FASPP_Q A__3.pdf

FASPP – QUESTIONS & ANSWERS #3

QUESTION: A potential offeror asked for an additional site visit to each location.

ANSWER: These are being scheduled for the week of July 6. The schedule is posted with Amendment 8.

QUESTION: It is not possible to fully finance this PV project over a 10-year term. The economics of this project (like nearly all PV projects) will require a 19 to 20 year PPA term. However, the GSA has indicted that it can only sign a 10-year contract, with the option to renew for a second ten years. Because there is some uncertainty and risk that the second ten-year term might not be renewed, Contractors will need assurance that they will recover their outstanding investment after the first ten years in the event of non-renewal. Giving the Contractor the opportunity to sell power to a different off-taker for the second ten years is not a viable solution because the value of that future power is too uncertain to support financing, even if the site lease has a 20-year term. Rather, the Contractor would need the government to commit to pay a termination fee that makes the Contractor whole if the second 10-year option is not renewed. Can you please confirm that the government will commit to pay a termination fee (to be determined by the Contractor and made part of the initial proposal) in the event that the second 10-year option is not exercised?

ANSWER: "The provision you suggest is already included in the solicitation at B.3.2. The Price Schedule has a column for Offerors to propose such a termination fee (referred to in the Price Schedule as Recovery of Unamortized Costs). If you believe the language is insufficient you may submit a suggested exception per the instructions at L.3.6.