CUI_BLISS JA 2024_94 red_Redacted1_Redacted (002)1.pdf

Control Number: MICC 2024-94

Fort Bliss currently owns two high voltage power generator systems. One system is a 13.8 kV, 16 MW power plant and the other system consists of three Caterpillar generator systems. The 16 MW power plant generator is powered by a General Electric Frame 5, natural gas-fired turbine. The Caterpillar generator system consists of three G3516B 1.2 MW generators fired with natural gas. All these systems are designed to run in parallel with the ) distribution system on Fort Bliss. These utility-scale generator systems are located just east of and directly across the street from the Fort Bliss Electric Power Substation. These two utility-scale generator systems support the primary electric power utility function for Fort Bliss. Fort Bliss has entered an ITA with EPEC. In the event of an emergency within the EPEC power grid (foreseeing the possibility of a brown or black out in El Paso, Texas), EPEC will call for an interruption. As part of the agreement beginning in July 2014, Fort Bliss agreed to shed its power load below 42 MW within 30 minutes of notification by EPEC.

EPEC does not determine how Fort Bliss will shed its power load. One method would be to open breakers to major sections of Fort Bliss that would cut electricity to groups of buildings as soon as the breaker opens. This option is unacceptable as it would affect performance of Fort Bliss' mission. The alternative is for Fort Bliss to generate its own power to reduce the load that EPEC would need to satisfy.

Through participation in the ITA, Fort Bliss in FY2023 avoided a cost of with just two utility-scale generator systems. Starting in FY2024, the Utility

Energy Savings Contracting (UESC) Project 13.1 will begin installing seven additional Government-owned generators for two microgrids on Fort Bliss. The capacity of each microgrid generator is 2 MW. These seven generators are to be brought into the portfolio of utility-scale generators that support the ITA, thereby enabling Fort Bliss to lower the FIRM demand MW value in the ITA. Assuming one of the seven generators does not start, the current FIRM Value of 51 MW will be lowered by 12 MW which yields an estimated cost avoidance of more than annually. The FIRM figure being the Fixed Value for Megawatts that are adjusted annually. Also, EPEC tariff rates have a history of increasing over time. These financial savings will be used to fund the cost of the UESC Microgrid Project No. 13.1.

Electric power is supplied by the EPEC up to the perimeter of Fort Bliss at a transmission voltage of 115 kV. Inside the Fort Bliss perimeter boundary, the power is distributed at peak voltage of 13.8 kV through a utility distribution system conveyed to by means of a utility privatization contract (UPC). This UPC was competitively awarded to in 2005 for a 55-year period of performance for operations and maintenance of the utility distribution system. All utility-scale generator systems that will be used to support the ITA are interconnected to the distribution grid - meaning when these generators produce power, the power flows directly into distribution grid.

At this point, it is important to provide a clarification. In the past, an attempt was made to incorporate the operations and maintenance of the generators into the UPC. To do so would require all equipment in the UPC contract to be conveyed to , Control Number: MICC 2024-94

2) In-house resources. At present, Directorate of Public Work (DPW) at Fort

Bliss lacks sufficient manpower, technical expertise, and resources to perform the required maintenance services. Therefore, this alternative is not viable.

3) Suspension of operations. Services requirements are ongoing and critical to mission accomplishment. Loss of contract support will result in Fort Bliss not being able to support the ITA and the subsequent loss of cost savings preliminarily identified to fund the UESC Microgrid Project No. 13.1.

c. Impact if justification is not approved. If this J&A is not approved, the opportunity cost of not being able to support the ITA and realize monetary savings, directly affects the funding of projects destined to make Fort Bliss less power reliant on EPEC in emergency situations where EPEC cannot support the full Bliss power load.

6. Efforts to Obtain Competition: Competition did occur when the Fort Bliss electrical power distribution system was privatized back in 2005. Several and competed for the UPC at that time. Given the critical interoperability required between the utility-scale generator systems and the utility distribution system which has been conveyed to to operate, is the only contractor who can support this requirement. The UPC, with operating the utility distribution system, will be extended through the year 2060. However, the Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered for operation and maintenance of the utility-scale generators.

a. Effective competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting competition: The incumbent contractor will be required to obtain as much competition as possible for any part of the requirement that is subcontracted and give maximum opportunity to small businesses.

7. Actions to Increase Competition: Fort Bliss Garrison’s Directorate of Public Works explored utilizing building emergency backup generators for the ITA. These generators are low voltage and not interconnected to distribution system. There are 58 building generators with a combined capacity of 12.8 MW as opposed to the 19.6 MW produced by the two utility-scale generator systems. Since these individual building backup generators do not have parallel switchgear, only the load on the building (at the time of a curtailment) can contribute toward reducing the amount of electricity purchased from EPEC. To be a viable contributor toward meeting the ITA, Fort Bliss would have to install parallel switchgear to reach the full capacity of each building generator. The costs to establish a control scheme for such a vast endeavor, coupled with the hardware cost, exceeds the cost avoided by having building generators included in the ITA.