TVA_Revised_CT-CC_Pre_Qual_Letter_01Nov2013.docx

Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402-2801

TRANSMITTED VIA E-MAIL - NO HARD COPY ISSUED

November 1, 2013

QUALIFICATION CERTIFICATION FOR ENGINEER PROCURE CONSTRUCT (EPC) FOR A NATURAL GAS FIRED NEW GENERATION PROJECT (TVA CT/CC Project)

In the near future, TVA may be issuing a solicitation document to request proposals from experienced firms for the award of an EPC contract for a Natural Gas Fired New Generation Project (the TVA CT/CC Project) on a firm, fixed price basis. In addition to the required primary proposal on a fixed price basis, the offeror may also submit an alternate proposal methodology for an optional commercial approach. The alternate proposal may address such alternate commercial terms where the offeror believes there is commercial benefit to TVA.

The detailed scope of work will be defined for the TVA CT/CC Project, and will be provided in the Request for Proposals (RFP) to all those prospective offerors that certify they meet the Mandatory Minimum Qualifications and submit detailed supporting documentation to substantiate meeting all mandatory minimum qualification requirements. Any solicitation for the TVA CT/CC project will be subject to TVA obtaining the appropriate internal project approvals, environmental reviews, etc., and TVA does not commit to award a contract under this solicitation or to pay any costs incurred in the development and submission of any subsequent proposal.

Description of the Scope of Work for the TVA CT/CC Project

The TVA CT/CC project will be either a 4xCT Simple Cycle plant or a 3X1 CC (duct fired) plant located in the Tennessee Valley area. For both possible scenarios, the CTs will be natural gas fired with the possibility of backup fuel oil and will additionally include bypass stacks with diverter dampers. For the Simple Cycle CT scenario, the CTs will be engineered and constructed to allow for future conversion to Combined Cycle operation at a later date by others. TVA will provide all of the CTs (GE frame 7FA Series 5) and the Generator Step Up Transformers, as well as a 450 MW steam turbine, if required for the CC scenario. The EPC contractor will be responsible for all of the engineering, procurement, construction, and startup for the project. EPC procurements to potentially include: HRSGs, condenser, cooling tower, boiler feed pumps, circ water pumps, DCS control system, high energy piping, electrical switchgear, generator breakers, natural gas conditioning equipment, etc. The requirement of this project is to have the plant operating and in-service by early to mid 2017, depending upon the final scope.

Kiewit Power Engineers Company (Kiewit) has previously developed a technical specification for TVA’s use for simple cycle and combined cycle projects which TVA intends to use as the technical specification in the RFP for the selected project. Even though an organizational conflict of interest may arise therefrom, in order to encourage submissions from the most qualified firms TVA will not exclude Kiewit from a possible subsequent award of an EPC contract for the project should TVA decide to move forward therewith, provided that Kiewit agrees not to withhold information developed during the preparation of the specification from TVA or place any restriction on the ability of TVA to fully disclose such information to other prospective offerors for such follow-up work. Kiewit has also committed that none of its personnel, employees, agents or contractors that participated in the development of that specification will participate in any manner in the development of its proposal in connection with a TVA project that utilizes that specification.

An "organizational conflict of interest" is a situation in which because of other activities or relationships with others, an offeror/contractor is unable or potentially unable to render impartial advice or assistance to TVA, or its objectivity in performing contract work is or might be otherwise impaired, or it has an unfair competitive advantage.

Notwithstanding the foregoing, TVA reserves the right to take such steps as it deems appropriate to neutralize or mitigate organizational conflicts of interest on the part of offerors, contractors, subcontractors, or their affiliates. Kiewit will not participate in the review or evaluation of any proposals from offerors and was not involved in the development of the commercial specification.

Since the Simple Cycle CT scenario must be developed with a combined cycle project conversion in mind, TVA desires to select a firm with a history of successful EPC experience with combined cycle generation projects that are similar to the workscope described above and in the enclosure entitled Mandatory Minimum Qualification Certification. As stated above, in order to receive the RFP, TVA requires that all prospective respondents meet these requirements before being further considered. Accordingly, all prospective respondents must first certify compliance with the requirements contained on the Mandatory Minimum Qualification Certification and submit detailed supporting documentation to substantiate meeting all mandatory minimum qualification requirements. Only the firms which TVA confirms meet all of the mandatory minimum qualification requirements will receive a copy of the RFP and will be invited to attend a mandatory pre-proposal meeting. No challenges will be accepted to TVA’s decision.

In order to be considered, I must receive the enclosed Certification signed by an official authorized to bind the organization and supporting information at the address shown below no later than 12 noon EST, November 14, 2013.

Tennessee Valley Authority

Randy W. Meadows

1101 Market Street, BR 5A

Chattanooga, TN 37401

Phone number: (423) 751-2429

FAX number: (423) 751-6357

E-mail: rwmeadows@tva.gov

Three (3) copies of the Mandatory Minimum Qualification Certification and detailed supporting documentation to substantiate meeting all mandatory minimum qualification requirements must be submitted in 3-ring notebooks as well as two (2) CDs of the Certification submittal for ease of information dissemination and review.

Electronic communications shall be in a form compatible with MicroSoft® Office 2007.

Sincerely, Randy W. Meadows Project Manager TVA Supply Chain

Enclosure: Mandatory Minimum Qualifications Certification

MANDATORY MINIMUM QUALIFICATIONS CERTIFICATION FOR

NATURAL GAS FIRED NEW GENERATION PROJECT

There are certain mandatory minimum qualifications which offerors must meet in order to be invited to submit proposals and be considered for award of the proposed contract. Offerors are required to submit detailed supporting documentation to substantiate meeting all mandatory minimum qualification requirements. Teaming, alliances and subcontracting are acceptable. However, offerors that provide only engineering with construction management services but plan to subcontract all the construction work will not be considered for this project unless the Offeror and its sub contractor can qualify as a Team or Alliance. For any teaming or alliance formations, one company shall be the lead and the interface with TVA for this certification, any potential future solicitations regarding this certification, and for any potential future contract awards regarding this certification. The minimum qualification requirements may collectively be satisfied by combining the qualifications of team members and subcontractors committed to perform in the event of award, however, these team members must collectively have worked together as a team in the past and as a team to satisfy these minimum qualifications. Individual qualification criteria, however, must be satisfied by each individual entity. The minimum qualifications are as follows:

CRITERIA

MEETS

CRITERIA?

YES/NO

1. Offerors must have successfully provided engineering, procurement, and construction, including startup and commissioning (full EPC plus startup and commissioning) for a minimum of three (3) Combined Cycle (CC) facilities with “F” class technology combustion turbines (or higher class) that have been successfully operational for at least one (1) year (GE 7FAs preferred and will be evaluated more favorably during the bid evaluation than non-GE F class CT’s). These facilities must have been in a 2X1or larger configuration. These 3 CC Projects must also have each met the original (pre-construction start) scheduled in service date, met all project performance guarantees, and must have been no more than 3% over the original project budget. It is mandatory that the 3 CC facilities have been constructed with “F” Class combustion turbines, or higher class, and at least one of the 3 CC facilities having been completed within the last ten (10) years.

2. Offer must have an established, overall, formalized Total Quality Program (TQP). This TQP must include a detailed SA335, GR.P.91 inspection and installation program, and demonstrate this by providing the table of contents of the TQP and the section(s) related to P91 piping production, fabrication, welding, stress relieving, etc.

3. Offeror must have the demonstrated capability to manage the commissioning and start-up of CC power units. Must be capable of field performance testing of the individual equipment (i.e. CTs, Steam turbine, HRSGs, cooling tower, etc.), and the entire CC unit for MW output and efficiency. This shall be demonstrated by the Offeror providing the documentation requested in item 1 above.

4. Offeror must have the resources, capability and experience as an EPC for CT and/or CC projects (of at least the type and magnitude of that described herein) and be able to demonstrate the ability for project management of CT and/or CC projects with appropriate proposed structure of the project management team. This shall be demonstrated by the Offeror providing the documentation requested in item 1 above or item 2 above, as applicable.

5. Offeror must have the financial capacity (creditworthiness) to guarantee the timely performance, obligations, duties and responsibilities under or related to the contract (including performance and warranty issues), for the term of the contract. (Required information shown on following page)

6. Offeror must be willing to become signatory to TVA’s project labor agreement (CPA).

7. Offeror must have an acceptable safety program with demonstrated ability to assign on-site safety professionals. The Recordable Injury Rate should be less than than 0.7average for the Offerors entire safety program over the last 3 year period. Likewise, the Lost Time Injury Rate shall be less than 0.2 average for the same 3 year period. The Offeror shall submit their overall safety records for this 3 year period to verify that the Offeror meets the safety criteria above.

MANDATORY MINIMUM QUALIFICATIONS CERTIFICATION FOR

Note: Other than the mandatory minimum qualifications required in Criterion 1 and 2 above, which verifies the Offerors successful experience as an EPC contractor for CT/CC projects, if the Offeror believes a valid exception to any of the other mandatory minimum requirements exists, please submit the certification with a detailed explanation of the exception. TVA will review the exception and make a determination of its acceptability. No challenges will be accepted to TVA’s decision.

MANDATORY MINIMUM QUALIFICATIONS CERTIFICATION

Information required to be submitted in item 3 above regarding financial capacity:

· Audited financial statements for the last three (3) preceding years that include balance sheets, income statements, statements of cash flows and notes to the financial statements, or an annual report on Form 10-K for the last three (3) preceding years.

· Interim financial statements for the most recent fiscal period or quarterly financial statements on Form 10-Q for the most recent fiscal period.

· Bank name, address, phone number and officer contact.

· Credit references from three (3) sources that include name, address, phone number and contact.

· Complete legal name of the company and the State of Incorporation.

· Company ownership schedule if privately held.

MANDATORY MINIMUM QUALIFICATIONS CERTIFICATION FOR

Offeror certifies by signing below that it meets all of the mandatory minimum qualification requirements, including, but not limited to, the required in services dates, etc., listed herein.

Company (Offeror)

Signature of Authorized Representative

Printed Name

Title

Date

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