US Memorandum of Understanding, February 1995

(5) CMC Technical Handbook 03292021

(6) FY21 Project Submission Requirements