Attachment_No__1_-_Appendix_A_Statement_of_Work.pdf

Attachment No. 1

APPENDIX A

STATEMENT OF WORK

"Distributed Wind Turbine Competitiveness Improvement Project –

Manufacturing Process Upgrades”

December 2, 2014

1.0 BACKGROUND

The U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) Wind Program defines distributed wind (DW) in terms of technology application based on a wind project’s location relative to end-use and power-distribution infrastructure, rather than on technology size or project size; thus, the distributed wind market includes turbines and projects of many sizes. Wind systems are characterized as distributed based on the following criteria:

• Proximity to end-use: wind turbines installed at or near the point of end-use for the purposes of meeting onsite load or supporting the operation of the local (distribution or micro) grid.

• Point of interconnection: wind turbines connected on the customer side of the meter or directly to the local grid1.

At the smaller end of the DW spectrum, the small wind2 industry in the United States (U.S.) has historically been a leader in the international market. Progress has been made in improving consumer confidence in the products through the creation of the Small Wind Certification Council (SWCC) that is responsible for certifying small wind turbines to the requirements of the American Wind Energy Association’s (AWEA) Small Wind Turbine Performance and Safety Standard3. Other organizations certify small wind turbines to this standard. Seven (7) small wind turbines have been certified by the SWCC, with one additional turbine being granted a limited power performance certification. In addition, one turbine categorized as a medium turbine has received power and acoustic certification. Among those certified to date, several are products that are manufactured in the United States. Few turbines in the range of 200m2 to 1000m2 rotor swept area (RSA) are pursuing certification to the International Electro-technical Commission (IEC) 61400-1 or DNV GL (Det Norske Veritas Germanischer Lloyd) standards.

Over the last several years, the National Renewable Energy Laboratory (NREL) helped establish four (4) Regional Test Centers (RTCs), with one each in Kansas, New York, Texas, and Utah. These, and any other qualified testing body, support the U.S. industry’s need to expand the distributed wind turbine testing and certification infrastructure and ensure that wind turbines sold in the U.S. market are viable, commercial products. Although these testing facilities increase the number of distributed wind turbines that can undergo certification testing, fewer wind turbines than previously expected are ready for certification.

1 U.S. Department of Energy, Energy Efficiency & Renewable Energy, Wind Program. 2013. Distributed Wind. Available at wind.energy.gov/wind_dist_tech.html (last update May 2, 2013) 2 The US DOE defines small wind as 100kW or less. Applicable standards for turbine certification testing will be dependent on the rotor swept area (RSA) of the turbine. IEC 61400-2 applies to turbines <200m2 RSA. The AWEA Standard size limitation is consistent with IEC 61400-2 limitation. Turbines greater than 200m2 RSA must comply with IEC 61400-1, -12, -23, and any other applicable standards.

3 http://wwwawea.org/learnabout/smallwind/upload/AWEA_Small_Turbine_Standard_Adopted_Dec09.pdf

NREL is positioned to support U.S. small and midsize wind turbine manufacturers that demonstrate a strong commitment to improving their ability to compete in the global distributed wind market space.

Wind technology expertise available at NREL’s National Wind Technology Center (NWTC) has been instrumental in the past in supporting technology improvements.

Through NREL, the DOE EERE Program sponsors a multifaceted wind energy research portfolio to assist the U.S. wind industry develop competitive, high-performance technology for global energy markets.

One specific program objective is to increase the number of certified small and midsize wind systems and reduce the levelized cost of energy (LCOE) of turbines used in distributed electricity systems to be competitive with retail electricity rates. “The Distributed Wind Turbine Competitiveness Improvement Project (CIP) - Manufacturing Process Upgrades” is intended to target this program objective and increase the competitiveness of U.S. small and midsize wind turbine manufacturers.

2.0 OBJECTIVE

The objective of the CIP is to expand U.S. leadership in the domestic and international wind turbine market sector by assisting U.S. manufacturers4 in lowering the LCOE of wind turbines. One approach to achieving this is through manufacturing process upgrades. The expected outcome is an increase in the number of certified distributed wind turbines available for the U.S. market. Although DW is not defined by size, for this solicitation the turbine size will be capped at 1000m2 RSA.

3.0 SCOPE OF WORK

Under the CIP, Subcontractor(s) shall be selected to conduct Manufacturing Process Upgrades. This scope of work emphasizes a disciplined engineering development process, tests to verify process, and documentation necessary for certification and product commercialization. The Subcontractor shall select a baseline wind turbine that shall be the focus of this project and shall conduct work that supports designing, building, and or testing improved manufacturing processes. The project results are expected to increase the number of U.S. – manufactured certified wind turbines and reduce the LCOE of these turbines installed in distributed applications.

4.0 TASKS

The Subcontractor shall perform the work, conduct the meetings, and deliver the work products described herein, as minimum requirements. The Subcontractor shall comply with the technical requirements described herein. In addition, the Subcontractor shall complete and submit to NREL the applicable “Figure of Merit – Cost of Energy” (either Attachment 4 or 5, dependent on turbine size of either <200m2 or 200 m2 – 1000m2).

Under this effort, the Subcontractor shall propose manufacturing improvements and upgrades that will result in a more reliable, safe, and economic product. Upgrades are intended to be in the manufacturing equipment, supply chain, quality control, and effective process development and organization. Product in this context is the overall turbine system, including tower and foundation.

Manufacturing process upgrades may focus on improved product cost, quality, reliability, and manufacturing automation. The baseline costs, and proposed costs resulting from the proposed improvement, shall be provided in the proposal (see Attachments 4 and 5). The actual costs shall then be provided as a task deliverable.

4 Attachment 3, Eligibility Verification, must be completed and submitted as part of the proposal.

Task 4.1: Current Manufacturing Process The Subcontractor shall provide a clear description of the current state of the manufacturing process, including production volume data, and costs (labor, materials, and Operations and Maintenance of the equipment) as well as studies performed to verify the viability of the proposed upgrades. Additionally, the Subcontractor shall provide requirements and specifications of the improved manufacturing process.

Task 4.2: Manufacturing plan The Subcontractor shall provide a detailed description of the expected implementation plan for the new, improved manufacturing process, including details about quality control/quality assurance procedures and standards. If the Subcontractor is planning on pursuing ISO-9000 certification, this shall be clearly identified and included in the plan with expected schedule and timeframes for certification audits and award.

Task 4.3: Implementation of the Upgrades The Subcontractor shall provide evidence of the upgrade implementation and improvements achieved in quality control, production volume, cost reduction, and other relevant parameters.

Evidence may be in the form of official documentation, reports, bill of materials, photographs, audit reports, or other relevant sources. If the new manufacturing process will result in increased reliability of the wind turbine, details should be summarized and appropriate documentation shall be included. All of this information shall be included in a final report.

Task 4.4: Revised Cost of Energy At the completion of the manufacturing process improvement work effort, the Subcontractor shall develop a revised LCOE, comparing the baseline, proposed and actual cost elements. The Subcontractor shall summarize the final system costs and describe, in detail, how and why it is consistent or different from the estimates included in the original proposal.

5.0 REVIEW MEETINGS AND TRAVEL REQUIREMENTS

For this effort, the Subcontractor may, but is not required to, travel to NREL one or more times to discuss the project progress, challenges or any technical support from NREL. Conference calls and or in-person meetings may be conducted over the course of the subcontract period of performance, and shall be scheduled by either the Subcontractor or the Technical Monitor on an as-needed basis and as mutually agreed to.

6.0 DELIVERABLES

The Subcontractor shall provide the following deliverables:

6.1. The Subcontractor shall provide a Letter Report describing current state of manufacturing and requirements/specifications for new process as defined in Task 4.1. Due: 1.5 months from date of subcontract execution

6.2. The Subcontractor shall provide a detailed implementation plan as defined in Task 4.2. Due: 2.5 months from date of subcontract execution

6.3. The Subcontractor shall provide a Final Report documenting upgrade and implementation as defined in Task 4.3. Due: 17 months from date of subcontract execution

6.4. The Subcontractor shall provide a revised Cost of Energy as defined in Task 4.4. Due: 17 months from date of subcontract execution

6.5. Quarterly Reports: The Subcontractor shall provide quarterly reports to include a description of work performed by the Subcontractor. The report shall describe the status, explain variances and problems and report on accomplishments. Due: Quarterly from date of subcontract execution

DELIVERY OF COMPUTER SOFTWARE CODE (AS APPLICABLE)

All object, source, or other code (including all applicable data sets) developed under this subcontract effort shall be provided to the technical monitor as a condition of final payment, in accordance with the subcontract. It is expected that all delivered source code shall be original and the subcontractor shall provide a written certification to the subcontract associate that all source, or other code developed and delivered under this subcontract does not contain any open source code - as a condition of final payment in accordance with the subcontract. The subcontractor’s (including all lower tier subcontractors, as applicable) certification shall specify that “All source, or other software code developed and/or delivered under this Subcontract No.__________ is original and does not contain any 3rd party or other open source software.”

7.0 ELECTRONIC REPORTING REQUIREMENTS FOR SUBCONTRACT REPORT

DELIVERABLES

Electronic Reporting Requirements for Subcontract Report Deliverables: As set forth in Department of Energy Order 241.1B, NREL is required to submit in an electronic format all scientific and technical information, including subcontract report deliverables intended for public distribution, to the DOE Office of Scientific and Technical Information (OSTI). In addition, it is NREL’s intention to post subcontract report deliverables containing publicly available information (e.g. non-confidential, non-protected, non-proprietary information) for distribution on the internet.

The subcontractor shall provide the final approved version of report deliverables intended for public distribution in accordance with the electronic reporting requirements described below.

The technical monitor may specifically direct the subcontractor to provide reports in one or more of the file format standards provided below. An exception to the format standards must receive prior approval from NREL Publication Services.

a. The subcontractor shall submit all report deliverables intended for public distribution (including status, annual, or final reports) as electronic files, preferably with all graphics and images embedded within the document. The electronic files shall be submitted along with an accompanying printed copy(ies) of the report.

b. All final approved version submissions shall be delivered to NREL on PC or MAC-formatted media (CD-ROM or DVD-ROM). Files of 1 MB or less can be sent via e-mail to the 1) NREL Technical Monitor, 2) the NREL Subcontract Administrator or Associate (as specified in the Deliverable Addresses below).

c. The accepted standard is the Microsoft Office suite of programs (version 2003 or higher for PC or Mac), and the preferred format is a single, editable, electronic file that includes all of the text, figures, illustrations, and high-resolution digital photographs (photographs should be scanned and incorporated in the text). Acceptable file formats are: Microsoft Word, Microsoft PowerPoint, Microsoft Excel, Microsoft Project, Microsoft Visio, and/or Microsoft Publisher.

d. If it is not possible to include all of the graphics and images (figures, illustrations, and photographs) in the same file as the text, NREL will accept the text in one of the above formats and the graphics and images as separate electronic graphic or image files*. The accepted standard for page layout and graphics is the Adobe Creative Suite of programs.

Native files must be submitted, and if a page layout application is used, the job should be packaged complete with fonts used and links to supporting graphics. The following software is supported on both Mac and PC platforms: Adobe InDesign, Adobe Photoshop, Adobe Illustrator, and/or Adobe FireWorks.

*The acceptable graphic or image file formats are: .eps, .tif, .gif, .jpg, .wmf, .emf, .pct, .png, .bmp, .psd, .ai, .fh, .qif, .fpx, cdr. The preferred resolution for graphics or images is 300 dpi. Include all fonts used in creating the file.

e. For animation, video, or multi-media elements (e.g. Flash animated graphics, video clips, HTML or Script-based interactivity through a browser, or CD-ROM), negotiations must be made with the subcontract administrator as to acceptable deliverable format prior to award.

f. In the rare case that the graphics or images cannot be supplied in native formats, submit a high-resolution scan from a hard copy with a minimum of 300dpi for color/grayscale, or 600dpi for bw/lineart scans. Submit the scanned image in one of the acceptable image formats listed above.

g. For all calculations in support of subcontract reports that are conducted in ASPEN+, an electronic copy of INPUT, REPORT and BACKUP (if Model Manager is used) must be submitted with all reports. Additionally, if costing or sizing calculations are conducted in a spreadsheet [no process calculations (heat and material balances) in spreadsheet format are permitted], a copy of the fully documented MS Excel file shall be supplied. Note that vendor quotes and other non-original material can be supplied in hard copy.

h. A fully executed model release shall be supplied to NREL with all photographs and images, regardless of whether such photographs or images are delivered to NREL electronically or in hard copy. Such model release shall certify that the Alliance for Sustainable Energy, LLC, Management and Operating Contractor for the National Renewable Energy Laboratory for the U.S. Department of Energy is granted a non-exclusive, paid-up, irrevocable, worldwide license to publish such photographs in any medium or reproduce such photographs or allow others to do so for United States Government purposes. Model releases are required in all situations in which a reasonable person would respond in the affirmative to the question – could someone, other than the model himself/herself, recognize the person in this photograph or image? All model releases shall be provided to the subcontract associate as a condition of final payment, in accordance with the subcontract. To obtain a Subcontractor Model Release form, please contact images@nrel.gov.

i. The subcontractor may contact NREL Publication Services at (303) 275-3695 with questions regarding technical guidance concerning the submission of subcontract report deliverables as electronic files or exceptions to electronic files for graphics and images.

8.0 ACKNOWLEDGEMENTS IN SUBCONTRACTOR PUBLICATIONS

In any scientific or technical report or article, conference paper, journal article, etc. based on or containing data first produced in the performance of this subcontract and published in academic, technical or professional journals, symposia proceedings or similar works, the subcontractor shall use this acknowledgement stating, “This [article, conference paper, journal article, etc.] was developed based upon funding from the Alliance for Sustainable Energy, LLC, Managing and Operating Contractor for the National Renewable Energy Laboratory for the U.S. Department of Energy.”

9.0 COPYRIGHT PERMISSION/AUTHORIZATIONS

The subcontractor is responsible for obtaining copyright permissions and/or authorizations for all information and/or data, as applicable that is incorporated into all final technical reports. Electronic copies of these copyright permissions and/or authorizations shall be provided to the subcontract associate and NREL Publication Services at the email addresses provided below. The subcontractor shall also provide a written certification to the subcontract associate as to such permissions and/or authorizations as a condition of final payment. The subcontractor’s (including all lower tier subcontractors, as applicable) certification shall specify that “I have obtained all necessary and legally required copyright permissions and/or authorizations for any and all information, data, graphs, images, etc., as applicable, that is mailto:images@nrel.gov incorporated into the final Technical Report titled __________________________, delivered under this Subcontract No.__________. Copies of these permissions and/or authorizations are attached.”

Deliverable Addresses:

The subcontractor shall clearly label all deliverables to include the subcontractor name, NREL subcontract number, NREL technical monitor name, date, and the deliverable description. Deliverables shall be sent to each of the following addresses:

1) **, Technical Monitor National Renewable Energy Laboratory 15013 Denver West Parkway Golden, CO 80401 e-mail: **

One (1) master electronic version

2) **, Subcontract Associate National Renewable Energy Laboratory 15013 Denver West Parkway Contracts and Business Services Golden, CO 80401 e-mail: **

One (1) master printed copy, including graphics

3) NREL Publication Services National Renewable Energy Laboratory 15013 Denver West Parkway Golden, CO 80401 e-mail: robert.finger@nrel.gov

One (1) master electronic version One (1) master printed copy, including graphics mailto:robert.finger@nrel.gov