SP060025R0800.pdf
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- Utilities Privatization - Privatization of the Electric Utility System at Norfolk Naval Shipyard, VA
- Solicitation number
- SP060025R0800
- Issued by
-
Defense Logistics Agency Energy
About this file
This document is a Request for Proposals (RFP) for the privatization of the Electric Utility System at Norfolk Naval Shipyard, Virginia, issued by the Defense Logistics Agency (DLA) Energy. The solicitation seeks a contractor to assume ownership of the electric utility infrastructure, with responsibilities including operations, maintenance, repair, upgrades, and future replacements, in accordance with 10 U.S.C. 2688 - Utility Systems: Conveyance Authority.
The RFP outlines a 50-year contract with a proposed contract start date of January 1, 2028. The selected contractor will be responsible for providing reliable utility services to all government and tenant connections within the service area, managing environmental compliance, capital investments, and system maintenance. The solicitation allows for proposals under two pricing schedules: a Regulated Tariff (Schedule B-1) or a Fixed Price with Economic Price Adjustment (Schedule B-2). Proposals are due by January 7, 2026, and will be evaluated based on factors including Technical Capability, Past Performance, Risk, Cybersecurity, Socioeconomic considerations, and Price, with technical and performance factors being significantly more important than price.
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AUTHORIZED FOR LOCAL REPRODUCTION STANDARD FORM 33 (REV. 6/2014)
Previous Edition is unusable Prescribed by GSA – FAR (48 CFR) 53.214 (c)
SOLICITATION, OFFER AND AWARD
1. THIS CONTRACT IS A RATED ORDER
UNDER DPAS (15 CFR 700)
RATING PAGE OF PAGES
1 | 140
2. CONTRACT NUMBER
3. SOLICITATION NUMBER
SP0600-25-R-0800
4. TYPE OF SOLICITATION
[ ] SEALED BID (IFB)
[X] NEGOTIATED (RFP)
5. DATE ISSUED
26 AUG 25
6. REQUISITION/PURCHASE NUMBER
SP0600-25-9501
7. ISSUED BY CODE SP0600 8. ADDRESS OFFER TO (If other than item 7)
DEFENSE LOGISTICS AGENCY
8725 JOHN J. KINGMAN ROAD
FT. BELVOIR, VA 22060-6222
OFFICER/SYMBOL: Andrew Urben/DLA Energy-FEEA
Phone: (445) 737-9595
Email: andrew.urben@dla.mil P.P. 8.2
NOTE: In sealed bid solicitation "offer" and "offeror mean "bid" and "bidder.”
SOLICITATION
9. Sealed offers in five (5) CD/DVD copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located in Item 8 until 3:00 PM Fort Belvoir, VA local time 01/07/2026.
(hour) (date)sec CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L. Provision No. 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.
10. FOR
INFORMATION
CALL:
A. NAME.
Andrew Urben
B. TELEPHONE NO. (NO COLLECT CALLS) C. E-MAIL ADDRESS
andrew.urben@dla.mil
AREA CODE
NUMBER
737-9595
EXTENSION
11. TABLE OF CONTENTS
(x) SEC. DESCRIPTION PAGE(S) (x) SEC. DESCRIPTION PAGE(S)
PART I - THE SCHEDULE PART II - CONTRACT CLAUSES
X A SOLICITATION/CONTRACT FORM 1 X I CONTRACT CLAUSES 58
X B SUPPLIES OR SERVICE AND PRICES/COSTS 2 PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACH.
X C DESCRIPTION/SPECS/WORK STATEMENT 11 X J LIST OF ATTACHMENTS 84
X D PACKAGING AND MARKING 38 PART IV - REPRESENTATIONS AND INSTRUCTIONS
X E INSPECTION AND ACCEPTANCE 39 X K REPRESENTATIONS, CERTIFICATIONS, AND 85
X F DELIVERIES OR PERFORMANCE 40 OTHER STATEMENTS OF OFFERORS
X G CONTRACT ADMINISTRATION DATA 42 X L INSTRS., COND., AND NOTICES TO OFFERORS 100
X H SPECIAL CONTRACT REQUIREMENTS 49 X M EVALUATION FACTORS FOR AWARD 136
OFFER (Must be fully completed by offeror) NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.
12. In compliance with the above, the undersigned agrees, if this offer is accepted within 300 calendar days (60 calendar days unless a different period is inserted by the offer) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.
13. DISCOUNT FOR PROMPT
PAYMENT
(See section I, Clause No 52.232-8)
10 CALENDAR DAYS (%)
20 CALENDAR DAYS (%)
30 CALENDAR DAYS (%)
CALENDAR DAYS
14. ACKNOWLEDGMENT OF AMENDMENTS
(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):
AMENDMENT NO. DATE AMENDMENT NO. DATE
CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER
15A. NAME
AND
ADDRESS
OF
OFFEROR
CAGE CODE-
(Type or print)
15B. TELEPHONE NUMBER
15C. CHECK IF REMITTANCE ADDRESS
IS DIFFERENT FROM ABOVE - ENTER
SUCH ADDRESS IN SCHEDULE
17. SIGNATURE
18. OFFER DATE
AREA CODE NUMBER EXTENSION
AWARD (To be completed by Government)
19. ACCEPTED AS TO ITEMS NUMBERED
20. AMOUNT
21. ACCOUNTING AND APPROPRIATION
22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN
COMPETITION:
[ ] 10 U.S.C. 2304(c) [ ] 41 U.S.C. 3304(a)( )
23. SUBMIT INVOICES TO ADDRESS SHOWN IN
(4 copies unless otherwise specified)
ITEM
24. ADMINISTRATION BY (If other than Item 7) CODE
25. PAYMENT WILL BE MADE BY CODE
26. NAME OF CONTRACTING OFFICER (Type or print)
27. UNITED STATES OF AMERICA
(Signature of Contracting Officer)
28. AWARD DATE
IMPORTANT – Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice
SP0600-25-R-0800 UTILITIES PRIVATIZATION
NORFOLK NAVAL SHIPYARD, VA ELECTRIC UTILITY SYSTEM
Section B
Supplies or Services and Prices/Costs
B.1 Systems to be Privatized
The utility system (hereinafter known as (the “system(s)” or “utility system(s)”) shown below represent the utility system included in this solicitation for privatization:
Installation, State Utility System
Norfolk Naval Shipyard, VA Electric Utility System
B.2 Schedules
B.2.1 Schedule B-1 Regulated Tariff a Available only to entities that:
a) Are approved, as of the date set for submission of initial proposals, to provide utility services by the applicable State regulatory authority body(s); and
b) Are proposing to provide utility services under an existing tariff or a similarly-structured tariff.
Utility System: ________________
CLIN Supplies/Services Qty Unit Unit
Price
Total
0001 Utility Services Charge Months
FP
The unit price is the Applicable Tariff(s) less the monthly credit as payment for the purchase price
(PP) plus the recoverable portion of the purchase price.
Applicable Tariff b $
Monthly Credit for PP $
# of Months
Interest Rate %
Recoverable Portion of PP $
Interest Rate %
Unit Price $
0002 Initial System Deficiency Corrections/
Upgrades/Connection Charges
FFP
0003 Transition Period Each a Utility system to be filled in by the Offeror. A Schedule B-1 must be completed for each utility system offered, except as specifically stated in Section L. Utility systems are shown in paragraph B.1, Systems 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.
B.2.2 Schedule B-2 Fixed Price Economic Price Adjustment a Available to offerors proposing a Fixed Price Economic Price Adjustment (FPEPA)
Utility System: ________________
CLIN Supplies/Services Qty Unit Unit
Price
Total
0001 Utility Services Charge Months
FPEPA
The unit price is the Utility Services Charge less the monthly credit as payment for the purchase price (PP) plus the recoverable portion of the purchase price.
Utility Services Charge b $
Monthly Credit for PP $
Interest Rate
Recoverable Portion of PP $
Interest Rate
Unit Price $
0002 Initial System Deficiency Corrections/
Upgrades/Connection Charges
0003 Transition Period Each a Utility system to be filled in by the Offeror. A Schedule B-2 must be completed for each utility system offered, except as specifically stated in Section L. Utility systems are shown in paragraph B.1, Systems to be Privatized.
b The offeror should enter the Utility Services Charge, as computed in Price Data Sheet 1.
B.3 Price Data Sheets
Offerors must complete the applicable Price Data Sheets that are consistent with their proposed pricing methodology:
B.3.1 Price Data Sheet 1 – Utility Services Charge
B.3.2 Price Data Sheet 2 – Renewals and Replacements – 50-YEAR Plan
For each inventory component/item listed in the utility-specific attachment, clearly show the dollar value of the planned R&R (if any) for each year 1-50. This Plan represents the offeror’s conceptual methodology that will be used for evaluation purposes.
Component Monthly Charge
1. Operations and Maintenance (O&M)
2. Renewals and Replacements (R&R)
Total Utility Services Charge
(to be entered into CLIN 0001 for Schedule B-1 (if applicable) and Schedule B-2)
A B C D E F G H I J K L M N O P Q R
Year 1
(Const $)
Year XX
(Const $)
Year 50
(Const $)
Cumulative
Total
Total
Residual
Value in Year
50 (Const $)
New Item
Service Life
New Item
RCNItem Size Quantity Unit
Approx Year
Installed
Existing
Unit RCN
Planned Renewals & Replacements Existing
Item Service
Life
First Expected
Replacement
Date New Item
New Unit
Cost RCN
Next Replace
Dates
B.3.3 Price Data Sheet 3 – Initial System Deficiency Correction(s) / Upgrade(s) / Connection Charge(s) / Transition Period
B.3.4 Price Data Sheet 4 – Recoverable Portion of Purchase Price
Project
Name
Interest
Rate
Project Cost
(Current $)
Project Start
Month
First Full
Month
Project will
Be In Service
Amortization
Period
(Months)
Monthly
Charge
Item Interest
Rate Amount
Amortization
Period
(Months)
Monthly
Charge
Recoverable Portion of
Purchase Price
B.3.5 Price Data Sheet 5 – Proposal 50-Year Charges to the Government, Applicable Tariff Notes: 1. Offerors shall provide for Applicable Tariff 2. Contract year - Fill in for each year (1-50)
PRICE DATA SHEET 5 – REGULATED TARIFF
Payment by the Government for Utility Services a b c d e f g h i j k l m n
Contract
Year
Applicable
Tariff less
FIT
FIT for
Applicable
Tariff
Credit for
Purchase
Price
Recoverable
Portion of
Purchase
Price
Subtotal
CLIN 0001
(b+c+d+e)
ISDC
Projects less FIT
FIT for
ISDC
Projects
Subtotal
CLIN 0002
(g+h)
Transition
Charges less FIT
FIT for
Transition
Charges
Subtotal
CLIN 0003
(j+k)
Total
Contract
Costs
(f+i+l)
Assumed
Inflation
Rate (%)
Nominal Nominal Nominal Nominal Nominal Nominal Nominal Nominal
1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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14 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
15 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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24 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
25 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
26 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
27 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
28 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
29 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
30 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
31 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
32 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
33 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
34 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
35 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
36 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
37 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
38 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
39 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
40 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
41 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
42 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
43 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
44 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
45 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
46 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
47 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
48 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
49 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
50 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Totals -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Contract Items
CLIN 0001 - Utility Service Charge
CLIN 0002 - Initial System
Deficiency Corrections /
Connection Charges
CLIN 0003 - Transition Period
Charges
B.3.6 Price Data Sheet 6 – Proposal 50 Year Charges to the Government, Constant 2029$
Notes:
1. Offerors shall provide for Schedule B-2
2. Contract year--Fill in for each year (1-50)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r)
Contract
Year
Operations &
Maintenance less FIT FIT for O&M
Other Costs &
Credits, Net
FIT for Other
Costs &
Credits, Net
Non Federal
Income Taxes
& Fees
Purchase
Price
Recovery
Purchase
Price Credit
Renewals &
Replacements less FIT FIT for R&R
Subtotal
CLIN 0001
ISDC Projects
Amortization less FIT
FIT for ISDC
Projects
Subtotal
CLIN 0002
Transition
Charges less
FIT
FIT for
Transition
Charges
Subtotal
CLIN 0003
Total
Contract
Costs
Real Real Real Real Real Nominal Nominal Real Real -- Nominal Nominal Nominal Nominal Nominal Nominal --
1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
3 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
4 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
5 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
6 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
7 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
8 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
9 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
10 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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18 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
19 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
20 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
21 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
22 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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27 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
28 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
29 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
30 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
31 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
32 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
33 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
34 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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42 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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48 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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50 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Totals -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Contract Items
CLIN 0001 - Utility Service Charge CLIN 0002 - Initial System Deficiency
Corrections / Connection Charges CLIN 0003 - Transition Period Charges
SECTION C
Description/Specifications/Work Statement C.1 Precedence In accordance with Federal Acquisition Regulation (FAR) 52.215-8, any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: (a) The
Schedule (excluding the specifications); (b) Representations and other instructions; (c) Contract clauses; (d) Other documents, exhibits, and attachments; and (e) The specifications. Additionally, the terms and conditions of Sections A through K, including the Section J attachments, shall take precedence over any inconsistent provisions contained within portions of the Contractor’s proposal incorporated in or made exhibits to the Contract. Exceptions not specifically identified by the
Contractor in its proposal in accordance with the requirements of Section L of the solicitation and expressly accepted by the Contracting Officer in writing shall not be deemed to be part of the
Contract and shall not be binding on the Government.
C.2 Authority, Scope, and Program Goal
C.2.1 General The Government seeks to convey the utility system identified in this solicitation, provided a favorable business case exists to do so. Subsequent to the Military Service’s decision to convey the utility system(s), the Government will enter into a contract to acquire the corresponding utility service(s) from the Contractor as the new owner of the system. The Government is requesting proposals for the purchase of the utility system listed in Section B.1, Systems to be Privatized, and the provision of utility service(s) across the system. The Government will consider the purchase of commodities with the utility services offer(s) on a case-by-case basis.
C.2.2 Authority Utilities privatization consists of two transactions: 1) the conveyance of the utility infrastructure via a Bill of Sale; and 2) the acquisition of utility services on the privatized system via a utility services contract. The conveyance of the utility system is a property disposal action made in accordance with 10 U.S.C. § 2688 and is not covered under the FAR or this solicitation. The acquisition of utility services is a FAR Part 41 acquisition and will be governed by the FAR and its applicable supplements. Accordingly, proposals will be evaluated for selection of a prospective awardee under the provisions of the FAR and this solicitation. Once a prospective awardee is identified, that entity’s proposed price will be utilized by the Military Service to conduct a conveyance decision business case analysis in accordance with executive policy, including Office of Management and Budget (OMB), Department of Defense (DoD), and Military Service policies applicable to conveyances under 10 U.S.C. § 2688.
C.2.3 Scope The Government seeks a Contractor to assume ownership of the utility system and infrastructure specified in Section B.1, Systems to be Privatized, and as the new owner, to operate and maintain the systems and provide utility services to the Government. Assumption of ownership will be in accordance with 10 U.S.C. § 2688. Provision of utility services shall be performed in accordance with all terms, conditions, and special contract requirements, specifications, attachments, exhibits, and drawings contained in this solicitation or incorporated by reference.
Offerors are not required to propose on all of the utility systems specified in the Schedule unless otherwise specified in the Section J Attachments. Proposals may be submitted on individual system(s) or on groups of systems on an all-or-none basis. The Government may consider any efficiencies gained and/or cost savings that may be achieved by awarding multiple systems to a single offeror. If an offeror submits a grouped proposal but also wants to be considered for award on any system on an individual basis, the offeror shall submit an alternate proposal(s), as necessary.
C.2.4 Program Goal The desired goal of the conveyance is to transfer all rights, title, and interest of the Government in and to the utility system listed in the Schedule. Consequently, the Government will retain no reversionary interests in the utility system sold, other than the terms regarding the repurchase option and rights of access. The transfer of title will be accomplished after contract award and full transfer is the intended and preferred consequence. The utility system being sold includes equipment, fixtures, structures, and other improvements utilized in connection with the utility system, which will be more specifically described in the Bill of Sale. The divestiture will not include the real property upon, under, or around the utility system. The sale will be documented by a Bill of Sale, see sample at Reference JR1 to this RFP. In addition to the sale of the utility system identified in the Bill of Sale, the Government will also acquire utility services from the transferee.
C.2.5 Utility Systems Attachments are included in Section J for each utility system listed in Section B.1, Systems to be
Privatized, and are herein referred to as “utility-specific attachments.” The utility-specific attachments provide details and requirements specific to that utility system. Upon contract award, the appropriate attachments will be included in the contract and the others will be removed.
C.2.5.1 The property being sold in this action will be as described in the utility-specific attachments of the solicitation. The system will be sold in an “as is, where is” condition without any warranties, representations, or obligation on the part of the Government to make any alterations, repairs, or improvements. Any proposal that offers an alternative description of the property being sold may be deemed technically unacceptable.
C.3 Requirement
C.3.1 Utility Services Requirement Subject to the terms and conditions in this RFP, the Contractor (a.k.a. “System Owner”) shall furnish all necessary labor, management, supervision, permits, licenses, certifications, equipment, supplies, materials, transportation, and any other incidental items or services required for the complete ownership of and provision of utility services via these utility systems, including operation, maintenance, repair, upgrade, and improvement of the systems.
The Contractor shall provide reliable, resilient and efficient utility services to each Government or tenant connection within the service area (see Section C, Service Area) 24 hours each and every day. The Contractor shall be responsible for providing capital investments and all other resources required to own, maintain, and operate its utility system in a safe and reliable condition, and to meet all the requirements listed herein.
Access to the utility system will be as specified in Section C, Access to the Utility System.
C.3.2 Performance Standards The Contractor shall ensure adequate and dependable utility service to all facilities and equipment served. Unless otherwise provided for in this contract, the Contractor shall provide utility service in accordance with industry-standard construction, operations, maintenance, management, environmental, safety, and other relevant standards, that apply to similarly situated utility services providers serving customers whose service characteristics are comparable to the service characteristics of the Installation. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Government in its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, and unusually severe weather. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence.
Services provided shall comply with all applicable federal, state, and local laws/regulations and any Installation specific requirements set forth in the utility-specific attachments, as they may be amended from time to time, including those requirements relating to health, safety, and the environment. The Contractor shall modify its service practice as necessary to accomplish such compliance. Unless otherwise specified in the utility-specific attachments, the Contractor is not required to comply with Unified Facilities Criteria (UFCs), as the resultant utility infrastructure installed by the Contractor will not result in Government ownership. In the event that utility assets owned by the Government beyond the contractual point of demarcation require work to mitigate an emergency relating to health, safety, and the environment or otherwise jeopardize the
Contractor’s applicable permit compliance, the Contracting Officer may authorize the Contractor to complete necessary work to address the emergency and/or ensure compliance with all applicable federal, state, and local laws/regulations.
If a change in the service requirement necessitated by compliance with later imposed/modified laws and regulations or Installation requirements constitutes reasonable cause for an adjustment to the service charge, the charge will be adjusted in accordance with either FAR 52.243-1, Changes -
Fixed-Price-Alt 1, FAR 52.241-7, Changes in Rates or Terms and Conditions of Service for
Regulated Services, or 52.241-8, Change in Rates or Terms and Conditions of Service for
Unregulated Services, as applicable (hereinafter the “Changes clause”).
C.3.3 Sub-Metering The Contractor shall be responsible for reading, maintaining, and calibrating all sub-meters on the privatized utility system, as identified in the utility-specific attachments. The Government will use sub-meters for internal installation billing purposes, commodity management, and energy conservation purposes. Meter reading reports shall be submitted to the recipient identified in the utility-specific attachments.
All costs for providing, installing, reading, reporting, and maintaining the existing and additional meters shall be the responsibility of the Contractor.
C.3.3.1 Future Sub-Meters The Contractor shall provide, install, read, maintain, and calibrate sub-meters requested by the
Government for any purpose throughout the contract period. Government-approved installation of and responsibility for future sub-meters (not on the system at the time of sale or identified for installation as part of the contract) may constitute reasonable cause for an initial installation charge and a utility services charge adjustment in accordance with Section G, Price Adjustments.
C.3.4 Energy and/or Water Efficiencies and Conservation, Renewable Energy Generation, Energy Security, Resilience and New and Emerging Technologies
The Government may award additional efficiency, conservation, renewable energy, resilience or energy security projects. Future projects identified by the Contractor shall be proposed to the
Government in accordance with Section C, SDCs/Upgrades/Connections and Renewals and
Replacements. The Government may consider cost-savings sharing and incentives either through utility services charge adjustments or lump-sum payments.
C.3.4.1 Energy Security and Conservation Projects The Government may enter into energy-security projects with the Contractor or other entities.
Energy Security projects may include, but are not limited to, renewable projects, resiliency projects, microgrids, system-redundancy projects for critical infrastructure, and auxiliary or emergency generation. The Contractor shall facilitate interconnection of these projects, where the
Government or a third party is the owner/operator of any such generation assets. The Contractor agrees to take no action regarding these projects without the prior approval of the Contracting
Officer. The utility-specific attachments identify any such projects that are currently in place for the specific utility system. Projects implemented by the Government that will require changes in the privatized system shall be coordinated between the parties prior to implementation.
C.3.4.2 Future Conservation and Renewable Projects The Contractor shall strive to provide energy and /or water efficient systems. The Government may award future projects relating to new and emergent technologies, including, but not limited to, renewable projects, resiliency projects, microgrids or system-redundancy projects with either the System Owner or a third party. Future energy projects awarded by the Government that require changes to the privatized system shall be coordinated between the parties prior to implementation.
In addition, the Contractor will facilitate interconnection of new or existing renewable energy generation assets that are located on the installation, where the Government or a third party is the owner/operator of any such generation assets.
C.3.5 Commodity Supply Electric, natural gas, and water commodity supply is not included in this contract, even if any production facilities are included as part of the system to be conveyed. The Government retains the right to procure or supply any commodity that will be transported on the system covered by this contract from any source, including the Contractor if the Contractor proposes to supply the commodity via an alternate proposal. In accordance with FAR 41.102, natural or manufactured gas cannot be procured under this solicitation.
Offerors may submit an alternate proposal that includes the supply of commodities (See Section L, Alternate Proposals and Exceptions to Terms and Conditions). Such proposals will be considered on a case-by-case basis. The Government will remain the customer of record and retain ownership of all commodities transported and distributed through the Contractor-owned systems unless otherwise provided in the contract.
C.4 Service Area The Contractor shall provide utility services to all existing and, at the Government’s request, new customers. The service area is defined as all areas within the Government installation boundaries and any other facilities and property boundaries under the control of the Installation. At any time, by written order, the Contracting Officer may designate any location within the service area where utility services under this contract shall commence or be discontinued. Any service charge adjustment as a result of these actions will be in accordance with Section G, Price Adjustments.
C.4.1 Use of Privatized Systems to Serve Areas Outside the Installation Service Area The Contractor may use the utility infrastructure on the Installation to serve or benefit areas or customers outside the service area(s) only with concurrence of the Government. Compensation to the Government will be negotiated. In no way shall service to off-installation customers degrade or hinder reliable service to the Government’s facilities, or create unhealthy, unsafe, or unacceptable conditions or outages.
C.4.2 Joint Use
C.4.2.1 Government Use The Government may have property and equipment installed on or attached to poles, conduits, pipes, duct banks, towers, buildings, and other portions of the utility systems to be transferred. The
Government may continue to use the utility system for this purpose, to maintain, repair, operate, upgrade, and replace its property and equipment, and to install new Government equipment after coordinating with the Contractor. Any upgrade or replacement of such installed or attached property shall comply with all applicable safety regulations.
Attachment fees shall not apply. However, costs of any make-ready work related to safety requirements may be recovered under the contract. All new attachments will be coordinated with the Contractor prior to the attachment.
C.4.2.2 Commercial Use
C.4.2.2.1 The Contractor shall enter into joint use agreements with the Installation's telephone company, cable television company, and other service providers in accordance with applicable law and regulation.
C.4.2.2.2
Certain system components may have third-party equipment attached pursuant to a lease or other contractual arrangement between the third party and the Installation. The Contractor will take ownership of the utility system subject to such lease(s), with any revenue continuing to accrue to the Installation until the lease(s) expire or are otherwise terminated at the discretion of the
Installation. Any new lease(s), lease extensions, or other arrangements between the Contractor and any third party to permit attachment of third-party equipment to system components must be approved by the Installation and may be subject to revenue sharing, all of which must be negotiated with the Installation under separate agreement. The Installation considers cellular telephone antennae to be mission-essential equipment and requests for permission by a third party to attach such equipment to the utility system shall not be unreasonably withheld or subjected to unreasonable fees.
C.5 Utility System Ownership, Personnel, and Security
C.5.1 Utility System Ownership
C.5.1.1 Transfer of Title A general description of the utility system assets to be transferred is included in the utility-specific attachments. Prior to the transfer of title, the Government shall continue to own such facilities. The parties shall accomplish transfer of title by Bill of Sale, with access provided via the Right of
Access granted in the Contract. The Bill of Sale will provide the complete list of all assets to be sold.
The Contractor shall neither transfer nor assign its interests in the utility system assets transferred by Bill of Sale without the prior written consent of the Government. No transfer or assignment of the Contractor’s interests in the utility system assets transferred by Bill of Sale shall occur except in connection with the Government’s recognition of a successor in interest to this contract under
FAR Subpart 42.12, Novation and Change-of-Name Agreements.
An example of the Bill of Sale is provided in Section J, Attachment JR1. The parties shall prepare and execute such additional documents as may be necessary to implement the ownership transfer.
C.5.1.2 Tools, Vehicles, and Equipment Unless listed in the executed Bill of Sale, Government-owned tools, vehicles, and equipment used for system operations and maintenance that are not a physical part of the utility system will remain the property of the Government.
C.5.1.2.1 Contractor Vehicles All Contractor vehicles shall be readily identifiable. Identification shall include displaying
Contractor name in a clear and unobstructed location on the vehicle.
C.5.1.2.2 Contractor Communications Devices The Contractor shall not operate communication devices on the Installation without first obtaining approval of the Installation Communication Group by requesting an available clear frequency. The
Contractor shall follow all Installation procedures for operating communications devices on the
Installation. Approval shall be obtained in accordance with Department of Defense FAR
Supplement (DFARS) 252.235-7003, Frequency Authorization.
C.5.1.2.3 Contractor Advertising The Contractor shall not place or display (nor permit a third party to place or display) advertising of any kind on Government property or on the Contractor’s property located on the Installation.
Reasonable markings on the Contractor’s property, including vehicles, for the purpose of identifying it as the Contractor’s property are permitted.
C.5.1.2.4 Radiation-Causing Devices The Contractor shall provide the Government with notice that it has obtained all licenses required by federal laws and regulations for all licensed or licensable radiation source or byproduct materials and provide the Government copies of the licenses. The Government may deny the use or storage of any radiation source or byproduct material on the Installation. The Contractor shall comply with the terms of the licenses and all applicable federal laws and regulations when maintaining, storing, utilizing, and disposing of radiation source or byproduct materials.
C.5.1.3 Placement of Utility System The Contractor shall comply with requests from the Installation regarding the placement of new or renewal utility systems either overhead or underground, unless to do so would cause the
Contractor to violate any applicable law or regulation or would be inconsistent with sound utility operational practices.
C.5.1.4 Contractor Facilities The Contractor, at its expense, shall acquire, furnish, install, and operate and maintain all facilities required to provide the utility service hereunder. The Contractor shall have title to all facilities it builds and equipment it installs under this contract, except as otherwise provided herein. At the
Government’s sole discretion, the Contractor may be permitted to either build or lease office space, maintenance shops, materials storage/staging areas, or other facilities on the Installation, free of any rental or similar charge.
The Contractor shall be responsible for acquiring all utilities, janitorial services, building maintenance, and ground maintenance for these facilities. The Government may consent to provide certain of these services to the Contractor on a reimbursable basis, as defined in the utility-specific attachments.
The Contractor shall comply with the Installation’s architectural standards and fully coordinate with the Installation prior to beginning new construction or remodeling of existing facilities (see utility-specific attachments for list of available facilities).
C.5.1.5 Record Drawings and Utility System Maps The Contractor shall maintain record drawings for all existing and new facilities installed by the
Contractor within the service area. Upon reasonable request and with reasonable notice, the
Government may use and copy such drawings. The Contractor shall provide available drawings to the Government in the electronic media formats using the latest release software compatible with
Government systems at no cost to the Government. The Contractor will also provide information
(e.g., shape files or geodatabase) to allow for updates to the Installation Geographical Information
System (GIS).
Within one year of the contract start date and annually thereafter, the Contractor shall provide one hard copy (size to be determined by the Government) and electronic media formats (formats as agreed upon by the Government) of updated system maps to include all Contractor-owned facilities (including new infrastructure, previously unmapped infrastructure, corrected infrastructure and infrastructure properties).
The Contractor shall perform identification of unmapped infrastructure in conjunction with joint inventory and other projects to the maximum extent possible. The Contractor shall submit updated maps annually in conjunction with submission of the Annual SDC/Upgrades/Connections and
R&R Plan.
C.5.1.6 Disposition of Removed or Salvaged Materials The removal and disposition of facilities and materials that are not used and useful for the purpose of providing utility service shall be the responsibility of the Contractor. The Contractor shall notify the Contracting Officer or designated representative when removing hazardous substances in accordance with Section H., Hazardous Substances, and the Specific Service Requirements outlined in the utility-specific attachments. If the Contractor discovers preexisting abandoned utility items not identified on existing maps, the Contractor shall notify the Contracting Officer’s
Representative promptly to permit the installation to document the abandoned facilities.
Abandoned utility items not identified on existing maps but found during operations shall be documented on the Contractor’s maps and/or drawings. In order to prevent hazardous conditions, the Contractor shall ensure that no interconnections exist between abandoned and utilized facilities.
C.5.1.7 Liens and Mortgages The Contractor shall not engage in any financing or other transaction creating any mortgage upon any Government property; place or suffer to be placed upon Government property any lien or other encumbrance; or suffer any levy or attachment to be made on the Contractor's interest in any easement or Right of Access to Government property. For the purposes of this section, property shall include, but not be limited to: fee, lease, license, personal property, or any authorized
Government use or interest in property.
C.5.1.8 Communications with Media Relative to the media, the Contractor shall consult with and receive the Government's approval prior to (1) responding to inquiries or (2) initiating contact, in either case, regarding the operation or maintenance of the utility system and initiatives relative to reduction in commodity usage and attendant savings or sharing of economic benefits between the Contractor and the Government or other activities of the Government or the Contractor with respect to the utility system. The
Contractor shall not use the name or logo of the Government, its facilities or employees, in any advertising, brochures, public relations documents or news releases without the prior written consent of the Government; provided, however, the Contractor may use or furnish the
Government's name, address and telephone number as a client reference.
C.5.2 Personnel For purposes of this contract, the term “personnel” or “employee(s)” refers to any person performing work related to this contract, including but not limited to, the Contractor’s employees, agents, representatives, or subcontractors. The Contractor shall not permit any personnel to work under this contract if such person is identified to the Contractor as a potential threat to the health, safety, security, general well-being, or operational mission of the Installation or population. All personnel will comply with Installation security, health, and safety conditions.
The Contractor will allow the Installation to review on a continuing basis a listing of all personnel engaged in providing utility services to the Installation. The listing will provide sufficient information on all personnel to allow precise Government identification of each individual.
C.5.2.1 Speaking, Reading, and Understanding English Where reading, understanding, and discussing environmental, health, and safety warnings are an integral part of an employee’s duties, that employee shall be able to understand, read, write, and speak the English language fluently. All personnel that interface with customers shall be able to speak and understand the English language fluently.
C.5.2.2 Personnel Appearance and Identification The Contractor’s personnel shall present a neat appearance and be readily recognized as
Contractor personnel. As required by the Installation, the Contractor shall ensure each employee obtains from Security Forces an identification card that shall include at a minimum the employee’s name, photograph, and Contractor’s name. Each employee shall follow established Installation procedures for displaying their identification card while within the boundaries of the Installation.
C.5.2.3 Employee Certification The Contractor shall ensure that employees meet all applicable federal, state, local, and Installation certification, licensing, and medical requirements to perform all assigned tasks and functions as defined in this contract.
C.5.2.4 Installation’s Rules Apply to the Contractor Rules, regulations, directions, and requirements issued by the Installation, or other command authorities, under their responsibility for good order, administration, and security, including
Specific Service Requirements as outlined in the utility-specific attachments, apply to all personnel who enter the Installation.
C.5.2.5 Controlled-Access Areas The Contractor shall apply for personnel security clearances required for performance after the contract is awarded. Personnel requiring access to secured areas or restricted areas under the control of the Installation shall comply with applicable regulations. The Government may terminate the entry of any employee upon disclosure of information that indicates the individual’s continued entry to the Installation is not in the best interests of national security. Additionally, violation of, or deviation from, the established security procedures by the Contractor’s personnel may result in the confiscation of identification media and the denial of future entry to the
Installation. Costs resulting from such a denial, when done in accordance with Government regulations, shall be borne by the Contractor.
C.5.2.6 Conflict of Interest The Contractor shall not knowingly employ any person who is a U.S. Government employee if employing that person would create a conflict of interest. Additionally, the Contractor shall not knowingly employ any person who is an employee of the Government, either military or civilian, unless such person seeks and receives written approval according to DOD 5500.7-R, Joint Ethics
Regulations (JER).
C.5.2.7 Reserved
C.5.2.8 Employment of Quality Assurance Representative Personnel The Contractor shall not employ Quality Assurance Representatives (QAR) whom the Contractor knows or should know are responsible for monitoring any contracts/subcontracts awarded to the
Contractor.
C.5.2.9 Applicability of Service Contract Labor Standards and Wage Rate Requirements The Contractor shall comply with 41 U.S.C. Chapter 67, Service Contract Labor Standards
(formerly known as the Service Contract Act of 1965) and 40 U.S.C. Chapter 31, Wage Rate
Requirements (Construction) (formerly known as the Davis-Bacon Act), as amended and applicable, unless an exception exists.
C.6 Access to the Utility System
C.6.1 General The Contractor and its agents, employees, Contractors, and subcontractors shall have reasonable access to the Installation (Premises) to accomplish its duties and responsibilities under the
Contract.
Such access is subject to the general supervision and control of the Installation’s commander and his/her duly authorized representatives. In accepting the rights, privileges, and obligations established hereunder, the Contractor recognizes that the Installation serves the national defense and that the Government will not permit the operation, construction, installation, repair, and maintenance of a utility system and the provision of utility services to interfere with the
Installation's mission.
C.6.2 Right of Access This Installation is an operating military installation that is closed to the public and is subject to the provisions of the Internal Security Act of 1950, 50 U.S.C. § 797, and of 18 U.S.C. § 1382.
Access to the Installation is subject to the control of its Installation Commander and is governed by such regulations and orders as have been lawfully promulgated or approved by the Secretary of
Defense or by any designated military commander. Any access granted to the Contractor, its officers, employees, contractors of any tier, agents, and invitees is subject to such regulations and orders. This Right of Access is subject to all regulations and orders currently promulgated or which may be promulgated by lawful authority as well as all other conditions contained herein.
Such regulations and orders may, by way of example and not by way of limitation, include restrictions on who may enter, how many may enter at any one time, when they may enter, and what areas of the Installation they may visit, as well as requirements for background investigations, including those for security clearances, of those entering. The Contractor is responsible for the actions of its officers, employees, Contractors of any tier, agents, and invitees while on the Installation and acting under this Right of Access.
In the event all or any portion of the Premises shall be needed by the Government or in the event the presence of the Contractor’s property shall be considered detrimental to governmental activities, the Contractor shall, from time-to-time and upon notice to do so, and as often as so notified, remove or relocate its property to such other location or locations on the Premises as may be required by the contracting officer or authorized representative, and in the event the
Contractor’s property shall not be removed or relocated within 90 days after any aforesaid notice, the Government may cause the same to be done. Any removal or relocation of the Contractor’s property at the direction of the Government under Section C.6.2 shall be at the Government’s expense.
The Contractor shall neither transfer nor assign this Right of Access nor any interests or rights thereunder without the prior written consent of the Government. No transfer or assignment of the
Contractor’s rights or interests under this Right of Access shall occur except in connection with the Government’s recognition of a successor in interest to this contract under FAR Subpart 42.12, Novation and Change-of-Name Agreements.
C.6.2.1 Condition of the Premises The Contractor is granted access to the Premises in an “as is, where is” condition without any warranty, representation by the Government concerning the condition of the Premises, or obligation on the part of the Government to make any alterations, repairs, improvements, or corrections to defects whether patent or latent. At such times and for such part of the Premises as the Installation Commander may determine, the Government and the Contractor, hereinafter referred to as the “Parties,” will prepare and sign a Physical Condition Report to reflect the condition of the Premises prior to the Premises being disturbed by the activities of the Contractor.
Such Report shall be used by the Government upon the expiration or termination of this Contract to determine whether the Contractor has fulfilled its obligations to maintain and restore the
Premises to the condition required by this Contract.
C.6.2.2 Alteration of Premises
If the Contractor’s property located on the Premises intrudes into airspace subject to regulation under the Federal Aviation Regulations or their military counterparts, such property shall be operated, constructed, installed, repaired, and maintained in conformance with such regulations.
C.6.2.3 Government Access Nothing in the Contractor’s Right-of-Access shall be interpreted as interfering with or otherwise limiting the right of the Government and its duly authorized officers, employees, contractors of any tier, agents, and invitees to enter upon the Premises for any lawful purpose.
C.6.2.4 Other Grants of Access This Right of Access is subject to all outstanding easements, rights of way, leases, permits, licenses, and uses for any purpose with respect to the Premises. The Government shall have the right to grant additional easements, rights of way, leases, permits, and licenses, and make additional uses with respect to the Premises. Provided, however, that the Government shall not grant any such additional easements, rights of way, leases, permits, licenses, or uses which will, as determined in the sole discretion of the Government, unreasonably interfere with the Contractor's use of the Premises under this Contract.
C.6.2.5 Reserved
C.6.2.6 Liability for Damages In performance of its obligations under this Contract, the Contractor shall keep the Premises in a clean, safe condition by and at the expense of the Contractor.
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