Greece Sources Sought- English.pdf

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Attached to
Electrical Power Competitive Acquisition for Crete, Greece Federal contract opportunity
Solicitation number
N33191-23-R-9004
Issued by
Department of the Navy Naval Facilities Engineering Command

About this file

This document is a sources sought notice and request for information from the Naval Facilities Engineering Systems Command Europe Africa Central regarding the supply of medium and low voltage electricity at three delivery points in Crete, Greece. The Navy is seeking market research, potential sources, pricing structures, and best practices for a future solicitation to award a firm-fixed price or market-based price agreement for electricity supply and transmission. Responses to the nine questions posed in the document are requested by January 17, 2023 to inform the forthcoming solicitation planned for release on SAM.gov. The questions seek information on competition in Crete's electricity market, experience supplying power to industrial customers on the island, preferred pricing formats, options for multi-year pricing agreements with price adjustments tied to energy indices, strategies for hedging market volatility, benefits of longer-term contracts, and ability to provide assured non-Russian sourced power.

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Text version

Sources Sought - Request For Information (RFI)

Classification

Original Set Aside:

Product Service Code: S119 - UTILITIES- OTHER

NAICS Code: 221121 – Electric Bulk Power Transmission and Control

Place of Performance: Greece

This Sources Sought / Request for Information is provided in both languages (English and Greek)

Description

This sources sought (SS) and request for information (RFI) is for planning purposes only and shall not be considered as an invitation for bid (IFB), request for quotation (RFQ), request for proposal (RFP), or as an obligation on the part of the Government to acquire any products or services. The Government will not award a contract on the basis of this notice, or otherwise pay for information solicited by it. No entitlement to payment of direct or indirect costs or charges by the Government will arise as a result of contractor submission of responses to this announcement nor the Government's use of such information. Interested parties are responsible for adequately marking proprietary or competition sensitive information contained in their response. The requested information is for planning and market research purposes only and will not be publicly released. Responses to this RFI are not offers and cannot be accepted by the Government to form a binding contract. However, the Government is anticipating the release of a solicitation for the requirements outlined below through the United States Government’s Point of Entry www.sam.gov.

Please send your answers no later than 17 January 2023.

The Naval Facilities Engineering Systems Command (NAVFACSYSCOM) Europe Africa

Central (EURAFCENT) is seeking comments on draft requirements, market research, potential sources, and best practice information for the supply of medium and low voltage electricity at a total of 3 (three) delivery points located in Crete, Greece. Description is below.

Name/Location Account # Voltage Power Consumption

Naval Support Activity, Crete 585800063018 15/20 kV 1500 kVA 7,300 MWh/yr

Repeater, Malaxa 553616025011 400 V 25 kVA 23 MWh/yr

Doppler Radar, Klapes

Akrotiriou

553548690028 400 V 55 kVA 30 MWh/yr

Constructive feedback, suggestions, and solutions are requested.

In the forthcoming months, NAVFACSYSCOM EURAFCENT plans to issue a Solicitation through the United States Government’s Point of Entry, www.sam.gov that will result in the award of the following:

http://www.sam.gov/

One (1) Firm-Fixed Price Agreement, or Market-Based Price Agreement, for the supply and transmission of electricity and ancillary services

Vendors must be registered on www.sam.gov in order to participate in the solicitation.

Questions for consideration by contractors are as follows:

1. Undistinguishable Market Competition. The U.S. Navy understands that the electricity market is actively evolving in Greece, and may remain a transitional state for the island of

Crete, specifically, as it pertains to interconnection. To your knowledge, does economic competition currently exist in Crete for electricity commodity supply?

a. Could you refer to a specific regulatory, Government, or other official documentation which states the existence, or lack thereof, of economic competition among suppliers?

2. Supplying Electric Power on Crete. Does your company currently supply electricity to industrial customers on Crete?

a. If yes, is the electricity transmitted from the mainland via the recently completed interconnection, or do you leverage generation sources located on the island of Crete?

3. Please provide a sample contract(s) held with commodity customers as an example.

4. Preferred pricing format. What pricing format would your company prefer to submit to the

U.S. Navy in a competitive power market solicitation (for example: triband, peak/off-peak, one around-the-clock rate)?

a. Do you provide the same price and uniformed invoicing for MV and LV customers?

b. Do you offer a diversified price to different service points in a facility that would result in beneficial overall pricing?

5. Multi-year supply and pricing. Would your company lock into a multi-year firm-fixed price contract with the U.S. Navy, with interim price adjustments (annual, six months)? If so:

a. What is the preferred contract duration (1 year, 2 years, 3 years, or more)?

Please specify and include the reasons why.

b. What is the available frequency of price adjustments (i.e every 6 months, every 12 months, more/less)? Please specify and include the reasons why.

c. Which index would your company use to calculate the price adjustments

(EnEx, PPC, ICE, EEX, or an average of select indices)? Please specify and include the reasons why.

d. Does your company offer a lower price (per unit) than a published market index for the commodity only?

e. Does your company include a markup fee or supplier margin? If so, how is this calculated?

6. Hedging. What strategies does your company utilize to hedge against market volatility and associated financial risks in order to maintain consistent customer billing (indexed unit costs) in accordance with contract requirements? Is there a recommendation from your company as to how we could structure the contract to help industry better plan for this?

7. Contract length. Does your company offer benefits contingent on longer contract terms?

a. What are considerations the U.S. Navy should be aware of when your company forecasts the bid price for longer term contracts (beyond 2 years)? For example:

Does it take more time to formulate the solicitation bid? Does this influence the risk premium incorporated into the price?

8. Third-Party Commodity Supply Contracts. Would you require a direct contract, separate from the U.S. Government’s contract with the distribution provider, PUBLIC POWER CORPORATION (ΔEH); or could you provide the electricity commodity at a contracted price through a coordinated agreement with the distribution provider?

9. Russian Supply. The U.S. Navy is prohibited from using energy sourced from the

Russian Federation for purposes including heating, cooling, and electricity. Can your company provide electricity to the U.S. Navy installation(s) without this commodity being sourced from Russia?

a. If so, what type of assurance and verification would you be able to provide?

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