NOO_GB Solar ESA (09-23-2025).pdf

FEDERAL ENERGY MANAGEMENT PROGRAM

ENERGY SAVINGS PERFORMANCE CONTRACT

NOTICE OF OPPORTUNITY

DATE: 09/23/2025

TO: All Fourth Generation DOE ESPC IDIQ Contract Holders

FROM: Ian P. Sherry, Contracting Officer NASA Goddard Space Flight Center 8800 Greenbelt Road Greenbelt, MD 20771-0003

SUBJECT: Notice of Opportunity (NOO) for the Energy Savings Performance Contract (ESPC) for NASA Goddard Space Flight Center and Request for Contractor Expressions of Interest (Ref. NAICS Code 541330)

1. NOTICE AND INVITATION

NASA Goddard Space Flight Center is interested in pursuing an ESPC project at the Goddard Space Flight Center (GSFC) located in Greenbelt, Maryland, specifically a photovoltaic (PV) Energy Conservation Measure (ECM) that may be structured as an Energy Sales Agreement (ESA) if the new federal investment tax credit deadlines and all associated requirements can be met. No other ECMs are desired. ESA details are provided in Section 3.

This Notice of Opportunity invites current holders of the Department of Energy’s (DOE) Fourth Generation ESPC Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract to submit a written response (an expression of interest) to be considered for Contractor selection for this potential task order award. Details regarding how the Energy Service Company (ESCO) will meet the tax incentive deadlines shall also be included in the Expression of Interest (EOI).

The scope of the Task Order (TO) awarded for this project is a PV system at GSFC Area 100 as identified in this notice (see details in Sections 2 and 3). There are opportunities for additional PV systems, which could be investigated during the Investment Grade Audit (IGA) if the additional analysis does not jeopardize meeting tax incentive deadlines.

The ESCO will be required to use eProjectBuilder (ePB) in developing the ESPC project and presenting baselines, estimated savings, and financial schedules to the agency. ePB is a free web-based system for entering and tracking ESPC data through the life of a project. It can be accessed at: https://eprojectbuilder.lbl.gov.

2. FACILITY OVERVIEW

2.1 The Mission

GSFC is home to the nation’s largest organization of scientists, engineers, and technologists who build spacecraft, instruments, and new technology to study the Earth, the sun, our solar system, and the universe. Named for American rocketry pioneer Dr. Robert H. Goddard, the Center was established May 01, 1959 as NASA's first space flight complex. Goddard and its several installations are critical in carrying out NASA's missions of space exploration and scientific discovery.

2.2 Facility Description

The GSFC Campus consists of 35 primary facilities that contain mixed use spaces, as well as several smaller facilities. Facilities generally include a mix of the space types as listed in Section 2.2.1, with the most common being offices and labs. The most noteworthy facility is a group of three (3) buildings called the Integration and Test (I&T) complex, which contains the largest clean room in the world for the construction of satellites, such as the James Webb Space Telescope. Heating and cooling are centralized by two (2) steam plants and two (2) chilled water plants, with the plants on the west end being larger. Bills are generated for the entire facility, while GSFC owns most of the utility distribution behind the Center fence. GSFC maintains its own utility metering at the facility level for most of its larger buildings.

2.2.1 Federal Building/Facility Types

NASA anticipates that the project will include the following building/facility types:

• Other (Area 100 Field)

NASA has the following other building/facility types that are not expected to apply to this project:

• Office Space

• Medical/healthcare facilities

• Laboratories/clean rooms

• Dining facilities

• Data centers

• Process facilities

• Motor pools

• Central plants

2.2.2 Site Conditions

The following site conditions apply to work in facilities; however, these concerns are unlikely to apply to this solar project.

• Secure sites and security procedures

• Buildings are occupied and in operation 24/7

• Hazmat including but not limited to asbestos, Polychlorinated Biphenyls (PCBs), or other hazardous material

• ESCOs should expect the buildings to remain occupied during the performance period, to include construction. However, the Government reserves the right to allow movement of occupants if it is deemed to be in the best interests of the Government

• Mixed use spaces can present challenges. Area 100 and other parts of the site are spread some distance apart (see image below).

NOTE: There is a 13.8kV electrical loop that runs along the small road north of the softball fields and along the small road that divides the softball fields as shown in the red boxes above, with a 300KVA transformer that provides power to the existing Area 100 structures. The loop feeder terminates at Goddard’s East Substation on the main base.

The Area 100 structures will be demolished as needed for the solar farm.

2.3 Summary Information on Facility Energy and Water Usage

The following data is to provide respondents with an approximate profile of facilities to be considered for an ESPC and may not be precise.

The estimated size of Area 100 in the potential project scope is 15 acres. The average annual energy use for these facilities is shown in the table below. For source selection purposes, the potential project scope is the full facility. The locations and data provided in this NOO may not represent the final project that may be identified as a result of the IGA prepared by the selected

ESCO.

Annual energy rates are expected to increase 3% on average. However, the FY26 energy rate will increase 45% from the FY25 rate.

Utility Rates Total Average Annual Usage

$ Units # Units Total Annual Cost ($) Electricity Supply 0.1070 $/kWh 149,000,000 KWh 15,943,000 Electricity Demand 2.790 $/KW 20,800 KW 696,384 Total Annual Cost 16,639,384

See utility bill below for more detail on specific demand/capacity charges.

3. STATEMENT OF OBJECTIVES

3.1 General Statement of Objectives

To expedite task order award, NASA would like the selected ESCO to skip the Preliminary Assessment phase and start with an IGA. A business case analysis comparing the benefits of an ESA within an ESPC to that of a typical ECM shall be provided in the 50% IGA.

The project will evaluate solar at Area 100 (see image below) at GSFC (15-acre site), maximizing renewable power generation within the area.

3.2 Agency Specific Project Objectives/Goals/Priorities

• PV Generation

• Reduce electrical demand loads and utility costs

• Battery Energy Storage System to increase resiliency

3.3 ESA Objectives

Reason for the Contractor to consider an ESA: The system size is large enough to warrant an ESA, should the ESCO confirm that tax incentive deadlines and all other requirements can be met.

System Size: TBD – Maximum cost-effective size

Area Available: 15 Acres

An ESPC ESA is a project structure that allows federal agencies to utilize the ESPC long-term multiyear contracting authority to implement cost-saving renewable ECMs on federal buildings and land where the ECMS is initially privately owned, and the agency purchases the electricity produced, with payment based on electricity generation (cent/kWh). The selected ESCO is responsible for all operation & maintenance, repair & replacement.

ESPC ESA projects must meet all ESPC legal requirements (see, 42 U.S.C. § 8287, et seq.), including the requirement that the agency pay for the cost of the ESPC ESA from energy savings generated each year over the life of the contract.

In order for the ESPC ESA contract to be scored annually, it must be consistent with the requirements under the Office of Management and Budget (OMB) “Addendum to OMB Memorandum M-98-13 on Federal Use of Energy Savings Performance Contracts (ESPCs) and

Utility Energy Service Contracts (UESCs)” (M-12-21, dated September 28, 2012), including the requirement that the Federal Government retain title to the onsite renewable energy generation system by the end of the contract.

The ESCO may be eligible for tax incentives such as the federal Investment Tax Credit (ITC) and depreciation. Internal Revenue Service (IRS) Revenue Procedure 2017-191 provides a safe harbor (related to ITC eligibility) under which the IRS will not challenge the treatment of an ESPC ESA as a service contract under 26 U.S.C. § 7701(e)(3). Section 4 of the Revenue Procedure specifies safe harbor requirements, including a maximum contract length of 20 years.

This contract length limitation applies to the ESPC ESA ECM only. Tax incentive eligibility due diligence is the responsibility of the ESCO, not the Government.

The OMB Memo title retention requirement will be satisfied through a PV ESA ECM title transfer by the end of the contract term at Fair Market Value (FMV), as appraised at the time of the title transfer. The Contractor will transfer a portion of the payments it receives from the agency each year into a reserve account held by the Contractor and these funds will be used for the FMV title transfer. The amount transferred to the reserve account will be based on an estimated FMV and may be adjusted periodically as needed during the contract term based on updated FMV estimates. The ESCO shall propose methods to minimize NASA’s risk of FMV increases during the contract term.

The agency recognizes that securing financing may involve the establishment of a Limited Liability Company (LLC) or other type of Special Purpose Entity (SPE). Either a; (1) task order novation agreement between the agency Contracting Officer (CO) and Prime Contractor, or (2) a tri-party agreement among the agency, Contractor, and SPE may be required to effectuate the desired financing.

The ESPC statutory authority provides that an agency may enter an ESPC with an ESCO that is on a qualified list established pursuant to the requirements under 42 U.S.C. § 8287(b)(2)(A).

The initial award of an ESPC ESA to a DOE ESPC IDIQ contract holder satisfies this requirement, even though the newly created SPE may not be on an established qualified list.

Any subsequent agreement that is executed to novate the contract to a SPE must be approved by the responsible agency CO and concurred on by the DOE Golden Field Office DOE ESPC IDIQ CO; and must be consistent with all applicable statutory and regulatory requirements, including but not limited to, all requirements at Federal Acquisition Regulation (FAR) 42.1204. Task order novation agreement approval is at the agency’s sole discretion (after obtaining concurrence from the DOE ESPC IDIQ CO) pending a determination by the agency CO that the SPE can meet all contract requirements and obtaining financing. Any tri-party agreement executed to address the establishment of an SPE, and related financing issues must be approved by the responsible agency CO and concurred on by the DOE Golden Field Office DOE ESPC

IDIQ CO.

1 Published in the Internal Revenue Bulletin on February 13, 2017, see https://www.irs.gov/pub/irs-irbs/irb17-07.pdf.

The planned use of an LLC or other type of SPE shall be identified in the NOO response, along with details regarding whether a tri-party agreement will be used, or task order novation will be required.

4. ESCO SELECTION

4.1 ESCO Selection Process

NASA will select an ESCO for potential task order award in accordance with the Selection Based on Qualifications Method at Section H.3.8.1 of the Fourth Generation DOE ESPC IDIQ.

The agency will down select to one ESCO.

The Government reserves the right to adjust the selection process if the agency deems it to be in the best interest of the Government.

5. REQUIRED SUBMITTALS

ESCOs shall submit the information listed below in their responses to this NOO. Some information is required by the DOE ESPC IDIQs at H.3.1.A and other submittals are specific to this NOO.

5.1 Tax Incentive/Price Component (Maximum 5 pages, 12 pt. font)

• Describe how the selected ESCO will take advantage of the tax incentives given the new tax incentive deadlines.

• Explain how the Offeror will finance and structure this project to maximize the benefits of federal tax incentives and applicable state/local incentives to the Government.

o Emphasis shall be placed on how the ESCO will meet the federal investment tax credit deadlines and all associated requirements.

o Explain whether other tax incentives will be utilized (depreciation and/or state and local).

• The Offeror shall provide a description of the economic structure by which the Offeror will provide an ESA. For example, will the Offeror own the PV system and charge the Government a mark-up, or will a third party own the system and add its mark-up to the Offeror’s mark-up.

o Provide plans, if any, to sell the project solar renewable energy certificates (SREC) and how SREC price risk will be managed.

• The Offeror shall provide indicative PV ESA pricing in cents/kWh (excluding reserve account payment for fair market value title transfer) and a description of assumptions made and the variables that will impact final pricing determined through the IGA, including an estimate of how each item will impact pricing.

5.2 Past Performance (Maximum 5 pages, 12 pt. font)

• Provide contact information for previous customers who can provide information related to the projects described under Section 5.3 ESCO Experience. Provide the following information for each reference:

o Energy Project Agency and Site o PV system size, contract amount, contract term, contract status o ESPC Task Order/Contract Award Date o Project Acceptance Date (or ESPC stage, if not yet accepted) o Customer type (private company, Federal Government, other), o Previous Customer (reference) Point of Contact o Name:

o Title/Position [CO, Project Manager, etc.] o Phone:

o Email:

o Address:

• The Offeror shall provide a list of the last three (3) completed ESPCs or similar projects awarded to your firm with similar work and scope. Projects that are of similar size, privately owned (if an ESA is recommended) and/or are with the Federal Government are preferred.

These references may be contacted to provide the information called for by a Past Performance Questionnaire (Attachment A), which NASA may transmit to references. References may be asked to complete a questionnaire and send it by email directly to Ian Sherry, Contracting Officer, and Sol Shin, Contract Specialist.

Past Performance Questionnaires sent to the Contracting Officer or Contract Specialist directly from the ESCO will not be accepted for evaluation. NASA reserves the right to obtain and evaluate experience and past performance information from other sources known to NASA that are not included in the ESCO’s response to this NOO in assessing past performance.

5.3 Technical Competencies and Experience (Maximum 7 pages, 12 pt. font)

Experience

Submit information on your experience on up to five (5) ESPC projects that include an ESPC ESA. Information shall include:

• Specific detailed descriptions of those projects,

• The resulting energy savings from those projects,

• Financial Incentives applied to the projects,

• An explanation of how those projects relate to the objectives (or general scope and content) of the envisioned project.

Technical Qualifications to Perform an ESPC

Describe your technical qualifications and abilities as related to our facility characteristics and project objectives to deliver a successful ESPC project. The description should cover your ability to:

• Design and construct energy conservation measures,

• Identify and support agency application for all available financial incentives (specify whether an ESA is recommended based on whether the federal tax investment tax credit deadlines and associated requirements can be met),

• Sustain performance and savings throughout the entire contract term,

• Plan and perform comprehensive measurement and verification,

• Deliver a project at a fair and reasonable price.

Qualifications to Perform an IGA

Describe your qualifications to conduct an investment grade audit as it relates to the objectives described in this NOO. The description should cover your ability to provide meaningful information to assess viable ECMs, establish baselines, and estimate energy savings.

Planned use of Special Purpose Entities and Possible Task Order Novation or Tri-Party Agreement

Address each of the following:

• Can your company monetize the tax incentives?

• If not, will an LLC or SPE be established after task order award for tax incentive purposes?

• If an SPE will be established:

o Will a task order novation be required or would a tri-party agreement that includes the SPE be acceptable o Are there other mechanisms to enable use of an SPE?

• Provide the reason for use of an SPE, details regarding the proposed task order novation or tri-party agreement and how you will ensure that contract requirements will be met.

6. SIGNIFICANT EVALUATION FACTORS

The significant evaluation factors that the agency expects to consider in reviewing the responses and their relative importance are as follows:

6.1 Tax Incentive/Price Component

This element assesses the ability of the ESCO to implement and structure a PV ESA ECM with a reasonable ESPC ESA price and explain how the Offeror will finance and structure this project to maximize the benefits of federal tax incentives and applicable state/local incentives to the Government.

6.2 Past Performance

This element assesses the degree of confidence the agency has in the ESCO’s ability to supply ESPC services that meet the user’s needs based on a demonstrated record of performance and management of ESPC projects.

6.3 Technical Competencies and Experience

This element evaluates the ESCO’s capabilities in relation to our facility characteristics and project objectives to:

(a) Conduct an investment grade audit that provides meaningful information to assess viable ECMs and establish baselines and project savings;

(b) Design and construct ECMs similar to those stated in the “objectives” section of this NOO;

(c) Provide sustained savings and performance as reported through annual measurement and verification reports; and

(d) Planned use of Special Purpose Entities and Possible Task Order Novation or Tri-Party Agreement

Technical risk will be assessed to determine the degree to which the ESCO’s experience, technical qualifications, and qualifications to perform an IGA demonstrate the potential to satisfy the Government’s objectives for successful performance without the need for increased Government oversight.

6.4 Relative Importance of Evaluation Factors

The ability to meet requirements for the tax incentive will be weighted as the most important evaluation factor, followed by the ESCO’s past performance, and then technical competencies and experience.

7. SUBMITTAL OF EXPRESSIONS OF INTEREST

ESCOs are required to submit their expressions of interest via email to Ian Sherry, Contracting Officer, Ian.P.Sherry@nasa.gov, and Sol Shin, Contract Specialist, Sol.Shin@nasa.gov, prior to 10/14/2025, 5:00 PM ET. If you are not interested in participating, please provide a negative response.

No data or literature of any kind, other than that specified in this notice, will be accepted, nor will discussions take place at this time.

ESCOs may submit general questions or questions about the selection process in writing prior to 9/30/2025. All questions posed by ESCOs along with agency responses to those questions will be distributed to all Contractors.

Submit questions via email to Ian Sherry, Ian.P.Sherry@nasa.gov, and Sol Shin, Sol.Shin@nasa.gov.

Each ESCO must designate one point of contact for all communications between the ESCO and NASA. Please provide the name, title, phone number, and email address for this individual. No other communications regarding this notice or requirement are allowed.

8. AGENCY OMBUDSMAN

In the event there are any concerns related to fair opportunity that cannot be resolved by the ordering agency Contracting Officer, the Contracting Officer will refer the Contractor to the ordering agency’s Task and Delivery Order Ombudsman.

The agency’s Task and Delivery Order Ombudsman is as follows:

Kelly Lytton, Kelly.R.Lytton@nasa.gov, 853-5273 Bert Pasquale, Bert.A.Pasquale@nasa.gov, 301-356-0326 Kim Weaver, Kimberly.A.Weaver@nasa.gov, 301-452-3065

Sincerely, Ian P. Sherry Contracting Officer cc: Michael Mungal, FEMP Federal Project Executive (Mungalmj@ornl.gov) TBD, FEMP Project Facilitator Eric Brandenburg DOE IDIQ CO (Eric.Brandenburg@ee.doe.gov) Chandra Shah, NREL SME (Chandra.Shah@nrel.gov)