Fort_Drum_RFP_SP0600-13-R-0401_final.pdf

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1. REQUISITION NUMBER PAGE 1 OF 75

SP0600-12-R-0424

2. CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE

DATE

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME b. TELEPHONE NUMBER (No collect calls)

Bryan Simmons and Brandon Budman

8. OFFER DUE

DATE/ LOCAL TIME

9. ISSUED BY CODE 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: % FOR:

SMALL BUSINESS WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

11. DELIVERY FOR FOB DESTINA-

12. DISCOUNT TERMS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

SMALL BUSINESS PROGRAM

EDWOSB

8 (A)

13b. RATING

NAICS:

541330

SIZE STANDARD:

$14M

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE 16. ADMINISTERED BY CODE

17a. CONTRACTOR/

OFFEROR

CODE FACILITY

CODE

18a. PAYMENT WILL BE MADE BY CODE

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

OFFER BELOW IS CHECKED SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE ARE NOT ATTACHED

ARE ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND

ON ANY ADDITIONAL SHEETS SUBJECT TO THE TERMS AND

CONDITIONS SPECIFIED

29. AWARD OF CONTRACT: REF. OFFER

DATED . . YOUR OFFER ON SOLICITATION

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

X

SP0600-13-R-0401 12/12/2012

703-767-8531/ 703-767-8901 03/13/2013 / 3:00 p.m. EST

Defense Logistics Agency Energy 8725 John J. Kingman Road, Suite 4950 Fort Belvoir, VA 22060

Fort Drum Army Base See Block 9

Will be provided at time of award.

See Schedule

Will be provided at time of award.

X X

X 1

John H. Nelson

Ft. Drum Power Purchase Agreement

SP0600-13-R-0401

Fort Drum PPA

DLA Energy Request for Proposal – SP0600-13-R-0401

Table of Contents SF 1449, Solicitation/Contract/Order for Commercial Items……………………………………………

Part I – The Schedule

Section A – Solicitation/ contract form Section B – Supplies or services and prices/ costs Section C – Description/specifications/statement of work Section D – Packaging and marking Section E – Inspection and acceptance Section F – Deliveries or performance Section G – Contract administration data Section H – Special contract requirements

Part II – Contract Clauses Section I – Contract Clauses

Part III – List of Documents, Exhibits, and Other Amendments Section J – List of attachments

Part IV – Representations and Instructions Section K – Representations, certifications, and other statements of Providers or respondents Section L – Instructions, conditions, and notices to Providers or respondents Section M – Evaluation factors for award

Part I – The Schedule

Section B – Supplies or services and prices/ costs

B.1 Definitions. In addition to other terms specifically defined elsewhere in this Contract, where capitalized, the following words and phrases shall be defined as follows:

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such first Person. For the purposes of this definition, “control” and its derivatives mean, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or otherwise. “Control” may be deemed to exist notwithstanding that a Person owns or holds, directly or indirectly, less than 50% of the beneficial equity interest in another Person.

“Biomass”.— (in accordance with Section 203 of EPAct05) The term ‘‘biomass’’ means any lignin waste material that is segregated from other waste materials and is determined to be nonhazardous by the Administrator of the Environmental Protection Agency and any solid, nonhazardous, cellulosic material that is derived from—

(A) any of the following forest-related resources: mill residues, precommercial thinnings, slash, and brush, or nonmerchantable material;

(B) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste (garbage), gas derived from the biodegradation of solid waste, or paper that is commonly recycled;

(C) agriculture wastes, including orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues, and livestock waste nutrients; or

(D) a plant that is grown exclusively as a fuel for the production of electricity.

Note: Feedstock shall not contain any hazardous material as defined in 10 USC 2692.

“Biomass Generation Facility (BGF)” means the equipment and feedstock necessary for the BGF to produce electricity that shall be integrated into established existing site infrastructure and interconnected with National Grid. The BGF shall be owned by Provider and installed at the Premises.

“Business Day” means any day other than Saturday, Sunday or any other day on which banking institutions in New York, NY are required or authorized by Applicable Law to be closed for business.

“Commercial Operation Date” has the meaning set forth in Section C.3.3.3.

“Completion Notice” has the meaning set forth in Section C.3.3.2.

“Contract” means this contract, including the Request for Proposal, any Amendments and the Schedules and Exhibits attached hereto and incorporated herein by reference.

“Contract term” means the duration, in years, that the Contract is in effect.

“Contract Unit Price” has the meaning set forth in Section B.1.3.

“Contractor/Provider” means the individual or entity that has submitted a proposal to meet the Governments’ requirements.

“Contracting Officer” is the person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings, as found under FAR 2.101.

“DLA” means Defense Logistics Agency

“Early Termination Date” has the meaning set forth in Section F.1.1 (l).

“Early Termination Fee” means the scheduled fee payable by Fort Drum to Provider under the circumstances described in Section F.1, and identified under Attachment 6.

“Effective Date” has the meaning set forth in F.1.1 (1).

“Electric Power Supplier” means any service provider that provides materially similar services to Provider.

“Environmental Attributes” has the meaning set forth in Section C.1.3.1.

“Expiration Date” has the meaning set forth in Section F.1.1.

“Fair Market Value” means, with respect to any tangible asset or service, the price that would be negotiated in an arm’s-length, free market transaction, for cash, between an informed, willing seller and an informed, willing buyer, neither of whom is under compulsion to complete the transaction. Fair Market Value of the BGF will be determined pursuant to Section I.1.2, tailored clause 52.212-4(l)(a)(2).

“Force Majeure Event” has the meaning set forth in Section H.5.1.

“Governmental Approval” means any approval, consent, franchise, permit, certificate, resolution, concession, license, or authorization issued by or on behalf of any applicable Governmental Authority.

“Governmental Authority” means any federal, state, regional, county, town, city, or municipal government, whether domestic or foreign, or any department, agency, bureau, or other administrative, regulatory or judicial body of any such government.

“ISO” means Independent System Operator.

“Installation Work” means the construction and installation of the System and the start-up, testing and acceptance (but not the operation and maintenance) thereof, all performed by or for Provider at the Premises.

“kWh” means kilowatt hour.

“kWh Rate” has the meaning set forth in Attachment 10.

“Losses” means all losses, liabilities, claims, demands, suits, causes of action, judgments, awards, damages, cleanup and remedial obligations, interest, fines, fees, penalties, costs and expenses (including all attorneys’ fees and other costs and expenses incurred in defending any such claims or other matters or in asserting or enforcing any indemnity obligation).

“MWh” means megawatt hour.

“NERC” means North American Electric Reliability Corporation.

“Option Price” has the meaning set forth in Section I.1.2(l)(1).

“Party” or “Parties” means the entity or entities on record under this contract.

“Person” means an individual, partnership, corporation, Limited Liability Company, business trust, Joint Stock Company, trust, unincorporated association, joint venture, firm, or other entity, or a Governmental Authority.

“Point of Common Coupling (PCC)” The PCC is a point in the electrical system where multiple electrical loads and generation sources may be connected. According to IEEE-519, this should be a point which is accessible to National Grid, other generation sources and the customer for direct measurement.

“Premises” means the premises described in Section C.1.3.2.

“Monthly Invoice Date” means the first Business Day of each month.

“Monthly Period” means the period between the current and next Monthly Invoice Date.

“National Grid” is the owner and operator providing electric distribution and interconnection services to the Government at the Premises.

“REC” means Renewable Energy Certificates

“Rejection Notice” has the meaning set forth in Section C.3.3.2.

“RTO” means Regional Transmission Operator.

“Spot Market Price” means the current spot market price for delivered energy being paid within the Day Ahead (DA) Location-Based Market Price (LBMP) that is established by the NYISO in the Utica Load Zone; SC3A Large General Service Time of Use; Transmission Voltage Delivery Level The electric commodity rates Fort Drum is currently procuring can be found at:

http://www.nationalgridus.com/niagaramohawk/business/rates/5_hour_charge.asp Fort Drum currently pays for electricity based on the National Grid Day Ahead Spot Market rates, in addition to a delivery charge.

“Standby charges and associated costs” have the meaning set forth in H.4.3

“System Acceptance Testing” has the meaning set forth in Section C.3.3.1.

“System Availability” has the meaning set forth in Section H.4.2.

http://www.nationalgridus.com/niagaramohawk/business/rates/5_hour_charge.asp

“System Installation Period” means the period from (and including) the date that Provider (or its subcontractors) commence physical installation of the System on the Premises to (but excluding) the Commercial Operation Date.

“System Operations” means the operation, maintenance and repair of the System performed by or for Provider during the Term, as more particularly described in Section C.6. “System Test Requirements” has the meaning set forth in Section C.3.3.2.

“Term” has the meaning set forth in Section F.1.1.

B.1.2 Interpretation The captions or headings in this Contract are strictly for convenience and shall not be considered in interpreting this Contract. Words in this Contract that import the singular connotation shall be interpreted as plural, and words that import the plural connotation shall be interpreted as singular, as the identity of the parties or objects referred to may require. The words “include”, “includes”, and “including” mean include, includes, and including “without limitation” and “without limitation by specification.” The words “hereof”, “herein”, and “hereunder” and words of similar import refer to this Contract as a whole and not to any particular provision of this Contract. Except as the context otherwise indicates, all references to “Attachments” and “Sections” refer to Attachments and Sections of this Contract.

Applicable ISO/RTO: NYISO New York ISO

Applicable NERC/Region: NPCC Northeast Power Coordinating Council (NPCC)

Utility Service Area: NG National Grid USA

Utility: NG National Grid USA

B.1.3 CLIN DESRIPTION

ITEM NO SUPPLIES/SERVICES CONTRACT/UNIT PRICE/Year 1

0001 On-site Biomass Power ________$/kWh

Provide design, procure, installation, test, commission, operation and maintenance and repair/replacement of a Biomass Generation Facility (BGF) necessary to annually deliver at least 100,000 MWh, but could potentially meet the current requirement of 147,000 MWh of electric energy to the Government under a power purchase agreement. Project size shall be at a minimum of 15MW but shall not exceed 28MW.

Supply shall be for up to 25 years.

FOB: Destination

Note: The terms and conditions specific to CLIN 0001 are included in this basic solicitation.

0002 Renewable Electricity & Ancillary Services ________$/kWh

The Government is soliciting offers for 10-year supply and transmission of renewable electricity and ancillary services for Fort Drum. The quantity to be delivered will be full requirements for the installation as estimated in the Data Sheets. All electricity delivered under this CLIN shall be sourced from renewable energy generation facilities.

FOB: UDC interconnect

Note 1: CLIN 0002 is an ALTERNATIVE to CLIN 0001. Proposals for each CLIN will be evaluated separately. The Government will do a comparative assessment of the highest rated proposals for each CLIN to determine which alternative provides the best value to the Government.

Note 2: For administrative purposes, specific terms and conditions applicable to CLIN 0002 specifications, proposal instructions and evaluation criteria will follow in Amendment 0001.

B.1.4 The Government contemplates award of a Firm-Fixed Price Requirements contract for either 10 or 25 years that shall meet or beat the current average spot market price ($0.056/kWh) for delivered energy being paid within the Day Ahead (DA) Location-Based Market Price (LBMP) that is established by the NYISO in the Utica Load Zone; SC3A Large General Service Time of Use; Transmission Voltage Delivery Level. The Provider shall, in accordance with the terms of the contract, perform work assignments within the parameters of the statement of work (SOW).

Section C – Description/specifications/statement of work

C.1 On-site Biomass Requirement

The Provider shall be responsible for providing all labor, material and capital to install a Biomass Generation Facility (BGF), to include providing all operations and maintenance for the duration of the contract. At a minimum, the BGF shall deliver 100,000 MWh annually. At a maximum, the BGF shall satisfy all of Fort Drum’s consumption, which for 2011 was 147,000 MWh with a peak demand of 28 MW. Consumption during 2012 was higher than 2011 and growth is expected to continue. The Provider shall provide a transmission interconnection between the Fort Drum North Substation and the South Substation for all interconnections over 15 MW.

Fort Drum’s 2011 usage which reflects the 15-minute interval load data is shown below. Additional information on load data can be found in Attachment 1.

C.1.1 Qualified Utility Providers The Provider shall comply with all applicable federal, state, interstate, and local laws and regulations, as amended, including those requirements relating to health, safety and the environment during construction and delivery phase of the Contract.

C.1.2 Site Visits

A site visit will be authorized prior to the proposal due date. The time, date and access requirements for each Provider to participate in the site visit are as follows:

(a) A pre-proposal conference will be conducted at Fort Drum for the purpose of answering questions regarding this solicitation. The anticipated date of the conference is late January to mid- February 2013. During the pre-proposal conference, the government will provide a tour of the site where the BGF will be constructed.

(b) Submit the names of all attendees to dlaenergy.rteam@dla.mil no later than 2:00 PM EST, date to be determined.

(c) Offerors are requested to submit questions to dlaenergy.rteam@dla.mil. All proposed questions and the Government’s responses will be posted to the Solicitation via amendment for viewing.

mailto:dlaenergy.rteam@dla.mil mailto:dlaenergy.rteam@dla.mil

(d) Location: The Commons, Euphrates River Valley Road, Fort Drum, NY

C.1.3 On-site Biomass Energy Supply

C.1.3.1 CLIN 0001 is for the procurement of electricity and any ancillary services from an on-site or contiguous Biomass Generation Facility. The energy to be acquired under this Contract is reliable power (refer to H.4.2 for Availability requirements) from a large scale BGF. The Government desires to purchase at a minimum of 100,000 MWh up to the maximum current requirement of 147,000 MWh of power that is economically and technically feasible to support Fort Drum’s energy requirement of the BGF implemented at the installation, and does not desire to purchase, construct, own, or maintain any generation assets. The Provider shall maintain a minimum of 30-day biomass feedstock on-site at all times. The Government desires to enter into a Contract for power generated onsite and consumed by the Government. The Contract shall be for a firm fixed price award based on a unit kWh price ($/kWh). The Government does desire to acquire the Renewable Energy Certificates (RECs) associated with the generation of power, or for the Provider to purchase replacement RECs. All environmental attributes associated with the generation of electricity from the BGFBGF shall remain with the RECs. For purposes of this Agreement, “Environmental Attributes” shall include, but not be limited to, renewable energy certificates and any greenhouse gas or other emission credits. To avoid any conflicts with federal trade rules regarding claims of renewable energy use, the Government and Provider may by mutual written agreement set forth specific statements that may be used by the Government and Provider in any press releases that address the Government’s use of renewable energy. The Government desires to minimize the average cost of energy compared to the net present value cost of energy delivered from the Day Ahead (DA) Location-Based Market Price (LBMP) that is established by the NYISO in the Utica Load Zone;

SC3A Large General Service Time of Use; Transmission Voltage Delivery Level . Additionally, the Government desires to maximize the quantity of energy purchased from the BGF. The Government will provide a real estate instrument for the right-of-way for system transmission lines supplying the BGF, the interconnections to the Fort Drum Substations, and interconnection between the substations as required.

The Government will provide the Provider with review comments or submittal acceptance not to exceed 20 business days by receipt of the Contracting Officer for all construction plans, including engineering evaluations of the impact of the system on (i) premises for the system, and (ii) the current existing local electric utility equipment and service. The Provider will be granted access to applicable land through a separate land use agreement, Attachment 2.

C.1.3.2.Premises.The Army requires the BGF site to be either on or contiguous to Fort Drum. The on-site options for location of the BGF being considered are: Site 1) a 27-acre parcel “greyfield site”; and Site 2) an existing 16.08 acre Army leased site with an existing private facility. Any proposal submitted for either of these sites shall be required to adhere to all the terms and conditions of this procurement.

Site 1 is located at the Fort Drum military installation, located in upstate New York approximately 80 miles north of Syracuse. The site is located in the northeast corner of the cantonment area at the corner of State Route 26 and Steinhilber Road. The greyfield site offers enough space to meet the biomass feedstock storage, in accordance with Section C.1.3.1, for a biomass plant of 15 MW to 28 MW. The site is approximately 1.5 miles northeast from the North Substation.

C.1.3.3. The Provider shall ultimately supply electricity generated from the BGF and provide any ancillary services required to deliver said electricity to the Point of Common Coupling (PCC). Current power purchase information will be provided for the facility. This information includes: National Grid;

Current Tariff Rate; Historical Monthly Consumption and Demand Data; and Interval Data, as found in Attachment 1. It is incumbent upon the Provider to analyze the load profile data provided; evaluate site constraints provided; ensure National Grid interconnect agreements are adhered to; and propose an appropriate system size, and capacity with the information provided. The Provider shall comply with all applicable Federal, State, and local laws and regulations, as amended, including those requirements relating to health, safety and the environment during the construction and delivery phase of the contract.

C.1.3.4. The Provider shall be responsible for determining the source, value, and availability of any applicable financial and tax incentives made available by National Grid, State rebate programs, and the Federal Government, which shall be applied to the Provider’s costs proposal. The Provider shall apply for any applicable New York state incentives. A source for such incentives is available at http://www.dsireusa.org/incentives/index.cfm?EE=1&RE=1&SPV=0&ST=0&state=NY&sh=1

C.2 Biomass Generation Facility Site

C.2.1 The Government authorizes the Provider, its agents and employees, subject to the limitations specified in this Contract and in accordance with FAR 52.241-5, the right of access to enter the Government real property upon which the BGF is located for any proper purpose under this Contract, including use of the site or sites agreed upon by the parties hereto for the construction, installation, operation, repair and maintenance of the BGF facilities of the Provider required to be located upon Government premises. It is expressly agreed upon, acknowledged, and understood that the Government may limit or restrict the right of access herein granted in any manner considered to be necessary for national security, or in the event that this Contract is terminated.

C.2.2 The Provider shall ensure all pass and identification items required for contract performance are obtained for Provider employees and non-Government owned vehicles. See Attachment 5 for installation access instructions.

C.2.3 The Government will provide a site on Government property for the contract to be performed. All work shall be performed within normal working hours unless permission is granted by the Government prior to beginning the work. Normal working hours are (to be provided), exclusive of Saturdays, Sundays, Holidays, executive orders and administrative closures. The Provider and any sub-contractor personnel are not allowed on-site during non-work hours unless arrangements have been made, in advance, with the Contracting Officer Representative (COR). The Government COR will need to advise facility security personnel about any after-hour work shifts being conducted.

C.2.4 The Provider shall not use property provided by the Government for any purpose other than in the performance of the Contract or as specified in any Real Estate Instruments.

C.2.5 The Government reserves the right to reschedule the Provider’s work requiring service interruption at any time if such interruption might adversely affect the facility’s missions and operations.

C.2.6 Rights at End of Contract

Upon the end of the Contract Term, unless otherwise directed by the Government, the Provider is responsible for removing all BGF infrastructure and restoring the site to its previous condition, including necessary environmental remediation and cleanup. In addition, the Provider shall, if requested by the Government, provide within sixty (60) calendar days a fair-market value purchase price for the BGF. If the Government elects to consider purchase, it will enter into good faith negotiations with the Provider with the intent of committing to the purchase, or not, within 180 calendar days. Further, at the Government's discretion, one of the following additional options may be exercised: (i) The Government may seek legal authority to enter into a new contract with the Provider relating to the BGF; (ii) The Government may seek legal authority to execute a new lease with the Provider relating to the continued operation of the BGF; iii) The Government may seek to execute a new lease with the Provider, or (iv) Some combination of (i) and (ii).

http://www.dsireusa.org/incentives/index.cfm?EE=1&RE=1&SPV=0&ST=0&state=NY&sh=1

C.3 Electrical Requirements - Biomass Generation Facility

C.3.1 Electrical Modifications The Provider shall take actions or modifications necessary to assure the BGF is compatible with the installation electrical distribution system. Any proposed modifications to the BGF(s) that would affect the installation electrical distribution system shall require the prior written approval of the Government. The BGF shall not have any adverse effects on the installation electrical distribution system, or on loading, power factor, voltage levels, transformers, structural integrity, protection device coordination or the operation of any installation electrical equipment.

C.3.1.1 Changes to Existing Infrastructure The Provider shall be responsible for all site modifications required for the design, installation, construction and operation and maintenance requirements for the

BGF.

C.3.1.2 Description of Equipment and Controls The Provider shall provide all equipment including but not limited to overcurrent protection devices and metering necessary to connect to the facility’s electrical distribution system behind the existing Fort Drum electrical meters, in accordance with Attachment 1. The provider shall interconnect to the Fort Drum electrical distribution system on the Fort Drum side of the National Grid metering. This interconnect may be on the 13.2 KV system or on the 115 KV system depending upon the BGF power output. The Provider shall provide a transmission interconnection between the Fort Drum North Substation and the South Substation for all interconnections over 15 MW.

C.3.2 Connections

C.3.2.1 Specific PCC for the BGF will be described in Attachment 1. The power supplied to the installation shall be free from power quality deficiencies such as surge, under-voltage, overvoltage, harmonics, voltage sag, or voltage swell as per IEEE Standards. In the event of a power outage at the substation or from the National Grid, the BGF will isolate and disconnect from the base grid. Once base power is restored and detected, the BGF will automatically reconnect to the base grid. The BGF shall use all equipment necessary to generate and deliver electricity for the term of the Contract to the facility’s electrical distribution system at the PCC. The BGF shall comply with IEEE 1547 (Standard for Interconnecting Distributed Resources with Electric Power Systems), as well as shall comply with the serving utility’s interconnection requirements.

C.3.2.2 For information concerning the documentation and paperwork necessary for the interconnection with National Grid, please contact Mr. Gerald Haenlin, Lead Account Executive, via phone, (315) 785- 7226, or email, gerald.haenlin@us.ngrid.com. Any technical or policy questions relating to the interconnection process and metering tariff issues should be directed to Mr. Haenlin.

C.3.2.3 The Provider shall complete the interconnection application and fund the interconnection analysis to be performed by National Grid. This analysis will detail load flows, short circuit capability and the dynamic effects of the BGF on the National Grid transmission system.

C.3.2.4 After issuance of the Notice of Intent to Award, the Provider shall be responsible for gaining approval from the National Grid for interconnection and complying with National Grid interconnection requirements.

C.3.2.5 The Provider shall fund all associated costs of interconnection including any National Grid required interconnection studies, upgrades, and BGF functional requirements.

mailto:gerald.haenlin@us.ngrid.com

C.3.2.6 The provider shall assure familiarization and acceptance with the National Grid for energy anticipated to be distributed into the National Grid transmission system from the BGF. The Government shall have the first right of refusal if excess power is generated at the negotiated rate.

C.3.2.7 The BGF proposed shall not negatively impact the Fort Drum power quality, reliability or safety of the electrical power system (EPS).

C.3.2.8 The Provider shall take actions or modifications necessary to assure the BGF is compatible with the installation electrical distribution system. Any proposed modifications to the BGF that would affect the installation electrical distribution system shall require the prior written approval of the Government.

C.3.2.9 The Provider shall be responsible to assure no adverse effects on the installation electrical distribution system, or on voltage levels, transformers, structural integrity, protection device coordination, or the operation of any installation electrical equipment.

C.3.2.10 The anticipated electrical, water, and sanitary sewer interconnection is identified in Attachment 4 for the greyfield site.

C.3.2.11 The Provider shall work with the Government Contracting Officer and the COR to integrate the conceptual PCC into the design.

C.3.2.12 The Provider PPA price shall include all-in cost, including the cost for any System Integration Study to be performed on the local electrical distribution system as well as any required electrical distribution modifications or upgrades to accommodate the BGF.

C.3.2.13 The Fort Drum electrical distribution system is Army owned. It is supplied by National Grid at 115 KV into two substations. The North Substation and the South Substation are very similar in design with the North Substation being a newer facility. The 115 KV enters the substations and passes through National Grid 115 KV metering, The 115 KV system then transfers into Fort Drum 115 KV substation tube conductors supplying the two 115 KV to 13.2 KV electrical distribution transformers. The 115 KV interconnection can be performed at this tube conductor by expanding the substation infrastructure and adding overcurrent protection and isolation equipment to assure proper electrical system protection.

C.3.2.14 The Fort Drum electrical load is distributed approximately 40/60 percent between the Substation 1 (South) and Substation 2 (North) respectively. There are 13.2 KV electrical distribution supplies interconnecting the two substations but these supplies are for emergency operation and load balancing.

The existing interconnections cannot supply continuous power flow in the event of a loss of National Grid supply at either of the two substations.

C.3.2.15 The Provider shall supply all needs for the cost of interconnection of the BGF into the Fort Drum electrical distribution system at the PCC and shall perform all work, including all required equipment. This includes, but is not limited to, step-up transformers, switching, overcurrent protection, isolation capabilities, etc. to provide a working system.

C.3.2.16 The Provider shall describe the BGF interconnection details and assumptions in proposal.

C.3.3 System Acceptance

C.3.3.1 System Acceptance Testing. Provider shall conduct testing of the installed BGF. Provider shall notify the Government not less than five (5) Business Days prior to the anticipated date of System

Acceptance Testing. The Government shall have the right, but not the obligation, to be present at and observe the System Acceptance Testing, at the Government’s sole cost.

C.3.3.2 The results of such 14 continuous days of System Acceptance Testing indicate that the BGF is capable of generating electric energy based upon the ASME Performance Test Code (PTC) 4 TIP0416-18 and associated environmental output testing, (the "System Test Requirements"), using such instruments and meters as have been installed for such purposes, and the BGF has been approved for interconnected operation by the National Grid, then Provider shall send a written notice to that effect to the Contracting Officer (a "Completion Notice"), accompanied by a copy of the results of the System Acceptance Testing.

The Government shall have ten (10) Business Days after receipt of the Completion Notice to review the System Acceptance Testing results and verify that the installation is complete and that the requirements in section E.1.1 are complete. If any of these requirements are not met, then the Government shall provide Provider with a detailed notice of such failure (a "Rejection Notice") within such ten (10) Business Day period, and Provider shall promptly remedy at Provider's cost the relevant, specified failure and conduct new System Acceptance Testing until the System Acceptance Testing indicates that the BGF meets the System Test Requirements. In each such case, Provider shall send a new Completion Notice to the Government with a copy of the results of the new System Acceptance Testing as provided above and the foregoing procedures shall be repeated.

C.3.3.3 Absent Provider’s receipt of a timely Rejection Notice from the Government, pursuant to Section C.3.3.2, the “Commercial Operation Date” shall be the 7th Business Day after the date of the Government’s receipt of the Completion Notice.

C.4 Construction - Biomass Generation Facility

C.4.1 The Provider shall determine and provide the necessary facility requirements for integration of all BGF needs into the total 27 acre area available for the greyfield site, or other suitable location, as identified in Section C.1.3.2. This includes the provision of all materials, equipment, and supplies necessary to perform the work as specified in the Contract. Materials and supplies provided shall be of acceptable industrial grade and quality and in compliance with applicable standards. All such materials and supplies must be compatible, and operate safely within design parameters of existing systems equipment.

C.4.2 The Provider shall, without additional expense to the Government, obtain all appointments, licenses, and permits required to conduct the work. The Provider shall comply with all applicable Federal, State and local laws. The Provider shall adhere to all Installation Design Guides, Attachment 3.

Evidence of such permits and licenses shall be provided to the Contracting Officer or the COR before work commences. After issuance of the Notice of Intent to Award, the Government shall assist Provider in obtaining necessary approvals from the National Grid, including the submission of applications for interconnection of the BGF with the National Grid. If the National Grid fails to approve the interconnection of the BGF or requires equipment in addition to the Installation electrical distribution system, the Government may make a determination to immediately terminate any further pursuit of the energy requirements subsequent to such notification from the National Grid. If the Government elects not to terminate the energy requirements pursuant to this Section, the Government shall assist Provider in obtaining approval for a modified BGF PCC interconnection agreement with the National Grid. If any applicable Governmental Authority does not provide the necessary Governmental Approvals, the Government, may make a determination to terminate the energy requirements subsequent to such notification from such Governmental Authority that the application for permits have not been accepted or permits have been denied.

C.4.3 The Provider will operate the BGF in parallel with the electricity supplied to the Government by National Grid USA from outside Fort Drum. The Provider shall provide all equipment necessary to generate and deliver electricity over the Contract Term. Any work installed under this Contract must be interconnected to the applicable utility’s electrical distribution system. The Provider, or in some cases the Government, will need to complete and submit a separate application to National Grid USA. The Provider shall be responsible for all site modifications required for the installation of the of the BGF technology.

C.4.4 All construction, operations, maintenance, and other activities shall comply with applicable national and local codes, industry codes, regulations, and accepted practices.

C.4.5 The BGF shall be protected on all sides to prevent unauthorized persons from entering the area, tampering with the BGF installation and to protect against the danger of electric shock. The Government shall approve of the type of protective equipment to be used. Specific requirements for the type of protective material are--

a. The Provider shall install an Installation approved fence to provide isolation between the

BGF site and the remainder of the Cantonment Area, in accordance with the Installation Design Guidelines.

b. If the greyfield site is utilized for the BGF, the Provider shall install a base accepted gate onto Route 26 for delivery and personnel access, in accordance with the Installation Design Guidelines.

c. The Provider shall adhere to all off post adjacent property constraints and all force protection and security needs.

C.4.6 A COR will be assigned for project coordination and inspection. This COR shall coordinate all appropriate acceptances on design drawings, specifications, submittals and interconnection assurances.

Appropriate acceptances include those activities that directly interface with Government equipment throughout the design and construction process and activities that potentially impact regulatory requirements placed on Fort Drum. These acceptances are separate from any permit requirements on the Provider.

C.4.7 The Provider shall submit a final as-built design and construction package to Fort Drum including the as-built drawings and specifications and all equipment submittals. This shall be a single paper submittal along with all electronic files.

C.4.8 The Provider shall obtain a written excavation permit from the Government before commencing any digging or excavation on the installation for a BGF that requires digging. The excavation permit will contain requirements normally applied to similar excavation work on the installation. The Contracting Officer or designated representative will notify the Provider as to reasonable time periods for applying for an excavation permit. The Government will provide any available drawings and soils report for existing conditions. It is incumbent upon the Provider to verify the information provided.

C.4.9 The Government and/or technical representative acting on behalf of the Government may inspect the BGF at any time during construction or after the BGF has been put in operation. At no cost to the Government, the Provider may be ordered to stop work or shut the BGF down if unsafe conditions or code violations are noted. The Government and/or technical representative acting on behalf of the Government will inspect the BGF prior to acceptance. The Government reserves the right to reschedule the Provider’s work, requiring service interruption if, at any time, such interruption might adversely affect the Government’s operations.

C.5 Safety Requirements - Biomass Generation Facility

C.5.1 The BGF shall conform to industry standards as set forth by ASTM (American Society for Testing and Materials), IEEE (Institute of Electrical and Electronics Engineers), IEC (International Electrotechnical Commission), UL (Underwriters Laboratories), UFC Unified Facilities Code and NEC (National Electric Code).

C.5.2 The Provider shall comply with the most current version of all safety and health standards applicable to the work to be performed including, but not limited to--

• 29 CFR 1904 Recording and Reporting Occupational Injuries and Illnesses;

• 29 CFR 1910 Occupational Safety and Health Standards and ACGIH Threshold

Limit Values for Chemical Substances and Physical Agents and Biological Exposure Indices;

• 29 CFR 1926 Safety and Health Regulations for Construction;

• American National Standards Institute;

• American Society of Heating, Refrigeration, and Air-Conditioning Engineers

(ASHRAE);

• Code of Federal Regulations;

• National Electric Code (NEC);

• National Electrical Safety Code (NESC);

• National Fire Protection Association (NFPA) Standards;

• NFPA 70 National Electrical Code;

• NFPA 70E Standard for Electrical Safety in the Workplace;

• OSHA 29 CFR 1910.147, Control of Hazardous Energy (Lockout/Tag out);

• OSHA 29 CFR 1910, Subpart S – Electrical;

• Underwriters Laboratory (UL);

• Uniform Building Code (UBC); and

• Other design standards required by the Government.

C.5.3 The Provider shall comply with any additional specific safety and health requirements necessary to protect the safety and health of workers. The Government has the right and authority to review, inspect, and if need be cause corrective actions to be taken if the BGF is not being constructed in a safe manner.

C.5.4 Quality control is the responsibility of the Provider. The Government may, from time to time, inspect the BGF operation as work proceeds to ensure compliance with worker safety and health requirements contained in the Contract. The Contracting Officer, the COR or a designated technical representative acting on behalf of the Government shall direct the Provider to make the necessary corrections commensurate with deficiencies related to safety. The Provider shall make these corrections at no additional cost to the Government. The Contracting Officer has the authority to stop work if unsafe conditions exist. The Provider's refusal or failure to abate violations or deficiencies may be justification for contract termination in accordance with FAR 52.212-4 paragraph (m), Termination for Cause. The Provider shall promptly pay any fines levied on the Provider by federal or state OSHA offices due to safety/health violations.

C.5.5 The Provider shall maintain an accurate record of accidents resulting in traumatic injury or death and accidents resulting in damage to Government property, supplies, and equipment. The Provider shall report accidents to the Government in writing within 24 hours of occurrence.

C.6 Maintenance - Biomass Generation Facility

C.6.1. The Provider shall be responsible for all aspects of maintaining the BGF, including but not limited to cleaning, replacing broken or worn out system components, performing maintenance in accordance with equipment manufacturer recommendations, and ensuring that every part of the BGF is operating according to design, producing the maximum amount of power possible and free of electricity quality issues. To the maximum extent possible, the Provider shall schedule maintenance and repair of the BGF at times when consumption is at a low point such that charges for electricity paid by the Government are minimized. Scheduled outages shall not exceed 36 hours and shall not exceed 1event per month. Loose debris on trucks leaving the site shall be loaded in a manner that will prevent dropping of materials on the streets and shall have a suitable cover, such as a tarpaulin, over the load before entering surrounding streets. The Provider shall be responsible for immediately cleaning up any materials that fall from trucks or equipment. Maintenance shall be performed for the duration of the contract.

C.6.2 The Government and Provider each shall notify the other immediately following their discovery of any material malfunction in the operation of the BGF or of their discovery of an interruption in the supply of Biomass Renewable Energy. Provider and Government shall each designate personnel and establish procedures such that each Party may provide notice of such conditions requiring Provider’s repair or alteration at all times, twenty-four (24) hours per day, including weekends and holidays. Provider and the Government each shall notify the other Party upon the discovery of an emergency condition in the BGF.

C.6.3 If an emergency condition exists, Provider shall immediately dispatch the appropriate personnel to perform the necessary repairs or corrective action in an expeditious and safe manner. For repairs, the Government shall contact Provider immediately in accordance with Section C.6.7.

C.6.4 The Provider shall maintain adequate and necessary records on-site from inspections, which will be made available during the duration of the contract. These records will contain at a minimum the BGF affected, date repair and/or replacement implemented, and description of activities performed.

C.6.5 The Provider shall establish an emergency point of contact (name and phone number) for use by the Government. The point of contact shall be available as specified in the Contract throughout the Contract’s term. Initial telephone response to repair call message shall be within 2 (two) hours. If a site visit is needed to repair equipment, repair personnel shall arrive on site within the timeframe specified in the contract for nonemergency repairs or within the timeframe specified within the contract for emergency repairs. Although normal Provider access is during the normal work hours specified for the specific site in the contract, the Provider may be granted 24-hour per day access to the buildings for emergency work at the discretion of the Government.

C.6.6 Emergency maintenance and repair work is defined as maintenance or repair necessary to correct an existing or imminent failure or to protect the safety or health of the facility occupants and prevent adverse impacts on property.

C.6.7 In the event the Provider fails to respond as required in the contract and in the event of emergencies, the Government may incur expenses to perform emergency repairs to Provider-installed equipment.. The Provider shall indemnify and hold the agency harmless in such cases where the Provider fails to respond appropriately in emergencies. The Provider shall promptly reimburse the Government for any and all costs incurred in responding to such emergencies. The Government reserves the right to adjust the schedule of payments to the Provider as necessary to recover such costs if they are not reimbursed by the Provider within 60 day of receipt of a documented claim from the Government.

C.7 Right of Access - Biomass Generation Facility

It is expressly agreed upon, acknowledged, and understood that neither the Contract nor any other agreement between the Government and the Provider grant any lease, easement or any other right or interest in Government real property, except for the right of access specified in the Contract or the outgrant instrument. An outgrant will be utilized and be required for this BGF, and, the Government and Provider shall mutually agree to the terms and conditions of the outgrant for the use of Government real property. The use of Army land for the BGF is authorized in accordance with 10 USC 2922a and documented in the Contract and associated real estate instruments as set forth in Attachment 2.

C.8 Environmental Compliance - Biomass Generation Facility The Provider shall provide and maintain, for the duration of the contract, environmental protection on the BGF site; plan for and provide environmental protection measures to control pollution that develops during construction and operations. Provider shall comply with all federal, state, and local laws and regulations pertaining to the environment, including water, air, solid waste, hazardous substances and waste.

C.9 Environmental Documentation - Biomass Generation Facility

C.9.1 All appropriate NEPA documentation, including an Environmental Analysis (EA), if applicable, will be accomplished by the Government. The Government and/or Provider may produce an Environmental Condition of Property (ECP) Report to document the existing environmental conditions of the site. This ECP will be approved by both the Contracting Officer, on behalf of the Government, and the Provider before commencement of construction.

C.9.2 An Environmental Assessment (EA) in compliance with the National Environmental Policy Act will be completed and will appropriately address proposed renewable energy initiatives at Fort Drum. The document will provide best management practices to mitigate potential environmental impacts during construction and operation of the BGF; federal energy mandates and Army energy initiatives will be addressed; and describe how energy security and efficiency at Fort Drum will be enhanced. The developer will receive a copy of this documentation upon completion.

C.10 Hazardous Substances - Biomass Generation Facility The Provider, at its expense, must comply with all applicable laws on occupational safety and health, the handling and storage of hazardous materials, and the proper handling and disposal of hazardous wastes and hazardous substances generated by its activities. The terms hazardous materials, hazardous wastes, and hazardous substances are as defined in the Federal Water Pollution Control Act; the Comprehensive Environmental Response, Compensation, and Liability Act of 1980; the Solid Waste Disposal Act; the Clean Air Act; the Toxic Substances Control Act, and their implementing regulations, as amended.