Amendment_0004.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE PAGE OF PAGES

1 13

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

01/03/2013

4. REQUISITION/PURCHASE REQ. NO.

SP0600-12-0423

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than Item 6) CODE Defense Logistics Agency Energy 8725 John J. Kingman Road, Suite 4950 Fort Belvoir, VA 22060

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) 9A. AMENDMENT OF SOLICITATION

NO.

SP0600-13-R-0400

9B. DATED (SEE ITEM 11)

October 3, 2012

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, X is not extended to

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO.

IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, X is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

See Continuation Page

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

Lawrence T. Fratis

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

16C. DATE SIGNED

NSN 7540-01-152-8070

Previous edition unusable

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

X

EPA Edison

The following revisions are hereby incorporated into the solicitation and are highlighted in yellow:

Section B – Supplies or services and prices/costs

1. The word Agreement has been updated to Contract in Section B.1 Definitions and B.1.2 Interpretation.

2. The Quarterly Invoice Date is hereby removed from Section B.1 Definitions.

3. The Quarterly Period is hereby removed from Section B.1 Definitions.

4. The following language is hereby removed from Section B1.4 CLIN Description:

“Regardless of production level, annual cost shall not exceed Annual Provider Payments per Attachment 9”

5. The minimum quantity has been updated from 2,000,000 kWh’s to 1,000,000 kWh’s in Section B.1.4 CLIN Description

6. The maximum quantity has been corrected to read 139,057,200 kWh’s in Section B.1.4 CLIN Description.

7. The following language is hereby added to Section B.1.5:

“The Government desires to purchase power produced from a PV system installed on EPA property under an Energy Savings Performance Contract with a contract term of up to 25 years. Provider shall retain ownership of the RECS for the term of the contract. The Government shall purchase the equipment for fair market value prior to the end of the contract and funds necessary for this purchase must be generated from the scheduled payments. Provider is responsible for all operation & maintenance and renewals & replacements throughout the term of the contract. Annual payments for each year of operation must be less than the Government's alternate cost using the Current Cost of electricity escalated annually at a rate of 2% beginning on the anniversary date of system acceptance testing.”

8. The word affect has been replaced with effect in Section B.1.5.

Section C - Description/specifications/statement of work

1. Section C.1.3 Energy Supply has been updated.

2. The word Agreement has been updated to Contract in the following Sections; C.1.3, C.1.3.4, C.1.3.5, C.2.2, and C.25.2.

3. Section C.1.3.1a Premises has been updated.

4. Section C.1.3.2 has been updated.

5. Section C.1.3.6 Solar Generation Payment Adjustments is hereby removed in its entirety.

6. The word each has been replaced with the in Section C.2 Construction.

7. The following language has been added to Section C.2.2:

“A contract will only be awarded subsequent to the approval of contractor’s interconnection agreement for each meter by the UDC. The offeror determined to be the best value will receive notice of intent to award contingent upon the offeror supplying the Government with the UDC’s written approval of that offeror’s interconnection agreement. The selected offeror has 45 calendar days from receipt of notice of intent to award to receive written approval from the interested UDC that the offeror’s interconnection agreement has been approved. No contract will be awarded until an Interconnection Agreement with the interested UDC is secured.”

8. The following language is hereby removed from Section C.2.2.

“If the UDC fails to approve the interconnection of the System or requires equipment in addition to that shown in Schedule 1 of Attachment 9, the Government may make a determination to immediately terminate this Contract subsequent to such notification from the UDC. If the Government elects not to terminate this Contract pursuant to this Section, the Government shall assist Provider in obtaining approval for a modified System that will likely succeed in obtaining the UDC’s approval for interconnection.”

9. The following language is hereby removed from Section C.4 Site:

“C.4.6 At the conclusion of the contract term, the Provider shall be responsible for removal of all infrastructure, materials, and equipment from the site, and shall restore the site to its pre-contract condition.”

10. Section C.6.1 has been updated.

11. Section C.8 Environmental Compliance has been updated.

12. Section C.25.1 has been updated.

13. The word quarterly has been updated to month or monthly in Sections C.25.2 and C.28.3.

14. Section C.25.3 is hereby removed from the solicitation.

Section F – Deliveries or performance

1. The word Agreement has been updated to Contract in Section F.1.1.

2. The contract period has been updated from 20 to 25 years in Section F.1.1 Term.

Section G – Contract administration data

1. The following wording has been removed from Section G.3.4: “or deliver order”.

Section H – Special contract requirements

1. Section H.1 Title to System has been updated.

2. The word Agreement has been updated to Contract in the following Sections; H.2.2 and H.5.1.

3. The word quarterly has been update to monthly in Section H.5.2 Excused Performance.

Section I – Contract Clauses

1. The word Agreement has been updated to Contract in Section I.1.1(l).

2. Section I.1.1(l)(a) has been updated.

3. FAR Clause 52.232-99 Providing Accelerated Payment to Small Business Subcontractors (DEVIATION

2012-00014) (August 2012) is hereby added to the solicitation.

Section J – List of Attachments

1. Attachments 11 and 12 have been added to the solicitation.

Section L – Instructions, conditions, and notices to Providers or respondents

1. Section L.5.1.3.1 Subfactor 1—Production has been updated.

2. Section L.5.1.3.3 Subfactor 3 – Solar Project Scope has been updated.

Section M – Evaluation factors for award

1. Section M.1.4.4 Factor 4 – AbilityOne Commitment has been updated.

2. Section M.1.4.5 Factor 5 – Price has been updated.

Attachments

1. Attachment 1 has been updated to include the account numbers for the two buildings.

2. Attachment 2 has been updated in include invoices for Building 209.

Questions from Offerors

The following are questions received in regards to this solicitation with DLA Energy’s response:

1. Pgs 39, 40, 41. BAA may not be applicable as govt is buying electricity, not labor or materials. Question: Does the government apply BAA to electricity purchased from the utility? A more relevant country-of-origin solution is incorporated in the DOD Photovoltaic clause already included on page 31.

The Buy American Act (BAA) is not applicable under this solicitation. The language being referred to belongs to the clause FAR 52.212-3, which in accordance with FAR 12.301(b)(2), is a provision that may not be tailored unless there is a deviation, which DLA Energy does not have. The Government does not apply BAA to electricity purchased from the utility.

2. Is the DOD Photovoltaic sourcing clause (-7017) on Pg31, in addition to the BAA clauses? Where there are conflicts between BAA and DOD-Sourcing, which has precedence?

Please refer to the above answer.

3. REF: Pg 51, L.3.1.2. ‘Provide complete information as to the [teaming] arrangement’. For team members that are not subcontractors, is it sufficient to provide a letter of commitment from the team member that identifies their role in the project, together with Past Performance references for that teammate?

In accordance with FAR 9.603, the Provider is required to identify any teaming arrangement and the company’s relationships have to be fully disclosed in the proposal. Also, the solicitation requires relevant and recent past/present performance information on previous teaming arrangements with same partner within the previous three years. If you would like to submit, in addition to the requirements, a letter of commitment from the team member that is acceptable.

4. Comment. SF33, Block 10 has incorrect Size for NAICS 541330. The Size Standard changed recently to $14M. See

“NAICS 2012” on SBA site:

http://www.sba.gov/content/small-business-size-standards

This was corrected in Amendment 0002.

5. Comment. SF33, Block 10 NAICS selection of 541330. NAICS 2012 effective for all RFPs issued on-or-after 1 OCT

2012 established a new NAICS specifically for solar electricity – 221114. Recommend change the NAICS (which makes item #1 above irrelevant.)

The correct NAICS code for this solicitation is 541330 Engineering Services. This solicitation is an ESPC with a renewable ECM and DLA is using authority in accordance with FAR 23.205.

http://www.sba.gov/content/small-business-size-standards

6. SF33, Block 18a. Will the payments be made by DLA or EPA? Will the selection of the payer influence the applicability of DOD clauses?

All payments will be made by EPA. The selection of the payer will not influence the applicability of DOD clauses. For example, if there is a Defense Logistics Agency Directive (DLAD) clause that is applicable it will be added to the solicitation.

7. Pg 27. The Limitations clause is checked. Is this applicable to Unrestricted buys such as this one?

Pg 27: Is this Setaside for EDWOBs? Box is checked in the affirmative.

The selection of the Limitations clause was removed Amendment 0002. Block 10 of the SF1449, is marked as an unrestricted solicitation, therefore, the selection of the set-aside was removed.

8. Pg 28, (c). As this acquisition is for electricity not labor, are the three Labor clauses applicable? Does the location on government property influence the applicability of labor clauses?

This acquisition is for services in accordance with FAR 23.205, therefore, the labor clauses are applicable. FAR

23.205 is what influences the applicability of the labor clauses.

9. Sections C.1.3 and H.1., in several versions of the RFP, make conflicting statements about system ownership. Can government confirm that they do NOT intend to own the system, at least through the agreement period?

Please refer to Section H.1 Title to System.

10. The Termination Schedule (Schedule 3, Attachment 9) is blank. Is it expected that the Provider will supply this schedule?

Yes.

11. The RFP refers in multiple sections to the Buy American Act but does not make clear if it applies to this solicitation, and if so, how. Please clarify.

The BAA is not applicable under this solicitation. The language being referred to belongs to the clause FAR 52.212-3, which in accordance with FAR 12.301(b)(2), is a provision that may not be tailored unless there is a deviation, which DLA Energy does not have. The Government does not apply BAA to electricity purchased from the utility.

12. Page 1 of the RFP: Can you explain how the NAICS code size standard of $14M applies to this solicitation?

The NAICS code for this solicitation is 541330 Engineering Services. The Small Business Size Standard for this NAICS code is $14.0M. Please click on the following link to view all of the small business size standards http://www.sba.gov/sites/default/files/files/Size_Standards_Table(1).pdf.

13. Timing: What is the estimated timing of review and award of the contract? Is there a specific date when the proposed system should be constructed and financed? If so, what date is that? Will there be monetary penalties for failing to complete construction and finance by said date?

Proposals are due on Feb. 5, 2013. DLA Energy anticipates a notice of intent (NOI) to award a contract in the summer. The NOI will be issued to provide the potential Contractor enough time to secure the interconnection agreement with the utility. Once the interconnection agreement is in effect DLA Energy will proceed with awarding the contract. The Provider in its proposal will have indicated how long it will take to construct the proposed project, therefore, once the contract is awarded both parties will know how long the construction phase will be. Payments to the Provider will commence as soon as the Government has inspected and accepted the system.

http://www.sba.gov/sites/default/files/files/Size_Standards_Table(1).pdf

14. Is the offeror’s proposal a binding bid?

Yes, however, the offeror can withdraw its proposal at any time prior to Government award.

15. Does the government plan to calculate the NPV based on guaranteed electricity production or expected electricity production?

Please refer to Section M.1.4.5 Factor 5 – Price.

16. For Section C.4.6, we request that the following abandonment right language be included in the RFP: “The Provider shall have the right, at the expiration of the PPA term, to either, (i) remove the solar power plant from the site and redeploy or dispose of the system, or (ii) transfer ownership of the system to the Host, along will all operating manuals, procedures, know-how, etc, and will also transfer any system or component warranties then in effect.

Amendment 0004 addresses this issue.

17. With regard to C.9 (NEPA), has a CATEX or a FONSI been obtained?

A FONSI has been obtained.

18. Can you provide more details on the locations of the meters on campus? Are the three buildings served on the same meter? Will you provide trailing 12 months of interval and/or billing data for all three buildings?

Meters are located at each building. Attachment I-Installation Data Sheet has 12 months of consumption data.

19. Section C.1.3.4 states that each subsequent year’s Estimated Annual Production “shall equal the Actual Annual

Production of the immediately preceding twelve months.” We suggest that Estimated Annual Production should be as originally projected by Offeror, subject only to downward adjustments either (A) as provided by Offeror, or (B) the average Actual Annual Production for the prior three consecutive years but only if the Actual Annual Production during each of the prior three years is more than 10% below the projected Estimated Annual Production applicable to those three years.

20. Section C.1.4 states that “The Estimated Annual Production will be coordinated with the Government fiscal year and

Provider will utilize a partial year estimate” As solar production varies throughout the year, using a partial year estimate may not be accurate. What provisions will be made for this?

21. Question on Schedule 2: Since the Estimated Annual Production in years two through 20 are based on the previous year’s generation, are Providers only required to fill in the estimated generation for year 1 in the table?

Based on Amendment 0004, Providers are required to fill out the table from years one through 25.

22. Per Section C.1.3.5, please confirm that the Guaranteed Annual Production is identical year after year, with no accounting for system output degradation.

23. Appendix A, Schedule 2 states production in excess of “estimated” production will be free to the government. Section

C.1.3.6 states that production in excess of “Guaranteed” production will be free to the government. We suggest that if more than the Estimated Annual Production is delivered to the Government and the Government consumes the excess, then the Government should pay for the excess production at the PPA rate at that moment in time. Other government solar RFPs issued this year have included such provisions. We also suggest that if there is excess production that the Government consumes, that excess should be applied to any “deficiency” that may have been created from earlier periods.

24. What is the definition of “Annual Provider Payment” and how are the Annual Provider Payments in Schedule 2 to be calculated? Is it equal to the Energy Price multiplied by the Estimated Generation amount, the Guaranteed Generation amount, or neither?

25. Section B.1.5 states that “Annual payments may not exceed the amount that the Government would have paid for utilities without an energy savings performance contract”. If the rates charged by the utility drop unexpectedly, rendering savings from the solar Energy Contract to zero, will the Provider not be paid for production during that period? This would obviously be an un-financeable scenario to 3rd party investors. Also, how will the EPA determine whether the annual payments exceed what would have been paid? And if this situation occurs, what is the recourse?

The Government will not use future utility rates. The annual rates will be agreed upon at time of contract award (Schedule 2). Please refer to Section B.1.4 CLIN description.

26. Section C.25.3: what is the definition of “guaranteed annual savings”? Investors will not accept the risk that the PPA rate will be less than grid power or other energy source rates over time. The investor will only abide by the PPA rate and will accept the risk that the system performs (likely backed by provider output guarantees). How are the Guaranteed Cost Savings to be calculated in Schedule 2? Is it simply a multiplication of the Energy Rate and the Guaranteed Generation?

This language has been deleted in its entirety.

27. In Section C.2.3, we suggest that outages in electricity delivery to the Government from PSE&G to the site should not cause a deficiency accrual from the project so long as the project is able to generate and deliver output except for the requirement that output be delivered in parallel with PG&E.

The Government will pay for energy delivered subject to the terms and conditions of the solicitation.

28. Per Section C.1.3.4, please confirm that the Estimated Energy production is NOT a function of weather or production simulations, but rather simply a function of generation during the preceding year. For example, if production is limited in Year 1 due to either a particularly overcast year or unexpected utility shutdowns, the Estimated Energy production in Year 2 will mirror the low production levels in Year 1. And if this is the case, please elaborate on how this will affect the Annual Provider Payments for any given year.

29. C.1.3.5: The penalty for overproduction is based on the $/kWh payment in Schedule 2 multiplied by the difference between actual production and guaranteed production. However, the true damages to the EPA would be the difference between their current utility rate and the $/kWh rate in schedule 2 multiplied by the difference between actual production and guaranteed production. For example, given the following assumptions (PPA rate of $0.10/kWh, utility rate of $0.14/kWh, and underproduction amount of 50,000 kWhs, the true damages should be ($0.14 - $0.10) * 50,000) = $2,000 rather than $0.10 * 50,000 = $5,000, which is how the language is currently written.

30. C.2.7: “The Government reserves the right to reschedule the Provider’s work, requiring service interruption, at any time if such interruption, at any time if such interruption might adversely affect the Government’s operations.” Will the Provider be granted an equitable adjustment if the Government reschedules the Provider’s work? In Section C.4.1, C.4.5 and C.5, we suggest that if the Government restricts access to the site and such restriction impacts delivery of electrical output to the Government then this shortfall shall not contribute to the “deficiency”.

FAR 52.243-1 Alt I Changes--Fixed Price AUG 1987 - Alternate I APR 1984, is incorporated by reference in the solicitation, which is the major contract clause that calls for equitable adjustments.

31. M.1.4.5 – “the Government will evaluate the Net Present Value of the Providers fixed cost per kilowatt-hour…and compare this value to the net present value of current cost of energy being paid at the site...”

Q: How will the EPA calculate the current cost of energy? Will you assume a blended energy value based on historical average (e.g. trailing twelve months of utility bill divided by electricity consumed)? Or alternatively, will the EPA consider calculating the value of solar energy – which may not match the historical average cost since the energy solar will displace will be weighted more towards the mid-day and summer months when supply charges (based on PJM real time pricing) is likely to be higher?

This is will be addressed in a future amendment.

32. L.5.5.3.c – “The Provider shall identify the total U.S. Federal Taxes included in the fixed kWh charge”

Q: What Federal Taxes are you referencing? Separately, is the EPA subject to local and state sales and use tax? Or is the EPA exempt as a Federal entity?

EPA is exempt from state sales and use tax and a tax exempt form will be provided at time of award.

33. Pg4, B.1.4; C.1.3.1.a; FSR Site 1. The ~6.2 acres being offered is not enough real estate for solar PV to produce the required 2,500,000kWhrs in NJ. Possible solutions are: a) Remove the minimum production requirement altogether, and simply ask offerors to maximize the production as best they can (note that Production is the #1 technical evaluation Subfactor); b) add real estate to be used, to total to at least 12acres. The FSR suggests that an additional Site 2 of ~5.4ac might be available. (See attached Draft PV Plan for a rough-order-of-magnitude of current picture.)

Minimum has been reduced to 1 million kWh.

34. Pg4, B.1.4. Why is the PPA escalator required to be exactly 2%? The government might obtain a better rate if offerors are allowed to state their own escalation rate. Also, it might be overstepping the government's position to tell offerors what price to charge, which is the defacto result of requiring a specific escalation rate. See our attached Comment on the 2% escalator being proposed by the government.

The PPA rate may escalate up to 2% beginning on the one year anniversary date of System Acceptance.

35. M.1.4.5 Factor 5 Price. Why is utility price forecast being escalated at only 2%? The Dept of Energy's Escalation Rate

Calculator tool indicates that 3.6% is the number to use. See our attached Comment on the 2% escalator being proposed by the government.

After reviewing the utility invoices for EPA for the past several years, the rates for these buildings escalates at a rate of 2%, therefore, the Government has decided to allow the provider to escalate the offered price up to 2%.

With that being said, the Government desires to minimize its average cost of electricity. As such, the Government will evaluate the Net Present Value of the Providers cost per kilowatt-hour, including the provider's proposed rate(s) of escalation and compare this value to the net present value of the current cost of energy being paid at the site, escalated at an annual rate of 2%.

36. Pg5, B.1.5: " The price must be less than the current electricity price and respective utility tariff rate to include transmission and distribution charges." Please clarify that this refers to the now-current rates, and that future charges for the renewable energy will be escalated per the quoted rate and/or Schedule of Pricing.

This will be addressed in a future Amendment.

37. Pg5, C.1.3.6; B.1.4 (in CLIN description); Attachment 9 Schedule 2. The clause at C.1.3.6 states "the Government has no payment obligation associated with kWh’s generated above its Annual Provider Payment" – therefore there is NO payment for more energy than the Guaranteed Minimum. This is reinforced by the words at B.1.4 and Schedule 2 documentation. Conversely, at C.1.3.1, the RFP states "the government desires to purchase 100% of the energy output".

Please note that without the assurance that the government will in fact purchase all the energy at the agreed rate, financing for a PPA-like solution will be difficult to obtain. Please remove all clauses that restrict the government from purchasing 100% of the energy output at the quoted rate, particularly the clauses cited above. Add an affirmative clause stating that the government will buy 100% of the energy at the quoted rate, up to the maximum stated in B.1.4 (currently 120,584,000kWhrs).

38. Pg15, C.18 Utilities. Add a sentence allowing contractor access to water and electricity for purposes of Operations and

Maintenance.

EPA does not mind providing some minimal and periodic access to water and electricity on a set schedule with prior approval, but EPA will not be responsible for getting those utilities from where they exist to where the contractor may need them for their use. Provider will need to provide their own method of conveyance for the utilities from where they are to where it is needed.

39. Pg17, C.25.3. Please remove this clause. The price for the solar PV energy will be established at the beginning of the contract together with its escalator for each subsequent year. The savings is estimated based on the Dept of Energy's tool for calculating out-year energy costs. The contractor should not be obligated to continually monitor the utility's rates and adjust the rate to be other-than the contracted rate, which is based on the escalator.

Section C.25.3 has been removed from the solicitation.

The Energy Escalation Rate Calculator computes an average annual escalation rate for a specified time period, which can be used as an escalation rate for contract payments in Energy Savings Performance Contracts (ESPC) and Utility Energy Services Contracts (UESC). (emphasis added) http://www1.eere.energy.gov/femp/information/download_blcc.html.

http://www1.eere.energy.gov/femp/information/download_blcc.html

40. Pg22, H.5. a) Excused Performance. Please add weather conditions and scheduled maintenance to allowable downtimes.

B) Add any event that cancels the Investment Tax Credit to be a Force Majeure event.

DLA Energy does not see the need for the change.

41. It appears that the EPA would like to buy the system at COD or at least have the option to throughout the contract is this true?

No.

42. What is the price that they are willing to buy the system at? Or is it determined at fair market value at the time of purchase?

EPA will buy the system at fair market value at the time of purchase.

43. Does the developer still own the electric revenue and SRECs if the EPA buys the project?

44. The EPA appears to be providing some of the land and if so what is the lease payment?

Land use is addressed in Attachment 6 as a license and no payment is required.

45. Also can we develop additional kWh of net-metered solar on the roof of the building to help fulfill a larger portion of their demand?

46. What are the height and dimensions for building 18?

This is information is contained within Attachment 11.

47. Are there any abandoned obstructions on the ground that would prevent penetrations 4’ down?

The field has been cleared, but the vendors will, of course, be responsible for any underground investigation that is required. Any unforeseen conditions beyond what would be considered reasonable and within normal construction requirements, would be dealt with at the time of discovery.

48. Have the buildings (205 & 209) we’re powering undergone energy conservation projects already and are anymore planned for the life of the contract?

Some energy conservations projects have taken place. No future energy conservation measures are being considered at this time.

49. Is there an official buffer requirement around building 18?

The buffer requirement is 20 feet from roads, and 40 feet around Building 18.

50. Can a CAD file of the site be provided?

This information is contained within Attachment 12.

51. Can a one line diagram .pdf electrical schematic be provided of the electrical room?

EPA will provide these drawings and on-site coordination with the successful contractor.

52. Is the proposal site a brownfield/contaminated site that might be eligible for accelerated interconnection or other NJ state programs?

The site is neither a brownfield or contaminated.

53. Does PSE&G have right of way?

54. What about all warranties expired by year 25?

Please resubmit the question not sure what your referring to.

55. If the contractor only received payment for the kWh delivered, at a rate guaranteed to deliver savings, how is the contractor meant to collect that savings to facilitate the buy-out at end of term. The full savings to the Government can’t be used to fund the buyout, unless the contractor expressly includes them in the demand kWh price. Can we delineate the price for the power and the savings being collected and accrued on the rate schedule? Separately?

The Government desires to purchase power produced from a PV system installed on EPA property under an Energy Savings Performance Contract with a contract term of up to 25 years. Provider shall retain ownership of the RECS for the term of the contract. The Government shall purchase the equipment for fair market value prior to the end of the contract and funds necessary for this purchase must be generated from the scheduled payments. Provider is responsible for all operation & maintenance and renewals & replacements throughout the term of the contract. Sum of Annual payments for each contract year of operation must be less than the Government's alternative cost using the Current Cost of electricity escalated annually at a rate of 2% beginning on the anniversary date of system acceptance testing. Provider shall provide all necessary details in their offer for the Government to fully understand the timing and cash flow associated with Provider's offer.

56. Is there room for negotiations in the government energy costs $/kWh?

57. Is the government aware that incentives in the area are limited?

Yes.

58. What are the local utility rates for PSE&G?

Please refer to Attachment 1-Installation Data Sheet, which has the breakdown of delivery and supply charges.

59. Please identify where the tie-in point is?

Tie-in points shall be in accordance with PSE&G interconnection requirements.

60. Explicitly state where the new meters will be located.

Load side of the transformer, as near to the building as practicable.

61. Can a provider access the site to gather additional information at a later date?

62. Based on our initial design calculations, it does not appear that the available area in site 1 is 275,000 sqft (including maximizing all open area and assuming the removal of trees, but not any existing structures). Are there additional sites available that would aggregate to 275,000 sqft? Without the additional available land, we do not believe there is a technically viable solution that will meet the output requirements stated in section B.1.4.

No additional site available and the minimum has been reduced in section B.1.4.

63. It appears that the end of term removal requirement stated in section C.4.6 conflicts with the OMB guidance to agencies on using the ESPC authority to enter into long term energy contracts. Specifically the guidance states that at the conclusion of the project, the government must retain title to the system. Will the government consider changing the removal requirement to a purchase requirement at Fair Market Value (FMV), which will allow the contract to synchronize with OMB guidance and IRS ownership rules on tax equity transactions? Unfortunately, giving the system to the government at the end of the contract term runs against the IRS’s ownership test and would result in the recapture of the associated tax benefits.

64. Given the uncertainty surrounding the site and the need for additional clarity on some of the terms and conditions contained within the solicitation, we respectfully request a 2 week extension to the current RFP deadline.

Amendment 0003 extended the deadline for proposals.

65. What happens if insufficient funds are collected for a fair market value purchase?

The contract must have sufficient fund for FMV purchase. Offerors shall state their proposed approach to include any monitoring throughout the term of the contract.

66. Will the price paid for guaranteed kWh be different from the price paid for excess kWh?

67. Will there be any tariff changes or standby charges to consider as a result of implementing the system?

This is will be addressed in a future Amendment.

68. What if one of the buildings shuts down?

This situation would be treated under the Termination for Convenience provision.

69. What is the interconnection study requirements and process?

Please contact the PSE&G for interconnection requirements and process.

70. What is underground – has a land survey been done?

A future amendment will address this issue.

The following is a list of companies that attended the pre-proposal conference:

1. Abengoa Solar

2. Ameresco

3. BAM Construction Group, LLC

4. Borrego Solar

5. Environmental Chemical Corporation

6. ESSG, LLC

7. EZnergy

8. Facility Solutions Group

9. Johnson Controls

10. Lend Lease

11. OCI Solar Power

12. Pennoni

13. Pepco Energy Services

14. Pfister Energy

15. RECSolar

16. RER Energy Group

17. Stones River Electric

18. SunDurance

19. Sunetric

20. SunPower Corporation

21. SunWize Technologies

22. Tecta America

23. RAI