Inquiries and Answers for DQ AAAA 2027-0081 IRA Tax Credit Compliance.pdf

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Attached to
DQ AAAA 2027*0081 IRA Tax Credit Compliance
Solicitation number
DQ1 AAAA 2027000081 2
Issued by
Denver County, Denver City, Colorado

About this file

This document is an Inquiries and Answers response for DQ AAAA 2027-0081 IRA Tax Credit Compliance, a Colorado contract opportunity involving multiple state agencies including the Colorado Department of Human Services (CDHS), Department of Personnel and Administration (DPA), Department of Military and Veterans Affairs (DMVA), and Department of Natural Resources (DNR). The solicitation seeks professional services to ensure compliance with Inflation Reduction Act (IRA) tax credit provisions across 10 energy infrastructure projects. These projects include solar installations ranging from 18 kW to 3,306.2 kW DC capacity, battery storage systems (612 kWh and 120 kWh capacity), one ground source heat pump system (480,000 BTU), and approximately 26 electric vehicle chargers across multiple Colorado locations. Project sites are distributed across Denver, Pueblo, Lakewood, Colorado Springs, Centennial, Longmont, and Windsor, with construction start dates ranging from January 2025 through June 2027 and placement-in-service dates through October 2027. The total project portfolio is valued at approximately $19.57 million in combined material and labor costs.

Payment terms were modified to clarify that contractor fees are not contingent upon successful receipt of tax credits; vendors will be compensated for services rendered regardless of credit outcome, and progress billing is permitted. The pricing structure in the original solicitation quote was revised to accommodate non-contingent fee arrangements. The State clarified that it is unlikely to require provisions for credit transfer or sale, as Colorado is a tax-exempt entity eligible for direct cash payments (elective pay) under IRA provisions. Contractors are required to submit markups of the standard contract terms and conditions rather than leverage prior engagement letters. The scope includes support for potentially transferring or selling credits, though this provision is included primarily to address all possible scenarios. Design, engineering, permitting, and interconnection costs may be tracked separately from material and labor expenses.

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DPA Solicitation #:

DQ AAAA 2027*0081

IRA Tax Credit Compliance

INQUIRIES AND ANSWERS

Question 1: Can the Agency please provide the following for all 10 listed projects, total cost for each project (either current or anticipated estimate)?

Answer 1: See chart on last page of this document.

Question 2: Can the Agency please provide the following for all 10 listed projects, material cost for each project (either current or anticipated estimate)?

Answer 2: See Answer 1

Question 3: Can the Agency please provide the following for all 10 listed projects, labor cost for each project (either current or anticipated estimate)?

Answer 3: See Answer 1

Question 4: Is there any leeway with the pricing structure set forth in the documented quote (section 4D.iv)? We are not able to perform our work on a contingent basis so the fees would need to be locked regardless of whether a credit ends up being received by the State or not. In addition, we’d like to progress bill as our work is performed. Would this be a deal breaker?

Answer 4: No, language has been updated in modification 1 of DQ AAAA 2027-0081 to clarify payment.

Question 5: Are you able to provide the estimated capex/budget for each of the projects so we have a better idea of the potential credit amounts the state is expecting on these projects?

Answer 5: Please see the answers to Questions 1, 2, and 3 above.

Question 6: The quote mentions on page 7 of the document the State is seeking support for the transfer/sale of these credits. My understanding is that the State of CO is a tax-exempt entity eligible for direct cash payments (officially called elective pay) so I’m not sure this would apply but would like to confirm.

Answer 6: It is unlikely that the State would need this provision, however, this language has been included to ensure that all potential scenarios are covered.

Question 7: Company has an existing executed engagement letter from the 2023 IRA project, which included Company scope, terms and conditions, general business terms, etc. Can we leverage the 2023 executed contract as a starting point, or do you prefer a markup of the standard contract/terms and conditions?

Answer 7: No. Please submit a markup of the standard contract.

Question 8: Is the expectation of the State, that if the IRA credits are ultimately denied, that Company would not be paid for any Services? We ask because unfortunately, contingent fee/success-based fees are not permissible per Circular 230 for originally filed federal returns.

Answer 8: No, language has been updated in modification 1 of DQ AAAA 2027-0081 to clarify payment.

Question 9: We are requesting two numbers per project: material cost and labor cost. Estimates or current budget figures are fine, we do not need invoices at this stage:

Agency Project Location Material

Labor

CDHS Solar, 1,127.5 kW 3824 W. Princeton Cir, Denver

CDHS Solar, 3,306.2 kW 1600 W. 24th St, Pueblo

DPA Solar, 639.36 kW 1350 Lincoln St, Denver

DPA Solar, 71.5 kW 700 Kipling, Lakewood

DMVA Battery storage, 612 kWh 9510 Voyager Pkwy, Colorado Springs

DMVA Ground source heat pump, 480,000 Btu

1800 Patrick St, Bldg 1800, Colorado Springs

DMVA Solar, 50 kW 6848 S. Revere Pkwy, Centennial

DMVA Solar, 18 kW 4045 Weld County Rd 22, Longmont

DNR Solar, 364.8 kW 6060 Broadway, Denver

Multipl e

~26 EV chargers Multiple locations

● Material means equipment and hardware: panels, inverters, racking, batteries, heat pump and loop field, charging units, wiring, and electrical gear.

● Labor means installation and construction labor, including subcontractors.

● If design, engineering, permitting, or interconnection costs are tracked separately, a third number for those is helpful but not required. For the EV chargers, a combined total across all sites is fine.

Answer 9: See answer to question 1

Question 10: For solar project located at 3824 W. Princeton Circle, Denver, CO, 80236, we need to measure the solar output in AC. While there’s typically a 10-20% reduction for DC to AC, we just wanted to be certain.

Answer 10: 3824 W Princeton Circle: 1127.5 KW DC, 900 KW AC 1600 W 24th: 3306.2 KW DC, 2625 KW AC

Question 11: For the battery storage project located at 9510 Voyager Parkway Colorado Springs, CO 80920, can you please provide the size in kW (net output) versus kWh (storage capacity) to help verify if this project meets the 1MW exception?

Answer 11: Voyager Parkway: 120 kW / 612 kwH Great Western Dr: 60 kW / 120 kWh

Agency Project Type Address Size (kW, MW, btu) AC output

Construction Start Date

Month Placed in Service

Total Cost (estimate if we don't have)

Material Cost

Labor Cost(includes engineering)

CDHS Solar

3824 W. Princeton Circle, Denver, CO, 80236 1,127.5 KW DC 900 KW 5/1/2026 Oct-27 $5,837,926 $676,682 $5,161,244

CDHS Solar 1600 W. 24th St., Pueblo, CO, 81003 3,306.2 KW DC 2625 KW 10/21/2025 Oct-26 $8,101,877 $1,192,065 $6,909,812

DPA Solar 1350 Lincoln St, Denver, CO 80203 639.36 KW DC 6/1/2027 10/31/2027 $2,179,208 $1,525,445 $653,762

DPA Solar 700 Kipling, Lakewood 71.5 KW DC 6/15/2026 7/31/2026 $377,390 $264,173 $113,217

DMVA

Battery Storage

9510 Voyager Parkway Colorado Springs, CO 80920 120 kW / 612 kwh Nov-26 Nov-26 $725,000 $500,000 $225,000

DMVA

Battery Storage

31725 Great Western Dr. Windsor, CO 80550 60 kW / 120 kWh May-27 May-27 $230,000 $120,000 $110,000

DMVA

Ground Source Heat Pump

1800 Patrick St, Building 1800 Colorado Springs, CO 80914 480,000 btu 1/1/2025 Aug-26 $400,000 $250,000 $150,000

DMVA Solar 6848 S Revere Pkwy Centennial CO 80112 50 kw 11/1/2026 27-Mar $120,000 $75,000 $45,000

DMVA Solar

4045 Weld County Road 22 Longmont, CO 80504 18 kw 10/1/2026 27-Mar $75,000 $45,000 $30,000

DNR Solar 6060 Broadway, Denver, CO 80216 364.8 kWp DC 2/2/2026 Sep-26 $1,526,290 $915,774 $610,516

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