RFP_26RFPCS015_NEM_2.0.pdf

RFP for Public Service Commission Page 1

STATE OF MARYLAND

PUBLIC SERVICE COMMISSION (PSC)

REQUEST FOR PROPOSALS (RFP)

NET ENERGY METERING (NEM) 2.0 PROGRAM DESIGN

STUDY

RFP NUMBER 26RFPCS015

ISSUE DATE: MAY 7, 2026

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS

SOLICITATION.

https://procurement.maryland.gov/ https://emma.maryland.gov/

RFP for Public Service Commission Page 2

STATE OF MARYLAND

PUBLIC SERVICE COMMISSION (PSC)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services - Net Energy Metering (NEM) 2.0 Program Design Study

Solicitation Number: 26RFPCS015

RFP Issue Date: May 7, 2026

RFP Issuing Office: Public Service Commission (“PSC” or the “Commission”)

Procurement Officer: Heather Martin 6 St. Paul Street, 16th Floor, Baltimore, MD 21202

Email:

Phone Number:

procurement.psc@maryland.gov 410-767-8025

Proposals are to be sent to:

Submit on emma.maryland.gov under Solicitation Number 26RFPCS015 To submit a proposal, offerors must first register on emma.maryland.gov.

We recommend registering in advance to become acquainted with the site.

No Bid/Proposal Notice Feedback Form

*If you are not submitting a proposal for this solicitation, submit Attachment 1 with your reasons why.

Pre-Proposal Conference:

May 15, 2026 at 1:00pm Local Time via Google Meets See Section 4.3 for additional details.

See Attachment 2 to RSVP by May 14, 2026 to Attend

Questions Due Date and Time:

May 19, 2026 at 1:00pm Local Time

Proposal Due (Closing) Date and Time:

June 3, 2026 at 1:00pm Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Attachment 1 - No Bid Notice/Vendor Feedback Form).

MBE Subcontracting Goal:

0%

VSBE Subcontracting Goal:

0% mailto:procurement.psc@maryland.gov

RFP for Public Service Commission Page 3

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed Proposals method under COMAR 21.05.03.

Multiple or Alternate Bids:

Multiple or alternate Proposals will not be accepted.

Contract Type: Indefinite quantity with fixed unit prices

Contract Duration: Two Years

Primary Place of Performance:

Public Service Commission 6 St. Paul Street, Baltimore, MD 21202

SBR Designation: No

Federal Funding: No

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TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background and Purpose

2.3 Contractor Responsibilities and Tasks

2.4 Experience and Personnel

2.5 Substitution of Personnel

2.6 Security Requirements

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Problem Escalation Procedure

3.6 Work Orders

3.7 Payments by Electronic Funds Transfer

3.8 Prompt Payment Policy

3.9 Federal Funding Acknowledgement

3.10 Conflict of Interest Affidavit and Disclosure

3.11 Non-Disclosure Agreement

3.12 Maryland Healthy Working Families Act Requirements

3.13 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and Services (EPPs)

3.14 Insurance Requirements

3.15 Non-Compete Clause Prohibition

4 Proposal Submission Information and Instructions

4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Electronic Means

4.3 Pre-Proposal Conference

4.4 Questions

4.5 Proposal Due (Closing) Date and Time

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4.6 Economy of Preparation

4.7 Public Information Act Notice

4.8 Oral Presentation

4.9 Duration of Proposals

4.10 Revisions to the RFP

4.11 Cancellations

4.12 Incurred Expenses

4.13 Protest/Disputes

4.14 Offeror Responsibilities

4.15 Acceptance of Terms and Conditions

4.16 Compliance with Laws/Arrearages

4.17 Verification of Registration and Tax Payment

4.18 False Statements

5 Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award RFP Attachments (Table B)

7 RFP Appendices and Exhibits

7.1 Appendices (Table C)

7.2 Exhibits (Table D)

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

There are no Offeror Minimum Qualifications for this procurement.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

This Request for Proposals (“RFP”) is issued to procure the goods or services, as specified in this Section 2, from a contract between the selected offeror(s) and the State of Maryland (“State”). The Public Service Commission (PSC) is issuing this RFP for technical consulting services to perform a study to design a successor net energy metering program (“NEM 2.0”) to replace the current net energy metering program (“NEM 1.0”) under Public Utilities Article (“PUA”), § 7–306, Annotated Code of Maryland. This study is required by the Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act (“Act”) that was passed by the Maryland General Assembly in its 2026 legislative session. This study is primarily intended to inform future NEM 2.0 tariff designs that may be used in Maryland.

It is the State’s intention to obtain goods and services, as specified in this RFP, from a contract between the selected Offeror and the State. This is a single award. See RFP Section 6.5 Selection Procedures for more Contract award information.

The purpose of this solicitation is to procure a successor program to the existing net energy metering (“NEM”) program in Maryland (“NEM 1.0”). The General Assembly intends the NEM 2.0 program to increase ratepayer benefits by lowering electric system costs through flexible customer–sited renewable energy resources, provide fair compensation to eligible customer–generators, make progress toward State clean energy goals, and offer incentives that are less than those under the original NEM 1.0 program. The Commission is mandated by law to approve a framework for the successor program by February 1, 2027, to begin on July 1, 2027. This framework must provide incentives for net energy metered distributed generation to eligible customer–generators and community solar systems (collectively referred to as “facilities”), minimize ratepayer costs, and balance fair compensation for energy exports and the benefits of reduced load against system needs, ratepayer costs, and impacts on non-participating customers. The Commission must prioritize reviewing applications for the successor program from prospective facilities already in the interconnection queue for the NEM 1.0 program. The successor program will be available until the combined total rated generating capacity of the original NEM 1.0 and NEM 2.0 successor programs reaches 6,000 megawatts.

NEM 2.0 must balance fair compensation for grid services provided, such as load reduction, with ratepayer costs and benefits. The NEM 2.0 study must also consider a facility’s impact on the electric transmission and distribution (“T&D”) system and the needs of the T&D system when establishing a compensation framework. The NEM 2.0 study must also evaluate the potential impacts on customers, including low-to-moderate (“LMI”) customers, who do not participate in NEM, thereby potentially resulting in cost allocation burdens to these customers to support the electric distribution system through rates.

A Contract award does not ensure a Contractor will receive all or any State business under the Contract.

2.2 Background and Purpose

This solicitation seeks a NEM 2.0 successor to the NEM 1.0 program, intended by the General Assembly to increase ratepayer benefits by lowering electric system costs through flexible customer-sited renewables. The Goal is to provide fair compensation to eligible customer-generators, advance State clean energy targets, and offer reduced incentives compared to NEM 1.0. The Commission must approve the successor framework by February 1, 2027, for a July 1, 2027, start. This framework must incentivize NEM distributed generation and community solar, minimize ratepayer costs, and

RFP for Public Service Commission Page 8 balance fair compensation for energy exports and load reduction benefits against system needs and impacts on non-participating customers. The program will continue until the combined generating capacity of NEM 1.0 and NEM 2.0 reaches 6,000 megawatts. NEM 2.0 must balance compensation for grid services, such as load reduction, with ratepayer costs and benefits. The NEM 2.0 study must consider facility impacts on the T&D system when establishing the compensation framework. It must also evaluate potential cost allocation burdens on non-participating customers, including LMI customers, who support the electric distribution system through rates.

2.2.1 Project Goals

The overall goal of this project is to report to Maryland General Assembly by December 15, 2026, a recommendation that meets Act requirements for a NEM 2.0 successor framework to replace the existing NEM 1.0 framework and to support any regulation development or Commission orders necessary for electric companies to implement NEM 2.0 tariffs by July 1, 2027. Some NEM 2.0 post-implementation support may be needed until December 31, 2027.

2.2.2 State Staff and Roles

The Commission's Procurement Officer is responsible for managing the agency's internal purchasing, fiscal matters, and services procurement and will issue a Notice to Proceed (“NTP”) and intervene in other matters involving the services contract as needed.

The Commission's NEM 2.0 Contract Monitor is a staff member who acts as the Commission’s representative to ensure vendors comply with all contract terms, conditions, and scopes of work.

They oversee vendor performance, approve invoices, monitor compliance with contract goals, coordinate changes and ensure contracts are completed on time and within budget.

In addition to the Procurement Officer and Contract Monitor, the State project team consists of the following:

A. NEM 2.0 Project Manager

1. The NEM 2.0 Project Manager is a Commission Advisor ultimately responsible for meeting the NEM 2.0 project goals. The NEM 2.0 Project Manager leads the NEM

2.0 Work Group, develops project plans, liaisons with the NEM 2.0 Contract Monitor on contract issues while coordinating resources, and maintaining communication with the Offeror and other NEM 2.0 stakeholders and workgroups, including the Commission.

2. The NEM 2.0 Project Manager will provide direction to the selected Offeror (“Contractor”) by establishing clear, actionable instructions and directing contractor performance to ensure deliverables meet quality standards while meeting project objectives.

B. NEM 2.0 Work Group

The NEM 2.0 Work Group will consist of dozens of representatives from utilities, state agencies, local government jurisdictions, energy storage developers, industry trade groups and other interested parties and will serve as an advisory board to provide feedback to the Contractor on their proposed analysis framework, as well as their data sources and data assumptions needed for the study.

2.2.3 Other State Responsibilities

The State will not provide normal office working facilities and equipment reasonably necessary for Contractor performance under the Contract.

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2.3 Contractor Responsibilities and Tasks

2.3.1 Task ID No. 1. Development of NEM 2.0 Tariff Framework Design

The Contractor will develop a NEM 2.0 tariff framework design that balances fair compensation for grid services provided, such as load reduction, with ratepayer costs and benefits. This framework design must also consider a facility’s impact on the T&D system and the needs of the T&D system when establishing a compensation framework. This evaluation must also include the potential impacts on customers, including LMI customers, who do not participate in NEM, thereby potentially resulting in cost allocation burdens to these customers to support the electric distribution system through rates.

The NEM 2.0 tariff framework design must also consider the value of Distributed Energy Resources (“DERs”) and produce a value stack (‘Value Stack”) to transition from NEM 1.0. Unlike NEM 1.0, which is tied to retail rates, NEM 2.0 should also be tied to wholesale market dynamics, ensuring that developers are incentivized to dispatch energy when it is most valuable to the T&D system. The core philosophy is that compensation for energy should be based on its actual benefit to the T&D system, accounting for when and where it is generated in both retail and wholesale applications. The Contractor should also develop the NEM 2.0 tariff framework design to account for the difference in value provided between both behind-the-meter and front-of-the meter resources for different configurations (e.g, solar + storage vs. stand-alone storage) and a wide range of capacity sizes.

The NEM 2.0 tariff framework (“Value Stack”) should be built from distinct layers that represent avoided costs and benefits with each layer being represented by the dispatch behavior required to leverage this value. At a minimum, these layers should represent energy value based on PJM market prices for a specific utility zone, capacity value or load reduction value for reducing system-wide peak demand, demand reduction value for reducing demand on the utility’s distribution system during peak hours and environmental value representing the societal value of avoided greenhouse gas emissions. In addition, the Value Stack may consider locational relief value for adder projects located in specific, high-value areas where the T&D system is constrained.

Additionally, the NEM 2.0 tariff framework design should consider compensation “lock-in” periods (e.g. monthly through 5 years) for different layers in the NEM 2.0 design. The NEM 2.0 design should also consider a maturity model that is implementable by utilities on July 1, 2027, while gradually increasing in complexity to allow utilities to build new billing and settlement engines capable of processing high-granularity, hourly interval data rather than simple monthly totals in addition to necessary dispatch capabilities that will require fully implemented Distributed Energy Resource Management Systems (“DERMS”).

Finally, the NEM 2.0 tariff framework design may eventually support multiple technologies beyond just solar, including energy storage and wind as described in Section 2.3.8 NEM 2.0 Post- Implementation Support. To that end, the NEM 2.0 tariff framework design should not preclude a pathway for expanding and integrating the Value Stack (e.g., the energy storage tariffs being developed by the Commission’s Maryland Energy Storage Program workgroup). However, full integration to support multiple technologies must not delay the NEM 2.0 design for existing net energy metered facilities, which is the primary objective of the study.

2.3.2 Task ID No. 2. Coordination with NEM 2.0 Work Group

The NEM 2.0 Work Group will be led by a Commission Advisor. The NEM 2.0 Work Group will consist of dozens of representatives from utilities, state agencies, consumer advocates, local government jurisdictions, community solar developers, industry trade groups and other interested

RFP for Public Service Commission Page 10 parties. The NEM 2.0 Workgroup will be an advisory board to provide feedback to the Contractor on their proposed analysis framework, as well as their data sources and data assumptions needed for the study. The NEM 2.0 Workgroup will also review and provide feedback to the Contractor on the results of the study when completed. As an advisory board, the NEM 2.0 Work Group does not have any decision-making authority with all project decisions made by the NEM 2.0 Project Manager, subject to Commission approval as needed. It is anticipated that the NEM 2.0 Work Group will meet every two weeks for the duration of the contract. The Contractor shall actively participate in these meetings.

2.3.3 Task ID No. 3. Coordination with Net Energy Metering Work Group (NMWG)

The Net Energy Metering Work Group (“NMWG”) is a stakeholder body led by Commission Technical Staff tasked with monitoring the state’s net metering program and technical implementation. The NMWG facilitates collaboration between utilities, renewable energy industry experts, state agencies, developers and consumer advocates to track statewide progression toward the NEM 1.0 net metering cap (currently 3,000 MW). The NMWG also works to resolve technical and regulatory barriers, particularly regarding aggregate net metering for agricultural, municipal, and non-profit customers. As of early 2026, its primary focus is identifying long-term policy solutions as the state approaches its statutory capacity cap for renewable energy. Under the Act, the NMWG is also designing a “grandfathering policy” to distinguish between facilities that are grandfathered in NEM

1.0 and facilities that must reside in the NEM 2.0 successor program. The NMWG also maintains the net energy metering regulations in COMAR 20.50.10 and will need to codify any regulation changes required for NEM 2.0 implementation. The Contractor shall actively monitor and participate in NMWG meetings to ensure coordination between the NMWG and NEM 2.0 efforts and to assist in regulation development to implement NEM 2.0. It is anticipated that the Contractor will meet once per month with the NMWG for the duration of the contract.

2.3.4 Task ID No. 4. Coordination with Unified Cost Benefit Analysis (UBCA) Work Group (UBCA WG) Expert Consultants

The Commission has established a UBCA Framework for distributed energy resources in docketed Case No. 9674. This UBCA Framework leverages the National Standard Practice ManualTM (“NSPM”) for Benefit-Cost Analysis of Distributed Energy Resources. The UBCA Work Group was established by the Commission to create a standardized, Maryland-specific framework for evaluating the cost-effectiveness of distributed energy resources (DERs) using a consistent methodology for different types of DERs —such as energy efficiency, distributed solar, battery storage, and electric vehicles—holistically under shared assumptions and criteria. The UBCA Work Group also seeks to increase transparency in how energy resources are evaluated, helping to streamline decision-making for the grid's needs and state energy policies. The UBCA Work Group is currently working to complete a Phase II effort that is led by an expert consultant team. The UBCA Work Group is expected to complete its final recommendations for a common UBCA Framework by the end of 2026. The Contractor should align with this UBCA Framework to the extent possible; it is noted that the UBCA Phase II efforts to develop calculation methodologies may not be completed and approved by the Commission before the NEM 2.0 study is required to be completed. It is anticipated that the Contractor will meet once per month with the UBCA Work Group expert consultants (not the entire UBCA Work Group) for the duration of the contract for coordination.

2.3.5 Task ID No. 5. NEM 2.0 Tariff Framework Report Development and Presentations

The Contractor shall assist the NEM 2.0 Work Group in developing the NEM 2.0 Tariff Framework Report (Report) and also participate in an in-person hearing with the Commission and a Maryland

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General Assembly session to present this Report and answer questions according to the following schedule:

1. July 1, 2026 - Notice to Proceed (“NTP”); NEM 2.0 Kick-Off and work begins on NEM

2.0 Tariff Framework

2. September 4, 2026 - First Draft Framework to the NEM 2.0 Work Group for their comments by September 15, 2026.

3. October 6, 2026 - Final Draft Framework to the NEM 2.0 Work Group for their comments by October 13, 2026.

4. October 27, 2026 - Framework Report filed with Commission.

5. November 2026 – Hearing to Be Determined (In-Person)

6. December 15, 2026 – Final Legislative Report to Maryland General Assembly

(Note: The Commission will Provide a Cover Letter for the Framework Report and Submit this Maryland General Assembly Report)

7. January 2027 - Presentation to Maryland General Assembly (Note: In-Person but possibly virtual)

8. February 1, 2027 – An Order on the NEM 2.0 Tariff Framework Design Issued by the Commission

2.3.6 Task ID No. 6. NEM 2.0 Value Stack Calculator Excel-based Tool

The Contractor shall develop a NEM 2.0 Value Stack Calculator Excel-based Tool (NEM 2.0 Calculator) that shall be used by the utilities in developing NEM 2.0 tariffs. This NEM 2.0 Calculator should include the underlying calculations for all components of the NEM 2.0 Tariff Framework and be used to estimate top-line revenue for each layer of the NEM 2.0 Value Stack for all utility facilities accepted into the NEM 2.0 tariff. In developing the NEM 2.0 Calculator the Contractor will work with a volunteer electric company (to be determined) to test the calculator with real values. These test results will be subject to review and comment by the NEM 2.0 Work Group.

Work on the NEM 2.0 Calculator is expected to begin immediately after the NTP is issued to the Contractor and be available in final form by the Commission’s December 15, 2026, Final Report deadline to Maryland General Assembly. Modifications of the NEM 2.0 Calculator may be required during the NEM 2.0 Implementation Support Phase as described in Section 2.3.7 as regulations are developed. The NEM 2.0 Calculator may also occasionally or periodically require Value Stack updates to the underlying data within Value Stack layers with the latest values derived from PJM markets and other data sources used in developing the NEM 2.0 Calculator assumptions. The Contractor shall update the NEM 2.0 calculator with these latest values up to two weeks in advance of the June 1, 2027, filing deadline for utility NEM 2.0 tariffs as described in Section 2.3.7 NEM 2.0 Implementation Support.

2.3.7 Task ID No. 7. NEM 2.0 Implementation Support

The Contractor will assist the NEM 2.0 Work Group and NMWG in developing emergency regulations and in assisting the Commission in evaluating tariff filings from utilities in their implementation of NEM 2.0 tariffs according to the following schedule:

1. February 15, 2027 - Proposed NEM 2.0 Emergency Regulations Filed

2. March 15, 2027 – Rulemaking Hearing on Proposed NEM 2.0 Emergency Regulations

(In-Person)

3. May 1, 2027 – NEM 2.0 Emergency Regulations Adopted

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4. June 1, 2027 – Utilities File NEM 2.0 Tariffs

5. July 1, 2027 – NEM 2.0 Tariffs Implemented

2.3.8 Task ID No. 8. NEM 2.0 Post-Implementation Support

NEM 2.0 Tariff Framework and NEM 2.0 Calculator Maintenance: The Contractor will assist the NEM 2.0 Work Group and the NMWG in providing NEM 2.0 post-implementation support for a period up to six months after the July 1, 2027, implementation, or December 31, 2027. This support may be required for ongoing maintenance work to maintain the NEM 2.0 tariff framework design and NEM 2.0 Calculator upon changes in PJM Market structures as required by State and Federal policy changes, or as otherwise directed by the Commission. This NEM 2.0 post-implementation support shall continue until the end of December 31, 2027, or until this contract is replaced by a NEM 2.0 post-implementation support contract.

Additional Related Work: Although the initial focus of the NEM 2.0 tariff framework design is to develop a successor to the NEM 1.0 program for NEM facilities, the Commission may direct the expansion of this framework to integrate the energy storage tariff framework and all DERs including wind into a single Maryland Value of DER (“MVDER”) tariff framework, not just NEM facilities. In addition, although not specified by the General Assembly, additional Contractor support may be needed to consider any applicable program design elements that are necessary to transition “grandfathered” NEM 1.0 program facilities to the NEM 2.0 program, should the General Assembly require this in the future. This NEM 2.0 post-implementation support shall continue until the end of December 31, 2027, or until this contract is replaced by a NEM 2.0 post-implementation support contract.

2.3.9 Miscellaneous Contractor Requirements

A. Work Orders - A work order process may be used to expand the activities performed under the RFP as long as it is within the overall scope of work described within the RFP. This additional work cannot be accurately estimated at this time under the fixed price “not to exceed” component of this contract. If required by the NEM 2.0 Project Manager, all work required in Section 2.3.8, NEM 2.0 Post- Implementation Support shall utilize this Work Order process as described in Section 3.6, Work Orders.

B. Deliverables

1. Deliverable Submission

• Unless specified otherwise, written deliverables shall be compatible with Microsoft Office products within one (1) version of the current version.

• For any written deliverable, the NEM 2.0 Project Manager may request a draft version of the deliverable, to comply with the minimum deliverable quality criteria listed in Section 2.3.9C(3) Minimum Deliverable Quality.

• Drafts of each deliverable, except status reports, are required at least one week in advance of when the final deliverables are due with the exception of deliverables where this lead time is not possible upon mutual agreement between the Contractor and the NEM 2.0 Project Manager.

• Draft and final versions of a deliverable shall comply with the minimum deliverable quality criteria listed in Section 2.4.3 Minimum Deliverable Quality.

2. Deliverable Acceptance

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• A final deliverable shall satisfy the scope and requirements of this RFP for that deliverable, including the quality and acceptance criteria for a final deliverable.

• The NEM 2.0 Project Manager shall review a final deliverable to determine compliance with the minimum deliverable quality criteria listed in Section

2.4.3 Minimum Deliverable Quality.

• The NEM 2.0 Project Manager is responsible for coordinating comments and input from various workgroup members and stakeholders.

• The NEM 2.0 Project Manager is responsible for providing clear guidance and direction to the Contractor in the event of divergent feedback from various workgroup members that prevents acceptance of a deliverable.

• In the event of rejection, the NEM 2.0 Project Manager will formally communicate in writing any deliverable deficiencies or non-conformities to the Contractor, describing in those deficiencies what shall be corrected prior to acceptance of the deliverable in sufficient detail for the Contractor to address the deficiencies. The Contractor shall correct deficiencies and resubmit the corrected deliverable for acceptance within a mutually agreed-upon time period for correction.

3. Minimum Deliverable Quality - The Contractor shall subject each deliverable to its internal quality-control process prior to submitting the deliverable to the State. Each deliverable shall meet the following minimum acceptance criteria:

• Be presented in a format appropriate for the subject matter and depth of discussion.

• Be organized in a manner that presents a logical flow of the deliverable’s content.

• Represent factual information reasonably expected to have been known at the time of submission.

• In each section of the deliverable, include only information relevant to that section of the deliverable.

• Contain content and presentation consistent with industry best practices in terms of deliverable completeness, clarity, and quality.

• Meets the acceptance criteria applicable to that deliverable, including any State policies, functional or non-functional requirements, or industry standards.

• Contains no structural errors such as poor grammar, misspellings or incorrect punctuation.

• Must contain the date, author, and page numbers. When applicable for a deliverable, a revision table must be included.

• A draft written deliverable may contain limited structural errors such as incorrect punctuation and shall represent a significant level of completeness toward the associated final written deliverable. The draft written deliverable shall otherwise comply with minimum deliverable quality criteria above.

C. Data Ownership and Access - Data, databases and derived data products created, collected, manipulated, or directly purchased as part of an RFP are the property of the State. The Commission is considered the custodian of the data and shall determine the use, access, distribution and other conditions based on appropriate State statutes and regulations. The Contractor shall limit access to and possession of State data to only Contractor Personnel whose responsibilities reasonably require such access or possession and shall train such Contractor Personnel on the confidentiality

RFP for Public Service Commission Page 14 obligations set forth herein. At no time shall any data or processes be copied, disclosed or retained by the Contractor or any party related to the Contractor for subsequent use in any transaction that does not include the State. The Contractor shall not use any information collected in connection with the services furnished under the Contract for any purpose other than fulfilling such services.

D. Standard Terms and Conditions - The Contractor shall adhere to all other requirements specified in Section 3, Standard Terms and Conditions.

2.4 Experience and Personnel

2.4.1 Preferred Offeror Experience

The following experience is expected and will be evaluated as part of the Technical Proposal (see the Offeror experience, capability and references evaluation factor from Section 6.2):

A. The Offeror shall demonstrate a minimum of five (5) years of experience conducting studies and analyses working with the applicable tariffs, manuals, and governing guidelines for the PJM Interconnection, LLC. Evidence should demonstrate knowledge of the operation of the PJM wholesale capacity, energy and ancillary markets, the PJM New Services Queue, and the nexus between the PJM wholesale and state-jurisdictional retail functions.

B. The Offeror shall demonstrate its knowledge or its ability to gain necessary knowledge of relevant Maryland State statutes and COMAR regulations related to net energy metering.

C. The Offeror shall have experience presenting before a regulatory or governmental oversight body and/or filed written subject matter testimony or reporting to such authorities.

D. The Offeror shall have experience working in Maryland or other states on tariff frameworks involving distributed energy storage value stacks.

2.4.2 Personnel Experience

THIS SECTION IS INAPPLICABLE TO THIS RFP.

2.5 Substitution of Personnel

2.5.1 Continuous Performance of Key Personnel

When Key Personnel are identified for the Contract, the following apply:

A. Key Personnel shall be available to perform Contract requirements as of the NTP Date.

Unless explicitly authorized by the Contract Monitor or specified in the Contract, Key Personnel shall be assigned to the State of Maryland as a dedicated resource.

B. Key Personnel shall perform continuously for the duration of the Contract, or such lesser duration as specified in the Technical Proposal. Key Personnel may not be removed by the Contractor from working under the Contract without the prior written approval of the Contract Monitor.

C. The provisions of this section apply to Key Personnel identified in any Task Order proposal and agreement, if issued, and any Work Order Request and Work Order, if issued.

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2.5.2 Definitions

For the purposes of this section, the following definitions apply:

A. Extraordinary Personal Event – means any of: leave under the Family Medical Leave Act; an Incapacitating injury or Incapacitating illness; or other circumstances that in the sole discretion of the State warrant an extended leave of absence, such as extended jury duty or extended military service that precludes the individual from performing his/her job duties under the Contract.

B. Incapacitating – means any health circumstance that substantially impairs the ability of an individual to perform the job duties described for that individual’s position in the RFP or the Contractor’s Technical Proposal.

2.5.3 Contractor Personnel General Substitution Provisions

The following provisions apply to all of the circumstances of Contractor Personnel substitution described in Section 2.5.4.

A. The Contractor shall demonstrate to the Contract Monitor’s satisfaction that the proposed substitute has qualifications at least equal to those of the Contractor Personnel proposed to be replaced.

B. The Contractor shall provide the Contract Monitor with a substitution request that shall include:

1. A detailed explanation of the reason(s) for the substitution request;

2. The resume of the proposed substitute, signed by the substituting individual and his/her formal supervisor;

3. The official resume of the current personnel for comparison purposes; and

4. Evidence of any required credentials.

C. The Contract Monitor may request additional information concerning the proposed substitution and may interview the proposed substitute personnel prior to deciding whether to approve the substitution request.

D. The Contract Monitor will notify the Contractor in writing of: (i) the acceptance or denial, or (ii) contingent or temporary approval for a specified time limit, of the requested substitution. The Contract Monitor will not unreasonably withhold approval of a proposed Contractor Personnel replacement.

2.5.4 Replacement Circumstances

A. Directed Personnel Replacement

1. The Contract Monitor may direct the Contractor to replace any Contractor Personnel who, in the sole discretion of the Contract Monitor, are perceived as being unqualified, non-productive, unable to fully perform the job duties, disruptive, or known, or reasonably believed, to have committed a major infraction(s) of law, Commission policies, or Contract requirements. Normally, a directed personnel replacement will occur only after prior notification of problems with requested remediation, as described in paragraph 2.5.4.A.2.

2. If deemed appropriate in the discretion of the Contract Monitor, the Contract Monitor may give written notice of any Contractor Personnel performance issues to the Contractor, describing the problem and delineating the remediation requirement(s). The Contractor shall provide a written response to the remediation requirements in a Remediation Plan within ten (10) days of the date of the notice and shall immediately implement the Remediation Plan upon written acceptance by the Contract Monitor. If the Contract Monitor rejects the Remediation Plan, the

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Contractor shall revise and resubmit the plan to the Contract Monitor within five (5) days, or in the timeframe set forth by the Contract Monitor in writing.

3. Should performance issues persist despite an approved Remediation Plan, the Contract Monitor may give written notice of the continuing performance issues and either request a new Remediation Plan within a specified time limit or direct the substitution of Contractor Personnel whose performance is at issue with a qualified substitute, including requiring the immediate removal of the Contractor Personnel at issue.

4. Replacement or substitution of Contractor Personnel under this section shall be in addition to, and not in lieu of, the State’s remedies under the Contract or which otherwise may be available at law or in equity.

5. If the Contract Monitor determines to direct substitution under 2.5.4.A.1, if at all possible, at least fifteen (15) days advance notice shall be given to the Contractor.

However, if the Contract Monitor deems it necessary and in the State’s best interests to remove the Contractor Personnel with less than fifteen (15) days’ notice, the Contract Monitor may direct the removal in a timeframe of less than fifteen (15) days, including immediate removal.

6. In circumstances of directed removal, the Contractor shall, in accordance with paragraph 2.5.4.A.1 of this section, provide a suitable replacement for approval within fifteen (15) days of the notification of the need for removal, or the actual removal, whichever occurs first.

B. Key Personnel Replacement To replace any Key Personnel in a circumstance other than as described in 2.5.4.C, including transfers and promotions, the Contractor shall submit a substitution request as described in Section 2.5.3 to the Contract Monitor at least fifteen (15) days prior to the intended date of change. A substitution may not occur unless and until the Contract Monitor approves the substitution in writing.

C. Key Personnel Replacement Due to Sudden Vacancy

1. The Contractor shall replace Key Personnel whenever a sudden vacancy occurs

(e.g., Extraordinary Personal Event, death, resignation, termination). A termination or resignation with thirty (30) days or more advance notice shall be treated as a replacement under Section 2.5.4.B.

2. Under any of the circumstances set forth in this paragraph B, the Contractor shall identify a suitable replacement and provide the same information and items required under Section 2.5.3 within fifteen (15) days of the actual vacancy occurrence or from when the Contractor first knew or should have known that the vacancy would be occurring, whichever is earlier.

D. Key Personnel Replacement Due to an Indeterminate Absence

1. If any Key Personnel has been absent from his/her job for a period of ten (10) days and it is not known or reasonably anticipated that the individual will be returning to work within the next twenty (20) days to fully resume all job duties, before the 25th day of continuous absence, the Contractor shall identify a suitable replacement and provide the same information and items to the Contract Monitor as required under Section 2.5.3.

2. However, if this person is available to return to work and fully perform all job duties before a replacement has been authorized by the Contract Monitor the Contract Monitor may, at his/her sole discretion, authorize the original personnel to continue

RFP for Public Service Commission Page 17 to work under the Contract, or authorize the replacement personnel to replace the original personnel, notwithstanding the original personnel’s ability to return.

2.5.5 Substitution Prior to and Within 30 Days After Contract Execution

Prior to Contract execution or within thirty (30) days after Contract execution, the Offeror may not substitute proposed Key Personnel except under the following circumstances (a) for actual full-time personnel employed directly by the Offeror: the vacancy occurs due to the sudden termination, resignation, or approved leave of absence due to an Extraordinary Personal Event, or the death of such personnel; and (b) for any temporary staff, subcontractors or 1099 contractors:

the vacancy occurs due to an Incapacitating event or the death of such personnel. To qualify for such substitution, the Offeror must demonstrate to the State's satisfaction the event necessitating substitution. Proposed substitutions shall be of equal caliber or higher, in the State's sole discretion. Proposed substitutes deemed by the State to be less qualified than the originally proposed individual may be grounds for pre-award disqualification or post-award termination.

2.6 Security Requirements

2.6.1 Employee Identification

A. Contractor Personnel shall display his or her company ID badge in a visible location at all times while on State premises. Upon request of authorized State personnel, each Contractor Personnel shall provide additional photo identification.

B. Contractor Personnel shall cooperate with State site requirements, including but not limited to, being prepared to be escorted at all times, and providing information for State badge issuance.

C. Contractor shall remove any Contractor Personnel from working on the Contract where the State determines, in its sole discretion, that Contractor Personnel has not adhered to the Security requirements specified herein.

D. The State reserves the right to request that the Contractor submit proof of employment authorization of non-United States Citizens, prior to commencement of work under the Contract.

2.6.2 On-Site Security Requirements

a) For the conditions noted below, Contractor Personnel may be barred from entrance or leaving any site until such time that the State’s conditions and queries are satisfied.

1) Contractor Personnel may be subject to random security checks when entering and leaving State secured areas and may be barred from entrance or exit until such time that the State’s conditions and queries are satisfied.

The State reserves the right to require Contractor Personnel to be accompanied while in secured premises.

2) Some State sites, especially those premises of the Department of Public Safety and Correctional Services, require each person entering the premises to document and inventory items (such as tools and equipment) brought onto the site, and to submit to a physical search of his or her person. Therefore, Contractor Personnel shall always have an inventory of tools being brought onto a site and be prepared to present the inventory, as well as the tools or equipment, to the State staff or an officer for review and inspection. Before leaving the site, the Contractor Personnel may again be required to present the inventory list and the tools or equipment for

RFP for Public Service Commission Page 18 inspection. Upon both entering and exiting the site, State staff or a correctional or police officer may search Contractor Personnel. Depending upon facility rules, specific tools or personal items may be prohibited from being brought into the facility.

b) Any Contractor Personnel who enters the premises of a facility under the jurisdiction of the Commission may be searched, photographed and required to wear an identification card issued by the Commission.

c) Further, Contractor Personnel shall not violate Md. Code Ann., Criminal Law Art.

Section 9-410 through 9-417 and such other security policies of the agency that control the facility to which the Contractor Personnel seeks access. The failure of any of the Contractor Personnel to comply with any provision of the Contract is sufficient grounds for the State to immediately terminate the Contract for default.

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3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

Once all approvals have been obtained and the Contract is fully executed, the Procurement Officer may schedule a kickoff meeting to be held prior to commencement of Contract performance.

3.2 End of Contract Transition

The Contractor shall cooperate in the orderly transition of services from it to a subsequent contractor at the end of the contract term or upon receipt of a Notice of Termination from the State. Transition shall be provided in a prompt and timely manner and shall proceed in accordance with the schedule provided to the Contractor by the State in the Notice of Transition. Additional instructions regarding transition services may be provided in the event of a Notice of Termination issued by the State.

3.3 Invoicing

Submission of an invoice constitutes the Contractor’s verification that the information in the invoice is accurate as of the time of submission.

An invoice not satisfying the requirements of a Proper Invoice (as defined in COMAR 21.06.09) will not be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

A. Contractor name and address;

B. Remittance address;

C. Federal taxpayer identification (FEIN) number, social security number, as appropriate;

D. Invoice period (i.e. time period during which services covered by invoice were performed);

E. Invoice date;

F. Invoice number;

G. State assigned Contract number;

H. State assigned (Blanket) Purchase Order number(s);

I. Goods or services provided;

J. Amount due; and K. Any additional documentation required by regulation or the Contract.

Invoices that contain both fixed price and labor hour or time and material items shall clearly identify each item as either fixed price, and labor hour, or time and material billing.

The State reserves the right to reduce or withhold Contract payment in the event the Contractor does not provide all required deliverables within the time frame specified in the Contract or otherwise fails to satisfy the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract.

The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor, however, is not exempt from such sales and use taxes and may be liable for the same.

Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract.

In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

3.3.1 Invoice Submission Schedule

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The Contractor shall submit invoices in accordance with the following schedule:

A. For items of work for which there is one-time pricing (see Attachment B –The Price Form), those items shall be billed in the month following the acceptance of the work by the State.

B. For Items of work for which there is annual pricing (see Attachment B–The Price Form), those items shall be billed in equal monthly installments for the applicable Contract year in the month following the performance of the services.

C. Invoices for work performed on a labor hour or time and materials basis shall be submitted on or before the 10th business day of the month following the end of the invoice period.

D. Invoices for deliverables shall be submitted upon completion and acceptance of the deliverables as defined in Section 2 of the RFP.

3.3.2 Travel Reimbursement

A. There shall be no reimbursement for Routine Travel. Contractor shall not be reimbursed for Non-Routine Travel without prior Contract Monitor approval.

B. Routine Travel is defined as travel within a 50-mile radius of the Commission’s base location, as identified herein the RFP, or the Contractor’s facility, whichever is closer to the consulting or work site. There will be no payment for labor hours for travel time or reimbursement for any travel expenses for work performed within these radiuses or at the Contractor’s facility.

C. Non-routine Travel is defined as travel beyond the 50-mile radius of Commission’s base location, as identified herein the RFP, or the Contractor’s facility, whichever is closer to the consulting or work site. Non-routine travel will be reimbursed according to the State’s travel regulations and reimbursement rates, which can be found at:

www.DBM.maryland.gov - search: Fleet Management. If Non-Routine travel is conducted by automobile, the first 50 miles of such travel will be treated as Routine Travel and will not be reimbursed. The Contractor may bill for labor hours expended in non-routine traveling beyond the identified 50-mile radius, only if so specified in the RFP or Work Order.

3.4 Liquidated Damages

3.4.1 MBE Liquidated Damages

Inapplicable because there is no MBE goal for this RFP.

3.4.2 Liquidated Damages other than MBE

This section is inapplicable to this RFP.

3.5 Problem Escalation Procedure

No later than ten (10) Business Days after notice of recommended award or after the date of the Notice to Proceed, whichever is earlier, the Contractor must provide, and thereafter, maintain a Problem Escalation Procedure (PEP) for both routine and emergency situations. The PEP must state how the Contractor will address problem situations as they occur during the performance of the Contract, especially problems that are not resolved to the satisfaction of the State within appropriate timeframes and must include:

A. Contact information;

B. The process for establishing the existence of a problem;

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C. Names, titles, and contact information for progressively higher levels of personnel in the Contractor’s organization who would become involved in resolving a problem;

D. For each individual listed in the Contractor’s PEP, the maximum amount of time a problem will remain unresolved with that individual before the problem escalates to the next contact person listed in the Contractor’s PEP;

E. Expedited escalation procedures and any circumstances that would trigger expediting them;

F. The method of providing feedback on resolution progress, including the frequency of feedback to be provided to the State;

G. Contact information for persons responsible for resolving issues after normal business hours (e.g., evenings, weekends, holidays) and on an emergency basis; and

H. A process for updating and notifying the Contract Monitor of any changes to the PEP.

I. The PEP must be updated within ten (10) Business Days after any change in circumstance which changes the PEP but not less than annually within ten (10) Business Days after the start of each Contract year .

Nothing in this section shall be construed to limit any rights of the Contract Monitor or the State which may be allowed by the Contract or applicable law.

3.6 Work Orders

A. Additional services will be provided via a Work Order process. Work shall not begin in advance of a fully executed Work Order. A Work Order may be issued for fixed price in accordance with the rates on the Attachment B – The Price Form.

B. Work Order Requests (See sample at…