ESBD_362167_1718129326076_VCE-24-213_Peaking Power Generation RFP.pdf

THE TEXAS A&M UNIVERSITY SYSTEM

Office of Procurement and HUB Program

REQUEST FOR PROPOSAL

RFP NUMBER: RFP01 VCE-24-213

Peaking Power Generation Initiative

PROPOSAL MUST BE RECEIVED BEFORE:

2:00 P.M. Central Time on July 1, 2024

EMAIL RFP RESPONSES TO:

SOPROCUREMENT@TAMUS.EDU

SUBJECT LINE: VCE-24-213 – Peaking Power Generation Initiative

NOTE: Proposal response must be received by The Texas A&M University System Office of Procurement and HUB Program before the date and time specified for receipt of proposal as stated within Section 2.3 of this RFP. After the due date and time, only the names of respondents will be made public.

REFER INQUIRIES TO:

Jeff Zimmermann, Executive Director

Procurement and Business Services | HUB Program The Texas A&M University System Email: soprocurement@tamus.edu

All proposals shall become the property of The Texas A&M University System and the State of Texas upon receipt.

Proposals may be subject to public review after contracts have been executed. Refer to Section 5.14 for more information regarding confidential and proprietary information.

mailto:SOPROCUREMENT@TAMUS.EDU mailto:soprocurement@tamus.edu

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TABLE OF CONTENTS

Section 1 Introduction 3

Section 2 Instructions to Proposers 6

Section 3 Scope and Requirements 10

Section 4 Proposal 12

Section 5 General Terms and Conditions 16

Exhibit A Execution of Offer 21

Exhibit B Non-Collusion Affidavit 23

Exhibit C Site Map - Tract Location 24

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SECTION 1 – INTRODUCTION

1.1 Scope

The Texas A&M University System (“A&M System”) seeks to develop a portfolio of quick-start, dispatchable peaking power generation facilities (the “Plants”) on A&M System-owned lands (each, a “Site”, collectively, the “Property”) to ensure a more reliable, stabilized power grid in the vicinity of A&M System critical facilities and infrastructure while also stabilizing the Texas power grid. Accordingly, A&M System issues this request for proposal (RFP) for qualified entities (the “Developers”) capable of designing, constructing, operating, and maintaining the Plants for the entire lifecycle, including the decommissioning phase and performing such aspects including but not limited to Site-specific feasibility studies, interconnecting to the power grid, connecting to fuel and utility sources, constructing or installing new generation facilities and equipment, and marketing the power. The Plants must meet the eligibility requirements described in Public Utilities Commission of Texas (PUCT) Rules and Regulations, regardless of whether the Plants are located inside or outside the ERCOT region and regardless whether the Developer funds the Plants with private funding sources or the TEF In-ERCOT Generation Loan Program (the “TEF Loan”) or similar state funding sources. Texas Energy Fund Loan applicants must comply with Section 25.510 and all rules and regulations adopted by the PUCT implementing the Texas Energy Fund (TEF) created under the Powering Texas Forward Act. ALL ENTITIES SUBMITTING A RESPONSE TO THIS RFP (THE “RESPONDENTS”) THAT MAY SEEK FUNDING FROM THE TEF LOAN OR OTHER STATE FUNDING SOURCES ARE SOLELY RESPONSIBLE FOR MEETING ELIGIBILITY REQUIREMENTS AND APPLICATION

DEADLINES UNDER THOSE PROGRAMS.

It is the intent of this RFP for A&M System to select one or more Respondents to offer: (1) a non-binding letter of interest; (2) a binding option agreement to lease; (3) a binding ground lease agreement; or (4) some other agreement mutually agreed upon between the parties in collaboration for development, construction, operation, and maintenance of the Plants on one or more Sites on the Property, as described in the attached Exhibit C.

If a Respondent is selected as a Developer as a result of the Respondent’s submission to this RFP, subject to the structure and method of financing proposed by the Respondent and approved by A&M System, A&M System may offer additional documentation in its sole discretion necessary to satisfy TEF Loan or grant program application requirements. However, A&M System in no event will offer any agreement or documentation creating a lien or security interest in the Property or A&M System assets. Once financing is secured by the Respondent(s), either through the TEF Loan program or grants or private source funding, A&M System may: (i) offer to enter into negotiations for one or more long-term ground leases covering the Site(s) with Respondent(s) or an affiliated entity for the performance of the scope of this RFP as specified under Section 1.1 above, or (ii) enter into one or more agreements with a structure that is mutually agreeable between A&M System and the Respondent(s). All proposals must be in accordance with the terms, conditions, and requirements set forth in this RFP.

By submitting responses, each Respondent certifies that it understands this RFP and has full knowledge of the scope, nature, quality, and quantity of the work to be performed, the detailed requirements of the services to be provided, and the conditions under which the services are to be performed. Each Respondent also certifies that it understands that all costs relating to preparing and responding to this RFP will be the sole responsibility of the Respondent. FURTHERMORE, EACH RESPONDENT AGREES, UNDERSTANDS, AND ACKNOWLEDGES THAT IT IS NOT DETRIMENTALLY RELYING UPON A&M SYSTEM UNDER THIS RFP, AND THAT EACH RESPONDENT IS SOLELY RESPONSIBLE FOR MEETING ALL DEADLINES AND REQUIREMENTS IMPLEMENTED BY THEIR FUNDING SOURCES SUCH AS PUCT AND TEF, AND THAT

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IT IS NOT THE RESPONSIBILITY OF A&M SYSTEM TO PROVIDE ANY DOCUMENTATION OR ASSURANCE

TO RESPONDENT THAT THOSE DEADLINES OR REQUIREMENTS ARE MET BY THE RESPONDENT.

1.2 About A&M System

A&M System is one of the largest systems of higher education in the nation, with a budget of $7.3 billion.

Through a statewide network of eleven universities, a comprehensive health science center, eight state agencies plus A&M System Offices, and the RELLIS Campus, A&M System educates more than 157,000 students and makes more than 21 million additional educational contacts through service and outreach programs each year. System-wide, research and development expenditures exceed $1 billion and help drive the state’s economy.

More information about the Texas A&M University System and all of its Members can be found at A&M System About page (https://www.tamus.edu/system/about/.

1.3 Goals of the RFP

A&M System is interested in participating in the development of dispatchable power generation capabilities to ensure the provision of reliable electrical power to A&M System member campuses and agency facilities meeting peak winter and summer load. Such power generation systems are referred to a peaking power plants or peakers. From A&M Systems’ perspective, this initiative aims to prevent power loss to critical infrastructure and to promote the well-being of A&M System staff and student populations.

In a broader context, these peaking power generation capabilities also align with demonstrated Texas Division of Emergency Management (an agency of A&M System) and State of Texas needs. To this end, A&M System has identified multiple Site locations (Exhibit C) across the State on A&M System-owned lands that may be suitable for the Plants. These potential Sites may be in close proximity to high voltage transmission lines and/or high-capacity natural gas lines (https://www.puc.texas.gov/). However, it is solely the responsibility of the Respondent to perform its own due diligence to determine all aspects of project feasibility at the potential Sites. Additional due diligence may be required by A&M System as well to determine project feasibility at each potential Site, and A&M System may remove one or more Sites from consideration if it determines, in its sole discretion, that such Site is not suitable for the project.

1.4 Pre-proposal Conference

There will be a virtual pre-proposal conference scheduled for this RFP to be held on June 17, 2024, at 10:00 a.m. Central Time. Attendance is NOT mandatory however it is highly encouraged that interested parties attend the online conference. Please send an email expressing interest in attending to soprocurement@tamus.edu and notices will be sent to you directly with the meeting information.

1.5 Calendar of Events

Activity Date RFP Issuance June 11, 2024 Pre-proposal Conference 10:00 a.m., June 17, 2024 Deadline for Receiving Proposals July 1, 2024 Selection of Respondent(s) July 8, 2024

A&M System will make every effort to adhere to the above schedule. The schedule, however, is subject to change. This may be in the event that further clarification of responses or terms of ground leases or other agreements is in the best interest of A&M System and/or in the event A&M System requires more http://www.tamus.edu/about/ https://www.tamus.edu/system/about/ https://www.puc.texas.gov/

The Texas A&M University System RFP01 VCE-24-213 Page 5 of 24 time to assure that the selection of the Respondent(s) is in accordance with its policies, rules and regulations, as well as actual timing needs.

1.6 Priorities/Expectations

Respondents should note the following priorities/expectations with regard to the possibility of A&M System establishing a contractual relationship with any Respondent:

(a) Ensuring a Quality Level of Service. This priority encompasses the quality of the level of service that can be provided to all A&M System customers in a timely, cost-effective manner. A&M System is seeking a Respondent(s) that will ensure the provision of such quality in its delivery of service through proven training techniques and established metrics.

(b) Level of Experience and Expertise. Respondent must demonstrate its capabilities in providing the utmost level of experience and expertise to ensure a successful solution as determined by A&M System. Respondent shall provide information describing the Respondent’s managed services and project execution experience, including the experience of the resources, account managers, and other key personnel on similar engagements, including past experience within A&M System.

(c) Delivery Efficiency as it Relates to Total Costs. Respondent must demonstrate its ability to deliver the required solution in a cost-effective and timely manner while not sacrificing the quality required by A&M System.

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SECTION 2 – INSTRUCTIONS TO PROPOSERS

2.1 General Information

A&M System is seeking proposals from qualified and experienced Respondents capable of providing services to A&M System as specified in this proposal. While it is the intent of A&M System to choose one or more Respondents to collaborate with for development, construction, operation, and maintenance of the Plants on one or more Sites on the Property, there is no guarantee that a resultant agreement will be awarded.

This RFP outlines the basic scope and requirements as specified in section 3. Submittals are to be in accordance with the outline and specifications contained herein, are to remain in effect a minimum of 120 days from the date of submission and may be subject to further extensions as negotiated. A statement to this effect should be contained in the Respondent's cover letter. Please limit your proposal response to 10 pages or less (excluding the cover letter/executive summary, Execution of Offer, Non-collusion Affidavit, and HUB Subcontracting Plan).

This RFP contains specific requests for information. Respondents are encouraged to examine all sections of this RFP carefully, in that the degree of interrelationship between sections is critical. In responding to this RFP, Respondents are encouraged to provide any additional information they believe relevant.

Clause headings appearing in this RFP have been inserted for convenience and ready reference. They do not purport to define, limit or extend the scope of intent of the respective clauses. Whenever the terms "must" "shall" "will" "is required” or "are required” are used in the RFP, the subject being referred to is to be a required feature of this RFP and critical to the resulting submittal.

In those cases where mandatory requirements are stated, material failure to meet those requirements could result in disqualification of the Respondent's response. Any deviation or exception from RFP specifications must be clearly identified by the Respondent in its submittal.

Expenses for developing and presenting proposals shall be the entire responsibility of the Respondent and shall not be chargeable to A&M System. All supporting documentation and manuals submitted with this submittal will become the property of A&M System.

2.2 Examination of the Request for Proposal

Before submitting, each Respondent will be held to have examined A&M System requirements outlined in Section 3 and satisfied itself as to the existing conditions under which it will be obligated to perform in accordance with specifications of this RFP.

No claim for additional compensation will be allowed due to unfamiliarity with the specifications and/or existing conditions. It shall be understood that the Respondent has full knowledge of all the existing and/or revised conditions and accepts them "as is."

2.3 Submittal Instructions

All proposals must be received by A&M System, no later than 2:00 p.m. Central Time, July 1, 2024 electronically via email to soprocurement@tamus.edu with the subject line of “RFP01 VCE-24-213 – Peaking Power Generation Initiative”. The sent time indicated within A&M System email server shall be used for the receipt and acceptance of the response. Late proposals will not be considered under any circumstances.

A file sharing tool may be used to submit the proposal response if large file sizes are an issue. If opting to use a file sharing tool it is recommended that Respondents send a test file prior to the due date.

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Submittal File Format: Submission shall be saved as two (2) separate files in Adobe Portable Document Format (PDF) according to the items listed below and named as such; I) “company name – Proposal”, II) “company name – Forms” and III) “company name – Financials”.

2.4 Proposal Components

The following documents and all requirements from noted section(s) are to be returned as part of your proposal response. Failure to include these documents may be basis for response disqualification.

I. Proposal

Cover Letter to include a brief introduction with interest and capability of the Respondent.

Technical Proposal (Sections 4.1)

References (Section 4.2)

II. Forms

Signed Execution of Offer (Exhibit A)

Non-Collusion Affidavit (Exhibit B) – signed and notarized

HUB Subcontracting Plan (Section 4.3)

III. Financials

Statement of Respondent’s intent to submit or not submit an application to the Texas Energy Fund In-ERCOT Generation Loan Program

Document(s) proving financial capability to complete the project (sent with proposal as a separate file and attachment)

Proposal format: The proposal response shall be presented in the order listed above with sections noted accordingly for easy reference. The Table of Contents shall provide page numbers for each section of the proposal.

Note: Additional information regarding the Execution of Offer and Non-Collusion Affidavit.

● Execution of Offer: The signature in the Execution of Offer within the electronic copy shall serve as the official signature of record. Signature can be done electronically with DocuSign, Adobe or another similar tool.

● Non-Collusion Affidavit: The Respondent signature and notary on this document may be done electronically with DocuSign, Adobe or another similar tool. An agreement may not be executed with the awarded Respondent until this document is fully signed and notarized.

2.5 Inquiries and Interpretations

All questions concerning this RFP are to be directed, in writing, to Jeff Zimmermann at soprocurement@tamus.edu. Respondent may not contact other individuals at A&M System discuss any aspect of this RFP, unless expressly authorized by A&M System Procurement & HUB Program office to do

so. A&M System will publish all questions in the form of an addendum with responses at least two (2) days prior to the Deadline for Receiving Proposals as stated in the schedule in Section 1.5.

Responses to inquiries which directly affect an interpretation or change to this RFP will be issued in writing by addendum/amendment and posted to the Electronic State Business Daily (ESBD).

The Texas A&M University System RFP01 VCE-24-213 Page 8 of 24 http://www.txsmartbuy.com/sp (Input Agency Number “710” and select “Posted” for the Status)

It is the responsibility of all Respondents to check the ESBD for any and all addenda issued for this RFP.

All such addenda/amendments issued by A&M System prior to the time that proposals are received shall be considered part of the RFP, and the Respondent shall consider and acknowledge receipt of such in their proposal. Only those A&M System replied to inquiries which are made by formal written addenda shall be binding. Oral and other interpretations or clarification will be without legal effect.

2.6 Selection Process

The evaluation of the proposals shall be based on the information provided that A&M System deems to represent the best value to A&M System. The RFP provides the information necessary to prepare and submit proposals for consideration by A&M System. All properly submitted proposals will be reviewed, evaluated, and ranked by A&M System. A&M System will rank the Respondents in the order that they provide the overall “best value” to A&M System based on an evaluation of the responses to the RFP. A&M System may interview one or more of the top ranked Respondents as part of the evaluation process.

A&M System will base its choice on demonstrated competence, knowledge, and qualifications as it relates to the scope and requirements of this RFP, and on the demonstrated ability to include businesses certified as a Historically Underutilized Business (HUB) in the State of Texas in the performance of a percentage of the scope of work; and if other considerations are equal, give preference to a Respondent who is certified as a HUB in the State of Texas, whose principal place of business is in the State of Texas, or who will manage the contract wholly from an office in the State of Texas.

The Respondent or Respondents selected will be one whose experience and qualifications, as presented in response to this RFP, establish them, in the opinion of A&M System, as well-qualified and offering the greatest benefits, experience and value to A&M System. A&M System may cancel this RFP or reject proposals at any time prior to an award and is not required to furnish a statement of the reasons why a particular proposal was not deemed to be the most advantageous. Should A&M System determine in its sole discretion that only one Respondent is fully qualified, or that one Respondent is clearly more highly qualified than the others under consideration, a contract may be negotiated and executed with that Respondent. The contract will be an agreement incorporating by reference all the requirements, terms and conditions of the solicitation and the Respondent’s proposal as negotiated.

The most qualified Respondents as determined by A&M System MAY BE REQUIRED to interview with the evaluation committee before the final selection(s). If interviews are required, they will be done online through video conferencing, or in person if allowed at the time by A&M System guidelines and agreed to by both parties. A&M System will not provide compensation to Respondents for any expenses incurred by the Respondent(s) for proposal preparation, submission or interviews that may be conducted.

Submission of proposals indicates Respondent's acceptance of the evaluation techniques and the recognition that subjective judgments must be made by A&M System during the evaluation process. The selection of the successful proposal(s) may be made by A&M System on the basis of the proposals initially submitted, without discussion, clarification, or modification. In the alternative, selection of the successful proposal(s) may be made by A&M System on the basis of negotiation with any of the Respondents. A&M System shall not disclose any information derived from the proposals submitted by competing Respondents in conducting such discussions.

All proposals must be complete and convey all of the information requested to be considered responsive.

If a proposal fails to conform to the essential requirements of the RFP, A&M System alone will determine whether the variance is significant enough to consider the proposal susceptible to being made acceptable, and therefore a candidate for further consideration, or not susceptible and therefore not considered for http://www.txsmartbuy.com/sp

The Texas A&M University System RFP01 VCE-24-213 Page 9 of 24 award.

A&M System may perform reference checks and seek further information, as needed from all Respondents whose proposals A&M System, at its discretion, considers viable, based on the initial evaluation and scoring. The Respondent’s response to this requirement officially authorizes A&M System to contact these organizations to discuss the services and other considerations that the Respondent has provided to such organizations and authorizes the organizations to provide such information to A&M System and Respondent shall and hereby does release and hold harmless A&M System, the State of Texas, and the organization of any and all liability whatsoever, in connection with providing and receiving all such information. Any negative responses received from reference checks may be grounds for disqualification of the proposal.

No award nor offer of a resultant agreement will be made until A&M System is fully satisfied that the Respondent and/or its affiliated entity is/are professionally, financially and otherwise competent and capable of fully performing the services within the scope of this RFP and complying with terms and conditions of agreements associated with performing those services.

A&M System reserves the right to accept or reject any or all offers, to waive informalities and technicalities, to accept the offer considered most advantageous, and/or to make the award to the most responsive Respondent or Respondents.

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SECTION 3 – SCOPE AND REQUIREMENTS

3.1 Scope

The objective of this Peaking Power Generation Initiative is to provide reliable, dispatchable, and backup power that is readily available to the A&M System upon high peak demands while supporting the Texas power grid and to achieve the highest and best use of the Property in a manner which is physically and functionally integrated with the current and future use and purpose of the Property, in accordance with the mission of A&M System.

3.2 Property Available for Consideration

The list of Texas county appraisal district parcel identification numbers attached as Exhibit C is provided for Respondent’s reference of the locations of the Sites that may be suitable but are not warranted by the A&M System, as potential locations for the Plants.

3.3 Site Development

Subject to review and approval of A&M System, the selected Developer(s) must secure financing for all costs of development, construction, management, operation, and maintenance of the Plants. A&M System’s interest in the Sites cannot be encumbered by a lien holder or a security interest and shall not be subordinated to any of Respondent’s financing arrangements resulting from the Respondent’s performance of services within the scope of this RFP. A&M System will incur no financial obligation with respect to the Respondent’s performance of services within the scope of this RFP.

If A&M System enters into any agreement(s) with the Respondent in regard to Respondent’s performance of services within the scope of this RFP on any Site or any A&M System-owned lands, the Respondent agrees and understands the Sites and land are offered, and the Respondent accepts them, “as-is, where-is” without Warranty of Title, without Warranty of Merchantability, and without Warranty of Fitness for a Particular Purpose. The A&M System expressly reserves the right to withdraw any particular site(s) at any time for any reason.

Upon termination of any agreement(s) between A&M System and the Respondent in regard to Respondent’s performance of services within the scope of this RFP on the Site(s) or any A&M System-owned lands, all improvements will be removed by Developer and the Site(s) or land will be returned to the condition as prior to said agreement(s). A&M System will have a right of first offer, right of first refusal, and will retain the option to purchase the improvements at any time during the term of said agreement(s).

3.4 Type of Contract

Any contract resulting from this RFP will be negotiated with the A&M System in coordination with A&M System member institutions and/or agencies. Any agreement resulting from this RFP will require approval by A&M System Board of Regents. Any resulting agreement(s) will contain, among other terms, (i) the obligation of the Developer to pay all taxes accruing as a result of the Developer’s performance of services within the scope of this RFP on the Site(s) or any A&M System-owned lands, (ii) the obligation of the Developer to enter into a separate collaborative or sponsored research agreement (the “Research Agreement”) if deemed necessary by the A&M System in its sole discretion to carry out the purpose of this RFP with the intent that the Research Agreement will include funding by Developer of research project(s) conducted, (iii) covenants and restrictions on the use of the Site(s) and a requirement to comply with the A&M System’s Developer Project Guidelines (https://www.tamus.edu/business/facilities-planning-construction/forms-guidelines-wage-rates/), and (iv) a requirement to submit site plans for approval and construction plans for compliance with applicable codes and payment of a fee for A&M https://www.tamus.edu/business/facilities-planning-construction/forms-guidelines-wage-rates/ https://www.tamus.edu/business/facilities-planning-construction/forms-guidelines-wage-rates/

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System’s review and approval of the plans.

3.5 Payment and Performance Bonds

Developer shall be required to ensure that the construction agreement entered into by it contains a requirement for the general contractor to issue payment and performance bonds in a penal sum equal to contract sum of the original construction contract. The performance bond shall be in an amount equal to the amount of the contract for the protection of the governmental entity and conditioned on the faithful performance of the contractor’s work in accordance with the plans, specifications, and contract documents. The payment bond shall be solely for the protection and use of payment bond beneficiaries who have a direct contractual relationship with the general contractor or a subcontractor and shall conform to the bond requirement to pay liens or claims related to a mechanic’s, contractor’s, or materialman’s lien. The bonds shall be executed by a corporate surety or sureties authorized to do business in the State of Texas and in compliance with the relevant provisions of the Texas Insurance Code.

Sureties shall be listed on the US Department of the Treasury’s Listing of approved Sureties stating companies holding Certificates of Authority as acceptable sureties on Federal Bonds and acceptable reinsuring companies (Department Circular 570) and have a rating of A- or better with A.M. Best Company.

3.6 Compliance with Laws and Pre-Construction Requirements

Developer must comply with all applicable Governmental Regulations with respect to the development, construction, ownership, maintenance, repair, management, leasing and operation of the project. The term “Governmental Regulations” means all laws, statutes, regulations, codes, ordinances, orders, permits, and requirements of any federal, state, or local governmental authority having jurisdiction over the Property and the project as well as the orders of the fire marshal, board of fire underwriters, and similar bodies affecting the Property and the project or the management, leasing, use, construction, maintenance, repair, or reconstruction thereof.

Developer may be required to obtain a real property survey and a Phase I Environmental Site Assessment on the site prior to construction.

State antiquities law requires 30-day advance notice to the Texas Historical Commission prior to breaking ground on state-owned land. RESPONDENT IS EXPRESSLY PLACED ON NOTICE OF THE NATIONAL HISTORICAL PRESERVATION ACT OF 1966 (PB-89-66, 80 STATUTE 915; 16 U.S.C.A. §470) AND THE ANTIQUITIES CODE OF TEXAS, CHAPTER 191, TEX. NAT. RES. CODE ANN. BEFORE BREAKING GROUND AT THE PROPERTY, RESPONDENT MUST NOTIFY THE TEXAS HISTORICAL COMMISSION. AN ARCHEOLOGICAL SURVEY, AT RESPONDENT’S SOLE COST AND EXPENSE, MIGHT BE REQUIRED BY THE COMMISSION BEFORE

CONSTRUCTION OR INSTALLATION OF ANY IMPROVEMENTS CAN COMMENCE.

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SECTION 4 – PROPOSAL

4.1 Technical Proposal

Respondents shall address the following items in the proposal response:

I. Respondent Qualifications

(a) A list of the names and addresses of all the owners, executives, managers, partners, members, shareholders, or principals of the Respondent, and all entities having an ownership interest in the Respondent. Also, include a complete general description of experience in the respective fields for each of the parties listed.

(b) A list of similar projects (no more than five) Respondent has developed or is developing, including location description and period of time. Developments initiated or completed within the last five years are preferred. Explain in detail. If a development listed was not completed by Respondent, but instead was completed by a separate entity for which a current principal of Respondent was a representative of the different entity, the listing must state the principal’s name, the entity name, and the principal’s title associated with the entity.

II. Proposed Facilities and Business Model Structure

(a) Entity Details:

• Name of business entity filing form, and the city, state and country of the business entity's place of business.

(b) Proposed Name, Location, and Capacity of the Electric Generating Facility:

• State the proposed name of the electric generating facility.

• State the Texas county and appraisal district parcel identification numbers of proposed electric generating facility.

• Specify the anticipated nameplate capacity of each generation resource in megawatts

(MW).

• Provide the anticipated dates when the facilities will commence commercial operations.

• State the anticipated total project cost.

• State the amount that will be applied for under the Texas Energy Fund In-ERCOT Generation Loan Program, if applicable.

• If multiple sites are proposed, list details of all proposed generation resources.

(c) Description of How the Proposed Facility Can Serve the Electrical Power Needs of A&M System Member Agencies and Campuses:

• Provide a detailed description of how the proposed facilities will meet the electrical power needs of the A&M System and its member agencies and campuses.

(d) Financing Plan:

• Provide a list of anticipated funding sources, categorized separately as private and public.

• If Respondent’s submission includes multiple Plants, list proposed financial plans of all proposed Plants.

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(e) Entity Eligibility:

• Describe how the entity eligibility requirements of PUCT Rules and Regulations for interconnection to the ERCOT Grid, and §25.510 are to be met.

(f) Timeline and Strategy:

• Provide a timeline and plan for application submission prior to the July 27, 2024 deadline for the TEF Loan program, if applicable.

• Outline Respondent costs associated with the application submission and methods by which those preapplication costs will be funded.

(g) Business Structure:

• Provide the business model/arrangement that Respondent proposes to structure this project with the A&M System.

• If a Site ground lease is proposed by the Respondent, please provide the proposed length, ground rent, profit share rent or other consideration, if any, and any other relevant terms for review by the A&M System.

• Provide any additional information or documentation for the structural outline of Respondent’s business proposal.

(h) Additional Considerations:

Additional criteria used to evaluate the value of the proposal, though not mandatory, include:

• Site Suitability and Plant Design: Evaluation of how well the proposed operating parameters and plant design fit the site, considering aspects such as cooling methods, fuel source, noise levels, aesthetic integration, spatial footprint, and overall capacity.

• Electrical Integration: Assessment of the potential for direct electrical connections to campus substations, microgrids, and backup power systems, recognizing that this may not be feasible at all locations.

• Educational and Research Synergy: Examination of the extent to which respondents are willing to sponsor educational or research programs that align with energy generation and grid stability.

• Efficiency and Technology: Consideration of the proposal’s incorporation of more efficient power sources and advanced technologies aimed at reducing emissions, sustainability, and considering environmental impact.

• Community Engagement: Consideration of the respondent’s plan for engaging with the local community and addressing any concerns related to the project.

III. Method of Finance

A&M System is interested in securing reliable and affordable power supply arrangements to ensure electricity for its member agencies and campuses. There are various financial arrangements, non-monetary considerations, and other potential collaborative opportunities that the Respondents may propose. A&M System is open to considering various proposals, including leasing land to entities in exchange for specific considerations. Within the legal constraints applicable to A&M System as a non-profit state entity, these collaborations could involve diverse financial models and partnership

The Texas A&M University System RFP01 VCE-24-213 Page 14 of 24 structures designed to maximize mutual benefits and effectively address the specific energy needs of A&M System. If Respondent’s submission includes multiple Plants on A&M System property, describe the method of finance of all proposed Plants.

TEF Loan

• If Respondent submitted an NOI to the TEF Loan program, provide a copy of each NOI submitted relevant to A&M System Property.

Other Methods

• If Respondent is not proposing participation through the TEF Loan program, describe the method of finance to fund the project (i.e., Pre-approval letter, etc.).

For all Financing methods

• Provide a preliminary multi-year pro-forma with substantiation on rates and expenses. All assumptions used in developing this pro-forma shall be disclosed within your submission.

• Pro-forma to include Respondent’s projected ground rent payment structure for each phase of the development (i.e., base rent, profit share, escalation rate, etc.).

4.2 References

Respondents shall provide at least three (3) references for projects with a similar development opportunity. Each reference shall include at least the following:

• Company name

• Contact person name and title

• Contact phone number and email address

• General description of the completed scope and services provided

Note: References provided may be from experience for a member of the development team and not necessarily from the developer who is responding. For all references make it clear who on your team was responsible for each provided.

4.3 HUB Participation Plan

It is the policy of the State of Texas and A&M System to encourage the use of Historically Underutilized Businesses (HUBs) both directly and indirectly in our prime contracts and subcontracting efforts. The goal of the HUB Program is to promote equal access and equal opportunity in A&M System contracting and purchasing.

Subcontracting opportunities are defined as those opportunities contracted with a vendor to work, to supply commodities, or contribute toward completing work for a governmental entity. Respondents are required to submit a HUB Participation Plan describing in detail how they will commit to a “Good Faith Effort” to attract and use State of Texas certified HUB vendors.

A HUB Participation Plan is required to be submitted by each Respondent. Failure to submit a comprehensive, acceptable HUB Participation Plan may be considered a material failure to comply with the requirements of this RFP and may result in rejection of the response. This HUB Participation Plan shall be a detailed plan outlining your methodology of HUB Participation – a blueprint that accurately represents your company’s strategy for evaluation of intent.

Respondents shall address the following items at a minimum while developing the HUB Participation Plan.

The Texas A&M University System RFP01 VCE-24-213 Page 15 of 24

1. The Respondent shall state whether it is a Texas certified HUB vendor.

2. State its commitment to making a good faith effort to include HUB vendors as it relates to the scope of this RFP.

3. Discuss general areas of potential subcontracting opportunities as it relates to design, construction, and operation of the development.

4. Describe how you intend to locate HUB vendors for solicitation and possible inclusion in this opportunity. For example, will you use the CMBL/HUB Directory listings (https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do)? Will you advertise in minority or trade organization newsletters or newspapers? Etc.

5. Provide a list of the trade organizations or development centers that you intend to work with in your outreach efforts. Examples of these can be found at the following site.

https://comptroller.texas.gov/purchasing/vendor/hub/resources.php

For more information regarding the HUB Participation Plan requirements, please contact Lashunda Watson at so-hubprogram@tamus.edu.

Upon execution of an Agreement, additional documentation may be required, including but not limited to, a complete HUB Subcontracting Plan for the design, construction and operation of the development (as applicable), and Prime Contractor Progress Assessment Report (PAR) forms to document compliance with your HUB Subcontracting Plan. These forms can be found at the following site.

https://www.tamus.edu/business/hub-procurement/hub-programs-3/ https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do https://comptroller.texas.gov/purchasing/vendor/hub/resources.php mailto:so-hubprogram@tamus.edu https://www.tamus.edu/business/hub-procurement/hub-programs-3/

The Texas A&M University System RFP01 VCE-24-213 Page 16 of 24

SECTION 5 - GENERAL TERMS AND CONDITIONS

5.1 Terms and Conditions

A&M System reserves the right to accept, reject, modify, and/or negotiate any and all proposals received in conjunction with this RFP. It reserves the right to waive any defect or informality in the proposals on the basis of what it considers to be in its best interests. Any submittal which A&M System determines to be incomplete, conditional, obscure, or which has irregularities of any kind, may be rejected. A&M System reserves the right to award to the firm, or firms, which in our sole judgment, will best serve our long-term interest.

This RFP in no manner obligates A&M System to the eventual purchase of any products or services described, implied, or which may be proposed, until confirmed by written agreement, and may be terminated by A&M System without penalty or obligation at any time prior to the signing of a resultant agreement.

The Respondent must include a formal copy of any Respondent terms and conditions applicable to this transaction. Evaluation and acceptance and/or modification of these terms and conditions by A&M System Office of General Counsel are essential prior to the award of a resultant agreement. In the event the Respondent does not supply terms and conditions with their submittal, A&M System terms and conditions will govern this transaction.

5.2 Governing Law

Respondent agrees that, in the event of a dispute, the laws of the State of Texas will prevail.

5.3 Non-Discrimination

The parties agree that in the performance of any contract they shall not discriminate in any manner on the basis of race, color, national origin, age, religion, sex, genetic information, veteran status, sexual orientation, gender identity, or disability protected by law. Such action shall include, but is not limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation. By submitting a submittal, Respondent certifies that it will conform to the provisions of the federal Civil Rights Act of 1964, as amended.

5.4 Immigration Reform and Control Act of 1986

By submitting a proposal, the Respondent certifies it does not and will not, during the performance of this contract, employ illegal alien workers or otherwise violate the provisions of the federal Immigration Reform and Control Act of 1986, as amended.

5.5 Debarment Status

By submitting a proposal, Respondent certifies it is not currently debarred from submitting proposals on contracts nor is it an agent of any person or entity that is currently debarred from submitting bids on contracts.

5.6 Indemnification and Hold Harmless

The Respondent shall indemnify and hold harmless the A&M System, its regents, employees and agents (collectively, the “A&M System Indemnitees”), from and against any third-party claims, damages, liabilities, expense or loss (each, a “Claim”) asserted against A&M System Indemnitees arising out of any acts or omissions of Respondent or its employees or agents pertaining to the activities and obligations

The Texas A&M University System RFP01 VCE-24-213 Page 17 of 24 under any resultant agreement and all liability of whatever nature which may arise directly or indirectly by reason of the Respondent’s performance under any resultant agreement.

5.7 Respondent Liability

The Respondent will be liable for any associated costs of repairs for damage to buildings or other A&M System property caused by the negligence of the Respondent’s employees.

5.8 Civil Rights Requirements

All Respondents must comply with applicable civil rights laws.

5.9 Non-Collusion Clause

The Non-Collusion Affidavit found in EXHIBIT B must be executed as a part of the Respondent’s submittal.

5.10 Entire Agreement

A resultant agreement, when fully executed, shall supersede any and all prior and existing agreements, either oral or in writing, and will contain all the covenants and agreements between the parties with respect to the subject matter of the resultant agreement. Any amendment or modification to the resultant agreement must be in writing and signed by the parties hereto.

5.11 Severability

It is understood and agreed that if any part, term, or provision of the resultant agreement is by the courts held to be illegal or in conflict with any law of the State of Texas, the validity of the remaining portions or provisions shall be construed and enforced as if the resultant agreement did not contain the particular part, term, or provision held to be invalid.

5.12 Publicity

Respondents must refrain from giving any reference to this project, whether in the form of press releases, brochures, photographic coverage, or verbal announcements, without specific written approval from A&M System.

Information provided to Respondent by A&M System, including but not limited to information from the members, officers, agents, or employees of A&M System or any of its members, and information provided to Respondent by members of the public or any other third party shall belong to A&M System.

5.13 Independent Contractor

The successful Respondent agrees that in all respects its relationship with A&M System will be that of an independent contractor, and that it will not act or represent that it is acting as an agent of A&M System or incur any obligation on the part of A&M System without written authority of A&M System. As an independent contractor, Respondent will be solely responsible for determining the means and methods for performing the services described. Respondent shall observe and abide by all applicable laws and regulations, policies and procedures, including but not limited to, those of A&M System relative to conduct on its premises.

5.14 Public Information Act

By submitting a proposal, Respondent acknowledges that A&M System is obligated to strictly comply with the Public Information Act, Chapter 552, Texas Government Code, in responding to any request for public

The Texas A&M University System RFP01 VCE-24-213 Page 18 of 24 information pertaining to this RFP and any resultant agreement, as well as any other disclosure of information required by applicable Texas law.

5.15 Ownership of Documents

Upon completion or termination of any resultant agreement, all documents prepared by the Respondent for the benefit of A&M System shall become the property of A&M System. At A&M System’s option, such documents will be delivered to the System Procurement Office. A&M System acknowledges that the documents are prepared only for the contracted services specified. Prior to completion of the contracted services, A&M System shall have a recognized proprietary interest in the work product of the Respondent.

5.16 Insurance

The Respondent shall obtain and maintain, for the duration of the resultant agreement or longer, the minimum insurance coverage set forth below. With the exception of Professional Liability (E&O), all coverage shall be written on an occurrence basis. All coverage shall be underwritten by companies authorized to do business in the State of Texas or eligible surplus lines insurers operating in accordance with the Texas Insurance Code and have a financial strength rating of A- or better and a financial strength rating of VII or better as measured by A.M. Best Company or otherwise acceptable to A&M System. By requiring such minimum insurance, the Owner shall not be deemed or construed to have assessed the risk that may be applicable to the Respondent. Respondent shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverage. Respondent is not relieved of any liability or other obligations assumed pursuant to the resultant agreement by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. No policy will be canceled without unconditional written notice to A&M System at least ten days before the effective date of the cancellation.

Coverage Limit

A. Worker’s Compensation Statutory Benefits (Coverage A) Statutory Employers Liability (Coverage B) $1,000,000 Each Accident $1,000,000 Disease/Employee $1,000,000 Disease/Policy Limit

Workers’ Compensation policy must include under Item 3.A. on the information page of the workers’ compensation policy the state in which work is to be performed for A&M System. Workers’ compensation insurance is required, and no “alternative” forms of insurance will be permitted.

B. Automobile Liability Business Auto Liability Insurance covering all owned, non-owned or hired automobiles, with limits of not less than $1,000,000 Single Limit of liability per accident for Bodily Injury and Property Damage.

C. Commercial General Liability Each Occurrence Limit $1,000,000 General Aggregate Limit $2,000,000 Products / Completed Operations $1,000,000 Personal / Advertising Injury $1,000,000 Damage to rented Premises $300,000 Medical Payments $5,000 The required commercial general liability policy will be issued on a form that insures Respondent or

The Texas A&M University System RFP01 VCE-24-213 Page 19 of 24 its subcontractors’ liability for bodily injury (including death), property damage, personal and advertising injury assumed under the terms of the resultant agreement.

D. Umbrella/Excess Liability Insurance with limits of not less than $5,000,000 per occurrence and aggregate and will be excess over and be no less broad than and “following form” of all included coverage described above. Inception and expiration dates will be the same as the underlying policies.

Drop-down coverage will be provided for reduction and/or exhaustion of underlying aggregate limits and will provide a duty to defend for any insured.

E. Professional Liability (Errors & Omissions) Insurance with limits of not less than $2,000,000 each occurrence, $4,000,000 aggregate. Such insurance will cover all professional services rendered by or on behalf of Respondent and its subcontractors under the resultant agreement. Renewal policies written on a claims-made basis will maintain the same retroactive date as in effect at the inception of the resultant agreement. If coverage is written on a claims-made basis, Respondent agrees to purchase an Extended Reporting Period Endorsement, effective for two (2) full years after the expiration or cancellation of the policy. No professional liability policy written on an occurrence form will include a sunset or similar clause that limits coverage unless such clause provides coverage for at least three (2) years after the expiration of cancellation of the resultant agreement.

F. Respondent will deliver to A&M System: Evidence of insurance on a Texas Department of Insurance approved certificate form verifying the existence and actual limits of all insurance after the execution and delivery of the resultant agreement and prior to the performance of any services by Respondent under the resultant agreement.