20250917_Industry_Briefing_NNSY_PPCpptx.pptx

Norfolk Naval Shipyard, VA

SP0600-25-R-0800

Electric Utility System Industry Pre-proposal Conference

Andrew Urben, Contracting Officer DLA Energy – Utility Services Division September 17, 2025

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Agenda

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Purpose of the Request for Proposal (RFP) RFP Contents Review Solicitation Sections B through M Milestones DLA Energy POCs

Warfighter Always

PEOPLE PRECISION POSTURE PARTNERSHIPS

Purpose of the RFP

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Privatize the electric utility system at Norfolk Naval Shipyard, VA (if economical)

Contract award is subject to approval of conveyance decision Award Utility Services Contract (FAR Part 41) Convey utility system infrastructure Provide Right of Access / Easement

Notes:

1. Purchase of the commodity is not included in the RFP

2. Selection of offeror will be based on a best value determination

3. Government reserves the right not to award the contract

RFP Contents

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Review Solicitation: Section B – Services and Price/Costs

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B.2.1 Schedule B-1: Regulated Tariff

Offeror must be approved by the applicable state regulatory authority as of the date set for submission of initial proposals Terms must be no less favorable than those offered to similar customers Include comprehensive description of the proposed tariffs Describe the regulatory process Complete Price Data Sheets 1-5 (Sections B.3 and L.7.5) Acceptable for regulated utilities to submit an offer subject to regulatory approval as long as a proposed timeframe for approval is provided (Section L.7.6)

B.2.2 Schedule B-2: Fixed Price Economic Price Adjustment (FPEPA) Inclusive Monthly Utility Services Charge (includes Operations & Maintenance (O&M) and Renewals & Replacements (R&R)) Prices adjusted annually Price Adjustments based on Bureau of Labor Statistics (BLS) Consumer Price Index Urban Regional May submit alternate proposals utilizing different Government published index or multiple indices or take exception to RFP* (Section L.7.9) Price Adjustments applicable to Monthly Utility Services Charge only Complete Price Data Sheets 1 through 4, and 6 (Sections B.3 Price Data Sheets and L.7.5 Detailed Instructions for Price Proposal) *Offeror bears risk of unacceptability

Review Solicitation: Section B – Services and Price/Costs

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Review Solicitation: Section C – Description/Specifications/Work Statement

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C.1 Precedence Any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order:

The Schedule (excluding the specifications);

Representations and other instructions;

Contract clauses Other documents, exhibits, and attachments; and The specifications.

C.3 Requirement The Contractor is responsible for providing capital investments and all other resources required to meet contract requirements Performance Standards – perform in accordance with specified industry standards Services shall comply with all applicable Federal, state, and local laws/regulations, and utility-specific requirements The Government may enter into energy-security projects with other entities

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.4 Service Area All areas within the Government installation boundaries The Contractor may use the utility infrastructure on the Installation to serve or benefit areas or customers outside the service areas only with concurrence of the Government The Government reserves the right to continue to use equipment installed on or attached to portions of the utility system to be transferred The Contractor shall enter into joint use agreements with the Installation's telephone company, cable television company, and other service providers Third party arrangements must be approved by the Government and may be subject to revenue sharing

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.5 Utility System Ownership, Personnel, and Security The Contractor shall neither transfer nor assign its interests in the utility system without the consent of the Government Disposition of facilities and materials that are not used shall be the responsibility of the Contractor Government approval is required prior to responding to or initiating contact with the media regarding operations under this contract The Installation’s rules apply to the Contractor All Contractor personnel and vehicles shall be readily identifiable Personnel requiring access to secured or restricted areas under the control of the Installation shall apply for security clearances Compliance with the Service Contract Labor Standards and Wage Rate Requirements (Construction)

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.6 Access to the Utility System The Government:

Provides the Contractor a Right of Access to the Installation and the utility system May restrict who, when, and how many may have access to the secure areas of the Installation May require background investigations, including security clearances Access is granted in an “as is, where is” condition without any obligation on the part of the Government to correct defects whether patent or latent Contractor is responsible for the actions of its employees, sub-contractors, and agents while on the Installation

C.7 Response to Service Interruptions/Contingencies and Catastrophes Procedures and provisions for handling service interruptions in the Service Interruption/Contingency and Catastrophic Loss Plan C.8 Repair Response Procedures Provide local or toll-free telephone number, available 24 hours a day, 7 days a week for service requests

Types of Service Requests & Response Times:

Emergency: On-Site within 1 hour and resolved within 24 hours Urgent: Resolved within 5 working days Routine: Resolved within 30 calendar days

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.9 Coordination of Work Offeror shall coordinate with the Contracting Officer’s Representative (COR) at least 2 weeks prior to commencing work The Installation may reschedule service interruption if it adversely affects the Installation’s mission and operations The Contractor shall be available for coordination, planning and programming meetings C.10 Environmental Compliance Compliance with all applicable environmental laws and regulations inclusive of all Federal, State, and local laws as well as Installation-specific requirements (Section JA1) Contractor to provide Government with advance notice and opportunity to participate in meetings with environmental regulatory authorities Contractor is party of record for all environmental permits related to operating the system Contractor to adopt the Installation Spill Contingency Plan or submit its own with proposal Contractor to cooperate with the Government on any Environmental Impact Assessments

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.11 SDCs /Upgrades /Connections /Renewals and Replacements (R&R) Initial System Deficiency Corrections (ISDC)/Connection Charges Necessary investments to ensure compliance with applicable laws Listed in first submittal of Annual System Deficiency Corrections/Upgrades/Connections and Renewals and Replacements Plan as part of offer Future System Deficiency Corrections (FSDC)/Upgrades Required to comply with new requirements or standards imposed by law that have changed during the contract term Paid subject to the availability of funds Renewals and Replacements Investments in the utility system to renew or replace system components that fail or reach the end of their useful life

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.11 SDCs / Upgrades / Connections and Renewals and Replacements (continued) ISDCs will be financed using the minimum amortization schedules:

Below $1 Million: No amortization schedule is required

$1 to $5 Million: A minimum 5-year amortization schedule is required

Over $5 Million: A minimum 10-year amortization schedule is required

Over $20 Million: Provide one or more amortization schedules of not less than 30 years duration

Note: Longer amortization is preferred, up to the life of the asset or contract end date, whichever occurs first.

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.12 Operations and Maintenance / Quality Management Establish, maintain, and adhere to an Operations and Maintenance Plan/ Quality Management Plan to ensure safe and reliable operation of the system

C.13 Operational Transition Plan Describes the plan for transfer of the utility system Ensures continuous service from the Government to new owner Time for additional due diligence functions, joint inventory, and stand up operations Offeror proposes length of the transition period Must permit sufficient time for the joint inventory to be completed and agreed upon at least 90 days prior to contract start date

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.17 Cybersecurity Plan Upon request, the contractor shall provide to the Contracting Officer a copy of the contractor’s most current plan of action to meet the security requirements defined in National Institute of Standards and Technology (NIST) SP 800-171 The plan of action shall detail the resources required to accomplish the elements of the Cybersecurity plan, any milestones in meeting the tasks, and scheduled completion dates for the milestones In accordance with Section L.6.2, all cybersecurity requirements was be fully implemented prior to contract award

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Review Solicitation: Section C – Description/Specifications/Work Statement

C.17 Cybersecurity Plan (cont’d) Upon request, the contractor shall provide to the Contracting Officer contingency planning documentation showing compliance with NIST SP 800-171 requirement 3.8.9 Upon request, the contractor shall provide to the Contracting Officer documentation verifying compliance with NIST SP 800-171 requirement 3.11.1 The contractor shall allow a Government Cyber Assessment Team or a Third Party Assessor to perform an on-site compliance review for compliance with DFARS 252.204-7012 The cybersecurity requirements identified in this Statement of Work do not abrogate or otherwise modify the Contractor’s responsibility for compliance with any other safeguards or cybersecurity-related requirements contained in this contract, or required by other applicable U.S. Government statutes or regulations The Contractor shall include all the information security requirements detailed above in all subcontracts and agreements with third parties that are or will be processing, storing, or displaying Covered Defense Information in performance of the contract, or that will be used to perform the requirements of the contract designated as operationally critical support. The Contractor shall provide the same information about subcontractor systems that the Contractor is required to provide about its own systems as detailed above Upon request, the Contractor shall identify all subcontractor systems that are or will be processing, storing, or displaying Covered Defense Information in performance of the contract, or that will be used to perform the requirements of the contract designated as operationally critical support

Review Solicitation:

Section E – Inspection and Acceptance Section F – Deliveries and Performance

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Section E – Inspection and Acceptance FAR 52.246-4 - Inspection of Services (Fixed Price) Section F – Deliveries or Performance Utility Services Contract Term – maximum of 50 years

(Performance Period) Contractor proposes duration of Transition Period; Transition Period begins upon execution of contract award unless a later date is specified Transition Period ends with the conveyance of the Utility System Infrastructure and Performance of the Utility Services Contract begins

Review Solicitation: Section G – Contract Administration Data

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Section G – Contract Administration Data Contracting Officer’s Representative (COR) Submission and Payment of Invoices through Wide Area WorkFlow (WAWF) Payment Instructions Price Adjustments Economic Price Adjustment – Price Index Utility Services Accounting Procedures Contractor shall maintain records of all costs and payments associated with the provision of utility service to NARUC, USOA, FERC, RUS, or AWWA The Government shall be entitled to a price adjustment if it finds the contract price was adjusted as a result of the use of noncompliant or inconsistent accounting practices Accounting and Appropriation Data

Review Solicitation: Section H – Special Contract Requirements

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Section H – Special Contract Requirements Mobilization and Other Contingencies Insurance Requirements Availability of Funds Liability / Environmental Liability Notification of Infrastructure/Service Contract Transfer Government Termination Liability Prior to Conveyance Government Repurchase Option – Non-Negotiable Foreign Object Damage Prevention Program Hazardous Substances Interest Allowability of Capital Investment Contribution in Aid of Construction (CIAC) Tax Liability Differing Site Conditions Disposition at Contract Expiration Federal, State and Local Taxes

Review Solicitation: Section I – Contract Clauses

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Section I – Contract Clauses

Federal Acquisition Regulations (FAR) Clauses Incorporated by Reference (IBR) (Section I.2) Disputes for regulated tariff proposals Defense FAR Supplement (DFARS) IBR (Section I.3) Utility Services Clauses IBR (Section I.4) Clauses IBR: Non-Regulated Utility and Regulated Utility Offering Non-Tariff Rates (Section I.5) Clauses IBR: Construction Wage Rates Requirements (Section I.6) Other Clauses (Section I.7)

Review Solicitation: Section J – List of Attachments, Exhibits and References

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Section J – List of Attachments, Exhibits and References Utility-Specific Attachments:

JA1 Electric Distribution System Electric Utility System Description Specifically excluded items Unique Points of Demarcation Service Specific Requirements Installation-Specific Service Requirements Monthly and Annual Submittals Government Recognized System Deficiencies

JA100 NAVFAC Electric Standard PODS JA101 Electric Fixed Inventory

Review Solicitation: Section J – List of Attachments, Exhibits and References

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Section J (Continued) JA38 - Federal Equivalents JA39 - Past Performance Information JA40 - Example Completion of Schedules for FP-EPA Type Contracts JA41 - Wage Determinations JA42 - B Schedules and Price Data Sheets JA43 – Specialty Skills Training Requirements JA44 - Quality Assurance Surveillance Plan (QASP) JA45 - Subcontracting Plan JA46 - Sample Contract Table J.1-1 JA47 – Non-Disclosure Statement and Offeror Consent JA102 – Annual Utilities Privatization Key Performance Indicators Report JA103 - Monthly Utilities Privatization Key Performance Indicators Report JR1 - Sample Bill of Sale JR2 - Technical Evaluation Categories JR3 – Sample Connection Charge Agreement

Section K – Representations, Certifications & Other Statements of Offerors

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Section K – Representations, Certifications & Other Statements of Offerors

Identifies the North American Industry Classification System (NAICS) 221122 – Electric Power Distribution Small business size standard: 1,000 employees

System for Award Management (SAM) registration done online Offeror completes annual representations and certifications electronically via the SAM website

Review Solicitation: Section L – Instructions, Conditions, & Notices to Offerors

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L.2.1.3 Points of Contact Offerors requesting information regarding this solicitation shall contact the Contracting Officer only. Contacts to other Government personnel or Nongovernment advisors are prohibited

L.2.1.4 Use of Nongovernment Advisors The nongovernment advisors are:

C.H. Guernsey & Company and Tecolote Research Inc / LR3 Solutions Nongovernment advisors may not assist or participate in preparation or submission of any proposal associated with this acquisition Offerors are required to submit attachment JA47, Non-Disclosure Statement and Offeror Consent, as part of their proposal

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L.2.1.5 Site Visit Site visits scheduled for October 28 - 30 2025 Individual site visits may be arranged for each offeror remaining in the competitive range after receipt of initial offers Offerors should base their initial proposals on information in the utility-specific attachments and the technical library L.2.1.6 Technical Library Available on SAM.gov; updates will be posted on SAM.gov Need Joint Certification Program Office certification to access L.2.1.9 Period of Validity Proposals are valid for 415 days from date of submission

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L.3.1 Proposal Organization/Page Limits Volume I—Technical…………………..... Maximum 200 Pages Volume II—Past Performance….……..... Maximum 50 Pages Volume III—Contract Documentation …..……….... No Limit Volume IV—Price……………………………………. No Limit

L.3.2 Proposal Format Clear and concise and shall include sufficient detail for effective evaluation and for substantiating the validity of stated claims Do not simply restate or rephrase the Government’s requirements Provide a convincing rationale explaining how offeror will meet the requirements Each volume shall be written on a stand-alone basis so that its contents may be evaluated without cross-referencing

Instructions, Conditions, & Notices to Offerors L.3.3 Submittal Five Disc (CD/DVD) copies Facsimile and e-mail offers will not be accepted L.3.4 Electronic Proposals

Offerors shall submit electronic proposals on CDs/DVDs Each proposal shall contain 5 disks:

Volumes I, III, and IV shall be submitted together on 4 of the disks Volume II shall be submitted on a separate disk No password-protected, zipped, or self-extracting files shall be used Offerors shall provide certified and virus-free disks

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Instructions, Conditions, & Notices to Offerors L.3.4 Electronic Proposals (continued) Offerors are reminded that restrictive legends will only be given effect if and to the extent that they appear on all copies submitted Hypertext links to external sources (e.g. websites) will not be considered to be a part of the offeror’s proposal Responses and any attachments submitted in response to this RFP that are untimely may be removed from the competitive range.

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L.4 Proposal Preparation Instructions – Volume I: Technical Proposal Technical proposal shall describe the offeror’s capability to provide level of utility services required by this solicitation It should be specific and complete in every detail The technical proposal shall specifically address each of the four Technical Capability subfactors:

1: Service Interruption/Contingency and Catastrophic Loss Plan 2: Operations and Maintenance Plan/Quality Management Plan 3: Initial System Deficiency Corrections/Upgrades/ Connections/Renewals and Replacements Plan 4: Operational Transition Plan

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L.4.1 Subfactor 1: Service Interruption/Contingency and Catastrophic Loss Plan Purpose: To describe procedures and provisions for responding to all service interruptions, capability to respond to emergency, urgent, and routine service calls and catastrophic loss Common Proposal Shortfalls Not complying with response/completion times Not complying with Installation’s excavation permit process and emergency restoration plan Not allowing the installation to reschedule routine outages if they adversely affect mission/operations

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L.4.2 Subfactor 2: Operations and Maintenance/Quality Management Plan Purpose: To identify offeror’s policies, practices and procedures for:

Performance standards on Operations & Maintenance (O&M) Quality management Plan will be incorporated into the contract at time of award Common Proposal Shortfalls Not addressing service standards for each line Item in Table L-1 of Section L.4.2.1 Not addressing the procedures offeror uses (tests, inspections, etc.) to ensure compliance with the service standards for each line Item in Table L-1 of Section L.4.2.1

Instructions, Conditions, & Notices to Offerors L.4.3 Subfactor 3: Initial System Deficiency Corrections/Upgrades/Connections and R&R Plan Purpose: To describe in detail the purpose, scope, and cost of the ISDCs along with detailed description of procedures for identifying, financing, and scheduling these items Plan will be incorporated into the contract at time of award Common Proposal Shortfalls Not providing an Initial 5-Year plan Not addressing the Government’s recognized system deficiencies in the 5-Year plan Not providing a year-by-year, 50-year plan for Renewals & Replacements Not providing a Price Data Sheet 2 without prices in the technical volume

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L.4.4 Subfactor 4: Operational Transition Plan Purpose: provide an adequate transition period and schedule for turnover from Government to Contractor The plan must discuss any system condition that will require the offeror to accomplish work in advance of conveyance and include such work as a transition project Common Proposal Shortfalls Not identifying the person authorized to sign for the transfer of Inventory Not indicating when the joint inventory will occur Not allowing the required 90 days for completion of the Bill of Sale

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L.5 Proposal Preparation Instructions – Volume II: Past Performance Past performance information (JA39) References required for offeror and for any major subcontractor References required for at least 2 but not more than 6 of largest customers of similar complexity and type for each system Work must be for at least a 1-year continuous duration within the last 5 years List of system acquisitions in last 5 years that includes, at a minimum:

Name of acquisition or project Brief description of contract or sub-contract Total contract value Period of performance Principal parties involved, phone numbers and e-mail addresses

Instructions, Conditions, & Notices to Offerors L.5 Proposal Preparation Instructions – Volume II: Past Performance (continued) Written statement on status with regulatory authority to include:

Name of authority Address/telephone Point of contact Discussion of any violations, penalties, or other enforcement actions taken within previous 5 years Common Proposal Shortfalls Inability to locate/contact references Phone numbers and e-mail addresses are incorrect Irrelevant references References must be relevant to each specific system and must be provided for each system on which offeror is proposing

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L.6 Proposal Preparation Instructions – Volume III - Contract Documentation Include a hard copy of the original signed and dated SF-33 Acknowledge all amendments Representations and Certifications Completed on-line with electronic copy in Volume III Alternate Proposals and Exceptions to Terms and Conditions Complete CAS Notices and Certifications (FAR 52.230-1) provided in Section K For offerors subject to CAS or statement citing exemption CAS Waiver (L.6.2.1.1) Include justification in proposal FAR Part 31 Deviation Request (L.6.2.1.2) Include in initial proposal Exceptions to Terms and Conditions (Matrix IAW L.6.2)

Instructions, Conditions, & Notices to Offerors L.6 Proposal Preparation Instructions – Volume III - Contract Documentation (continued)

Other Required Information List of Authorized Personnel who can obligate offeror contractually Submit Subcontracting Plan (Other Than Small Business) Include realistic goals Submit Cybersecurity Plan All offerors must submit Are required to address all criteria listed in Section L.6.3.2 of RFP Submit Socioeconomic Plan All offerrors must submit Are required to address all criteria listed in Section L.6.3.6 of RFP Submit a completed Nondisclosure Agreement between offeror and Nongovernment Advisor

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L.7 Proposal Preparation Instructions – Volume IV: Price Proposal

Offerors shall submit a single Schedule B (B-1 or B-2) Volume IV shall consist of the following sections:

Section 1: Schedule B-1 with completed Price Data Sheets 1 – 5 or Schedule B-2 with completed Price Data Sheets 1 – 4 and 6 Offeror shall include documentation to support all price data sheets with no hard-coding of data and not password-protected Section 2: Introduction and Price Proposal Section 3: Pricing Assumptions Section 4: Standard Estimated Methodology Section 5: Other Possible Pricing Impacts Economic Price Adjustment Alternate Index Methodology* *Offeror bears risk of unacceptability

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L.7.6 Schedule B-1 – Regulated Tariff CLIN 0001: Utility Services Charge Applicable tariff Monthly Credit (as payment) for Purchase Price Number of months and interest rate Recoverable Portion of Purchase Price Number of months and interest rate CLIN 0002: ISDC/Upgrades/Connection Charges For non-recurring costs to bring system up to standards Price for each ISDC is firm fixed price CLIN 0003: Transition Period Firm-Fixed Price

Instructions, Conditions, & Notices to Offerors Schedule B-1 Regulated Tariff Utility System: ________________a

Applicable Tariff b $

Unit Price $

a Utility system to be filled in by the Offeror. A Schedule B-1 must be completed for the utility system offered, except as specifically stated in Section L. The utility system is shown in paragraph B.1, System to be Privatized. Offerors shall provide a comprehensive description of proposed tariffs in their Price Proposals.

b CLIN 0002 is required only if the tariff provides for separate identification of initial system deficiency corrections and connection charges. If separate identification is not provided, it will be assumed the tariff rate includes these costs.

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L.7.7 Schedule B-2 – Fixed Price with EPA CLIN 0001: Utility Services Charge (monthly charges for O&M/R&R) Monthly Credit as Payment for Purchase Price Number of months and interest rate Recoverable Portion of Purchase Price Number of months and interest rate CLIN 0002: ISDCs/Upgrades/Connection Charges For non-recurring costs to bring system up to standards Price for each ISDC is firm-fixed-price CLIN 0003: Transition Period Fixed-price payment

Instructions, Conditions, & Notices to Offerors Schedule B-2 Fixed Price with EPA Utility System: ________________a

Utility Services Charge b $

Unit Price $

a Utility system to be filled in by the Offeror. A Schedule B-2 must be completed, except as specifically state in Section L. Utility system shown in paragraph B.1, System to be Privatized.

b The offeror should enter the Utility Service Charge, as computed in Price Data Sheet 1.

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Instructions, Conditions, & Notices to Offerors L.7.8.1.1 Price Data Sheet 1 Purpose: To indicate the monthly charge for O&M and for R&R Common Proposal Shortfalls Not indicating exactly how O&M costs (manpower, materials, transportation, supplies, etc.) were calculated Not explaining how the price data shown in the Price Data Sheet 2 was used to mathematically derive the monthly charge for R&R

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Instructions, Conditions, & Notices to Offerors L.7.8.1.1 Price Data Sheet 1 – Utility Services Charge

(to be entered into CLIN 0001 for Schedule B-1 (if applicable) and Schedule B-2)

Instructions, Conditions, & Notices to Offerors L.7.8.1.2 Price Data Sheet 2 Purpose: To indicate price & description of the R&R in each of the 50 years of the contract Common Proposal Shortfalls Not including each inventory line item (as referenced in Attachment JAs) in the Price Data Sheet 2 – Renewals and Replacements – 50 YEAR Plan Not providing a price for the Renewals & Replacements of each Inventory Line Item in each year it is replaced Not using attachment JA40 in completing Price Data Sheet 2

L.7.8.1.2 Price Data Sheet 2 – R&R – 50-Year Plan

Instructions, Conditions, & Notices to Offerors L.7.8.1.3 Price Data Sheet 3 Purpose: To indicate prices for each ISDC, each new upgrade, each new connection, and for the transition period Common Proposal Shortfalls Not including each Government recognized system deficiency that you intend to accomplish Not understanding that monthly payments for a specific project will not begin until specific project is complete and in service

L.7.8.1.3 Price Data Sheet 3 – ISDC/Upgrades/Connection Charges/Transition Period Project Name Interest Rate Project Cost (Current $) Project Start Month First Full Month Project Will Be In Service Amortization Period (Months) Monthly Charge

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Instructions, Conditions, & Notices to Offerors L.7.8.1.4 Price Data Sheet 4 – Recoverable Portion of Purchase Price Purpose: To indicate the monthly charge for the recoverable portion of the purchase price Common Proposal Shortfalls Not realizing the Net Present Value (NPV) of the recoverable portion of the purchase cannot exceed the NPV of the purchase price

L.7.8.1.5 Price Data Sheet 5 – Proposal 50-Year Charges to the Government, Applicable Tariff

L.7.8.1.6 Price Data Sheet 6 – Proposal 50-Year Charges to the Government, Constant 2023$

Instructions, Conditions, & Notices to Offerors Common Proposal Shortfalls:

Not submitting all applicable Price Data Sheets Not submitting proposed prices using dollars for the year of projected contract start date (e.g., if award/transition is projected for 2028, then proposals should be submitted in 2029 dollars) Not indicating 50 years of proposed billing to Government in constant (real) dollars Not providing MS Excel workbooks with all calculations and logic intact to show how price was developed – using hard coded numbers instead of showing formulas (L.7.5, L.7.8)

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Section M – Evaluation Factors for Award

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M.1 Basis for Conveyance and Contract Award The Service will make a separate and distinct conveyance decision Award will be based on best value determination consistent with the evaluation factors and subfactors The lowest priced proposal may not receive the award; likewise, the highest rated technical proposal may not receive the award Government may evaluate and award without discussions, therefore, offerors are encouraged to submit their best offer as their initial offer The total evaluated price will be considered as part of the Service business case analysis for conveyance purposes, as required by 10 U.S.C. § 2688

Award

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M.2 Evaluation Factors and Subfactors for Contract Award

Proposal will be evaluated based on 6 Factors:

Factor 1: Technical Capability Factor 2: Past Performance Factor 3: Risk Factor 4: Cybersecurity Factor 5: Socioeconomic Factor 6: Price

Technical Capability Risk, and Cybersecurity will be evaluated at the subfactor level

Award

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M.2 Evaluation Factors and Subfactors for Contract Award (continued)

Factor 1: Technical Capability

Subfactor 1: Service Interruption / Contingency and Catastrophic Loss Plan Subfactor 2: Operations and Maintenance Plan / Quality Management Plan Subfactor 3: Initial System Deficiency Corrections / Upgrades / Connections and Renewals and Replacements Plan Subfactor 4: Operational Transition Plan

Award

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M. 2 Evaluation Factors and Subfactors for Contract Award (continued) Factor 2: Past Performance Factor 3: Risk Subfactor 1: Performance Risk Subfactor 2: Assurance of Long-Term Price and Service Stability Subfactor 3: Price Risk Subfactor 4: Other Possible Long-Term Costs and Benefits to the United States Factor 4: Cybersecurity Subfactor 1: System Security Plan Subfactor 2: Cybersecurity Contingency Plan Factor 5: Socioeconomic Factor 6: Price

Award

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M.2.1 Order of Importance for Evaluating Factors and Subfactors Technical Capability, Past Performance, and Risk are approximately equal in importance Cybersecurity is less important than Technical Capability, Past Performance and Risk, and more important than Socioeconomic Socioeconomic is significantly less important than Technical Capability, Past Performance and Risk When combined, Technical Capability, Past Performance, Risk, Cybersecurity, and Socioeconomic are significantly more important than Price

Award

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M.2.1 Order of Importance for Evaluating Factors and Subfactors (continued) Technical Capability, Risk, and Cybersecurity will be evaluated at the subfactor level

Under Technical Capability subfactors 1 through 3 are of approximately equal importance, and together are significantly more important than Subfactor 4. However, a less than acceptable rating in any subfactor will result in a less than acceptable rating for Technical Capability.

Under Risk, all subfactors are approximately equal in importance; however, an unacceptable rating in any subfactor will result in an unacceptable rating for the Risk factor Under Cybersecurity, all subfactors are approximately equal in importance; however, an unacceptable rating in any subfactor will result in an unacceptable rating for the Cybersecurity factor

Less Important More Important Subfactors approximately equal in importance Subfactor less important than other subfactors Factors combined more important than Price

Legend

Award

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Technical Capability

1. Service Interruption/ Contingency and Catastrophic Loss Plan

2. Operations and Maintenance Plan/ Quality Management Plan

Past Performance

Risk

1. Performance Risk

3. 2. Initial System Deficiency/Upgrade/ Connections and Renewals and Replacements Plan

4. Operational Transition Plan

2. Assurance of Long-Term Price and Service Stability

3. Price Risk

4. Other Possible Long-Term Costs and Benefits to the United States

No Subfactors

Cybersecurity

1. System Security Plan (SSP)

2. Contingency Plan (CP)

Socioeconomic

Price

Award

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M.3 Conveyance Determination

Once an offeror is selected, but before an award can be made, the Service determines whether conveyance of the utility system will be made Conveyance decision is distinct and separate from the procurement decision The conveyance decision is made by the Service IAW 10 U.S.C. § 2688 and Office of Management and Budget (OMB), Department of Defense (DoD), and Military Service executive policies

Milestones Norfolk Naval Shipyard, VA

SP0600-25-R-0800

*Subject to change

DLA Energy POCs

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Contracting Officer:

Contract Specialists:

Tips for Submitting Utilities Privatization Proposals

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Read the technical requirements thoroughly Don’t assume we know anything about your industry or pricing when submitting proposals If you have escalation factors or regulated tariffs, please provide details on them for Government review. The more detail you provide, the better a proposal can be evaluated against the requirements When it comes to ISDCs, lump sum pricing is not enough. Thorough information about how you will approach this is necessary, both for the technical approach description and pricing build up

Questions Questions?

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