NewPJMRenewables2014Q A.docx

Solicitation No. GS-00P-14-BSD-1016 – Renewable electric power supply for various Federal Accounts in PJM

Questions and Answers

1. Is it permissible for a small business developer to be the offeror jointly with an experienced/qualified large business, and to novate a contract award for financing purposes? Does the small business need a SAM number?

ANS: A joint offer where the joint entity meets small business standards (generally 51% owned and controlled by the small business entity) would be acceptable. Any novation of a contract would need to be accomplished in accordance with FAR procedures. The small business offeror would need to be registered in SAM.

2. If a project is financially beneficial with a 10 year contract does GSA also want to see a second option with a 10 year renewal?

ANS: You are not required to offer an option period. You can offer an option period of up to 10 years as a variation on your offer but it is not required.

3. If a 10 year option extension or buyout is allowed can you reference the terms and conditions that will govern this option and be acceptable to IRS, GSA and OMB?

ANS: It is our position that GSA can enter into a 10 -year, firm term contract, with a 10 year option, consistent with our authority to acquire utility services under 40 U.S.C. § 501. While the RFP allows us to negotiate with offers that are beneficial and this provision could be negotiated, it is our position that an amount representing unamortized principle and interest could be included in a potential buyout should the 10 year option not be exercised.

4. Does GSA need to see site control for the proposed sites, and what is required to document such control?

ANS: GSA would like to see evidence of site control. Evidence of site control would be most clearly demonstrated by a completed PJM feasibility study and being placed on PJM queue for new projects. Short of a completed PJM feasibility study items such as an option for or ownership of land, permits for construction, a signed lease for the land would suffice.

5. How quickly award decisions are made will affect how long the option on the real estate needs to be. How long do proposals need to remain valid? This question is specific to securing solar project control while bids are being evaluated and through award date.

ANS: GSA intends to award a contract(s) within 60-90 days after the close of the solicitation. Project offers should be executable for at least that time period.

5. What is required to be compliant under the small business requirement? Must the small business be the offeror? What is the self-performance requirement when a “sale of energy” is the service being purchased?

ANS: The offeror must be a small business under the applicable small business size standards. While the exact self-performance requirement may vary depending on some project specific factors, it is generally assumed that this would be when energy sales commence.

6. What documentation is required to provide proof that a PJM Interconnection Agreement is “near”? Interconnection Agreements are typically not executed until a project has financing and an offtaker. With GSA as the offtaker, and no award given at the time of bid, an Interconnection Agreement will not have been executed at the time of proposal submission.

ANS: GSA wants to see some level of activity initiated with PJM (i.e. a completed Feasibility Study). A PJM Queue number would indicate that a project is moving forward. Projects with an Interconnection Agreement will be preferred.

7. Must a project show a price benefit to the government in the first year or can it be over the 10 year life of the contract?

ANS: While the Government will be evaluating the entire term of the contract proposed, the Government would like to see a price benefit in the first contract year.

8. What would be an allowable escalator? How will price proposals be compared to one another?

ANS: GSA does not have prescribed escalation factor, however, GSA thinks that a 2% escalation factor is reasonable. While GSA will compare proposals to one another, the primary comparison will be to the market value of the power produced at the PJM node associated with the project proposed.

9. Are there preferences for protected business entities other than Indian tribes such as 8A, SDVOSB, etc?

ANS: No.

10. Will companies that can show extensive experience and positive past performance be given additional consideration?

ANS: Experience and past performance are valued and will be evaluated.

11. Should references be included with the proposals?

ANS: Yes, please include references. Include no more than three (3) references.

12. Do BAA and TAA rules apply?

ANS: GSA considers this contract to be a purchase of electric supply sourced in the PJM service territory. As such, any resulting purchases would comply with the Buy American Act and Trade Agreements Act.

13. Is there a maximum size that GSA will accept? Will larger projects be given preference or do you prefer smaller projects?

ANS: GSA has no maximum project size. That said, GSA in its announcement has stated its estimated PJM usage and the estimated amount of renewable power required to meet renewable power purchase goals. GSA does not intend to favor a particular size of project.

14. Will multiple medium-scale projects (5-20MW) have an advantage due to geographic diversity (spreading projects around) and/or aggregation of multiple developers (spreading the work around)?

ANS: In PJM, GSA’s usage is concentrated in the Eastern portion of PJM with a high concentration in the PEPCO zones. So resources that are proximate to those loads would be most beneficial for physical delivery. That said, there is no preference for multiple projects or multiple developers. The primary evaluation will be economic.

15. Will preference be given for projects that can be rapidly initiated or can be completed/commissioned in a short period of time?

ANS: GSA’s primary evaluation will be economic. For projects that are roughly equal in economic value, a more proximate service date is preferred.

16. Will preference be given to bidders who have been pre-approved for financing?

ANS: The primary evaluation will be economic. While pre-approved financing will be desirable, it is not a significant evaluation factor.